Vietnamese coffee prices surged by 65% to reach an unprecedented level of VND135,000 ($5.3) per kilogram on Thursday due to production being affected by adverse weather conditions over the past 12 months.
Hoa, a farmer in Kon Tum In a significant developing province within the Central Highlands, she managed to sell her complete crop yield from late last year when prices were at their highest point, earning over VND810 million for each hectare.
Contrary to what happened last year, I calmly awaited better prices, which led to a significant increase in my earnings.
According to data from the Ministry of Agriculture and Environment, Vietnam exported 284,000 tons of coffee beans worth $1.58 billion during the initial two months of 2025. This represents a decrease of 28.4% in quantity compared to the same period last year; however, there was an increase of 26.2% in terms of value.
In February, shipments amounted to approximately $1.08 billion, setting a new record for the month. On February 13th, export prices hit an all-time high of $5,821 per ton.
Nguyen Nam Hai, chairperson of the Vietnam Coffee-Cocoa Association, stated that prices have been increasing significantly because of geopolitical issues and worldwide supply constraints caused by climate change.
A number of farmers are clinging to their inventories and anticipating higher prices, since even Brazil—the top global producer—has experienced reduced Arabica output due to unfavorable conditions, he mentioned.
He mentioned that prices are anticipated to continue increasing until July, at which point the nation will start its primary harvest season.
The National Center for Hydrometeorological Forecasting reports that the La Niña climate phenomenon is anticipated to take over from El Niño this year, which might lead to frosts that could significantly affect coffee farming in both Vietnam and Brazil.
At the beginning of January, frost caused significant damage to extensive coffee plantations in Northwestern Son La Province.
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Coffee grown in the Central Highlands province of Gia Lai. Image captured by Duc Hoa. |
Companies have recommended that farmers keep a close eye on weather patterns and implement suitable watering methods to reduce harm caused by extended periods of drought.
If successful strategies are implemented, coffee exports might exceed $6 billion and potentially hit $7 billion by 2025, according to them.
Last year Vietnam exported approximately 1.35 million tons of coffee. For an impressive $5.62 billion, although there was a decline in volume compared to 2023, this represents a significant 32.5% surge in value.