Coffee, rice, and durian prices skyrocket

Staff check the quality of durians at a warehouse in Vietnam. Photo by VnExpress/Linh Dan

Increased world demand but limited supply has continued to push up prices of rice and durian, while coffee prices have set a record.

Since the beginning of the year, domestic and world coffee prices have continuously created new peaks.

At the end of Feb. 17, a kilogram of raw coffee cost VND80,100 (US$3.26), an increase of VND1,400 from the previous day, a record high.

Vietnam’s rice export price currently remains at $640 per ton, equivalent to last year’s peak.

The price of Vietnamese durian increased by 20% at the beginning of the year compared to the end of 2023.

Businesses are looking to purchase monthong, a Thai durian variety that is also grown in Vietnam, at VND200,000 per kg, equal to the previous peak a year ago.

Managing the largest durian, coffee and pepper granary in Vietnam, Vu Duc Con, deputy director of the Dak Lak Department of Agriculture and Rural Development, said 2023 was a good year for many agricultural products as prices continuously set new peaks.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said, “This year, in addition to China’s large demand, the impact of El Nino and the prolonged Red Sea crisis will reduce the number of fruit and vegetables in Asian countries, and West Africa and rising transportation costs further push up commodity prices.”

Vina T&T Group CEO Nguyen Dinh Tung added that prices of many agricultural products will continue to increase before balancing out in the middle of the year.

“With durian, in the near future, China will allow Vietnam to export more frozen products to this country, so the price will continue to increase,” he said.

In February and March, when countries like Thailand and Malaysia entered the off-season of durian, Vietnamese durians will continue to be sold at high prices.

With rice products, according to export businesses, global prices may not cool down because of a supply-demand imbalance.

Raw coffee is also forecast to exceed VND80 million per ton this year. According to the Vietnam Coffee and Cocoa Association, importers around the world are looking to Vietnam to buy coffee.

Last year, businesses almost emptied their warehouses for export. This was also the first time in history that by June 2023, people had no coffee to sell.

A report from the Ministry of Agriculture and Rural Development also predicts that commodity prices will change many times this year.

In January, prices of most products tended to increase compared to November. Of which, coffee increased by 4-9%, rice by over 6%, mango by 8%, raw shrimp by 4% and raw fish by up to 6.7%.

The ministry has set a target of total export turnover of agricultural, forestry and fishery products at $54-55 billion.