Businesses, farmers yet to benefit from recent coffee price hikes

Illustrative image (Photo: vneconomy.vn)

Over the past month, the price of coffee bean has continuously increased, reaching the mark of 60,000 VND (2.55 USD) a kilogramme, the highest in the past 15 years, in the Central Highlands provinces which are considered the country's "coffee capital".

According to the Department of Industry and Trade of Dak Lak province and coffee exporters, the market has been strongly influenced by the law of supply - demand.

Vietnam is leading the world in Robusta coffee production. However, while the demand for this kind of coffee has increased in recent years, Vietnam's output is decreasing by about 10-15%, causing a shortage of supply.

In addition, the current inflation has pushed up the prices of raw materials and fuels, especially agricultural materials, by two-three times, resulting in a rise in coffee production and processing costs, and selling prices.

The price of coffee bean has continuously increased, reaching the mark of 60,000 VND a kilogramme (Photo: VNA)

The Department of Industry and Trade of Dak Lak province said that in the first four months of 2023, the locality exported about 165,000 tonnes of coffee beans, equal to that of the same period of the previous years. The high coffee price leads to an increase in the export turnover. However, local farmers and businesses have yet to benefit much from the growth.

Deputy Director of the provincial Department of Industry and Trade Huynh Ngoc Duong said that local coffee enterprises are still weak in terms of capital, human resources, while their capacity to participate in large markets remains limited and linkages between them are not high.

In the coming time, the industry and trade sector will move to help solve limitations facing businesses. In addition, the province will continue to encourage product persification and deep processing, create conditions for businesses to access loans, and focus on improving the role of relevant associations./.