Vietnam coffee output in 2023-2024 crop forecast to fall 20%

Vietnam’s coffee output in the 2023-2024 crop year is estimated to decrease by 20% compared to the previous crop year to 1.47 million tons, the lowest in four years, putting pressure on Robusta supply in the world market, according to the Ministry of Agriculture and Rural Development.

Due to the impacts of climate change, the dry season has arrived earlier than usual in Vietnam, and prolonged hot weather has caused water levels in reservoirs in some provinces to fall rapidly.

Fears that drought could affect crops have caused domestic coffee prices to increase sharply in the past week.

The price of coffee beans in the Central Highlands and southern provinces rose by VND1,500 ($0.059) per kilogramme, bringing the domestic purchasing price to VND114,500-116,000 ($4.56) per kg.

Over the years, coffee prices have been low, prompting many farmers to gradually switch to higher value crops. However, this year’s coffee prices are experiencing a record high. This in turn should motivate farmers to restore their coffee plantations.

Vietnam exported 756,000 tons of coffee, earning nearly $2.57 billion, in the first four months of the year, up 5.4% in volume and 57.9% in value from the same period last year.