Vietnamese coffee prices are reaching historic highs due to a global price surge, boosting local farmers and exporters.
In the first half of 2024, Vietnam exported nearly 894,000 tonnes of coffee beans, worth about $3.19 billion. Although export volume fell by 11.4 percent compared to last year, the value increased by 33.2 percent, according to the General Department of Vietnam Customs.
In June, the average export price of Vietnamese coffee hit $4,489 per tonne, a 5 percent increase from May and a 67.3 percent rise year-on-year. The average price for the first half of 2024 was $3,570 per tonne, up 50.4 percent from the same period in 2023.
Experts predict that Vietnamese coffee prices could surpass the record peak of $5.5 per kilogram seen in late April. Le Duc Thinh from the Ministry of Agriculture and Rural Development attributes this to global supply shortages, which offer Vietnam a chance to boost export turnover and enhance product value.
High prices enable businesses to invest in better quality products and processing technology. However, they also raise production costs, which could squeeze profits if prices are not adjusted.
Nguyen Nam Hai of the Vietnam Coffee-Cocoa Association emphasizes the need for consistent quality to remain competitive. Economic expert Le Thi Hong warns that while high prices benefit farmers, they could also strain consumers.
Experts recommend that Vietnam focus on sustainable growth and quality improvement to maximize opportunities from the current high prices. With favorable conditions and government support, Vietnam is well-positioned to enhance its coffee production and exports.