Robusta coffee price is higher than Arabica coffee price in Việt Nam

In the first half of September, almost of Việt Nam's export was Robusta coffee with 15,155 tonnes, earning $76.6 million, with an average price of $5,053 per tonne. VNA/VNS Photo

Previously the Robusta coffee price had been up to a third or even half the price of Arabica, but, now strong declines in the Robusta coffee supply, due to the impact of climate change, makes the price higher than the Arabica coffee price, said Nguyễn Nam Hải, chairman of the Việt Nam Coffee and Cocoa Association (VICOFA).

Climate change has affected all types of coffee, especially in Asian countries such as Việt Nam, Malaysia and Indonesia, that have often had a large output of Robusta coffee beans. The sharp decrease in Robusta coffee supply has caused prices to increase rapidly, Hải said.

In addition to the sharp decrease in output, the demand for Robusta coffee beans in the world has also increased, with the beans being preferred as a raw material to process into instant coffee.

The global demand for Robusta is in tandem with increasing demand for instant coffee. Developed countries such as South Korea and Japan, have consumed a lot of instant coffee in recent years.

"The higher price of Robusta coffee brings great benefits to Việt Nam's coffee industry because about 94 per cent of Việt Nam's coffee growing area have planted this variety," Hải told VTC news.

Việt Nam's coffee export in the first eight months of the year reduced in volume, but showed a significant increase in value compared to the same period in 2023.

According to the General Statistics Office, during the first eight months, Việt Nam exported more than one million tonnes of coffee, earning $3.99 billion. The export fell by 12.5 per cent ​​in volume, but surged by 34.8 per cent in value year-on-year.

In the first half of September, almost of Việt Nam's export still was Robusta coffee with 15,155 tonnes, earning $76.6 million, with an average price of $5,053 per tonne.

Arabica coffee export stood at 1,129 tonnes worth of $4.7 million, with an average price of $4,166 per tonne.

So the export price of Vietnamese Robusta coffee exceeded the price of Arabica beans by $887 per tonne.

In May the export price of Robusta coffee was recorded to be higher than that of Arabica coffee in May with a gap of $32 per tonne. The price was $3,920 per tonne of Robusta coffee beans and $3,888 per tonne of Arabica coffee. The gap then widened as the price increase of Robusta coffee was stronger.

According to economic experts, with the low price and improved quality of Robusta coffee, roasters around the world have switched to use this bean, causing demand to surge.

Meanwhile, Robusta coffee output has decreased due to the impact of weather. In addition, farmers have been switching crops after a long period of low Robusta coffee prices, causing the coffee growing area to shrink.

In Việt Nam, farmers are about to enter the coffee harvest season - November and December. Hải recommends that the farmers be prepared, with secure processing, drying and roasting facilities, especially in case of unfavourable weather conditions, ensuring quality coffee beans for export.

During a trading session on September 25, the price of Robusta coffee on the London trading floor for November delivery was at $5,312 per tonne, $36 higher than the previous session. But it was still down $174 compared to the peak set in the trading session on September 16 ($5,486 per tonne).