Vietnam: Coffee, pepper prices forecast to keep rising due to supply shortages

Published 2024년 4월 3일

Tridge summary

Vietnamese coffee and pepper are experiencing a surge in prices due to supply limitations, despite an increase in export values. Coffee prices in Vietnam have nearly reached record highs, with the country's coffee production anticipated to drop by 20% for the 2023-24 crop year. This has led to a significant rise in the value of coffee exports in the first quarter, despite only a modest increase in volume. Similarly, pepper exports have witnessed robust growth, with prices climbing as a result of low stock levels and strong demand, especially from the US. The supply constraints for both commodities are partly due to farmers holding back sales in expectation of further price increases.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The prices of Vietnamese coffee and pepper are forecast to continue increasing due to limited supply while the export of these products has also enjoyed relative growth, according to insiders. Domestic coffee prices continuously set new records and are about to approach VNĐ100,000 (about US$4) per kg. Currently, the average purchase price of coffee in Central Highlands provinces is VNĐ98,600 per kg. Việt Nam shipped nearly 600,000 tonnes of coffee abroad in the first quarter of this year, earning $1.9 billion, up only 3 per cent in volume but up 54 per cent in value year-on-year, according to the Ministry of Agriculture and Rural Development. Coffee is the second biggest export turnover earner among agricultural products, just behind wood products. It is attributable to the fact that coffee prices have increased by 43.5 per cent over the same period last year and reached an average of $3,181 per tonne. Export coffee prices have increased, but there’s not much coffee left in stock. ...

Source: WTOCenter