(HSV VIETNAM GROUP) - Increasing for 4 consecutive days, the price of green coffee currently peaks at 98,100 VND per kg, up 110% over the same period last year.
At the March 27 trading session, the price of green coffee in the Central Highlands provinces of the same type increased by 1,100 VND per kg compared to the previous session, to 98,100 VND - the highest ever.
On the coffee business forum, many growers and traders were quite surprised when the price of this commodity was about to reach 100,000 VND per kg, while the same period last year was only 46,000 VND.
At the international trading floor, Robusta on the London floor also continuously set new peaks at a price of 3,521 USD per ton for May delivery. Similarly, Arabica on the New York floor reached over 4,130 USD per ton. This level continues to exceed the peak of March 10.
Ms. Nguyen Loan, a coffee trader in Dak Lak, said she is reducing her collection because the price is too high, and import-export businesses are also slowing down buying. "Before that, I had an agreement with an export business to buy 1,000 tons at a price of 70,000 VND per kilogram. Now at this price, I have no goods to pay," Ms. Loan said.
Also in a state of resistance, Mr. Phan Minh Thong, Chairman of Phuc Sinh Group, said that dealers sell green coffee for 99,000 VND per kilogram. At this price, the company only buys a small amount. "Recently, businesses have had to endure losses. The higher the price, the bigger the loss if they buy more," Mr. Thong said.
This is the general situation of Vietnamese coffee processing and exporting enterprises recently. They are having to buy high and sell low. Currently, at a price of 98,000 VND per kg, businesses are losing billions of VND.
Coffee prices have skyrocketed, according to Chairman of the Vietnam Coffee and Cocoa Association Nguyen Hai Nam, due to reduced supply and record low inventories in businesses. The impact of climate change, the El Nino phenomenon, causes drought throughout global coffee growing regions, causing output to decline. In Vietnam alone, output will decrease by 10% in the 2023-2024 crop season, due to growers changing cultivation when prices previously plummeted.
In addition, geopolitical conflicts and tensions in the Red Sea region cause shipping costs and many other costs to increase. Finally, many financial investors choose coffee (after oil and gold) for speculation, making this agricultural product more expensive.
According to businesses, importers are shifting to buying from India and Brazil because Vietnamese goods are at high prices. But from April, when Brazil enters the crop, coffee prices may turn down.
However, data from the General Department of Customs shows that in the first two months of the year, Vietnam exported 438,000 tons of coffee, earning nearly 1.4 billion USD. This is an increase of nearly 28% in volume and 85% in value compared to the same period in 2023. Robusta and Arabica are still two types of coffee with breakthrough growth.
Ha Diem HSV