The Central Highlands province of Dak Lak, which is the country’s biggest coffee producer, has seen a strong surge in coffee price as the beans are currently sold at VND43 million a ton.

Coffee price has surged VND40,000 per ton compared to a week ago, said Le Thanh Long, a coffee grower in Dak Lak Province. The buying price has been up VND1.4 million per ton over late last month.

“Given an upsurge in sales price, coffee farmers have started hoarding their beans in the hope that price will rise further before the coming crop starts in October. This time last year, a tight supply pushed the price higher,” said Long.

Thanks to a rise in the export price of coffee, local level has recently edged up, according to a coffee exporter in HCMC. There has been a US$80 increase per ton for deliveries in September on the London commodity trading center.

Industry insiders reckoned the world coffee price has bounced back recently. Moreover, this year’s coffee output in Brazil, the world’s larger producer, is projected to decline given unfavorable weather conditions, driving the global price up.

The country exported 1.1 million tons of coffee worth US$2.3 billion in the year’s first half, up 25.6% in volume and 20.4% in value year-on-year, according to the Ministry of Agriculture and Rural Development.

The Saigon Times Daily