On November 4, in Pleiku city, the Department of Industry and Trade of Gia Lai province coordinated with other units to organize a workshop on "Preventing coffee price risks and trading methods on commodity exchanges".
Attending the workshop were representatives of the Department of Industry and Trade of Gia Lai province, Department of Industry and Trade of Lai Chau province, Department of Planning and Investment of Lao Cai province, Saigon Invest Commodity Trading Joint Stock Company, Domestic Market Department (Ministry of Industry and Trade)...
Gia Lai province is one of the key coffee production areas of the country in terms of output and coffee export value.
Gia Lai has a coffee growing area of nearly 99,000 hectares, an average yield of 3 tons/hectare, and a total coffee output of more than 267,000 tons.
Coffee is the province's main agricultural export product, accounting for nearly 71% of total agricultural product export turnover. In 2022, Gia Lai province's coffee export value reached 490 million USD.
However, according to the Department of Industry and Trade of Gia Lai province, the coffee market is also a highly volatile market, with prices changing frequently.
The reason is the decline in coffee acreage due to land use conversion. Along with that, climate change has caused negative impacts on the coffee industry, coffee prices on the world market fluctuate erratically.
Strong fluctuations in coffee prices pose significant risks to businesses, such as: Loss of capital due to buying coffee at high prices when coffee prices drop, loss of business opportunities due to high coffee prices, difficulty in recovering investment capital...
At the workshop, experts provided businesses in the coffee supply chain with the latest information and knowledge about the Vietnamese coffee market and Gia Lai province.
Experts also shared experiences in preventing coffee price risks, promoting the application of commodity trading in coffee price risk management; and necessary conditions for establishing a coffee trading floor in Gia Lai province.
The workshop is an opportunity for delegates to discuss future contracts for the coffee industry, thereby creating opportunities for businesses, coffee production, processing and export facilities to improve business efficiency.
According to the General Department of Customs, in the first 6 months of 2024, Vietnam's coffee exports reached 1 million tons with a turnover of nearly 2.4 billion USD, down 3.1% in volume but up 2.3% in value over the same period last year.
This is also the highest export turnover recorded by the coffee industry in the first 6 months of the year ever.
