Background of Vietnam's supply shortage.
Decrease in harvest due to drought.
Cost increase due to compliance with EU forest protection regulations.
Exporters struggling to secure a stable supply source.
Price trends and factors contributing to the increase.
London futures prices have increased by about 50% this year.
Drought, new regulations, and inflation are driving price increases.
The forecasted increase in domestic prices in Vietnam is from $5.13 to $5.89 per kilogram.
④ Impact on consumers and the market
Instant and espresso coffee prices are soaring.
Inevitable price increases for lattes and cafe menu items.
Possibility of changing blends due to narrowing price gap with Arabica.
⑤ Outlook for the future
Short-term high prices are expected to continue.
Increased production in other countries (India, Brazil) is key.
Depending on the impact of climate change, supply shortages may become chronic.
Delay in sustainability measures results in long-term cost increases.
【Educational Perspective】
The price of Robusta coffee beans has significantly increased.
In Vietnam, the harvest has decreased due to drought, leading to increased costs to comply with the EU's forest protection rules.
This year, Robusta futures prices in the London market have risen by 50%, reaching the highest level in 20 years.
As a result, the prices of espresso and instant coffee are expected to rise even further.
Farmers and exporters predict that the price of beans, currently at $5.13 per kg, will increase to $5.89.
Cafes are unable to avoid price increases, and the price gap with Arabica is also narrowing.
Increasing production in India and Brazil is key to resolving the supply shortage, but if the impact of climate change continues, there is a possibility that high prices will persist in the long term.