Farmers in the central highland region were believed when the price of coffee constantly increased from VND25 million per tonne in 2009 to VND35 million per tonne in 2010. At that time, it eventually hit more than VND41 million per tonne, the highest level for the past 15 years.
The price hike caused a number of difficulties for businesses because they lacked capital. In the current situation, some businesses are likely to go bankrupt. When the price of coffee goes up businesses need huge capital to continue trading. Meanwhile, banks raised loan rates and tightened loan control.
Import-Export Company 2/9 in the Central Highland Dak Lak province recently purchased more than 35,000 tonnes of coffee beans, reaching 30 percent of planned total mass due to shortage of capital.