Robusta Coffee Export Price Hits 30-Year High

Specifically, coffee export turnover has set a historical record when it surpassed the 1 billion USD mark after only the first 2 months of 2024. Notably, the coffee export price also increased sharply. In February, the average coffee export price of Vietnam was estimated at 3,276 USD/ton, an increase of 7.4% compared to January and 50.6% compared to the same period last year.

Reasons for the high Robusta coffee prices:

• Concerns about supply shortages: The global demand for Robusta coffee is increasing, while the Robusta coffee production of Vietnam, the world's largest Robusta coffee exporter, is expected to decrease in the 2023/24 crop year due to the impact of climate change and diseases.
• Shortage of shipping containers: The global shortage of shipping containers is making it difficult to export coffee, leading to an increase in coffee prices.
• Robusta coffee prices on the London market increase: Robusta coffee prices on the London market have increased due to factors such as rising crude oil prices, a weak USD, and concerns about supply.

Robusta Coffee Prices Surged in February 2024

Impact of high Robusta coffee prices:

• Benefits for farmers: High Robusta coffee prices will bring higher profits to coffee farmers.
• Increased export turnover: The high export of Robusta coffee will contribute to increasing Vietnam's export turnover.
• Impact on domestic coffee prices: High Robusta coffee prices can lead to an increase in domestic coffee prices.

Conclusion:

The high Robusta coffee export price is a good sign for the Vietnamese coffee industry. However, there are solutions needed to ensure the coffee supply in the future and avoid the high coffee prices affecting domestic consumers.