The main reason is still because demand is too high while supply is very little. Currently, in the world, Vietnamese coffee is “alone in the market” because countries such as Indonesia, Brazil, and India are not yet in harvest season. It wasn’t until July, when Brazil harvested coffee, that supply improved.
Meanwhile, on the London floor, Robusta coffee prices continued to jump to a record high of 4,234 USD/ton for May delivery, an increase of 229 USD/ton compared to the previous session.
VICOFA representative said that coffee prices on the London floor are used as reference when making international transactions. However, to set the export price, an additional 800 – 900 USD/ton must be added. That means foreign buyers will have to pay up to 5,000 USD/ton to buy Vietnamese Robusta coffee.
At the beginning of this coffee season, in October 2023, coffee prices were still at 58,000 VND/kg. After only 6 months, coffee prices have more than doubled, to unprecedented levels in history.
