On the morning of April 28, the coffee market had no reference price from the London (UK) floor, temporarily stopping at 5,415 USD/ton for the July 2025 delivery period - an increase of 138 USD/ton (equivalent to more than 3,500 VND/kg) compared to the end of last week.
However, last week, domestic coffee prices only edged up slightly to VND130,600/kg, an increase of only VND1,000/kg, showing that cautious sentiment prevailed.
Speaking to a reporter from Nguoi Lao Dong Newspaper, Mr. Thai Nhu Hiep - Vice President of the Vietnam Coffee and Cocoa Association (VICOFA), Chairman of the Board of Directors of Vinh Hiep Company Limited - the "export king" of Vietnamese coffee in the 2023-2024 crop - said that the amount of coffee still in the hands of farmers is very limited.
"According to statistics, in the first 6 months of the 2024-2025 crop year, Vietnam exported about 700,000 tons, equivalent to 50% of output. According to our estimates, farmers only hold about 20% of the goods, the rest is mainly in business warehouses, has been completed and is just waiting to be exported," Mr. Hiep revealed.
He also noted that the "paper" coffee market on international financial exchanges such as London or New York is heavily influenced by macro factors. Meanwhile, the "real" market in Vietnam operates in a way that farmers sell at high prices, and farmers leave it at low prices because they do not need the money yet.
"This year, coffee prices have remained above VND110,000/kg since the beginning of the season. Unlike before when coffee prices were below VND40,000/kg, farmers had to sell off to cover costs, now they are rich thanks to coffee, durian, pepper, areca nuts... all having good prices. They are proactively selling slowly to protect the value of agricultural products" - Mr. Hiep analyzed.
According to him, this development makes foreign importers "restless" because they are forced to pay high prices to collect goods from farmers.
In previous years, coffee was mainly stored in corporate warehouses - where most of the capital was borrowed, so it could only be stored for a short time.
"When the bank loan repayment deadline comes, businesses are forced to sell even at low prices. When many businesses have to repay bank loans, the price of coffee drops dramatically," Mr. Hiep explained.
This year, the financial cost of storing coffee is so high that most businesses can only buy a sufficient amount of goods, fixing the purchase price for each batch to avoid risks.
Therefore, this year's coffee market is regulated by farmers, not foreign businesses or buyers.
According to News-Photo: Ngoc Anh (NLDO)
Source: https://baogialai.com.vn/gia-ca-phe-hom-nay-28-4-vua-xuat-khau-tiet-lo-bat-ngo-ve-ton-kho-post320814.html
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