AsemconnectVietnam - On Monday, Robusta coffee prices in Vietnam's Central Highlands, the country's largest coffee-growing area remained unchanged at VND66,000 - VND 66,700 per kg compared to Yesterday, according to Kinhtedothi.

Gia Nghia of Dak Nong provided the maximum price of VND66,700/kg, while traders in Lam Dong province offered the lowest price of VND66,000/kg. Robusta coffee stayed at VND66,000 per kg in Bao Loc, Di Linh, and Lam Ha; at VND 66,400 – VND66,500 per kg in Dak Lak; at VND 66,600 – VND 66,700 per kg in Dak Nong; at VND66,000 per kg in Kon Tum, and at VND66,100 - VND65,200 per kg in Gia Lai.
Coffee prices are soaring in the domestic market. However, producers and exporters are worried as the EU has adopted the EU Deforestation Regulation (EUDR) which may affect Vietnam’s exports to the market.
Under EUDR, which aims to prevent the import of products associated with deforestation and forest degradation, 100 percent of Vietnamese farm produce, including coffee, when imported into the EU, must be traced with positioning information (GPS) about the growing garden, which is based on the risk of deforestation that can be confirmed by remote sensing monitoring systems. EUDR will take effect in December 2024.
Contrary to many other agricultural products which are decreasing sharply in price because of sharp falls in exports, domestic coffee prices have been increasing since early May.
The prices are believed to be the highest levels so far. Domestic prices have surged by 40 percent compared with the early 2022-2023 crop.
It is estimated that Vietnam exported 165,000 tons of coffee in May 2023, an increase of 15.7 percent, with a turnover of $396 million, an increase of 21.8 percent compared with the same period last year.
The average export price of Vietnam was about $2,399 per tonne, an increase of 5.3 percent compared with May 2022.
In the first five months of 2023, coffee exports brought revenue of $2.02 billion, up 0.2 percent over the same period last year.
In the current context of inflation, when people in many countries have tightened their purse strings, consumers are shifting to products with equal quality but lower prices. Vietnam can benefit from the trend with its Robusta coffee.
Coffee output in many countries, including Vietnam, is decreasing, resulting in price increases of raw coffee for processing.
In the first 5 months of 2023, Vietnam exported 866,121 tonnes of coffee, 3.9% lower than the same period last year. In particular, in May 2023, the export volume of coffee was only recorded at 149,667 tonnes, down 8.5% from the previous month and the second-lowest monthly export level since the beginning of the year.
Coffee production in the year 2022/23 is estimated to decrease by 10-15%, according to the Vietnam Coffee Association (Vicofa). For a coffee-producing power like Vietnam, the loss of 10-15% of output is huge, which will affect the supply-demand as well as the global coffee price.
Besides, according to experts, with economic recession and inflation occurring in most countries, consumers turn to lower-priced coffee compared to Arabica. Roasters are forced to respond to this trend, and they buy more Robusta to mix with Arabica to lower the price of coffee.
Finally, extreme weather due to El Nino this year, raised concerns that Robusta coffee beans from major producers such as Vietnam and Indonesia will be affected, leading to soaring prices.
Following are domestic Robusta coffee prices on June 19, in Vietnam's Central Highlands: