According to survey by Industry and Trade Magazine coffee prices today in the Central Highlands region increased from 600 – 800 VND/kg, fluctuating between 60,000 – 60,900 VND/kg.
Specifically, today’s coffee price in Lam Dong increased by 600 VND/kg, to 60,000 VND/kg – the lowest among the surveyed localities. Coffee price in Gia Lai increased by 800 VND/kg, to 60,800 VND/kg.
Coffee prices today in Dak Lak and Dak Nong both increased by 700 VND/kg, to 60,900 VND/kg – the highest among the surveyed localities.
According to Mr. Do Ha Nam – Vice Chairman of Vietnam Coffee – Cocoa Association (Vicofa), also Chairman of the Board of Directors, General Director of Intimex group – Vietnam’s leading coffee export company, new crop coffee is offering for sale at 60,000 VND/kg, delivery in December 2023 and January 2024. This price is much higher than the previous crop due to large purchasing demand from export and FDI enterprises.
Mr. Do Ha Nam said: “In the history of the coffee industry, not only have Vietnamese businesses bought young coffee (ie buying before harvest – PV), but quite a few FDI enterprises have also bought it. Buy in advance with a fairly large amount of goods. Before November 2023, the buying price was up to 64,000 VND/kg, currently the coffee price is still at 60,000 VND/kg. This is an unprecedented price at the beginning of the season and has never had such a high price in Vietnam.”
An important problem in Vietnam is that there is no longer any inventory, while normally in the past the inventory was between 150,000 – 200,000 tons, but this year Vietnam completely lacks this source of goods, signaling a very abnormal situation. often in the near future for the Vietnamese coffee industry.
According to Mr. Do Ha Nam, if in the 2022/2023 crop until June 2023 there will be almost no goods left to buy except inventory, then this year Vicofa forecasts that it may be in May 2024, even April 2024, Vietnam will no longer have goods to buy.
Meanwhile, Europe’s need to import Robusta coffee is huge and it almost completely relies on Vietnamese Robusta coffee, at least from now until the end of April 2024.
“If everything goes into the Vietnamese market, from now until the end of April 2024, everyone will only buy Vietnamese coffee, which will make the supply very tense. Thus, Vietnamese coffee prices will increase at least until April 2024, before Indonesia starts a new crop and may be the most expensive in the world in 2024,” Mr. Do Ha Nam emphasized.
Also mentioned is coffee export information from the Vietnamese market, sheet The Star (Malaysia) said “Vietnam’s coffee exports are forecast to decrease due to low productivity”.
The article quotes leaders of coffee associations and businesses as saying that Vietnam’s coffee exports in the 2023-2024 crop year may be lower than a year ago due to reduced output.
Specifically, the Vietnam Coffee and Cocoa Association said that without inventory, domestic demand increases and export prices will remain high.
Speaking at the 27th Asian International Conference in Ho Chi Minh City earlier this week, Mr. Nguyen Nam Hai, Chairman of the association, said that Vietnam, the world’s largest supplier of Robusta coffee beans, is entering the fall season. 2023-2024 plan with about 50% of total cultivated area, harvest and output estimated to decrease more than expected.
He said the new crop year can achieve an output of 1.6 million – 1.7 million tons compared to 1.78 million tons in the previous crop due to unfavorable weather and shrinking planting area. He added that Vietnam’s coffee exports in the first 11 months of 2023 decreased by nearly 13% compared to the same period in 2022 and are likely to decrease by nearly 15% for the whole year.
Mr. Do Ha Nam, Vice President of the association and Chairman of Intimex Group, stated that the coffee growing area, especially in Dak Lak and Dak Nong, is shrinking.
He added that each hectare of coffee brings a profit of about 200 million VND, while avocado brings from 1 billion VND to 1.5 billion VND, more than 5 times more than coffee. This makes it difficult to keep farmers involved in coffee growing.
Steve Wateridge, head of research at consulting firm Tropical Research Services, said there has been a large global coffee supply deficit over the past two years, significantly affecting inventories and prices.
Global Robusta coffee consumption increased by 10% by 2023, while Arabica coffee production decreased by 8%, he said, adding that higher demand has pushed up Robusta coffee prices. .
Mr. Nam said that 2023 is important for Vietnam’s coffee industry as domestic and export prices continue to increase.
