Vietnam is the world’s largest producer of Robusta coffee, but it also grows Arabica coffee varieties. Currently, Robusta accounts for 95% of Vietnam’s total coffee production, while Arabica makes up 5%.

Although Vietnam produces large quantities of Robusta, Arabica coffee beans have traditionally been more expensive than Robusta in the country—but this situation has recently begun to change.

According to a report by the Vietnam Coffee - Cocoa Association (VICOFA), in May, the average export price of Vietnamese Robusta coffee was $3,920 per ton, while the average export price of Arabica coffee was $3,888 per ton. This is the first time in nearly 50 years that the price of Robusta has been higher than that of Arabica in Vietnam.

Currently, according to local coffee enterprises in Vietnam, domestic coffee prices are higher than the data recently released officially. At present, the spot price of Robusta coffee in Vietnam is 132 million - 139 million Vietnamese dong per ton, while the spot price of Arabica coffee is 100 million - 130 million Vietnamese dong per ton.

In addition, the data also shows that the average export price of coffee from January to May was $3,428 per ton, up 50% compared to the same period last year, while the average export price in May reached $4,208 per ton, an increase of 11.7% from April and 63.6% year-on-year.

Although Vietnam’s recent coffee export reports show that export volumes have risen alongside increasing coffee prices over the past few months, the country’s coffee industry may face declines in both production and export quantities in the second half of the year due to prolonged high temperatures and drought.

Previously, when Robusta prices had not yet risen, many roasters opted to blend Robusta with Arabica in their coffee blends. However, with the current increase in Robusta prices, roasters may consider using more Arabica beans.

On the other hand, Brazil’s new Robusta harvest season has already begun, with a good yield. The Brazilian Coffee Exporters Council (Cecafé) stated that Brazil’s coffee exports for the 2023/24 season are expected to reach 46.3 million bags (60 kg per bag), setting a new historical record. These developments are expected to help ease the continued rise in Robusta coffee prices.