Coffee prices drop at the beginning of the season, businesses say it's not a cause for concern

Since mid-October 2024, many coffee growing areas in Gia Lai province have begun to show ripe fruits before the peak harvest season - Photo: TAN LUC

Specifically, over the past 3 weeks, the price of green coffee beans has continuously dropped from 120,000 VND/kg to about 110,000 VND/kg. Notably, the price of 120,000 VND/kg has been stable for the past few months.

Explaining this phenomenon, Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association (VICOFA), said that this is a normal development every time coffee is about to enter the peak harvest season.

A representative of VICOFA said that an important factor that cooled down coffee prices was that the European Union decided to postpone the application of anti-deforestation regulations in agricultural production (including coffee) for another 12 months, which reduced pressure on supply.

Forecasting Vietnam's coffee output this year, this expert said that supply may decrease slightly by around 10% because some growing areas in the Central Highlands have been affected by heat and drought since the beginning of the season, causing a decrease in productivity.

Meanwhile, Mr. Nguyen Huynh Phu Lam - Director of Classic Coffee Joint Stock Company (Gia Lai), said that the market now has a supply of the new crop. Processing and exporting enterprises no longer face difficulties in sourcing goods like in previous months.

Source: https://tuoitre.vn/gia-ca-phe-giam-dau-vu-cac-doanh-nghiep-noi-khong-dang-lo-20241021143704157.htm