According to records, in the early days of December, the price of robusta coffee in the domestic market increased sharply compared to the end of November. This development is contrary to the rule of every year when the Central Highlands region is entering harvest time, prices are usually normal. decreased due to increased supply pressure.
As of December 21, the average coffee price in the Central Highlands region was 67,900 – 68,600 VND/kg, an increase of 10,000 VND/kg (equivalent to 17%) compared to the end of November.
Mr. Nguyen Nam Hai – Chairman of the Vietnam Coffee and Cocoa Association (Vicofa) – said that never in Vietnam’s export history of more than 30 years and during the harvest season itself has the price of coffee been so high. So.
According to Mr. Hai, the increase in coffee prices comes from the decline in global green coffee exports. The reason is that the global economy is having difficulty affecting consumer spending. Vietnam’s coffee exports this year also decreased significantly in volume, with an expected decrease for the whole year of 15%. In particular, due to the impact of drought, output also decreased compared to previous years, pushing up the price of green coffee, up to 70,000 VND/kg.
Coffee prices peak right at the beginning of the main season.
“If in 2023, by June, there will be almost no coffee left in the population for businesses to buy, then by 2024, it will only be in May or even April that it will be out of stock. From now until April 2024, Europe can almost only rely on Vietnam to buy rubosta coffee. It is likely that coffee prices in Vietnam will continue to increase and may be at the highest level in the world in 2024,” Mr. Hai predicted.
Mr. Do Ha Nam – Chairman of the Board of Directors of Intimex Group – said that the increase in the price of exported coffee beans brings joy to businesses and growers. However, when prices increased historically, farmers did not benefit because when coffee prices increased, people massively sold coffee at 50,000 VND/kg.
Some households even signed to sell to agents in advance for 50,000 – 55,000 VND/kg, but a few weeks later, coffee prices increased sharply, exceeding the 60,000 VND/kg mark, and many households “broke the deal” and failed to deliver enough goods. as signed, causing agents to lack coffee to deliver to export businesses. On the export business side, there is also a lack of goods to deliver to partners.
“When foreign partners do not have goods, they are forced to go to the London floor. This is also the reason why the price of robusta coffee futures on the London floor increased sharply by 300 – 400 USD/ton in the past week, breaking the old record just set in July, to more than 2,800 USD/ton. This said.
According to Mr. Nam, in the context of global coffee production trending down, right from the beginning of the 2023/2024 crop year, the global coffee industry must have an action plan to adapt to anti-deforestation and anti-deforestation regulations. causing forest degradation (EUDR), the European carbon border and carbon certificate adjustment mechanism. Implementing these programs step by step is to demonstrate the global coffee industry’s responsibility to protect the environment, protect nature, and minimize the impact of climate change.
