Coffee prices today, December 19, 2024: Raw coffee prices rise sharply, reducing profits for coffee shops.
Today, December 19th, domestic coffee prices are at 122,700 - 124,200 VND/kg. Coffee prices have decreased by up to 1,000 VND/kg compared to yesterday. Many coffee shops are accepting reduced profits to retain customers during the year-end season, even though raw coffee prices have increased by 20%.
Domestic coffee prices today
Specifically, the price of coffee in Dak Lak today decreased by 800 VND/kg compared to yesterday, reaching 124,000 VND/kg.
Coffee prices in Lam Dong today also decreased by 500 VND/kg compared to yesterday, reaching 122,700 VND/kg.
Similarly, today's coffee price in Gia Lai decreased by 1,000 VND/kg compared to yesterday, reaching 123,800 VND/kg.
Coffee prices in Dak Nong today remain at their highest level, down 800 VND/kg compared to yesterday, reaching 124,200 VND/kg.
The end of the year is a time when tea and coffee shops expect high revenue, but rising prices of green and ground coffee have caused many shop owners to worry.
Mr. Nguyen Anh Son, owner of Anh Son coffee shop in Tan Binh district (Ho Chi Minh City), shared that his shop is small in scale, so ingredients are usually imported weekly or monthly. Since the middle of the year, he has clearly felt the impact of rising coffee prices, causing a decrease in profit per cup of coffee sold.
"Currently, the price of coffee beans has increased by 10,000 VND per kilogram compared to October. Earlier this year, I increased the price of coffee by 2,000 VND per cup, so I can't increase it any further at this time; I can only accept a reduction in profit," said Mr. Son.
Representatives from Meet More, a global trade link company, also stated that they are facing pressure from rising coffee bean prices. At the beginning of December, the price of high-quality raw materials they purchase was 180,000 VND/kg, a sharp increase compared to the beginning of the year and almost double the average price of last year.
World coffee prices today
At the close of the most recent trading session, Robusta coffee prices in London for January 2025 delivery rose by $5/ton compared to yesterday, reaching $5,220/ton, while prices for March 2025 delivery increased by $25/ton compared to yesterday, reaching $5,193/ton.
Arabica coffee prices for March 2025 delivery increased by 6.15 cents/lb compared to yesterday, reaching 331.10 cents/lb, while May 2025 delivery increased by 5.10 cents/lb compared to yesterday, reaching 327.00 cents/lb.
The sharp rise in coffee futures prices has increased financing costs in the industry, forcing two major Brazilian exporters to request debt renegotiation.
In Vietnam, unfavorable weather and slow exports have raised concerns about supply disruptions, with forecasts suggesting a 5% decrease in coffee production for the 2024-2025 crop year.
Mr. Mera predicted that coffee prices could continue to rise even higher, and coffee producers would have to pass these increased costs on to selling prices in order to mitigate the impact on profits.
