The sharp increase in the export prices of coffee was because traders actively buy coffee for the Lunar New Year holiday.
The Ministry of Agriculture and Rural Development said that in January 2024, coffee exports reached 230,000 tons with a value of 623 million USD. This was up 61.6% in volume and 100.3% in value over the same period in 2023.
In the days right before the Lunar New Year 2024, the average price of coffee in the Central Highlands provinces continued to increase compared to the previous week. Coffee was purchased at about 78,200-79,400 VND/kg.
Vietnam’s average coffee export price in 2023 was 2,614 USD/ton, up 14.5% compared to 2022.
In Dak Lak, the average price of coffee reached 77,993 VND/kg, up 5.22% over the previous week (up 3,867 VND/kg) and 81.92% over the same period in 2023.
In Lam Dong, the average price of coffee reached 77,400 VND/kg, up 5.39% over the previous week (up 3,960 VND/kg) and 82.81% over the same period last year.
The lowest price was 78,200 VND/kg in Lam Dong, slightly higher than Gia Lai at 78,900 VND/kg. The two provinces of Dak Lak and Dak Nong traded around the price of 79,000 VND/kg.
The reason for the sharp increase in coffee prices was that traders actively buy coffee for the Lunar New Year holiday. Exporters were afraid of shortages like last year so they tried to buy more.
It is forecast that Dak Lak’s annual coffee production in 2023-2024 will reach 580,000 tons. Accordingly, the province’s coffee export output is expected to be 330,000 tons. If the price is at the current high level and fluctuates slightly in the coming time, coffee export turnover can reach 900 million USD.
In parallel with taking advantage of new opportunities from the market, Dak Lak is implementing solutions to improve both productivity and product quality and increase investment in deep processing. Besides, the province needs to make a sustainable development plan for the coffee industry by increasing the quality and deep processing to avoid risks from the market.
Coffee exports in January 2024 increased sharply.
In the 2023-2024 season, by the beginning of January, the coffee harvest in Lam Dong reached 523,930 tons, accounting for 96.1% of the plan. The coffee area of the whole province is 175,708 ha with 163,520.8 ha for harvest. Lam Dong’s production this year is expected to reach over 535,000 tons.
On the world market, the ICE Report Center’s data shows that the inventory level at ICE Europe-London remained at the lowest level since 2014. This will continue to support coffee prices in the short term.
Vietnam aims to build a chain of high-quality Vietnamese coffee products associated with green growth and sustainable development. In 2023, Vietnam’s coffee exports reached more than 1.6 million tons (about 27 million bags), down 8.7% compared to 2022 but up 4.6% in value to a record of more than 4.24 billion USD. Vietnam’s average coffee export price in 2023 reached 2,614 USD/ton, up 14.5% compared to 2022.
According to the Vietnam Cocoa Coffee Association, in the 2023-2024 season, Vietnam’s coffee production is expected to decrease to 1.6-1.7 million tons, lower than 1.78 million tons in the 2022-2023 season.
Concerns about local supply shortages in the market amid escalating Red Sea tensions is one of the key factors pushing up coffee prices. Facing the risk of supply chain disruption, experts said that coffee exports in the first quarter of 2024 from Asia to the world’s two largest consumption markets, the US and Europe, may decrease by 36% over the same period./.
