Coffee Bean Prices Reach All-Time Highs
Vietnam maintained its position as the second-largest coffee exporter in the world from February 2021 to January 2022, according to the International Coffee Organisation. In the first five months of this year, Vietnam exported 882,000 tons of coffee worth over $2 billion, a 2.2% decrease in volume but no change in value compared to the same period last year, according to the Ministry of Agriculture and Rural Development.
The country had 710,000 hectares of agricultural land under coffee last year, with 91.2% of them in the five Central Highlands provinces, and an output of 1.84 million tons. However, coffee prices have reached record levels, with raw coffee prices in the Central Highlands region increasing by VND3,000-5,000 per kilogram since last week to VND67,200 in Dak Nong and VND64,000-65,000 in Lam Dong and Kon Tum. Data from the Vietnam Coffee and Cocoa Association shows that prices have increased by 70% since January and 50% since last June, surpassing VND67,000 ($2.85) per kilogram.
The output for the 2022-23 harvest is expected to decrease by 20-50% this year, according to surveys among growers, and the association has estimated the output to decrease by 10-15% from the previous crop to 1.47 million tons. Many farmers have switched to other crops such as durian and avocado for higher profits, contributing to the decline in coffee output.