Forecasts suggest that coffee prices in Vietnam will soon hit VND100,000 (US$4.04) per kilogram due to a global supply shortage.
Coffee prices in the Southeast Asian nation surged to VND90,000 ($3.6) per kilogram on Thursday, up from VND43,000 ($1.74) per kilogram in February 2023.
Particularly in the Central Highlands province of Dak Lak, coffee was traded at VND90,000 on Thursday, marking an increase of VND1,500 ($0.06) from Wednesday. Meanwhile, neighboring Dak Nong Province sold coffee at VND90,100 ($3.65) per kilogram on the same day.
In the global market, robusta coffee prices witnessed an increase of $104 – 129 per metric ton on Thursday. Concurrently, the price of Arabica coffee in Brazil stood at $234.4 per metric ton. In February last year, domestic coffee was sold for VND42,000 ($1.70) – VND43,000 ($1.74) per kilogram.
Many local firms anticipate that domestic coffee prices will continue to rise due to the increasing global demand for the bean.
Meanwhile, the El Nino weather phenomenon has adversely impacted Indonesia, resulting in a decrease in coffee yields in the nation.
Additionally, coffee output in Vietnam has dropped to 1.6 million metric tons from nearly 1.8 million metric tons per year.
According to the General Department of Vietnam Customs, Vietnam exported coffee worth $1.38 billion between January and February, marking a year-on-year surge of 85 percent. This significant increase in coffee export value was primarily attributed to a rise in export prices.
