Vietnam is expected to earn $4.5-5 billion from exporting coffee this year due to the continuously rising coffee price, according to the Vietnam Coffee Cocoa Association (Vicofa).

The price of Robusta coffee reached a 28-year record in February, hitting $3,435 per ton, figures from the Mercantile Exchange of Vietnam (MXV) show.

Meanwhile, the price of coffee beans in the central highlands stood at a record VND82,000 ($3.34) per kilo on February 20, up VND14,000 ($0.57) compared to January 1.

The MXV said that limited supply and tensions in the Red Sea will see the coffee price continue heading upwards.

Vicofa estimated that Vietnam’s 2023-2024 crop is likely to be down 10 per cent compared to the previous crop.

Meanwhile, the coffee output of two other major suppliers - Brazil and Indonesia - are also forecast to fall 6.2 per cent and 8 per cent, respectively, according to the US Department of Agriculture.

Vietnam earned over $621 million from exporting 210,000 tons of coffee in January, up 99.6 per cent in value and 48 per cent in volume year-on-year, the General Department of Vietnam Customs reports.

It exported 1.61 million tons of coffee last year worth $4.18 billion. The average export price was $2,604 per ton, a year-on-year rise of 14.1 per cent.