Coffee prices hit new highs, many export businesses worry about not having enough goods to sell

Coffee prices increase beyond all predictions, many people expect coffee prices to reach 120,000 VND/kg. Coffee prices increase too quickly, causing instability in the domestic market.

World coffee prices on April 9 continued to maintain a high level despite a slight decrease compared to the session on April 8. Accordingly, the price of robusta coffee on the London floor for May 2024 delivery is currently at 3,742 USD/ton; on the New York floor for May 2024 delivery is currently at 4,650 USD/ton...

Domestically, coffee prices in Dak Nong and Dak Lak are currently at VND104,800/kg, Gia Lai at VND104,600/kg and Lam Dong at VND104,500/kg. This is a slight increase of VND200-400/kg compared to April 8.

Giá cà phê leo đỉnh, nhiều doanh nghiệp xuất khẩu lo không có hàng để bán

Coffee prices increase but supplies at many businesses have gradually run out.

Although coffee prices are high, many coffee exporting enterprises said that their supplies are running out and they may have to stop exporting soon. For example, Vinh Hiep Company Limited - one of the leading green coffee bean exporters in Vietnam said that the amount of goods in stock is only enough to sell until about May this year. As for the new coffee harvest, it will not be available until October 2024, so this enterprise is expected to have to stop exporting early because it is out of stock.

In fact, coffee exports have recorded a sharp increase in the first quarter of 2024. Speaking to reporters, Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association (VICOFA), said that in the first quarter of 2024, Vietnam's total coffee export output reached about 600,000 tons with a turnover of 1.93 billion USD, up 4.9% in volume and 57.3% in value over the same period. This is also the highest level in recent years and this increase is due to coffee prices.

“In the 2023-2024 coffee crop year and especially in 2024, coffee prices have reached their highest level in all years. Currently, each ton of exported coffee costs around 4,000 USD and the domestic coffee price is around 102,000 VND/kg. This has brought high profits to coffee farmers,” said Mr. Hai.

However, statistics also show that coffee exports have shown signs of decline since March 2024, when businesses exported about 185,281 tons of coffee in this month, with an export turnover of about 680.86 million USD. Compared to February 2024, it decreased by 11.9% in volume but increased by 41.1% in value compared to the same period last year.

VICOFA said that the coffee supply is gradually running out because Vietnam's coffee supply is running out and is likely to run out by July, as happened in 2023. More worryingly, the Central Highlands is currently heavily affected by heat, drought and lack of irrigation water, causing the productivity and output of coffee next crop to decrease.

According to experts, with the current supply and demand situation, the coffee price fever may continue and many people expect prices to be even higher than current levels.

Source