Farmers are happy, businesses are under more pressure

Due to climate and soil conditions, coffee gardens in communes in Buon Don district (old) ripen earlier than some other areas in the province. Here, people have already started picking, and some gardens have even harvested en masse. Ms. H'Chuyên Eban's family (Niêng 3 village, Ea Nuol commune) is harvesting more than 4 sao of coffee. Although the rainy weather at the beginning of the harvest season has somewhat affected the quality of the coffee, she is still happy because the coffee has a high yield and a good selling price.

Ms. H'Chuyên said that in previous years, on this area, the yield was only 8-9 quintals, this year it is estimated to reach 1.2 tons. In total, her total area of more than 1 hectare of coffee can yield about 2.5 tons, which is a high yield in this area. According to her explanation, last year had a bad harvest, so the 2025-2026 crop year is in the good season cycle of Robusta coffee trees, because the branches are beautiful and the fruit is healthy. Not only is the crop good, the selling price of coffee is also good. Specifically, the price of fresh coffee is 25,000 VND/kg, and green coffee is 118,000 VND/kg. "Hopefully, the price of coffee will continue to remain stable at this level so that farmers can make a profit, have the conditions to reinvest and improve quality," Ms. H'Chuyên Eban expressed.

Dak Lak province has more than 214,000 hectares of coffee, accounting for more than 30% of the country's coffee area. At this time, in some other communes and wards in the province, the coffee has also ripened and people have begun to harvest. According to records, most farmers harvest coffee with a ripening rate of about 80% or more.

Mr. Pham Van Dong (Cao Thanh residential group, Ea Tam ward) grows 2.5 hectares of organic coffee to sell to specialty coffee processing enterprises. Although it is just the beginning of the harvest season, according to his calculations, this year's coffee yield is about 3 - 3.5 tons/ha. His cultivated land has been produced for many years, so this yield is high. Thanks to the application of science and technology in production and reasonable fertilization, the cost of the coffee garden is low while the selling price is high (fresh fruit price is 40,000 VND/kg fresh), bringing Mr. Dong's family a good income.

Farmers in Ea Kao ward pick Arabica coffee.

From July 1, 2025, according to the new regulations in the Law on Value Added Tax (VAT), green coffee will be subject to a tax rate of 5%. This is causing a lot of pressure on capital and procedures for businesses. Therefore, the Vietnam Coffee and Cocoa Association (VICOFA) recommends that the Government consider removing green coffee exports from the list of products subject to VAT to reduce the impact on working capital and improve the competitiveness of coffee industry businesses.

The coffee harvest season is also the time when production, processing and export enterprises prepare raw materials to serve the production and business plan of the whole crop year. The coffee harvest season lasts about 3 months, mobilizing large financial resources to collect goods is a great pressure for purchasing units. This year, the purchase price of input materials is high, enterprises must prepare a large amount of working capital, so the pressure is even greater. Many enterprises signed export contracts early to finalize prices with international partners but now have to buy input materials at high prices, leading to reduced profits and creating liquidity risks.

AEROCO COFFEE LLC specializes in producing and processing high-quality and specialty coffee, requiring raw materials to be ripe, good-quality coffee. The purchasing price of fresh coffee that this company is applying is 40,000 - 50,000 VND/kg (1.5 times higher than that of regular coffee), so the capital for deposit and collection of raw materials is also larger. To serve this year's production and business plan, the unit needs to mobilize 20 - 30 billion VND. Currently, the company is facing financial difficulties, borrowing from banks is not feasible due to lack of collateral; meanwhile, the production of specialty coffee according to the value chain from garden to cup of coffee has a rather slow capital turnover time. Financial difficulties make the company mainly carry out previously signed orders, not daring to accept new large-quantity orders. “At this time, roasters and processors are very thirsty for capital and most of them are struggling on their own, without any financial support from organizations, banks or the State,” said Mr. Le Dinh Tu, Director of AEROCO COFFEE Company Limited.

With the high price of raw coffee, businesses do not dare to risk buying and storing large quantities like before. They have to manage to buy "rolling" according to each batch of goods signed in the contract. This reduces the ability to be proactive in supply and misses the opportunity to close contracts at good prices on the spot market. Besides, domestic businesses will also be at a disadvantage compared to FDI businesses which have strong financial potential.

Source: https://baodaklak.vn/kinh-te/202511/nong-dan-vui-doanh-nghiep-them-ap-luc-1f7006b/