High coffee prices in Vietnam result in difficulties for the industry

Published 2024년 4월 24일

Tridge summary

Vietnam's domestic coffee prices have seen a significant increase, nearly tripling in the past six months, reaching record highs in decades. This situation has brought financial gains to farmers in the Central Highlands Province, particularly in Gia Lai, as they are able to sell green coffee at prices above VND 100,000 per kg. However, the rapid and drastic price hike poses challenges for businesses within the Vietnamese coffee supply chain, including purchasing agents, suppliers, exporters, and roasters. These businesses face issues such as high purchasing costs, concerns over insufficient supply, and potential disruptions to contractual obligations and the coffee supply chain. The Vietnam Coffee Cocoa Association (Vicofa) has called on banks to increase loan limits and offer preferential interest rates to coffee import and export businesses to address these challenges and ensure the sustainability of the industry.

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Original content

Domestic coffee prices in recent days have continued to increase. Just in six months, they have increased nearly three times, and are currently at the highest level in the past few decades. According to the industry, farmers in the Central Highlands Province of Gia Lai have almost sold out. Most households sell fresh coffee right after harvest or sell green coffee at a price of VND80,000-VND90,000 a kg. In mid-April, the price of green coffee in the Central Highlands reached VND110,000 a kg. In a wait-to-see mood, farmer Le Van Nghia in Nam Giang Commune of Gia Lai Province still refused to sell his cup of joe requested by prospective buyers, waiting for the price to increase to VND 120,000- VND 130,000 a kg. If he sold his coffee at VND 120,000 a kg, he would earn about VND1.8 billion and earn a profit of 70 percent of total revenue excluding labor, materials, fertilizer and irrigation costs. The increase in coffee prices in recent days benefitted farmers in key coffee growing ...

Source: WTOCenter