Talk to Newspaper Laborer, Mr. Tran Dinh Trong, Chairman of the Board of Directors, Director of Ea Tu Cooperative (Buon Ma Thuot City, Dak Lak Province), excitedly said that the coffee price had reached 85,000 VND/kg, double the same period last year. . At this price, coffee farmers win big.
Coffee price reached 85,000 VND/kg, a record high in history
Mr. Trong calculated that each hectare of coffee yields 3.5 – 3.8 tons. For example, 1 hectare has the highest yield of 3.8 tons, calculated at the current price of 85,000 VND/kg, and will achieve a revenue of 323 million VND. After deducting costs, coffee growers can earn a profit of more than 220 million VND/hectare.
According to Mr. Trong, coffee prices are at a record high for decades. However, the cooperative does not dare to stockpile goods because it is difficult to predict price movements and sell out wherever they buy.
Currently, Ea Tu Cooperative cooperates with members and farmers to develop raw material areas of up to 350 hectares. The cooperative is also considering researching organic coffee growing and promoting roasting and deep processing of this product.
Meanwhile, Mr. Le Duc Huy, General Director of 2-9 Dak Lak Import-Export Company Limited (Simexco Daklak), informed that the world’s demand for Vietnamese robusta coffee is very large, this is the reason. leading to domestic coffee prices increasing compared to many years in history. Coffee farmers earn higher profits.
Along with that, another reason for the increase in coffee prices is that some green coffee products are used for roasting and grinding to dissolve in water, so domestic demand increases.
The supply of coffee among the people is not much left
On the business side, Mr. Huy said there is no shortage of export orders, but in fact, businesses do not dare to receive additional orders for the second quarter of 2023, because the supply of goods in the population is not much.
“It is estimated that the amount of coffee in the population is still very low, this situation is opposite to every year. Normally, it takes until June for the supply to run out, but now at the end of February there are signs of nearly running out” – General Director of Simexco Daklak said.
Therefore, world orders may be shifted by roasters to import from other countries such as Indonesia and Brazil when they are about to harvest.
According to the Ministry of Agriculture and Rural Development, Vietnam’s coffee export turnover in the first 2 months of 2024 reached 1.38 billion USD (up 85%) over the same period. Coffee is one of the products with impressive growth rate, helping the agricultural industry achieve export turnover of nearly 10 billion USD.
According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, this is a good starting signal for the agricultural sector to strive to achieve the export target of 54 – 55 billion USD this year.
However, Deputy Minister Tien also acknowledged the unpredictable risks that could affect coffee exports in particular and agricultural products in general, such as Red Sea conflicts, geopolitical tensions… The agricultural sector needs to closely follow market developments, flexible and adaptive adjustments will reach the finish line.
For the coffee industry, although prices are at record highs, many businesses and experts also warn that farmers should consider choosing the right time to sell, because of forecasts of price movements in the current context. is very difficult. Coffee prices may continue to increase, breaking old records, but they may also decline. That is very difficult to predict accurately.
