Coffee origin prices rise, where will the cost of coffee sales go?
According to data from the Vietnam Coffee and Cocoa Association (VICOFA), the average export price of Vietnamese Robusta coffee in May was $3,920 per ton, higher than the average export price of Arabica coffee at $3,888 per ton, which is unprecedented in Vietnam's nearly 50-year coffee history.
According to local coffee companies in Vietnam, the spot price of Robusta coffee has exceeded that of Arabica coffee for some time, but this time the customs data was officially announced. The company said that the current spot price of Robusta coffee in Vietnam is actually $5,200-5,500 per ton, higher than the price of Arabica at $4,000-5,200.
The current price of Robusta coffee can exceed that of Arabica coffee mainly because of the market supply and demand. But with the high price, more roasters may consider choosing more Arabica coffee in blending, which may also cool down the hot Robusta coffee market.
At the same time, data also showed that the average export price from January to May was $3,428 per ton, up 50% from the same period last year. The average export price in May was $4,208 per ton, up 11.7% from April and 63.6% from May last year.
Despite the impressive growth in export value, Vietnam's coffee industry is facing a decline in production and export volume due to long-term high temperatures and drought.
The Vietnam Coffee and Cocoa Association (Vicofa) predicts that Vietnam's coffee exports may fall by 20% to 1.336 million tons in 2023/24. So far, more than 1.2 million tons have been exported per kilogram, which means that the market inventory is low and the price remains high. Therefore, Vicofa expects prices to remain high in June.
As the price of coffee beans at the origin soars, the cost and selling price of finished coffee have risen accordingly. Traditional packaging does not make consumers willing to pay for the higher prices, which is why YPAK recommends customers to use high-quality packaging.
High-quality packaging is not only the face of a brand, but also a symbol of careful coffee making. We carefully use only high-quality materials and printing for packaging, and even more so for the selection of coffee beans. Even in a period of continuous increase in raw material prices, we will not be affected by price shocks because all our products are high-end. Therefore, it is particularly important to choose a supplier with stable products.
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Post time: Jun-21-2024
