DAILY: Vietnamese coffee prices fall sharply amid global challenges on April 4, 2025
Tuesday, April 8,2025
AsemconnectVietnam - On Tuesday, domestic coffee prices in Vietnam ranged between 123,000 and 124,200 VND/kg, continuing to fall compared to the previous day, according to Kinhtedothi.
Global coffee markets are facing multiple challenges, including climate change and new trade policies. Favorable weather and an upcoming harvest in Brazil have also put downward pressure on prices.
In major coffee-producing regions like Lam Dong, Dak Lak, Dak Nong, Gia Lai, and Kon Tum, purchasing prices have slightly dropped.
In Di Linh, Lam Ha, and Bao Loc districts (Lam Dong province), coffee is being purchased at 123,000 VND/kg. In Cu M'gar district (Dak Lak), the price is 124,200 VND/kg, while in Ea H'leo and Buon Ho (Dak Lak), it stands at 124,100 VND/kg. Similarly, in Dak Nong province, coffee is bought at 124,200 VND/kg in Gia Nghia and 124,100 VND/kg in Dak R'lap. In Gia Lai province, prices are 124,000 VND/kg in Chu Prong and 123,900 VND/kg in Pleiku and La Grai. In Kon Tum province, the purchasing price is 123,900 VND/kg.
Internationally, Robusta coffee prices in London and Arabica prices in New York both recorded significant declines. The primary reason is new U.S. retaliatory tariffs, with President Donald Trump imposing 10% tariffs on Brazilian and Colombian coffee and 46% on Vietnamese coffee. These tariffs are expected to raise costs for roasters and chocolate manufacturers, potentially reducing consumer demand rather than boosting domestic production.
Currently, coffee prices are less dependent on supply-demand fundamentals. Although global production is expected to remain in shortage for the fourth consecutive year due to declines in Vietnam and Brazil, prices are likely to be supported by strong fundamentals. In Vietnam, despite lower output, rising export prices could help the sector achieve $5–6 billion in revenue for the 2024/25 season.
Local areas in Việt Nam such as Gia Lai Province are expanding into specialty coffee production, shifting away from traditional raw coffee exports to improve global recognition and solidify the producer's position in the coffee supply chain.
Pioneering Fine Robusta production
Gia Lai Province currently boasts over 57,000ha of coffee certified under 4C, UTZ, Rainforest and Organic standards, representing more than 53 per cent of the region’s total coffee area.
Moving beyond its role as a raw coffee exporter, Gia Lai is increasingly focusing on the development of specialty coffee, particularly Fine Robusta, positioning businesses at the heart of this transformation, alongside government and agricultural sector support.
Experts have said that specialty coffee such as Fine Robusta, is gaining traction as a high-value product, selling for 1.5 to 2 times more than regular green coffee. However, achieving specialty coffee certification requires adherence to rigorous production standards set by the Specialty Coffee Association (SCA), from cultivation and harvesting to processing, roasting and preservation.
Once nearly absent from the specialty coffee market, Gia Lai has now successfully introduced Fine Robusta to high-demand markets, including Japan, the EU and the US, solidifying its position in the global coffee industry.
To date, the province has established 34 coffee production chains linked to product consumption, covering over 43,000ha across 26 enterprises and eight cooperatives. Many businesses in the locality have invested in modern processing technologies to enhance competitiveness and increase the value of their coffee products.
Some companies such as Tam Ba, Vietnam Coffee United JSC, Lam Anh Agricultural and Service Cooperative, and Ngon Avatar have shifted their focus from exporting low-value coffee beans to developing international standard planting and roasting processes, producing high-quality Fine Robusta coffee.
The Director of Lam Anh Agricultural and Service Cooperative in Đăk Đoa District, Nguyễn Hữu Anh, said his cooperative was dedicated to organic and natural cultivation methods, maintaining strict oversight from harvesting to processing.
The cooperative also worked closely with local authorities to encourage farmers to adopt a new production mindset and create a standardised coffee material area. As a result, the cooperative’s specialty coffee products earned the provincial 4-star OCOP certification and were steadily gaining recognition in both domestic and international markets.
According to the Director of the provincial Department of Agriculture and Environment, Lưu Trung Nghĩa, in addition to quality, branding is crucial for Gia Lai coffee products to effectively compete in international markets. Thus, his province is actively encouraging businesses to develop brand stories that will create a unique identity for their products.
T.Huong
Source: Vitic
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