AsemconnectVietnam - On Wednesday, Robusta coffee prices in Vietnam's Central Highlands, the country's largest coffee-growing area fell by 2000 VND to 118,000–118,500VND per kg compared to Yesterday, according to Kinhtedothi.

Gia Nghia of Dak Nong provided the maximum price of VND118,500/kg, while traders in Lam Dong province offered the lowest price of VND118,000. Robusta coffee fell to 118,000VND per kg in Bao Loc, Di Linh, Lam Ha; to 118,400-118,500VND per kg in Dak Lak; to 118,400-118,500VND per kg in Dak Nong; to 118,200VND per kg in Kon Tum, and to 118,200-118,300VND per kg in Gia Lai.
Vietnamese coffee prices are following the global trend of declining prices. By the end of last week’s trading session, robusta prices on the ICE Futures Europe London exchange plummeted, with September 2024 delivery down by 110 USD, trading at 4,326 USD per tonne. Arabica coffee prices on the ICE Futures US New York exchange have also experienced a downward trend.

Experts predict continued fluctuations in coffee prices, particularly as the European Union introduced stricter controls on the quality of imported goods, including coffee. Brazil’s weather outlook and harvest pressure also impacted global prices.

Despite being the world’s largest exporter of robusta coffee, Vietnam spent 110 million USD to import coffee to meet domestic demand and export processing in the past seven months.

In the first seven months of 2024, Vietnam exported 964,000 tonnes of coffee, down almost 14% from the previous year. However, export turnover rose by 31%, reaching 3.54 billion USD, thanks to consistently high coffee prices throughout the year.
The Agency of Foreign Trade under the Ministry of Industry and Trade and the Vietnam Industry and Trade Information Centre forecast that Vietnam’s coffee exports in the remaining months of the third quarter would decrease due to low supply.

Supply will not increase until October, when the 2024-25 coffee harvest begins. Statistics from the Ministry of Agriculture and Rural Development show that the country's coffee output is estimated at 1.47 million tonnes in the 2023-24 crop year, the lowest level in four years, down 20% compared to the 2022-23 crop year. Coffee output in the 2024-25 crop year is forecasted to continue to decrease due to unfavourable weather factors.

Without including the inventory carried over from the previous year, Vietnam will only have about 200,000 tonnes left to export from now until September. However, the Vietnamese coffee industry will benefit in terms of price. The Bloomberg reported that global Robusta coffee prices would fluctuate in a strong and prolonged upward trend due to concerns about scarce supply from Vietnam.

According to the International Coffee Organisation (ICO), the world may face a shortage of Robusta coffee of up to 35 million bags (60kg/bag) by 2040.
Following are domestic Robusta coffee prices on August 14, in Vietnam's Central Highlands: