Global coffee prices are expected to rise by 25% after crop declines in Vietnam

Vietnam – The global market is anticipating a rise in coffee prices by 25%, their highest level in the past 45 years, against the backdrop of a decline in Robusta coffee crops in Vietnam, according to a statement from the International Coffee Organization.

“Robusta” coffee will record an increase after the problems experienced by the largest producer in Vietnam, whose coffee exports to global markets decreased by 20%, and the bad harvest for the second season in a row with supply difficulties.

Expectations indicate that an increase in the prices of coffee types is inevitable, and a further increase in the prices of “cheap” coffee is expected.

The Izvestia newspaper reported that the shortage in supply caused the wholesale prices of Robusta coffee to rise to their highest levels in 45 years.

Last April, spot prices in major markets rose by 16.8% to $19,365 per pound ($427 per 1 kilogram), the highest level since 1979.

The International Coffee Organization report stated that the global coffee market is facing a significant shortage in Robusta supplies, as its global production during the years 2023/24 is estimated at approximately 60.9 million bags weighing 60 kg each, a decrease of 8.1% from the previous year.

The organization’s report explains that the main reason for the problems of Vietnam, the largest producer and exporter of Robusta, is crop failure in the past and current seasons and a 34.4% decline in production.

It should be noted that Vietnam meets about a third of the world’s supply of Robusta coffee.

Production in Vietnam during 2023/24 is expected to reach only 16.5 million bags due to adverse weather conditions and a decrease in the production of perennial trees.

Source: Izvestia