Coffee Prices Surge to Record Highs in Vietnam

As of September 27, coffee prices in Vietnam have reached 121,000 – 122,000 VND/kg, marking a significant increase of 1,000 to 1,200 VND/kg compared to the previous day. This surge is attributed to the record-breaking Robusta coffee prices, which have reached an unprecedented level of 5,446 USD/ton.

Regional Coffee Prices in Vietnam

In the Lam Dong province, coffee prices have been recorded at 121,000 VND/kg in Di Linh, Lam Ha, and Bao Loc districts. Meanwhile, in the Dak Lak province, coffee prices have reached 122,000 VND/kg in Cu M’gar district and 121,900 VND/kg in Ea H’leo district and Buon Ho.

In the Dak Nong province, coffee prices have been reported at 122,000 VND/kg in Gia Nghia and 121,900 VND/kg in Dak R’lap. Similarly, in the Gia Lai province, coffee prices have been recorded at 120,800 VND/kg in Chu Prong and 120,700 VND/kg in Pleiku and La Grai.

In the Kon Tum province, coffee prices have been reported at 120,800 VND/kg.

Global Coffee Market Trends

The recent surge in coffee prices can be attributed to the global coffee market trends. Since the beginning of September, world coffee prices have increased sharply, while domestic coffee prices have remained stable. This has led to concerns among experts that buyers may be delaying purchases to suppress prices when farmers start harvesting.

However, other experts believe that farmers are not under pressure to sell immediately, as they have already made a profit from selling durian. With coffee supply lower than demand, sellers have an advantage in the market.

Coffee Price Projections

Consulting firm Hedgepoint estimates that Brazil will produce 63 million bags of coffee in the 2024-2025 crop year, down 3 million bags compared to the previous crop year. Vietnam’s coffee output is estimated at 27 million bags, lower than previously predicted. Coffee prices are expected to continue to increase due to fundamental factors in the market.

The global coffee market is likely to experience a fourth consecutive shortage due to production declines in both Vietnam and Brazil. Unfavorable weather is the main cause of the decline in coffee production in both countries.