Coffee prices are falling, is it worth worrying?

Fresh coffee is dried before being ground into coffee beans – Photo: N.TRI

According to information from many agents and gardeners, the price of green coffee beans traded on December 18 was around 122,000-125,000 VND/kg depending on the type, down 1,500-2,000 VND/kg compared to the previous 2 days. Fresh coffee fluctuated between 25,000-27,500 VND/kg, down 500-800 VND.

The purchase price of green coffee in the Central Highlands region is recorded to fluctuate between 123,000-125,000 VND/kg, of which Lam Dong has the lowest price in the region. The Southeast region is at 122,000-124,000 VND/kg.

Despite the decrease, the current price of green coffee is still higher than the 110,000-115,000 VND/kg of many previous weeks, more than double the same period last year, and triple the previous years. The current price ensures good profits for growers if they achieve stable productivity.

Similarly, coffee prices on world exchanges also recorded a decrease after a period of stability and increase.

Specifically, according to the record at noon on December 18, the price of robusta coffee (Vietnam's main coffee type - accounting for about 95% of export volume) on the London exchange tended to decrease slightly in all terms.

Specifically, the contract for delivery in January 2025 decreased by 0.27% (equivalent to 14 USD/ton), standing at 5,216 USD/ton. The contract for delivery in March 2025 decreased by 0.67% (equivalent to 35 USD/ton), trading at 5,168 USD/ton.

Speaking with Tuoi Tre Online on December 18, a representative of the Vietnam Coffee and Cocoa Association (Vicofa) said that the above price fluctuations do not reflect many issues and the current price is still quite high.

“With the current supply and demand situation, if Vietnam sells at a moderate volume, the world coffee price in the short term will likely remain high compared to previous years. The price may fluctuate more strongly next year when Brazil enters the crop,” he said.

Domestic coffee output forecast to decrease slightly

According to many businesses, Vietnam is about to end its harvest season but coffee prices have remained stable at a good level since the beginning of the season, showing that world supply is not enough to meet demand and the season is no longer the main factor causing prices to drop sharply as usual.

“The world is under great pressure from the scarcity of coffee supply due to Brazil’s poor harvest. In addition, Vietnam’s coffee productivity this year is not high due to the effects of drought and mealybug disease,” said a business representative.

Experts forecast that domestic coffee output in the 2024-2025 crop year could reach about 1.5-1.6 million tons, a slight decrease compared to the previous crop year.

Source: https://tuoitre.vn/gia-ca-phe-quay-dau-giam-lieu-co-dang-lo-20241218203821116.htm