The price of green coffee in the Central Highlands provinces hit a record of 80,000 VND for the first time in mid-February 2024 and continues to increase sharply. By the morning of February 20, 2024, domestic coffee prices had surpassed the mark of 82,000 VND/kg, an increase of 14,000 VND/kg compared to January 1, 2024.
The high prices of coffee make farmers so excited.
The lack of coffee supply in Vietnam is one of the leading factors making prices go up. Meanwhile, in the world market, in the context of consumers tightening their spending, many people switch from Arabica coffee (high price) to Robusta coffee (lower price). This has caused the consumption of Robusta coffee – the main product in Vietnam to increase.
CONSTANTLY SETTING NEW HIGHS
On the world coffee trading floors, at the end of the trading session earlier this week (February 19, 2024), the price of Robusta coffee on the ICE Europe – London floor increased for the third consecutive session.
Meanwhile, the price of Arabica coffee on ICE US – New York has not changed because this market was closed for President’s Day.
Robusta coffee prices continued to rise when trading alone due to concerns about supply from major producing countries in Asia.
In the domestic market, enterprises continuously increased the purchasing price of green coffee. This is causing the price of green coffee in the Central Highlands to set a new peak every day. Specifically, the price of green coffee was 60,000 VND/kg at the beginning of December 2023, reached a record of 70,000 VND/kg at the beginning of January 2024, and set a historical mark of 80,000 VND/kg on February 15, 2024. By the morning of February 20, 2024, green coffee in the Central Highlands is purchased by businesses at 81,300 – 82,000 VND/kg, an increase of 1,000 – 1,100 VND compared to February 19, 2024.
Thus, compared to a year ago, the domestic price of coffee is now more than double the price of 39,000 VND/kg in February 2023. Moreover, the price of Robusta coffee on the world market increased by about 80% compared to the time the price reached 1,900 USD/ton at the beginning of the previous year.
The domestic prices of coffee exceed 80,000 VND/kg.
COFFEE EXPORT TURNOVER IS EXPECTED TO REACH OVER 4.5 BILLION USD
“In January 2024, coffee exports reached 210,000 tons, up 48% in volume. Turnover reached more than 621 million USD, up 99.6% in value over the same period in 2023”.
General Directorate of Customs
In the first two months of 2024, coffee prices have continuously increased, which is an advantage for exporting countries such as Vietnam. According to the Vietnam Commodity Exchange (MXV), the contract price of Robusta in February 2024 is at 3,435 USD/ton, setting a new peak in 28 years.
MXV said that concern about supply in the market continues to be a key factor in helping coffee prices approach new peaks.
Meanwhile, the Vietnam Cocoa Coffee Association (VICOFA) estimates that Vietnam’s coffee production in the 2023/24 season continues to decrease by another 10% compared to the previous crop. At the same time, the US Department of Agriculture (USDA) forecasts that output in the other two major suppliers, Brazil and Indonesia, will decrease by 6.2% and 8%, respectively, compared to the 2022/23 crop.
Vietnam’s coffee is at the most abundant time of the year when harvesting is expected to end around the end of January 2024.
Coffee prices are expected to remain at a high level to in the first half of 2024. This is a quite good step for the target of more than four billion USD for the third consecutive year. It is even possible to expect a turnover of 4.5-5 billion USD./.