A combination of the price of coffee beans hitting a record low over the past 50 years, unpredictable weather, and a rise in the costs of labour and petrol, along with greater expenses in services, fertilizers and pesticides have led to sale prices lower than the cost of production. As a result, farmers have not paid the necessary attention to their plantations, which has had an adverse effect on productivity.
In recent years, processing capacity has increased sharply from 53,565 tons in 2014 to 72,293 tons in 2015 and further, to 91,036 tons in 2016, with respective values of US$273.86 million, US$305.78 million and US$339.26 million.
VICOFA forecast that the processing volume will reach 200,000 tons in the next five years, double the current volume. The amount for domestic consumption will rise by 15%, while exports of coffee beans will drop to 1-1.2 million tons annually.
The total area of coffee plantations in Central Highlands by the end of 2017 was 98,210 hectares.