Coffee growers in the Central Highlands are feeling optimistic as the value of coffee has increased considerably.
Coffee prices are expected to continue rising
The going rate for coffee beans from the region increased from between VND300 and VND400 (USD0.014-USD0.018) per kilo daily to VND35,200 (USD1.66) on February 12.
The continuing upward trend brought on a combined increase of VND2,000 (USD0.09) per kilo compared to the price before Tet.
Duong Nga Van, an official from Dak Uy Coffee Company, a subsidiary of Vietnam National Coffee Corporation (Vinacafe), attributed the increase to the impact of the world market.
Meanwhile, Le Si Dong, an official from Nguyen Huy Hoang Coffee Company in Kon Tum Province, said transactions in the domestic coffee market were slower during Tet, which drove up prices.
Coffee bean prices at the beginning of the harvest season were fluctuating between VND30,000 and VND31,000 (USD1.42-USD1.46) per kilo. Due to the low prices, many growers opted not to sell, but waited for price increases, adding to lower available supply.
While Vietnam holds an 18% stake in the world coffee export market, the country exported only 135,6000 tonnes in January, down 40% on year. Cooperation among Vietnamese coffee exporters also helped drive up prices, Van commented.
Despite the price increase, many coffee growers in the region continue to withhold their crops, waiting for prices to go up, as even the current rates have yet to bring about profits after a prolonged slump.
Some coffee experts estimate that Brazil’s coffee exports may continue to fall due to severe weather. Several major international coffee exporters are tightening their sales, which could drive up domestic coffee prices to around VND35,000 or VND37,000 per kilo and prices in the world market may reach USD1,800 per tonne.
Recently, the central highlands region has seen early rains, which has affected coffee production. Coffee output for this year’s crop may considerably fall. Due to low coffee export prices in the world market and the speculation, coffee prices are expected to continue rising, Dong added.
Rising coffee prices good news for highlands farmers Related image(s)
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