Currently, farmers have finished harvesting the 2019/2020 coffee crop, and the long Tet holiday and concerns about Coronavirus in China worsening, affecting coffee prices in the market. .
Domestic coffee prices are stabilizing at a low level!
In the domestic market, at the beginning of the crop year, the coffee price was over 42,000 VND / kg. At the end of the season, the price continuously fluctuated in a decreasing direction and fluctuated around 31,400 VND / kg. Price fluctuations are always in a negative direction for coffee growers while input costs are always increasing, causing insufficient revenue, so many farmers have cut down their coffee gardens to grow other valuable crops. than.
The reason is that the domestic Rubusta coffee price is affected by London exchanges. Specifically, on February 3, 2020, domestic coffee prices still ranged from 31,100 to 31,400 VND / kg, in Ho Chi Minh City the price was 1,414 USD / ton (deducted 80 USD / ton), compared to February 2. stability. Previously, on February 1, 2020, coffee prices in the Central Highlands provinces reversed slightly by 500 VND / kg compared to January 31, fluctuating between 30,900 – 31,400 VND / kg.
Although coffee prices have nearly hit the bottom in the past 10 years and the 2019-2020 crop is the third year in a row the coffee industry has suffered a price crisis, making farmers face many difficulties. But coffee consumption in the first quarter of 2020 is forecast to increase while the sales volume is moderate, along with many uncertainties about exchange rates, world trade developments may cause coffee prices to change outside forecast.
Near the bottom price
According to preliminary data reported by the General Department of Vietnam Customs, in January 2020, the amount of exported coffee was estimated at 162,572 tons of all kinds, worth $ 284,732 million, down 13.61% in volume and 13.08% down. in value compared to December 2019, but compared to the same period in 2019, it only decreased by 11.49% in volume and 12.21% in value.
The amount of coffee exported in January 2020 fell sharply because it fell on the Lunar New Year holiday, directly affecting the volume and turnover of January 2020.
According to Mr. Do Ha Nam, Vice Chairman of Vietnam Coffee – Cocoa Association (Vicofa), Chairman of the Board of Directors, General Director of Intimex Group, coffee prices on the floor decreased due to abundant supply, quiet transactions took place. Coffee in the country is slipping, prices are too low, people refuse to sell, along with the psychology of Tet holidays, there is still no hurry to sell.
Robusta coffee prices traded on the London floor approximately 1,300 USD. This is near the lowest price in the past 10 years. The bottom price of 10 years ago was 1,267 USD, while for farmers, when the price of green coffee was traded below 32,000 VND / kg, farmers did not sell.
“The price of coffee on the London floor fell close to the price 10 years ago, dragging the domestic coffee price down too low so people do not want to sell. If you want to buy coffee, the buyer must increase the price by 100 to 110 VND. / kg, then the export coffee price will reach about 1,400 USD / ton “, Mr. Nam said.
In 2019, Vietnam’s coffee export reached 1,653 million tons, worth $ 2,854 billion, down 11.9% in volume and 19.3% in value compared to 2018. The average export price reached $ 1,727 / tons, down 8.3% compared to 2018. According to Vicofa, coffee export prices this crop year at a record low level within the past 10 years, sometimes down to 1,207 USD / ton for Robusta coffee.
