"Disappearance" of 5,000 hectares of pepper cultivation, decreased output causes pepper prices to continuously increase, approaching 90,000 VND/kg

Pepper prices increased sharply, highest at nearly 90,000 VND/kg

According to data from the Ministry of Agriculture and Rural Development, the pepper growing area in Vietnam in 2023 will reach about 115,000 hectares, a decrease of 5,000 hectares compared to 2022. Pepper output in 2023 will reach 190,000 tons, an increase of 3.8% compared to 2022. However, due to the large decrease in area, pepper output in 2024 is forecast to decrease accordingly.

Currently, the 2024 pepper harvest has begun in some districts of Dak Nong province, however the harvest is quite scattered and not much. Due to the impact of climate change, the 2024 harvest is later than in 2023, and Vietnam's pepper output in 2024 is expected to reach only 170,000 tons, down 10.5% compared to 2023.

Pepper output in 2024 is expected to decrease by about 10.5% compared to 2023, this information has caused pepper prices to continuously increase recently. Illustration photo: IT

According to the Vietnam Pepper and Spice Association, pepper prices in the domestic market have been on an upward trend since before Tet, mainly due to limited supply, while businesses still have demand to ensure export progress.

On February 20, 2024, the price of black pepper increased by 1,000 VND/kg compared to the previous day. Specifically, the price of pepper in Chu Se (Gia Lai) reached 86,000 VND/kg. The price of pepper in Chau Duc district ( Ba Ria - Vung Tau ) reached 88,000 VND/kg; in the two provinces of Dak Lak and Dak Nong, the price of pepper increased to 88,500 VND/kg.

Pepper prices today are highest in Binh Phuoc province, reaching VND89,000/kg. Meanwhile, white pepper prices range from VND111,000 to VND115,000/kg, depending on the locality and much higher than the price of VND92,000/kg in the same period in 2023.

The Import-Export Department (Ministry of Industry and Trade) forecasts that global pepper prices will fluctuate in an upward trend in the first quarter of 2024 due to continued declines in output in major producing countries. Adverse weather conditions caused by the El Nino phenomenon are affecting pepper productivity and harvest.

Global pepper production is expected to fall by 2024 due to climate change and the lack of new planting areas in major producing countries in recent years. The “very dry” weather in Brazil, and prolonged heavy rains in the Central Highlands and southern provinces of Vietnam will reduce pepper production in the coming time.

Black pepper price developments in the Vietnamese market in 2023 - 2024. Source: Vietnam Pepper Association

According to estimates by the Ministry of Industry and Trade, Vietnam's pepper exports in January 2024 reached 20,000 tons, worth 79 million USD, down 1.4% in volume, but up 1.9% in value compared to December 2023; compared to January 2023, it increased 60.2% in volume and 83.9% in value.

According to the Vietnam Pepper and Spice Association, the average export price of Vietnam's pepper in January 2024 is estimated at 3,953 USD/ton, up 3.4% compared to December 2023 and up 14.8% compared to January 2023.

Regarding export structure and types: In 2023, Vietnam mainly exported black pepper, accounting for 69.51% of total output and 70.67% of total pepper export turnover of the country in 2023. Therefore, the growth of black pepper exports has had a positive impact on the entire "black gold" industry.

The top exporters in January 2024 included: Nedspice Vietnam: 2,147 tons, Olam Vietnam: 1,819 tons, Tran Chau: 1,295 tons and Phuc Sinh: 1,078 tons.

The United States continued to be the main export market for Vietnamese pepper in January, reaching 4,774 tons, accounting for 27.2% of the market share, but down 23.1% compared to December 2023. India was the second largest export market, reaching 1,367 tons, accounting for 7.8% and up 35.2%. Exports to China decreased by 54.8% to 466 tons.

According to preliminary statistics from the General Department of Customs, in 2023, black pepper exports will reach 184.81 thousand tons, worth 643.46 million USD, up 14.4% in volume and 1.0% in value compared to 2022.

In 2023, Vietnam exported black pepper to more than 100 countries and territories around the world. In particular, Vietnam's traditional black pepper export markets include: China, the United States, India, the United Arab Emirates, the Philippines...

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