Coffee Prices Continue to Rise in Vietnam

Coffee Prices Continue to Rise in Vietnam

The price of coffee beans in the central highlands province of Dak Lak, Vietnam's largest coffee growing area, continued increasing during the past several days to around VND15,200 a kilo on March 14, up by VND200 a kilo against the previous day.

The prices of other coffee beans also stood high on the same day at VND15,300 a kilo of R2-5 per cent, VND15,900 a kilo of R1-6.3 and VND16,000 a kilo of R1-7.1 in the region. (US$1=VND15,762).

Meanwhile, the price of coffee for exports in Vietnam, the world’s largest Robusta coffee exporter, is rising sharply, costing US$910 to US$960 per ton early this week, up US$100 to US$150 from late last month.

The continuing drought has ruined a lot of coffee plants in the Central Highlands, Vietnam's major coffee-growing region, decreasing supply and pushing up prices. Vietnamese coffee beans are forecast to rise to around VND20,000 a kilo and export ones to US$1,000 a ton due to insufficient supply and higher global demands.

According to coffee exporters, coffee growers in Dak Lak province are even waiting for prices to rise further before selling their coffee. The Central Highlands province's output accounts for more than half of the country's total coffee supply.

The price of Robusta coffee has begun to increase since late last year when the rainy season ended as much as two months early in some parts of Vietnam foreshadowing a drought. From 2001 to 2003, Vietnam's Robusta coffee cost VND10,000 per kilo, at which coffee growers broke even or big farms with adequate water supply and advanced technology profited a little.
Saigon Times Daily