According to Dak Lak Newspaper, from the beginning of the 2024 – 2025 crop year until now, coffee prices have continuously increased to record highs, currently at over 130,000 VND/kg of green coffee and nearly 30,000 VND/kg of fresh coffee, doubling. 5 times compared to the same period last year.
Also according to this newspaper, Ms. H Lem Eban’s family (Buon Ma Thuot City, Dak Lak) has 7 sao, expected to earn about 5 tons of fresh coffee. This year, due to prolonged heat, mealybugs attacked the plants, combined with the planting of old coffee varieties, causing the garden’s productivity to not be high.
Currently the coffee garden is about 80% ripe. After the entire harvest, Ms. H Lem’s family sells a portion of fresh coffee in advance to pay for harvesting costs. Currently, fresh coffee is purchased by traders at prices ranging from 24,000 – 27,000 VND/kg, while in previous years, there was a time when the price was only 4,000 – 6,000 VND/kg.
Farmers are excited because coffee prices have increased.
“Increasing coffee prices is a good sign for growers. This not only helps farmers increase their income and improve their lives, but also has the opportunity to reinvest in production and stabilize coffee areas,” Ms. H Lem shared with Dak Lak Newspaper.
And Ms. Trieu Thi Oanh (Cu M’gar district, Dak Lak) said: “This year, fresh coffee costs nearly 30,000 VND/kg, while the price of green coffee has exceeded 130,000 VND/kg. Therefore, whether farmers sell fresh coffee or dry coffee, after deducting investment costs, they still make a profit.”
“Compared to the same period last year, the current coffee price has doubled,” Mr. Nguyen Van Hoan – a coffee farmer in Dak Lak told me. VietNamNet . He said that last year the price of fresh coffee was only 17,000 VND/kg, while green coffee was less than 60,000 VND/kg.
On November 30, farmers picking fresh coffee for sale received over 30,000 VND/kg, higher than the price of green coffee in 2020. If selling beans, the price has increased to over 130,000 VND/kg. “At this price, whether selling fresh coffee or green coffee, farmers will make a big profit,” he shared.
Mr. Hoan’s family has 5 hectares of coffee and is harvesting ripe cherries for drying. Although this year’s output decreased compared to last year due to unfavorable weather, it is still estimated to yield about nearly 20 tons of seeds. If sold out at the current price, He can earn 2.6 billion VND, minus interest expenses of about 1.7 billion VND.
Coffee prices hit historic peaks
According to the Vietnam Commodity Exchange (MXV), green dominates the price list of industrial raw materials, the most prominent of which are two coffee products. Prices of these two items increased for the fourth consecutive week and established many new records.
Specifically, Arabica coffee prices increased more than 5% to 7,011 USD/ton, at one point reaching the highest level in 47 years; Robusta coffee prices once exceeded the mark of 5,500 USD/ton, set a new historical peak .
Speculative factors combined with concerns about supply in main producing countries are still important reasons supporting prices. The speculative factor continues to be promoted, partly due to the shift of cash flow from haven markets to profitable investment channels such as coffee, and partly due to expectations of supply from coffee-producing countries. There has been no major improvement.
Speculative factors stimulate price increases. However, managers advise people not to hoard goods waiting for further price increases.
Coffee supply and demand information is shifting in the direction of increasing concerns about supply in Brazil and Vietnam. This helps add important support to the price.
According to Dak Lak Department of Agriculture and Rural Development, currently localities in this province are harvesting about 20-30% of the new crop because part of the area has been converted to planting late-ripening varieties. Along with that is the mentality of not worrying about price drops, many households also do not worry about lack of money and expenses and are highly conscious of harvesting ripe fruit, so they are not in a hurry to harvest early but wait for the coffee to ripen evenly before picking, drying and storing.
Deputy Director of the Department of Agriculture and Rural Development Nguyen Van Ha said that coffee prices have established a new price level that is beyond most people’s imagination. Continuously rising prices make coffee growers enter the new harvest in an excited mood.
At this price, after deducting costs (about 30%), The average profit is about 200 million VND/ha . However, people should also take advantage of high prices to sell, and should not keep everything. If businesses cannot buy goods, they will look for sources of goods in other countries, people will lose the price opportunity.
