Vietnam, the largest producer of Robusta coffee, continues to face difficulties with poor harvests in both the previous and current crop, which is one of the causes of high coffee prices.

According to the International Coffee Organization (ICO), the price of Robusta coffee has increased to its highest level in 45 years, due to increasingly scarce supplies of this type of coffee, which is used in espresso and other drinks. soluble drinks.

In a recently published monthly report, the ICO said its measure of wholesale prices rose 17% in April 2024, to its strongest level since 1979.

Vietnam - the world's largest Robusta coffee producer - continues to face supply difficulties after poor harvests in both the previous and current seasons.

In addition, reduced inventories, increased demand and transportation disruptions due to geopolitical instability in the Red Sea also lead to limited coffee supply.

These problems are likely to get worse as drought and heatwave negatively impact coffee growing areas in Vietnam, depleting irrigation water sources and limiting prospects for next year's crop. 2024 is coming.

Coffee futures prices in the London market have increased over the past 5-6 months, which could eventually affect consumer costs.

However, Vietnam's coffee growing activity could start to recover from the drought this month and hedge funds are scaling back their bets on further price increases.

A more abundant supply of Arabica coffee also contributes to softening the price increase of Robusta coffee.

Brazil's Robusta coffee harvest has begun, the weather is quite favorable for the harvest, estimated to reach about 22.5 million bags.

In April, Arabica coffee prices were in the highest price range in 2 years, while Robusta coffee prices recorded an unprecedented record high, far surpassing the historical high mark set in 1994, when the weather changed. Frost in Brazil seriously affected coffee output.

Source: Vietstock