The Perfect Brew: Unlocking the Secrets of the Coffee Bean Craze

Record-breaking Coffee Prices Spur Exponential Demand for Coffee Plant Saplings in Vietnam’s Central Highlands

The 2024-2025 coffee season in Vietnam’s Central Highlands, the country’s largest coffee-producing region, has witnessed an unprecedented surge in coffee prices, reaching 35,000 VND/kg, a remarkable 65% increase compared to the previous year.

This price hike has sparked a tremendous demand for coffee plant saplings among farmers in the region, particularly in Dak Lak province, the epicenter of coffee production.

In Hoa Thang township, Buon Ma Thuot city, which hosts the largest sapling market in Dak Lak, there is a bustling atmosphere with a constant stream of vehicles coming to purchase saplings from nurseries and businesses.

Mr. Nguyen Ba Phuong, owner of a large nursery in Hoa Thang, shared that the surge in coffee bean prices has led to a corresponding increase in demand for coffee plant saplings. In recent days, his nursery has been bustling with farmers from various parts of Dak Lak and Dak Nong provinces, eager to purchase coffee saplings.

To meet this exceptional demand, Mr. Phuong’s nursery has proactively cultivated 100,000 seedling coffee plants and 10,000 grafted coffee plants. Despite it being the early stages of the planting season, over 50% of his stock has already been snapped up by eager farmers and resellers.

A veteran nursery owner in Hoa Thang, with over 40 years of experience, shared that he has never witnessed such a rush for coffee saplings. His nursery produced 4,000 saplings, which were quickly sold out.

“We’re selling as fast as we can produce,” he said. “Most of my customers are resellers from other districts, and they buy in bulk. I’ve sold out my stock, and I can’t produce more because the grafting shoots are also in short supply.”

Soaring Prices, Robust Demand

This surge in demand for coffee plant saplings has not only stimulated production but also led to a significant increase in prices.

A survey of a sapling business in Cu M’gar district, Dak Lak province, revealed that seedling coffee plants are now priced between 7,000-8,000 VND/plant, while grafted coffee plants range from 18,000-20,000 VND/plant, depending on the variety and size.

Ms. Ho Thi Thu Hue, owner of a nursery in Krong Buk commune, Krong Pak district, Dak Lak province, shared that coffee plant saplings are in high demand. Her nursery produced over 10,000 saplings last year, and this year, they have tripled their production. Ms. Hue emphasized that the prices of grafted coffee saplings have doubled compared to last year, increasing from 8,000-12,000 VND/plant to 16,000-20,000 VND/plant, depending on the variety. This price hike is attributed to the rising costs of land for nurseries, shoots, and seeds.

Despite the significant increase in prices, coffee plant saplings remain in high demand. In a single afternoon, Ms. Hue sold several hundred coffee saplings. Many resellers had placed their orders with her nursery even before the Lunar New Year holiday. Farmers, too, began purchasing saplings as early as April, with those who have access to water sources starting their plantings immediately, rather than waiting for the rainy season.

Mr. Dao Huu Hien, Director of the Ea Kmat Coffee Research and Technology Transfer Center, confirmed the heightened demand for coffee plant saplings among farmers since 2023. The province is home to hundreds of sapling producers, primarily cultivating seedling and grafted coffee plants.

This year, the center has produced approximately two million coffee plant saplings to meet market demand. Seedling coffee plants are priced at 4,500 VND/plant, while grafted coffee plants are offered at 9,000 VND/plant.