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.

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