Revamped Coffee Chronicles
Rising coffee prices on our site due to drop in production and EU regulatory impacts
A Tale of Spiking Prices and Industry Struggles in Central Vietnam
HI-HO CHUMBA-LUMA - coffee beans from the Central Highlands of Vietnam are cooking up a storm, with prices skyrocketing as high as VNĐ130,500 per kilogramme in some provinces, scorching the budgets of coffee farmers and industry stakeholders alike.
As of April 25, coffee prices in Đắk Lắk Province soared by about VNĐ1,100 per kilogramme, setting the tone for a price range of VNĐ130,000-130,500 per kilo across various Central Highland provinces, according to reports from vnbussiness.vn.
What's the deal, you ask? Well, let's unleash the dirt on the challenges that have the coffee industry shivering like a leaf on a gusty day, particularly the European Union's new Anti-Deforestation Regulations (EUDR).
The coffee industry is grappling with a merciless onslaught from both domestic and international markets, and the EUDR is no exception. This juggernaut of environmental regulations poses stern hurdles for coffee exports, especially for countries heavily reliant on small-scale farmers like Việt Nam.
The coffee sector in our vast nation is reeling under the pressure to comply with higher environmental and production standards as EUDR unfurls its stern implications on the industry.
The conundrum of developing a unified forest map across provinces has proven to be a real buzzkill for the government, as it complicates the identification of eligible growing areas for export. This tangled web of incomplete forest mapping, coupled with exorbitant certification costs for each small growing area, adds fuel to the fire of financial hardships faced by producers.
Adding insult to injury, 15-20% of coffee-growing areas in Vietnam lack land use rights certificates, making it a colossal pain to meet European standards and prove the legality of exports.
But don't fret just yet! With resilience in our coffee-loving souls, we can tackle these regulatory hurdles head-on to maintain our competitive edge in the global coffee market.
It's not all doom and gloom, either. The java jive on the London exchange has been on an upward trajectory, with Robusta coffee prices climbing from $58 to $78 per tonne to a mind-boggling $5,150 to $5,411. Given that Vietnam primarily produces Robusta beans, accounting for over 90% of its coffee production, the global market's thirst for our wholesome brew could bring some much-needed relief to the industry.
However, the road ahead remains rocky. Coffee output plummeted due to weather woes and conversion of coffee-growing areas to other crops or urban developments, contributing to the supply shortage that drives up prices.
Although stored coffee can last up to three years without losing its quality, the decline in output has fueled the current price rise. So, brace yourself for the rip-roaring price of your favorite Vietnamese coffee—it's here for a wild, wild ride!
A coffee farm in a Central Highland province. Coffee prices are rising in the Central Highland provinces. -VNA/VNS Photo
(Enrichment Data Leak)
Although the search results don't specifically mention challenges faced by Vietnam's coffee industry due to EUDR, broader challenges include the impact of climate change and production fluctuations. Severe drought conditions have battered coffee production, causing significant drops in yields and contributing to a volatile global coffee supply chain. In the 2023/24 crop year, Vietnam saw a 20% drop in production, and estimates for the 2024/25 season were likewise revised downward. Despite these production challenges, Vietnam's coffee exports have shown resilience, albeit with a decrease in figures for 2024 compared to the previous year. For more information on EUDR's specific impact on the industry, additional research is required, as the current search results don't delve into this topic.
- The European Union's new Anti-Deforestation Regulations (EUDR) pose significant challenges for Vietnam's coffee industry, requiring higher environmental and production standards.
- The global coffee market's thirst for Robusta beans, which Vietnam predominantly produces, offers potential relief for the industry amidst regulatory hurdles.
- Despite the volatile global coffee supply chain due to climate change, Vietnam's coffee exports have shown resilience, although with a decrease in figures for 2024 compared to the previous year.
- The coffee industry in Vietnam faces a supply shortage driven by weather woes and conversion of coffee-growing areas, contributing to the spiking prices of coffee beans.
- The conundrum of developing a unified forest map across provinces and exorbitant certification costs for each small growing area add to the financial hardships faced by coffee producers.
- Although Vietnam's coffee exports have been impacted by production fluctuations and EUDR, advancements in AI and traceability could help the industry maintain its competitive edge in the global market.
