The 2023-2024 crop year recorded many fluctuations but also brought positive results for the Vietnamese coffee industry. Although output decreased by 11.3% compared to the previous crop year, export value still increased by nearly 33% thanks to record high prices, the whole country exported 1,476,842 tons of coffee, earning 5.425 billion USD, according to the General Department of Customs.
Coffee price today 3/12/2025
World coffee prices have increased sharply on all exchanges. Robusta coffee prices continued to increase sharply while Arabica recovered after a slight decline at the beginning of the week. In just the first two days of the week, robusta coffee prices on the London exchange increased by nearly 200 USD/ton, with the delivery date surpassing the threshold of 5,500 USD/ton.
Domestic coffee prices today, March 12, also increased sharply by more than VND2,000/kg, trading in the range of VND132,500 - 133,500/kg. The Vietnamese coffee industry has achieved many positive results in 2024, but still faces many challenges, including climate change and technical barriers from importers. Climate change leads to a decrease in water sources for coffee trees. The export market also faces many challenges when importers build strict technical standards.
The London and New York exchanges continued to be supported by a weaker US dollar and lack of rain in the world's number one supplier - Brazil. The outlook for the US dollar is quite pessimistic as the DXY index has fallen to a 4.5-month low, with the possibility of falling to 102 or even 100 in the coming weeks. The US dollar fell against most other currencies on concerns about slowing growth and the impact of tariffs on the US economy.
However, the upside momentum was somewhat limited as ICE-monitored arabica coffee inventories rose to a one-week high of 803,032 bags on March 11. Meanwhile, ICE-monitored robusta coffee inventories rose to a one-month high of 4,356 lots at the end of last week.
According to experts' analysis, the reason for the continued increase in coffee prices on the two floors in recent times, in addition to supply and demand factors, is also due to speculation on the floor. It can be clearly seen through the transaction prices of the months, the delivery prices of the near months are higher than the distant months. This proves that speculators focus money on the near months with the purpose of increasing and withdrawing capital quickly.
Amidst the ongoing geopolitical conflict and the escalating trade war, speculators are pouring money into gold and agricultural markets such as coffee and cocoa. Not to mention the significant increase in demand for coffee in countries, especially in giant markets like China in recent years. Therefore, coffee prices still have an advantage and a steady upward trend in the current context.
The recent 111th National Coffee Association (NCA) Convention highlighted the difficult situation facing the international coffee trade. Concerns focused not only on rising prices but also on difficulties in logistics, supply chains, and finance...
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| Domestic coffee prices today, March 12, increased sharply by more than 2,000 VND/kg in some key purchasing localities. (Source: aivivu) |
According to World & Vietnam , at the end of the trading session on March 11, the price of robusta coffee on the ICE Futures Europe London exchange for delivery in May 2025 increased sharply by 177 USD, trading at 5,520 USD/ton. The delivery in July 2025 increased by 171 USD, trading at 5,513 USD/ton. Trading volume was low.
Arabica coffee prices on the ICE Futures US New York exchange increased sharply, with the May 2025 delivery period increasing by 9.75 cents, trading at 393.75 cents/lb. Meanwhile, the July 2025 delivery period increased by 9.7 cents, trading at 384.40 cents/lb.
Domestic coffee prices today, March 12, increased sharply by more than 2,000 VND/kg in some key purchasing localities. Unit: VND/kg
(Source: giacaphe.com) |
Vietnam's coffee export industry is facing many major challenges. The most prominent is the uneven quality of products. Vietnamese coffee - mainly Robusta coffee - is uneven in quality. This affects the competitiveness of products in the international market, especially in the high-end segment. High-quality markets such as the EU, the US and Japan often require coffee with very high standards, while many products exported from Vietnam still lack consistency in quality.
The majority of Vietnam’s coffee exports are still green beans, not processed as deeply as roasted or instant coffee. This reduces the added value of the product and causes the Vietnamese coffee industry to miss out on the opportunity to earn greater profits from pre-processed products.
Vietnamese products are now facing fierce competition from other coffee-producing countries, especially Brazil, Colombia, and Indonesia. These countries not only have large output but also focus on improving quality, innovating processing technology, and building strong brands, which Vietnam needs to improve.
Meanwhile, climate change is affecting coffee production, especially in the major coffee growing regions of the Central Highlands. Unusual changes in weather, such as heavy rains or prolonged droughts, can reduce coffee yields and quality, affecting the ability to supply the international market steadily.
However, internally, Vietnam lacks a strong and effective strategy to build a national coffee brand. Vietnamese coffee brands are not clearly recognized in the international market, which makes it difficult for Vietnamese coffee exports to compete with famous coffee brands from other countries.
Although Vietnam has a large seaport, its logistics system and transportation infrastructure are still limited, especially in remote areas. The lack of efficient transportation services and high transportation costs reduce the profitability and competitiveness of Vietnamese coffee.
Moving from raw coffee production to high-quality processed or organic coffee requires time and significant investment. Many farmers still maintain traditional farming methods and lack knowledge of high-quality coffee production, making it difficult for the coffee industry to increase the value of its products.
External impacts, tariff policies, regulations on quality standards and export certification of international markets can create barriers for Vietnamese coffee. Strict regulations on food safety, environmental protection and organic certification requirements can increase export costs, affecting the competitiveness of products. For example, the EU's anti-deforestation regulation (EUDR) - a market that accounts for 41% of Vietnamese coffee exports.
Thus, to overcome these challenges, Vietnam needs to focus on improving coffee quality, developing value-added products, building a strong Vietnamese coffee brand and improving logistics infrastructure.
To improve the quality and value of coffee brands, Deputy Prime Minister Tran Hong Ha once emphasized the need for a common strategic vision. He called on ministries, sectors, localities and businesses to cooperate in building high-quality, low-emission growing areas and applying advanced technology...
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-1232025-gia-ca-phe-robusta-tang-gan-200-usd-kho-khan-don-dap-nhung-thach-thuc-lon-doi-voi-xuat-khau-307215.html
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