On May 10, 2025, coffee prices in Vietnam saw a slight increase, marking a small yet significant shift in the domestic market. Across various localities, prices rose by 500-600 VND/kg, reflecting a positive trend for local farmers. In Dak Lak, the price of coffee reached 128,500 VND/kg, an increase of 500 VND/kg compared to the previous day. Meanwhile, in Lam Dong, the price was recorded at 128,300 VND/kg, up 600 VND/kg from the last trading session. In Gia Lai, coffee was traded at 128,500 VND/kg, also showing a 500 VND/kg increase, while in Dak Nong, traders purchased coffee at 128,700 VND/kg, reflecting a similar rise of 500 VND/kg since early morning on May 9.
Despite this uptick in domestic prices, international coffee markets painted a different picture. On the London exchange, Robusta coffee prices unexpectedly dropped by 26-39 USD/ton, fluctuating between 5,007 and 5,306 USD/ton as of the early hours of May 10 (Vietnam time). Specifically, the price for July 2025 delivery was noted at 5,226 USD/ton, September 2025 at 5,181 USD/ton, November 2025 at 5,122 USD/ton, and January 2026 at 5,035 USD/ton. In contrast, Arabica coffee prices on the New York exchange experienced a minor increase of 0.30 - 0.70 cent/lb, ranging from 366.00 to 391.20 cent/lb. For July 2025 delivery, the price stood at 387.65 cent/lb, with September 2025 at 382.30 cent/lb, December 2025 at 374.95 cent/lb, and March 2026 at 368.05 cent/lb.
Looking at the broader context, Vietnam's coffee exports in the first four months of 2025 reached 665,889 tons, valued at 3.8 billion USD. This represents a 9.1% decrease in quantity compared to the same period last year, but a remarkable 51.8% increase in value. Analysts from Reuters noted that the Arabica market is currently benefiting from speculative buying, as ICE inventories have diminished slightly. Conversely, Robusta prices are supported by lower export volumes from Vietnam compared to previous years, compounded by disappointing harvest progress in Indonesia.
In addition to market fluctuations, the coffee sector is grappling with the pressing need for sustainable development. On May 9, 2025, the People's Committee of Ea H'leo district in Dak Lak province convened a conference focused on sustainable coffee development. The district is home to over 25,000 hectares of coffee, yielding approximately 60,000 tons annually. The local government emphasized the importance of coffee cultivation for economic and social development, while also acknowledging the challenges posed by climate change, market volatility, and stringent global supply chain requirements.
"The conference today is an opportunity for us to share experiences, update scientific and technological knowledge, and hear contributions from experts, managers, and businesses. This will help us find practical solutions to overcome difficulties and guide the coffee industry in Ea H'leo towards more sustainable development," stated Y Thang Eban, Vice Chairman of the Ea H'leo People's Committee.
However, the coffee industry in Ea H'leo faces numerous challenges. Many coffee plantations have surpassed their peak productivity and are beginning to degrade. Abnormal weather patterns due to climate change, droughts, and pest outbreaks further complicate matters. Additionally, the global coffee market is experiencing significant price fluctuations, while local processing capabilities and brand development remain limited. The coffee value chain is fragmented, lacking strong connections between farmers, businesses, and the market, and competition from major coffee-exporting countries is intensifying.
Bui Duc Thien, Deputy Director of the Department of Agriculture and Rural Development in Dak Lak province, highlighted the need for close collaboration among local authorities and relevant sectors to ensure sustainable coffee development. This includes effectively implementing policies to support farmers, businesses, and cooperatives, promoting value chain linkages, and encouraging sustainable coffee production.
During the conference, Pham Anh Cuong from Binh Dien Fertilizer Company presented solutions for enhancing coffee productivity and quality while adapting to climate change. He emphasized the importance of raising awareness among farmers about smart agricultural practices and the need for ongoing research to tailor cultivation methods to local conditions. The introduction of specialized NPK fertilizers for different crops, considering climate adaptability and affordability, is also a priority.
Truong Hong, a former director of the Central Highlands Agricultural Science Institute, shared insights on sustainable coffee cultivation techniques. He noted that coffee farmers in the Central Highlands have begun to implement smart farming solutions, with several successful models emerging in Dak Lak, Gia Lai, and Lam Dong. These models, supported by international organizations and technology companies, have shown promising results, including water savings of 10-30%, fertilizer reductions of 5-20%, decreased pest control costs by 10-30%, and yield increases of 5-15%.
Furthermore, coffee cooperatives are now adopting AI and blockchain technology for big data analysis to trace origins, predict prices, and consumer trends, thereby helping farmers make informed production decisions and better access markets. Some farmers in Dak Lak and Gia Lai have implemented water-saving irrigation systems combined with fertilization techniques and soil moisture sensors (IoT).
"Smart farming is not just a technological trend; it is a critical solution for the Central Highlands coffee sector to overcome challenges posed by climate change and market fluctuations, ensuring sustainable production," asserted Truong Hong. He emphasized the necessity of investing in smart coffee farming practices to promote environmental protection and improve farmers' livelihoods.
Overall, the conference served as a platform for participants to comprehensively assess the current state of coffee production, processing, and consumption in Ea H'leo. It also provided an opportunity to analyze the opportunities and challenges facing the coffee industry in the context of international economic integration, green development demands, and sustainable growth.
As the coffee sector in Vietnam continues to navigate these challenges and opportunities, the commitment to sustainable practices and innovative solutions remains crucial for the future of coffee cultivation in the region.