On the morning of January 9, at the book launch ceremony of Vietnamese and World Agricultural Products, business stories of Mr. Phan Minh Thong, Chairman of the Board of Directors of Phuc Sinh Joint Stock Company (specializing in exporting coffee, pepper, cinnamon, etc.), were shared.
Coffee prices in 2024 are said to only happen once every 50 years, and author Phan Minh Thong, Chairman of the Board of Directors of Phuc Sinh Joint Stock Company, recounted it at the book launch ceremony of Vietnamese and World Agricultural Products - Photo: QUANG DINH
The 29 stories in the book are about business activities, the hottest one being the story of coffee prices that only happen once every 50 years. The story about coffee prices attracts a lot of attention, especially from Vietnamese agricultural export enterprises.
Coffee prices increased by 250-350%
According to Mr. Thong, if the coffee industry was very fierce in 2023, in 2024, high coffee prices will be accompanied by prolonged tensions.
Coffee prices in 2024 increased continuously in the first 6 months of the year, from 58,000 VND/kg to 136,000 VND/kg, making coffee trading difficult. Mr. Thong said the beneficiaries were farmers and traders who bought unsold goods in warehouses.
"Buying companies have not yet received delivery, factories that have sold Vietnamese coffee now need to buy coffee for production and export, as well as roasters that sell to end customers are facing more difficulties than ever," said Mr. Thong.
If 2024 brought good news for farmers and traders, last year was also a sad year for many roasting and instant coffee factories due to bankruptcy - Photo: NGUYEN KHANH
Previously, coffee prices fluctuated between 1,200 - 1,500 USD/ton, the lowest was 400 USD/ton and the highest was 2,600 USD/ton.
Currently, coffee prices are around 3,500 - 5,000 USD/ton, an increase of 250 - 350% in input.
Many roasted and instant coffee factories go bankrupt.
The increase in input coffee prices, Mr. Thong said, was followed by many sad stories from roasting and instant coffee factories around the world.
Mr. Thong analyzed: "That means roasting and dissolving factories pay 250-350% more for inputs, making it very difficult to manage. Perhaps 30-35% of small and medium-sized roasting factories worldwide will go bankrupt, and the number could be up to 60%.
When costs increase by 250-350%, not counting other raw materials that also increase in price such as packaging and fuel gas, the only way is bankruptcy.
Coffee prices in the US are quoted by the "king" as normal, 7-8 USD/cup (about 200,000 VND); increased coffee prices push the price of a cup of coffee up to 15-20 USD (about 380,000 - 500,000 VND).
"When we went to the highlands, a customer went bankrupt, lost almost all his money. They told us: out of 45 buyers in the world, 42 were almost bankrupt, or bankrupt," Mr. Thong informed.
From the historical story of coffee, Mr. Thong shared the solution of "sitting together" to find solutions and solve difficulties.
Talking about the "history" of coffee prices, Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee - Cocoa Association, admitted that it is exactly once every 50 years with the price of Arabica coffee (highest at 5,600 USD/ton), and the highest ever with the price of Robusta coffee (5,200 USD/ton).
"Coffee prices in the past two years have been unpredictable. Even the domestic coffee price at harvest time was around 120,000 VND/kg," Mr. Hai acknowledged.
Coffee price story is a business document for enterprises, especially startups.
Ms. Nguyen Thi Minh Tam, Farm Net Company Limited, specializing in exporting Vietnamese agricultural products, shared: "Coffee prices have been "hot" for the past year, we have customers but sometimes there is no supply because prices keep increasing. Farmers and traders "look at each other, look at the price" to delay selling coffee. The story of coffee prices is truly once in 50 years, exporting enterprises, business people can read it again as business documents, especially startups".
In addition, Ms. Tam also believes that the experiences in business, competition, shyness, and difficulties shared by businesses in the top Vietnamese pepper exporters help export businesses gain more experience.
Source: https://tuoitre.vn/doc-dao-cau-chuyen-gia-ca-phe-chi-xay-ra-50-nam-mot-lan-20250109110255278.htm
Comment (0)