Logo

Vietnamese coffee faces worst drought in a decade, global coffee prices may rise.

TraderKnows
TraderKnows
06-24

This year, Vietnam's coffee industry has faced the most severe drought in nearly a decade. Despite various measures taken by Vietnam, the yield is still expected to decrease by 10-16%.

This year, Vietnamese coffee growers faced the worst drought in nearly a decade, which may lead to a rise in global espresso prices, although some farmers have managed to maintain stable yields through clever coping strategies.

Vietnam is the world's second-largest coffee producer, but domestic forecasts for the next coffee harvest remain pessimistic.

According to Nguyen Ngoc Quynh, Deputy Director of the Vietnam Commodity Exchange (MVX), coffee production is expected to drop by 10% to 16% due to extreme high temperatures from March to early May.

However, recent rains in the past few weeks have improved the situation, boosting the confidence of farmers and officials. It is still uncertain whether the improved weather will truly increase production and reduce the price of Robusta coffee beans, of which Vietnam is the world's largest producer.

Nguyen Huu Long, a farmer who owns a 50-hectare coffee plantation in Gia Lai Province, said, "I expect the national yield to decrease by 10% to 15%, but the yield from my farm will increase."

During the heatwave, he kept the soil moist by covering it with leaves, unlike the local practice of tree felling to improve soil quality. His trees have been planted for decades, resulting in deeper root systems that can better utilize groundwater resources.

Farmers in his plantation also loosen the soil around the plants to improve the absorption of rainwater and fertilizers, said Doan Van Thang, a 39-year-old farmer.

SKYPE TU

公众号2

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Investment

Investing refers to the act of allocating funds or other resources into certain assets or projects with the expectation of obtaining future returns or benefits. The primary aim of investing is usually to enhance asset value, achieve financial goals, preserve and grow value, or accomplish a specific objective.

Organization

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Logo

Contact Us

Social Media

footer1