Farmers are happy, businesses are under more pressure

Due to climatic and soil conditions, coffee plantations in the communes of the former Buon Don district ripen earlier than in some other areas of the province. Here, people have already started harvesting the first crop, and some plantations have even begun mass harvesting. Ms. H'Chuyên Êban's family (Niêng 3 hamlet, Ea Nuôl commune) is harvesting more than 4 sao (approximately 0.4 hectares) 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 yield is high and the selling price is good.

Ms. H'Chuyên said that in previous years, the yield on this area was only 8-9 quintals, but this year it is estimated to reach 1.2 tons. Calculated over more than 1 hectare of her coffee plantation, the yield could reach about 2.5 tons, which is a high yield for this region. According to her explanation, last year's crop failure means the 2025-2026 crop year falls within a good harvest cycle for Robusta coffee, as the branches are healthy and the fruit is strong. Not only is the harvest good, but the selling price of coffee is also good. Specifically, fresh coffee is priced at 25,000 VND/kg, and green coffee beans at 118,000 VND/kg. "Hopefully, coffee prices 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 Êban expressed.

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

Mr. Pham Van Dong (Cao Thanh residential area, Ea Tam ward) cultivates 2.5 hectares of organic coffee to sell to specialty coffee processing businesses. Although it's only the beginning of the harvest season, he estimates this year's coffee yield to be around 3-3.5 tons per hectare. His land has been cultivated for many years, so this yield is considered high. Thanks to the application of scientific and technical methods in production and rational fertilization, the costs for the coffee plantation are low, while the selling price is high (40,000 VND/kg for fresh coffee cherries), bringing a considerable income to Mr. Dong's family.

Farmers in Ea Kao ward selectively harvest Arabica coffee beans.

From July 1st, 2025, according to the new Value Added Tax (VAT) Law, green coffee beans will be subject to a 5% VAT rate. This is putting significant pressure on businesses in terms of capital and procedures. Therefore, the Vietnam Coffee and Cocoa Association (VICOFA) proposes that the Government consider removing exported green coffee beans from the VAT list to reduce the impact on working capital and improve the competitiveness of coffee industry businesses.

The coffee harvest season is also the time when businesses involved in production, processing, and export prepare raw materials for their production and business plans for the entire season. The harvest season lasts approximately three months, and mobilizing significant financial resources to procure the goods places considerable pressure on purchasing units. This year, the high cost of raw materials means businesses need to prepare a large amount of working capital, further increasing the pressure. Many businesses signed export contracts early to secure prices with international partners, but now have to purchase raw materials at high prices, leading to reduced profits and liquidity risks.

AEROCO COFFEE Co., Ltd. specializes in producing and processing high-quality and specialty coffee, requiring only ripe, high-quality red coffee beans as raw materials. The company currently purchases fresh coffee beans at 40,000-50,000 VND/kg (1.5 times higher than regular coffee), resulting in a larger capital investment for deposits and raw material procurement. To support its production and business plan this year, the company needs to raise 20-30 billion VND. Currently, the company is facing significant financial difficulties; bank loans are not feasible due to a lack of collateral. Furthermore, the production of specialty coffee along the entire value chain, from farm to cup, has a relatively slow capital turnover. These financial challenges mean the company is currently primarily fulfilling previously signed orders and is hesitant to accept new, large-quantity orders. "At this time, coffee roasters and processors are desperately in need of capital and most are fending for themselves, without any financial support from organizations, banks, or the government," shared Mr. Le Dinh Tu, Director of AEROCO COFFEE Co., Ltd.

With high raw coffee prices, businesses are hesitant to risk stockpiling large quantities as before. They have to resort to buying in batches according to signed contracts. This reduces their ability to proactively manage supply and miss opportunities to secure contracts at favorable prices in the spot market. Furthermore, domestic businesses will be at a disadvantage compared to FDI companies, which possess stronger financial resources.

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