At the end of last week, coffee in specialized farming areas across the country was priced at approximately VND120,500 (US$4.7)-VND122,000 (US$4.8) per kilogram.
The general trend supports the upward movement of this commodity due to high transport costs and concerns about dry weather and lack of rain in Brazil, which has been affecting the harvest.
Currently, the prices of coffee in the Central Highlands province of Lam Dong are traded at VND120,500 (US$4.7) a kilogram while the prices in the Dak Nong, Dak Lak and Gia Lai are at VND122,000 (US$4.8) a kilogram.
According to data from the General Department of Customs, in the first six months of the year, Vietnam's coffee exports reached nearly 900,000 tons, earning about US$3.04 billion, a decrease of over 8 percent in volume but an increase of 38 percent in value compared to the same period last year when the country also achieved a record high compared to the same period in previous years.
By the end of the first eight months of the 2023-2024 crop year, falling from October 2023 to May 2024, Vietnam exported nearly 1.2 million tons of coffee, equivalent to 80 percent of the ongoing crop's output and a decrease of seven percent compared to the same period in the previous crop year.
At the current time, drought and pests have significantly affected productivity and stunted the growth of coffee trees in the country’s main coffee-growing regions.
Thereby, the coffee output for the 2023-2024 crop year is estimated to decrease by 20 percent compared to the previous crop year, down to 1.47 million tons which is the lowest level in recent four years, putting pressure on the supply of Robusta coffee in the world market.
According to the Vietnam Coffee-Cocoa Association (Vicofa), Vietnam is the world's largest producer of Robusta so a sharp decrease in supply will contribute to increasing current prices of the coffee bean.
Vicofa predicted that coffee exports in 2024 could reach around US$4.5 to US$5 billion.
