Many agricultural products have increased in price to record levels

The prices of coffee, durian, cocoa… increased sharply, continuously setting new peaks, helping growers make big profits.

At the beginning of the year, coffee prices were only 70,000 VND per kilogram but have now increased 63% to 114,000 VND. This level is 2 or 3 times higher than the same period last year and is the highest ever.

Similarly, durian and cocoa also set new price records in the first quarter with a double increase compared to the beginning of the year. In particular, durian in March at one time increased to 230,000 VND per kg for Monthong goods, then turned to cool down due to the main season. With cocoa, the price per kilogram of fresh fruit being purchased is 7,000-8,000 VND per kilogram, an increase of 60% over the same period in 2023.

On the world market, the prices of these products are increasing at an unprecedented high. In particular, Robusta coffee on the London floor has increased by nearly 1,000 USD per ton from the beginning of the year until now to 4,003 USD in the trading session on April 16 for May delivery. New York Arabica coffee price increased to 5,100 USD per ton. – record high. Currently, cocoa and pepper prices on the world market have also increased by 30-40%.

According to local farmers, soaring exports have pushed agricultural product prices to continuously peak, helping them earn high profits. For each hectare, people earn a profit of 200 million VND to 3 billion VND (depending on the type of agricultural product). Among them, durian and coffee bring the highest profits as prices continuously set new peaks in the first half of the year.

“This year, each hectare of my family’s coffee harvests 6 tons of beans. With good prices like last time, I earned a profit of about 400 million VND,” said Ms. Loan in Gia Lai.

Mr. Hoang Anh Tuan – a trader specializing in purchasing agricultural products in the Central Highlands provinces – said 2023-2024 is the year coffee and durian farmers will achieve the highest profits. 5 years ago, in the first months of the year, many agricultural product prices often dropped, but now they have suddenly increased.

“Coffee, durian, and cocoa increased continuously in the first quarter and completely exceeded all forecasts of specialized agencies,” Mr. Tuan shared.

Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association (Vicofa), also said that this year’s agricultural product price fever is different from other years. If last year, the price of goods during the main season would decrease, but now it will not. The reason is that starting from the 2022-2023 crop year, Vietnam’s coffee inventory is at its lowest level ever. The shortage continues to this day and occurs in many other coffee producing countries, causing prices to increase rapidly and with no end in sight.

Durian at export warehouse in the West.

Statistics from the Department of Crop Production also show that the area planted with Vietnamese coffee and cocoa is gradually shrinking due to many years of falling coffee prices. Data collected by the end of 2022 shows that Vietnam has 656,000 hectares of coffee, of which the aging area is increasing. Compared to 2019, the coffee area in 2022 has decreased by 5%. With cocoa, by 2022, the whole country has 3,481 hectares, while in 2013 it was 10,000 hectares. Similarly, Vietnam’s pepper area has also been gradually shrinking for the past 4 years. Many people in the Central Highlands and western regions have cut down cocoa, coffee, and pepper to convert to growing durian and other crops.

In addition to shrinking the area, according to Mr. Hai, the El Nino phenomenon causes drought throughout coffee, cocoa, and pepper growing areas globally. Geopolitical conflicts and tensions in the Red Sea region make the prices of these agricultural products increasingly expensive.

Regarding durian, Mr. Dang Phuc Nguyen – General Secretary of the Vietnam Fruit and Vegetable Association said that in March, Vietnam’s durian supply in the Chinese market was “alone in the market” so the price increased. This year’s off-season prices reached a new record because drought caused crop failures and reduced output.

According to associations, the price trend of the above agricultural products will continue to remain high because demand on the world market is large, while domestic and global supply simultaneously decreases. The Red Sea crisis and rising oil prices can cause many agricultural products to continue to reach new peaks and break all plans set at the beginning of the year.

As for durian products, the harvest is about to begin in May, so prices will decrease but will also increase sharply in the last months of the year. In particular, if Vietnam can soon officially export frozen durian, the price of this product will continue to have many breakthroughs.

Sharing the same opinion, leaders of Dak Lak Department of Agriculture and Rural Development said that the upward trend in prices will continue when drought and water shortage will occur this summer. Currently, this province has directed irrigation companies and localities to closely monitor weather developments to have plans to regulate water for crops, especially in key crop growing areas, which have high prices.