Vietnam's largest exporter may limit coffee production due to the threat of water shortages.
Robusta coffee prices have reached a record level since 2008. The reason is the fear of supply shortages. The largest exporter from Vietnam may limit coffee production due to the threat of water shortage. Robusta coffee rose 4.8% to $3,838 per ton as of April 3. Trading on the ICE exchange closed up 4.1% to $3,812 a ton. Coffee has grown in price by 24% over the year
As Bloomberg writes, the reason for the rise in the price of coffee was the fear of shortages. A major exporter of this type of coffee in Vietnam is threatened by heat. Traders of London importer DRWakefield expressed fears that farmers will not have enough water to irrigate trees, which will affect the crop.
In addition, coffee production in Vietnam is affected by farmers switching to other crops such as avocado, passion fruit and durian.
The National Coffee Association believes coffee exports could drop by 20% by September. Last year shipped 1.67 million tons.
Earlier reported, what products in Russia may rise in price. Experts also predicted a rise in prices for bananas.