The higher the price of coffee, the more Vietnamese coffee businesses go bankrupt, as if I heard wrong?

Published 2024년 6월 17일

Tridge summary

Since the end of 2023, robusta coffee prices have seen a significant increase, at some point surpassing the price of Arabica coffee, a first in over half a century. This situation, while profitable for farmers and those with unsold stock, has led to challenges for coffee traders and roasters due to the unpredictable nature of coffee pricing. The price hike has been steep, with costs soaring by 250-350% from the previous range, causing financial strain for many in the industry. The rise in Vietnamese robusta prices has also impacted other coffee markets, including Brazilian robusta conilon and Arabica, resulting in increased production costs and affecting the affordability of coffee. This situation threatens to push 35% to 60% of small and medium-sized roasters globally towards bankruptcy, highlighting the critical need for sustainable solutions and fair pricing in the coffee industry.

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Original content

Editor's note: From the end of 2023 until now, the price of robusta coffee has continuously increased vertically, even exceeding the price of Arabica coffee, something that has happened for the first time in more than half a century. While coffee growers are happy, many coffee traders and roasters are suffering. This paradox is explained through the perspective of Mr. Phan Minh Thong (photo) - General Director of Phuc Sinh Joint Stock Company (Vietnam's top 4 coffee export enterprise with 2023 revenue reaching 6,500 billion VND). Some people laugh - some cry In the first 6 months of the year, coffee prices increased rapidly, from 58 million VND/ton, the number jumped about 3 times, up to 136 million VND/ton. High prices, the big beneficiaries are farmers and traders who have unsold goods in warehouses. The remaining majority, including buyers/companies that have not received goods and factories that have sold Vietnamese coffee, now need to buy raw materials for production and ...

Source: Danviet