Coffee prices drop at the beginning of the season, businesses say it's not a cause for concern

From mid-October 2024, many coffee-growing areas in Gia Lai province began to see the first ripening of coffee cherries before the peak harvest season - Photo: TAN LUC

Specifically, over the past three weeks, the price of bulk green coffee beans has continuously decreased from 120,000 VND/kg to around 110,000 VND/kg. Notably, the 120,000 VND/kg price was a stable level maintained for several months prior to this.

Explaining this phenomenon, Mr. Nguyen Nam Hai, chairman of the Vietnam Coffee and Cocoa Association (VICOFA), said that this is a normal occurrence whenever coffee is about to enter its peak harvest season.

According to VICOFA representatives, a key factor in cooling down coffee prices is the European Union's decision to temporarily postpone the application of anti-deforestation regulations in agricultural production (including coffee) for another 12 months, which has reduced pressure on supply.

Forecasting Vietnam's coffee production this year, this expert predicts that supply may decrease slightly by around 10% due to some growing areas in the Central Highlands being affected by heatwaves and droughts from the beginning of the season, causing reduced yields.

Meanwhile, Mr. Nguyen Huynh Phu Lam, director of Classic Coffee Joint Stock Company (Gia Lai), said that the market now has a supply of the new crop. Processing and exporting businesses no longer face difficulties with supply as in previous months.

Source: https://tuoitre.vn/gia-ca-phe-giam-dau-vu-cac-doanh-nghiep-noi-khong-dang-lo-20241021143704157.htm