Vietnam specialty coffee fetches $48 per kg in highest bid

A 30kg lot of arabica coffee from Pun Coffee Ltd. won the highest bid of VND1.2 million ($48) per kg at an auction in Hanoi last Saturday.

The auction was organized by Simexco Dak Lak Ltd. and the Buon Ma Thuot Coffee Association. It featured specialty coffee samples selected from the Vietnam Amazing Cup 2024 competition, showcasing nine robusta and six arabica samples from various individuals and organizations.

The coffee lot from Pun Coffee was grown on Pun Hill in Huong Phung Commune, Huong Hoa district, Quang Tri province, an area with an average altitude of 580 meters.

Le Duc Huy, general director of Simexco Dak Lak, emphasized the hard work of farmers in producing these specialty coffee varieties.

He said the auction provided an opportunity for roasters and buyers to acquire top-quality Vietnamese coffee, highlighting the hard work, creativity and passion involved in enhancing the flavor of Vietnamese coffee.

This, in turn, would boost the value and reputation of Vietnamese coffee and bring businesses closer to consumers, he added.

Despite rising coffee prices this year, which have posed challenges for roasters, the export of specialty coffee has increased in both volume and value. Specialty coffee represents a significant opportunity for Vietnam's commercial coffee sector, Huy said.

He noted that Vietnamese coffee was clearly identified among roasters' products worldwide, with traceability information confirming its origin in Vietnam.

Trinh Duc Minh, chairman of the Buon Ma Thuot Coffee Association, noted that the development of specialty coffee in Vietnam, a relatively recent phenomenon, had progressed significantly in the last decade. He emphasized the importance of not only producing high-quality specialty coffee but also marketing it effectively.

Auctions play a crucial role in enhancing the value and reputation of specialty coffee regions. Although they often involve smaller quantities, prices can be six to seven times higher than regular coffee. Participation in such auctions not only boosts the value and reputation of the coffee but also introduces Vietnam’s exceptional coffee to international customers, motivating farmers to continue cultivating specialty coffee.

Nguyen Tri Thang, director of the Ea Tan Cooperative farm in Krong Nang district, Dak Lak province, said they were excited to present their robusta specialty coffee from the Dak Lak plateau to coffee enthusiasts at home and abroad. This is the second time the cooperative has participated in the auction.

Their coffee was priced at VND350,000 ($14) per kg during their first participation and a Polish firm bid VND610,000 ($24.4) per kilogram in the second auction, exceeding their expectations, Thang said.

In the first six months of 2024, Vietnamese coffee export turnover reached $3.19 billion, up 33.2% year-on-year, according to statistics from the General Department of Customs. Vietnam is the world's largest exporter of robusta.