Coffee prices in Vietnam have hit a historic high due to dwindling inventories and a forecasted decline in production. With a 110% increase from the previous year, prices have reached VND98,100 (US$3.95) per kilogram. This surge is attributed to climate-induced droughts affecting coffee-growing regions, shifts in farming to other crops after years of low coffee prices, and shipping disruptions amid Red Sea tensions. The high prices are causing difficulties for traders, who are cutting back on purchases and incurring losses. Some importers have started sourcing from India and Brazil, where prices are currently more competitive. The situation might change with Brazil's upcoming coffee harvest, which could potentially lower global market prices.
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