Coffee prices are falling seriously, by March 28, they have fallen from VND 30,000 / kg, are trading at VND 29,700 – 29,800 / kg, lower than the price of 32,000 – 33,000 VND / kg. Low prices so farmers limit selling, businesses lack a supply of coffee for export.
According to preliminary statistics of the General Department of Vietnam Customs, in March 2020, coffee exports are estimated at 154,396 tons, with 260,975 million USD. Accumulated 3 months is estimated at 473,785 tons, with a turnover of 801.62 million USD, down 53.40% in volume and 9.42% in value over the same period in 2019.
Coffee prices were at their lowest level in 15 years
At the beginning of the week after 3 consecutive gaining sessions and staying at over 30,000 VND / kg, by the end of the week, the price of coffee has dropped from 30,000 VND / kg. Opening the morning session on March 28, the price of coffee in the Central Highlands decreased by nearly 1,000 VND / kg, pushing the price down to 29,700 – 29,800 VND / kg. The reason is that the price of Robusta coffee on the London floor dropped deeply.
Specifically, the price of Robusta coffee in Lam Dong (Bao Loc) is at 30,600 VND / kg, at Di Linh 29,500 VND / kg. In Dak Lak (Cu M’gar, Ea H’leo, Buon Ho) the price is 29,700 – 30,000 VND / kg. In Dak Nong, Gia Lai ranged from 29,700 to 28,800 VND / kg. In HCMC, R1 coffee is priced at 31,300 VND / kg.
Currently, Covid-19 translation is raging in Europe, England, America, in countries in Italy, Spain, France, England … most restaurants, hotels, restaurants, … are forced to close. . These are the key export areas of Vietnamese agricultural products, which have affected the export of agricultural and aquatic products of Vietnam and coffee is no exception.
Mr. Do Ha Nam, Vice Chairman of Vietnam Coffee – Cocoa Association (Vicofa), Chairman of Board of Directors, General Director of Intimex Group, said that the epidemic is rampant in Europe, so most coffee processing factories It was closed here, workers did not go to work, the shipments to Europe were canceled, leading to a sharp fall in coffee prices in the market, and prices down without buyers.
Mr. Do Ha Nam, Vice Chairman of Vietnam Coffee – Cocoa Association (Vicofa), Chairman of Board of Directors, General Director of Intimex Group.
“Vietnam is managing the epidemic very well, hoping to declare epidemic termination in the near future, but even if we are out of epidemic, Vietnam’s key agricultural export markets still have epidemics. will decrease, affecting exports is inevitable. While the export market for commodities such as coffee, pepper, cashew was difficult, export value decreased, rice export flourished. Therefore, now agricultural exports only rely on rice ”, Mr. Nam said.
Coffee prices continued to decline and to this point have been at low levels for the past 15 years. This makes farmers tend to cut down their coffee and replace them with other crops. Exporting businesses in particular, the coffee industry in general will be greatly affected in the near future.
Prepare goods for post-Covid-19
In the agricultural sector, in terms of market risk, it is probably lower than that of other industries, because instability is only temporary until people work again, the demand is back to normal, export will stabilize again because the market demand for agricultural products is huge.
“During the Covid-19 epidemic season, in order to stop the spread, people have to stay at home, so they may not have the need to change a new phone, buy new clothes or buy a new car, but the need for food and food. indispensable in everyday life.
Therefore, when the epidemic breaks out, the amount of imported goods is less, the reserves will be depleted, when the disease is back to normal, the demand will immediately change. Exporters should prepare themselves for the post-Covid-19, when the demand is high, the price will suddenly increase again ”, recommended Mr. Nam.
However, the difficulty of businesses today is where to get money to make inventories, because during the epidemic season, the goods that cannot be exported are in large inventory while businesses need money to repay bank loans together with other Other costs.
In the meantime, businesses are in desperate need of the government’s support for them to have financial capacity to store goods and wait for prices. There is a new way to revive the agricultural export industry in 2020, as well as support and reduce risks for other export industries.
“Enterprises really need the companionship of the Government to help them overcome difficulties. When overcoming this period, the price of agricultural products will increase and opportunities will appear. Going around, the agricultural sector is still the backbone of the economy, ”said Mr. Nam.
Mr. Luong Van Tu, Vicofa Chairman said, current coffee prices are at the lowest level in the past 15 years, after a while at 31,000 – 32,000 VND / kg, now they have dropped below 30,000. VND / kg.
Currently, people have to stay at home, cafes have to temporarily close so coffee consumption is slowing down for a certain time, after the disease is over, the consumption will be restored. back to normal.
Mr. Luong Van Tu, President of Vicofa
“Helping the coffee industry to overcome this difficult period, the Association submitted a proposal to the Prime Minister to take measures to support the coffee industry, in areas such as: rescheduling, debt rollover, Particularly for tax reduction, the Ministry of Finance is already doing it, while on the side of the bank it has also agreed to allow businesses to reschedule their debts to rollover.
In addition, the Government will have a general support package for all sectors, but the issue of salaries for employees who can borrow without interest, the Government now has many solutions to support. We also petitioned the Government two or three times, not just once, ”said Mr. Tu.
