Domestic coffee prices hit 18-month high

The domestic coffee prices rose between VND900-VND1,000 to VND37,000 per kilo from 31 December due to higher world prices, the highest price level since the middle of 2008

The domestic coffee prices rose between VND900-VND1,000 to VND37,000 per kilo from 31 December due to higher world prices, the highest price level since the middle of 2008, the state-run Vietnam Agency reported on Jan 5, citing local traders.

The coffee prices on the London International Financial Futures and Options Exchange also increased by $70 per ton to $2,065 per ton.

The prices of Arabica coffee in Da Lat, the center highland of Vietnam also doubled from 2009 to VND14,500/kg however the supply is not enough as the coffee output only stands at 10,000 tons/year.

The Vietnam Coffee and Cacao Association (VCCA) attributed the coffee price hike to the increasing demand in the world market while heavy rain caused crop damage in Vietnam, the second biggest coffee exporter.

The country’s coffee output is forecast to fall 20% to 1.1 billion ton in the 2010-2011 crop, Vicofa predicted. – Stoxplus.com

Tags: Vietnam Coffee, Vietnam coffee prices