Coffee prices hit historic high, farmers earn billions, buy cars
Coffee prices have continued to rise, reaching historic highs as the world depends on supplies from Vietnam. As a result, farmers have made big profits, some households have earned billions, and have even bought new cars.
Farmers win big
Morning of April 17,coffee pricesThe price of buckwheat increased to 116,000 VND/kg. Although many people called to ask to buy, Mr. Nguyen Van Tao - a coffee grower in Dak Mil district (Dak Nong) - still shook his head, waiting for the price to increase to 120,000 VND/kg.
Mr. Tao said that in the Central Highlands, people harvest coffee from October of the previous year until the beginning of the following year. Because he planted a different variety, his family harvested coffee late. He only started harvesting at the end of January - the time when the price of coffee beans increased sharply.
After picking and drying the fruit, his family got 16 tons of coffee beans. This number is not higher than previous years but the price of coffee is sky high.
Mr. Tao and his family have been growing coffee in the Central Highlands for decades, but no year has been as successful as the present.
“If I sell at 120,000 VND/kg, I will earn about 1.9 billion VND for this coffee crop,” he said, calculating that after deducting expenses, the profit will reach 70% of the total revenue.
According to him, in this area, the coffee supply among the people is almost exhausted. Most households sell fresh coffee right after harvest or sell coffee beans at the time when the price is 70,000-90,000 VND/kg. Therefore, when the price is as high as it is now, many households regret not having any more goods.
“I risked holding on to the coffee until now because I thought the price would increase even more. As a result, the price has been increasing continuously, and I have made a big profit,” Mr. Tao shared.
Mr. Hoan grows 4 hectares of coffee in Dak Lak and boasts: “This crop yielded 10 tons of beans. When the price increased to 112,000 VND/kg, I sold everything.” Because compared to the same period last year, the price of coffee has increased 2-3 times.
"After selling the coffee, I bought a car worth more than 1 billion VND so that my family can travel more conveniently," he said excitedly.
At this time in 2023, the price of green coffee beans in the Central Highlands provinces fluctuated around 50,000 VND/kg. This year, the coffee price recorded on April 17 soared to a historic peak of 116,000 VND/kg. Compared to the same period last year, the price of coffee increased by 66,000 VND/kg, equivalent to an increase of 132%.
In the world market, at the end of the first trading session of the week, Robusta coffee on the London floor for delivery in May 2024 was priced at 4,005 USD/ton - a historical record, and for delivery in July 2024 at 3,977 USD/ton.
Arabica coffee prices for May 2024 delivery also increased to 236.75 cents/lb, and for July 2024 delivery at 228.4 cents/lb.
Coffee prices continued to rise, as concerns about coffee crops in Brazil and Vietnam are fueling futures buying by funds.
World roasters rely on Vietnamese coffee supply
Amid the soaring coffee prices, which have been breaking all-time highs, many gardeners are restless because the crop is thirsty and production is expected to drop sharply. Coffee is in the midst of fruiting, and a lack of water will cause the fruit to shrivel or fall off.
Mr. Nguyen Van Tao shared that the fruit set rate is good but the weather is dry. Some households have only been able to water twice before running out of water. “If there is no rain in the next month, the coffee yield could drop sharply,” he worried.
In Dak Mil district alone, thousands of hectares of coffee plantations are at risk of drying out due to lack of water.
Leaders of the Department of Agriculture and Rural Development of Dak Nong province said that the drought and water shortage will affect some of the local key crops, forecasting a crop failure in the coming crop year. The province has directed irrigation companies and localities to closely monitor weather developments to have plans to regulate water for crops, especially in areas growing key crops, which are currently at high prices.
In Gia Lai, Mr. Tran Van Hieu shared that his family has more than 10 hectares of coffee trees that are still young, but are at risk of being completely lost due to prolonged drought and heat. Ponds, lakes, and streams have all dried up.
To “save” 10 hectares of coffee, his family had to spend a large sum of money to drill a well to get water for watering the plants. However, the amount of water for watering the coffee plants was unstable. The pump could only run for about an hour before having to stop due to lack of water.
Talk toVietNamNet reporterMr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association, said that the coffee output of the next crop will decrease due to the heat and drought occurring in many coffee growing areas in the Central Highlands.
According to him, coffee supply will continue to be tight because Brazil will not start its new harvest until July. Indonesian coffee is mainly for domestic consumption, with limited export supply. Therefore, roasters around the world rely mainly on supplies from Vietnam.
However, coffee output in our country next crop is forecast to decrease sharply, 20% compared to the last crop. Therefore, the price of green coffee in our country as well as in the world will increase sharply.
The Ministry of Industry and Trade said that this year, the Vietnamese coffee industry will continue to benefit from the high price of Robusta coffee, which may even reach a peak due to the shortage of supply. It is predicted that the increase in world coffee prices will slow down or reverse in the second half of 2024.