AsemconnectVietnam - On Tuesday, Robusta coffee prices in Vietnam's Central Highlands, the country's largest coffee-growing area rose by 500 VND to VND66,000 – 66,600 per kg compared to Yesterday, according to Kinhtedothi.

Gia Nghia of Dak Nong provided the maximum price of VND66,600/kg, while traders in Lam Dong province offered the lowest price of VND66,000/kg. Robusta coffee rose to VND66,000 per kg in Bao Loc, Di Linh, and Lam Ha; to VND 66,300 – VND66,400 per kg in Dak Lak; to VND66,500 – VND66,600 per kg in Dak Nong; to VND66,100 per kg in Kon Tum, and to VND66,000 - VND66,100 per kg in Gia Lai.
The Vietnam Coffee and Cocoa Association (VICOFA) said that the continuous increase in coffee prices was due to the fact that supply did not meet demand. It is forecasted that from now until the end of the year, coffee exports will still be favorable when the demand increases while the source of goods does not improve.
However, not only farmers but also some exporters share that they do not benefit from increased coffee prices. The current situation of the coffee market fluctuates greatly, especially because the financial costs are too high, causing Vietnamese businesses to not dare to stock up.
Extreme weather conditions brought on by an approaching El Nino are fueling concerns that robusta beans in major coffee producers like Vietnam and Indonesia could be hit, resulting in soaring prices.
Vietnam expects its coffee exports this year to hit a fresh record high as global production will fall short of demand, resulting in soaring prices amid El Nino-induced extreme weather conditions, Vietnam News Agency reports.
“The now-widely expected transition to El Nino conditions in the third quarter of 2023 has fuelled fears of reduced production in Vietnam and Indonesia, both major robusta coffee producers,” Fitch Solutions’ research unit BMI said in a report dated May 24.
Other large producers like Brazil and Colombia will also be negatively impacted by drought as well, the report said.
Vietnam needs to develop a coffee value chain to help the industry develop along an integrated, multi-valued and humane direction, so that coffee growers can receive the most benefits in the value chain, said Minister of Agriculture and Rural Development Le Minh Hoan.
Although Vietnam is the world’s second biggest coffee exporter, around 90% of its coffee exports are in the raw form, resulting in low export revenue as well as brand recognition.
Even when the country tops the world in term of coffee export volume, it only stands at the 10th place in term of value.
To increase the value of coffee exports, building a coffee production chain is one of directions to develop the industry sustainably.
The close connectivity from farmers to processing companies will create a coffee production line that ensures high product quality, environmental protection and sustainable development.
Export revenue of coffee is expected to hit a new record this year, exceeding the four billion USD achieved last year, the Vietnam Coffee Cocoa Association (VICOFA) said.
The General Department of Vietnam Customs reported preliminary data showing that robusta coffee exports in the first half of June reached 68,744 tonnes (about 1.145 million bags), bringing coffee exports in the first six months to a total of 934,863 tonnes(about 15.58 million bags), down 1.36% over the same period last year.
Following are domestic Robusta coffee prices on June 27, in Vietnam's Central Highlands: