Robusta coffee prices are higher than Arabica which is unprecedented

Looking back at Vietnam's coffee export prices in July 2024, it is clear that the export price of Robusta coffee was at times higher than that of Arabica coffee this year.

Specifically, according to the General Department of Customs, in July, the volume of Robusta coffee exported was more than 58 thousand tons, worth more than USD 263 million, corresponding to an average export price per ton of Robusta coffee of USD 4,528. Meanwhile, in July, Arabica coffee exported more than 5 thousand tons, worth more than USD 22 million, corresponding to USD 4,350 per ton. Thus, in July, the average export price of Robusta coffee was USD 178 per ton, higher than that of Arabica coffee.

According to experts, world coffee prices will continue to fluctuate strongly until the end of 2024 due to bad weather, transportation disruptions, and a tight legal environment in many countries.

Some experts predict that tensions will ease in 2025, but prices will continue to increase in the long term due to climate change and many other factors.

In July and the previous months of 2024, there were months when Robusta coffee export prices were higher than in Arabica. Therefore, in the first 7 months of this year, the average export price of Robusta coffee (USD 3,379 per ton) is slightly higher than that of Arabica coffee (USD 3,357 per ton).

Mr. Do Ha Nam, Vice President of the Vietnam Coffee and Cocoa Association (VICOFA), said that the price of Robusta coffee is higher than that of Arabica coffee, which is very unusual. In the world, people use a lot of Arabica coffee, while Robusta coffee is often used to blend with Arabica coffee. Therefore, from the past until now, the price of Arabica coffee has always been very high and much higher than that of Robusta coffee, which is usually two times higher.

But this year, the price of Vietnamese Robusta coffee is higher than that of Arabica coffee, even higher than that of Indonesian Robusta coffee (previously, Indonesian Robusta coffee was often the highest price in the world). With such high prices, Vietnam lacks Robusta coffee to sell.

Mr. Nam explained that Vietnamese Robusta coffee has its flavors and is cheaper than Robusta coffee from many other countries. Therefore, most of the world's largest coffee traders buy Vietnamese Robusta coffee. Roasting and processing companies use Vietnamese Robusta coffee mixed with Arabica coffee when producing instant coffee, creating a habit for consumers to prioritize buying instant coffee containing Vietnamese Robusta coffee.

On the other hand, the fact that the world's largest coffee import market, the EU, is increasingly introducing regulations on food safety, the environment, etc., is also creating opportunities for Vietnamese coffee.

At this point, there are only more than 3 months until the EU's anti-deforestation regulation (EUDR) takes effect (from January 1, 2025). Regarding coffee, Mr. Do Ha Nam said that Vietnam is the country that is implementing the EUDR most seriously. Therefore, up to now, most Vietnamese coffee exporting enterprises have been able to ensure that they provide evidence that their exported coffee does not violate the EUDR. Meanwhile, other coffee-exporting countries have not been able to ensure this. Therefore, although the price of Vietnamese Robusta coffee has increased, EU importers still flock to Vietnam to buy coffee because they cannot replace it with Robusta coffee from other sources.

Therefore, Mr. Do Ha Nam commented that although the price of Robusta coffee is higher than that of Arabica coffee, it is only temporary. Still, with the quality improvement, in line with consumer tastes and especially in compliance with food safety and anti-deforestation regulations of the European market, Vietnamese Robusta coffee will continue to receive significant attention from importers, with good and stable prices in the coming time.

According to the General Department of Customs, in the first 8 months of 2024, Vietnam exported 1.06 million tons of coffee, worth USD 4.01 billion, down 12.1% in volume but up 35.6% in value compared to the same period last year thanks to a sharp increase in export prices. In the first 8 months of 2024, the average export price of Vietnamese coffee reached USD 3,800 per ton, an increase of 54.3% over the same period in 2023.

In August 2024 alone, the average export price of Vietnamese coffee reached USD 5,278 per ton, an increase of 6.6% over July 2024 and 72.9% over August 2023.