COFFEE PRICES HIT ROCK BOTTOM AFTER ONE YEAR – FARMERS UNDER PRESSURE

Coffee prices hit rock bottom, impacting Vietnamese farmers and dealers. Track the latest changes and challenges in Vietnam’s key coffee regions.

The Vietnamese coffee market is facing a major downturn, with coffee prices hitting rock bottom—the lowest point in over 12 months. Although anticipated by some, the sharp drop has left many farmers and traders unprepared.

In key growing regions such as Đắk Lắk, Lâm Đồng, Gia Lai, Đắk Nông, and Kon Tum, prices have plummeted by over 6,000 VND/kg overnight and now sit 32,000 to 34,000 VND/kg below their March 2025 peak. Current local buying prices range from 98,000 to 104,000 VND/kg depending on the province.

A sharp decline raises concerns among farmers

In recent weeks, coffee prices in Vietnam and on international exchanges have plummeted to their lowest point in a year. The abrupt drop of 6,000 VND/kg in key regions has triggered concerns among both growers and traders.

The widespread buying price of 98,000 to 104,000 VND/kg is far below the highs seen just months ago—posing serious risks for smallholder farmers and middlemen alike.

Robusta coffee prices tumble on the London exchange

Internationally, Robusta coffee prices have seen their most dramatic drop of 2025. On June 19, the July 2025 futures contract decreased by $299 per ton, falling to $4,020 per ton. Other trading terms also saw significant reductions:

• September 2025: $3,891 per ton (down $264)
• November 2025: $3,826 per ton (down $256)
• January 2026: $3,775 per ton (down $245)
• March 2026: $3,752 per ton (down $233)

Prices of Robusta beans lost nearly $300/ton in a single session on the London exchange. Source: Internet

When converted to local currency, Robusta coffee prices now range between 97,000 and 104,000 VND/kg—almost identical to domestic rates.

According to analysts, the key cause is Brazil entering its peak harvest season with higher-than-expected yields. Indonesia is also beginning its new harvest, adding to global supply and accelerating falling coffee prices.

Arabica coffee prices drop sharply in New York

The Arabica coffee market is seeing a similar movement. On the New York exchange:

• July 2025: fell by $240 per ton, now $7,160 per ton
• September 2025: fell by $220 per ton, now $7,110 per ton

Although Arabica coffee prices mainly impact markets in the U.S. and Europe, they also influence buyer sentiment in Vietnam. Oversupply concerns are growing, adding to the downward pressure across the Vietnamese coffee market.

Farmers maintain margins, dealers face heavy losses

Even though coffee prices hit rock bottom, many Vietnamese farmers continue to earn decent margins due to low production costs. Current prices are still higher than those in 2022–2023.

However, local dealers are struggling. Many stocked up during the price peak in March and are now forced to sell at a loss—up to tens of millions VND per ton—to recover capital.

A dealer in Đắk Lắk shared: “If this trend of falling prices continues, many traders risk losing both capital and profit.”

Vietnam’s coffee market faces new challenges

The domestic market is under pressure amid global price volatility. Let’s examine the current landscape and key factors impacting the Vietnamese coffee market.

Steady demand, surging supply

Vietnam remains the world’s largest exporter of Robusta coffee. While global coffee demand remains stable, the surge in supply from Brazil and Indonesia is pushing prices down.

Brazil and Indonesia’s harvest impact

Brazil’s record-breaking harvest season is boosting both Robusta and Arabica coffee availability. Simultaneously, Indonesia’s harvest is adding to global supply, intensifying pressure on Vietnam’s export coffee prices and contributing to the recent coffee price drop.

Short-term coffee price forecast

Experts suggest the coffee price downturn may persist for a few more weeks before stabilizing. In the meantime, many farmers are holding off on selling in hopes of avoiding heavy losses.

Solutions for market stability and profit protection

To preserve profit margins, farmers and dealers should actively monitor the Central Highlands coffee prices, manage inventory strategically, and rely on transparent information and reliable forecasts to guide decisions.

Coffee farmers should track prices and manage stock carefully to maintain stable income. Source: Internet

Conclusion

The recent plunge, where coffee prices hit rock bottom, is creating substantial challenges for farmers and traders alike. While current prices remain above historical lows, the lack of proper cost control and inventory strategy could lead to serious losses.

BACONCO encourages both growers and businesses to stay informed, closely monitor coffee prices in the Central Highlands, and align with supply-demand forecasts. In an increasingly volatile market, adaptability and agility will be the keys to maintaining profitability and achieving long-term sustainability.