Specifically, traders in the Central Highlands province of Dak Nong are paying VND110,400 per kg (US$4.32). In the meantime, the product is being sold at VND109,000 a kg in Lam Dong Province. In Dak Lak and Gia Lai provinces, the purchasing price has increased to VND109,800 a kg and VND110,000 a kg respectively.
Local traders disclosed that coffee prices normally decrease from May to August because Brazil and some other countries are in the harvest season and the supply is abundant.
However, the sudden increase in coffee prices in the local market and the huge demand of trading volume shows that concerns about supply shortages along with geopolitical and economic uncertainties are still weighing heavily on buyers.
The coffee market is forecast to continue to increase in the near future and Robusta coffee prices will soon return to US$4,000 a ton. Experts predict that by 2024, Vietnam's coffee exports could reach $5 billion because many factors are attributable to the achievement including a high increase in prices.
The world’s rising demand of some green coffee products for making instant coffee is also pushing up domestic demand.
