In the first two months of 2025, Vietnam exported 284 thousand tons of coffee, worth 1.58 billion USD, down 28.4% in volume but up 26.2% in value compared to the same period in 2024, due to increased export prices.
Coffee price today 3/13/2025
World coffee prices fell across the board after just one day of strong increases, due to the impact of the USD's recovery.
Domestic coffee prices increased sharply on March 12, increasing from 2,000 - 2,700 VND/kg, trading in the range of 132,500 - 134,000 VND/kg.
In the short term, the coffee market is affected by macroeconomic fluctuations surrounding the USD exchange rate against other major currencies, causing the Brazilian Real to appreciate 1.8% against the USD in the first two weeks of March. In this context, financially strong producers continue to limit domestic sales with very little coffee remaining from the current crop, which runs from July 2024 to June 2025.
Selling pressure from Vietnam is increasing as supply is abundant. The market is under pressure due to concerns that sharp price increases may reduce demand. Meanwhile, investment funds are reducing long-term buying positions and buying demand from roasters is also somewhat reduced. The trade war between the US and its trading partners has increased volatility in commodity trading. These are the factors contributing to the current decline in coffee prices in the market.
On the Brazilian supply side, weather conditions are being closely monitored as the robusta harvest is expected to begin in the coming weeks, while the arabica harvest is expected to start around mid-year. There were reports of reduced rainfall in the first two weeks of this month in some areas of Brazil’s coffee growing regions, including areas as far apart as the Cerrado and São Paulo. However, soil moisture levels were largely reported to be normal thanks to seasonal average rainfall through February. Rainfall in arabica growing areas continues to be closely monitored as the crop is in its growing phase and is largely un-irrigated and dependent on the weather.
The International Coffee Organization (ICO) said that global coffee prices reached a new peak in February and recorded an all-time high monthly average, surpassing the previous record of 305.1 US cents/lb recorded in March 1977. However, after reaching a peak of 375 US cents/lb on February 13, coffee prices suddenly reversed and fell.
Several factors have triggered profit-taking, leading to price declines, which are further reinforced by cash flow factors, increased liquidity needs and trade credit, which increase the costs and risks of doing business. As a result, banks may be reluctant to provide additional liquidity, limiting the ability of traders to purchase, thereby affecting inventory holdings, reducing demand and price differentials...
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| Domestic coffee prices on March 12 increased by 2,000 - 2,700 VND/kg in some key purchasing localities. (Source: Foodyoushouldtry) |
According to World & Vietnam , at the end of the trading session on March 12, the price of robusta coffee on the ICE Futures Europe London exchange for delivery in May 2025 decreased by 44 USD, trading at 5,508 USD/ton. The delivery in July 2025 decreased by 29 USD, trading at 5,484 USD/ton. The average trading volume is low.
Arabica coffee prices on the ICE Futures US New York exchange decreased, with the May 2025 delivery term down 7 cents, trading at 386.75 cents/lb. Meanwhile, the July 2025 delivery term fell 5.85 cents, trading at 378.55 cents/lb. Trading volume was high.
Domestic coffee prices on March 12 increased from 2,000 - 2,700 VND/kg in some key purchasing localities. Unit: VND/kg
(Source: giacaphe.com) |
The 2023-2024 crop year recorded many fluctuations but also brought positive results for the Vietnamese coffee industry. According to the General Department of Customs, the country exported 1,476,842 tons of coffee, earning 5.425 billion USD. Although output decreased by 11.3% compared to the previous crop year, export value still increased by nearly 33% thanks to record high prices, surpassing VND100,000/kg for the first time and currently above VND120,000/kg.
Coffee exports have surpassed the 5 billion USD mark, although it has great potential and is one of the leading coffee producing countries in the world, it also faces many challenges.
Despite being a major coffee exporter, the quality of Vietnamese coffee is still uneven and cannot reach the highest level compared to other countries. Vietnamese coffee is mainly Robusta coffee, and the quality of this type of coffee has not been improved enough to compete with higher-grade Arabica coffee.
A large portion of Vietnam’s coffee growing areas still rely on traditional farming methods, which can lead to uncontrolled use of pesticides and chemical fertilizers, which can have negative impacts on the environment and consumer health. Switching to a sustainable, organic farming model requires a large investment of time and money, and not all farmers are willing to make the change.
Extreme weather, including hot weather and erratic heavy rains, is affecting coffee yields and quality. This makes coffee production unstable and can make it difficult for farmers to maintain a steady income.
The lack of added value in the supply chain is also a huge challenge, as most Vietnamese coffee is still mainly exported as raw beans or green coffee, instead of high value-added products such as roasted coffee or premium brewed products. This makes the Vietnamese coffee industry unable to fully exploit the value and profit potential of coffee.
Meanwhile, the Vietnamese coffee industry lacks highly skilled human resources in areas such as coffee processing, product research and development, and marketing. This limits the ability to improve the quality and add value to coffee products.
In terms of competition in the international market, Vietnamese coffee faces fierce competition from other coffee-producing countries such as Brazil, Colombia, Ethiopia, and Indonesia. This requires the Vietnamese coffee industry to constantly innovate and improve product quality to maintain its position in the international market.
To overcome these challenges, the Vietnamese coffee industry needs to promote quality improvement, apply high technology to production, develop value-added products and focus on sustainability in farming.
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-1332025-gia-ca-phe-tut-doc-bat-on-trong-giao-dich-hang-hoa-thach-thuc-doi-voi-hang-viet-307316.html
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