Domestic and international coffee prices have been rising daily, breaking all historical records.

As of April 17, coffee prices in the Central Highlands are nearing 120,000 VND/kg, with an average price around 116,000 VND/kg, up by 1,500 to 1,600 VND/kg compared to the previous day.

Robusta coffee prices on the London market also saw a price increase, reaching a high of 4,058 USD/ton, surpassing the historical record of 4,040 USD/ton set in 1994, with an average trading price of 4,005 USD/ton for the May delivery.

Mr. Thái Như Hiệp, Director of Vĩnh Hiệp Co., Ltd. and Vice President of the Vietnam Coffee – Cocoa Association (VICOFA), had predicted that coffee prices reaching 120,000 VND/kg would not be surprising due to the depleted supply. The coffee shortage in Vietnam has not only affected the 2023-2024 crop but began with the previous two crops as well.

"At a price of 90,000 VND/kg, coffee in the market has become very scarce. Those who still have coffee are mainly wealthy farmers with strong financial resources from durian cultivation," Mr. Hiệp explained.

The surge in coffee prices has also led to increases in the prices of coffee products such as roasted coffee, instant coffee, and coffee at cafes. Some cafes have started adjusting the price of a cup of coffee by 2,000 to 5,000 VND due to the sharp rise in raw material costs.

Currently, domestic coffee prices, when converted to USD, have exceeded 4,500 USD/ton, making it challenging for businesses to sign new export contracts. Companies are primarily selling stock that was purchased earlier.

In July, Brazil's Robusta coffee (Conilon) will enter the harvest season, supplementing the global coffee supply, which is expected to reduce coffee prices for the September and November 2023 contracts to around 3,800 – 3,900 USD/ton.

Source: Vietstock