Coffee is getting more expensive! Due to weather conditions – the invasion of drought affects the production of coffee beans in Vietnam, which is the second largest coffee exporter in the world after Brazil. Many farmers have turned to growing durian instead.
The Nikkei Asia newspaper reported that the El Niño phenomenon began in the summer creating climate change and drought in Southeast Asia affecting farmers in Vietnam who had to face the problem of coffee trees not growing as before. Which makes production less and less every year. The cost of coffee beans, especially the Robusta variety, has become more expensive.
If we go back to the beginning of last year. The price of Robusta coffee is 68,000 dong (about 100 baht) per kilogram, an increase of 76%, which is the highest price for Vietnamese coffee in 30 years. From October to September 2023, Vietnam's coffee production industry reached a total value of 29.2 million bags, declining by 9.8%, causing insufficient raw materials to meet market demand.
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Factors that make coffee production less and less On the other hand, many farmers are starting to shift to growing durian instead. With durian being called the king of fruits and gaining great popularity in China, Vietnamese durian exports to China in 2023 will exceed $2 billion, an increase of five times.
Naturally, this may also affect Vietnam's coffee export sector, which has begun to decline. Because Vietnam is currently the second largest coffee exporter in the world after Brazil. As for domestic consumption, it has begun to expand further. If you notice, you will see that the coffee shop market in Vietnam especially big brands like Starbucks and other coffee shops. Branches are being expanded to support consumers who have begun to enjoy drinking coffee on an ongoing basis.
Like Jiang Café, the birthplace of egg coffee. Located in the old quarter of Hanoi. Vietnam said that when the cost of coffee beans and the cost of products such as eggs rise, we cannot easily raise prices. Because you have to maintain your existing customer base. So now we can only hold the price for now. The price of coffee with eggs is 35,000 dong (about 50 baht) per cup and if compared to Starbucks, it is half the price.
This is to support more fierce competition. Coffee shop chains are coming up with new things together vigorously to support coffee lovers who are the new generation. You also have to maintain the culture of coffee shops where you can sit, drink and relax because Vietnamese workers or young people like to drink coffee on the side of the road. Which has now become a unique identity for Vietnam
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