According to the General Department of Customs, Vietnamese export coffee prices reached a record high in August, estimated at around USD3,054 per tonne, up 29.7 percent on-year.

Record-high prices have also been seen in the domestic market. On September 15, a kilo of coffee in Dak Lak Province increased to VND66,600. The price was VND66,400 per kilo in Gia Lai and VND66,900 per kilo in Dak Nong.

However, local firms are facing limited export supply. In August, Vietnam exported only 84,650 tonnes of coffee worth USD258.5 million, down 25.1 percent and 2.9 percent on-year respectively.

The industry has never experienced such a shortfall in terms of export supply.

Germany, Spain, Belgium, the US, Italy, Japan and Russia are among the biggest importers of Vietnamese coffee.

Phan Minh Thong, chairman of Phuc Sinh Coffee JS Company, said Vietnam has remained the second largest coffee exporter in the world. But this year, many localities experienced a poor coffee crop due to unfavourable weather conditions.

The Vietnam Coffee Cocoa Association admitted that Vietnam’s coffee prices have been highest over the past 30 years. But companies do not have much coffee for export. This may result in a decrease in coffee exports from August to October compared to the same period last year.

In reality, lots of coffee growers have turned to planting fruits such as durian, which has been partially blamed for the decline in coffee productivity.

Source: Dtinews