Sudden, dramatic increase

Domestic pepper prices today

Today, December 6, 2024, domestic pepper prices have suddenly reversed course and increased significantly compared to yesterday, December 5, 2024; averaging 143,400 VND/kg, with many localities experiencing higher prices.

Accordingly, today, December 6, 2024, the price of pepper increased by 2,000 VND/kg in Ba Ria - Vung Tau province; and by 3,000 VND/kg in other localities such as Gia Lai, Dak Lak, Binh Phuoc , and Dak Nong compared to yesterday, December 5, 2024.

Specifically, the price of pepper in Gia Lai, Ba Ria - Vung Tau, and Binh Phuoc is all at 143,000 VND/kg; while the price of pepper in Dak Lak and Dak Nong is at 144,000 VND/kg. The average price of pepper today, December 6, 2024, is 143,400 VND/kg, a sharp increase of 2,800 VND/kg.

Pepper prices surged today, December 6, 2024. Photo: Hoang Thien

Since the beginning of the week, pepper prices have fallen sharply; however, with low inventory levels and high export demand, prices are expected to recover in the near future. Farmers and businesses need to proactively adapt to market fluctuations to ensure economic efficiency.

Mr. Hoang Phuoc Binh, Permanent Vice Chairman and General Secretary of the Chu Se - Gia Lai Pepper Association, said that the area of pepper cultivation in this locality has decreased significantly in recent years due to many reasons, including the sharp drop in prices which has caused difficulties for farmers and made them less enthusiastic about this crop.

Due to the prolonged period of falling pepper prices, the planted area and production have decreased, leading to a supply shortage compared to demand. This supply shortage is one of the reasons for the sharp increase in pepper prices recently. Many experts believe that pepper is entering an upward price cycle due to the tightening supply. However, the fact that the majority of the supply is in the hands of a few dealers and import-export companies could lead to significant market fluctuations in the near future.

Additionally, in November, due to concerns that pepper prices might continue to fall, many dealers and export companies sold a large portion of their inventory to generate cash flow for their coffee business.

However, coffee trading has been very slow due to delayed harvests and difficulties in sourcing raw materials as farmers are actively stockpiling. As a result, many dealers have been forced to shift their capital to buying pepper for storage. This has led to a surge in the domestic pepper market with stronger demand for the upcoming Lunar New Year holiday.

Meanwhile, many farmers, after selling their coffee, immediately shifted their funds to buying pepper for storage, as pepper can be preserved longer than coffee and its price remains attractive for speculation, especially as the pepper market is predicted to enter an upward price cycle in the next 2-3 years.

In 2024, pepper prices doubled compared to the previous period, creating a strong incentive for farmers to invest heavily in pepper cultivation. However, this crop also faces many challenges, including climate change, pests and diseases, competition with other crops, and rising production costs.

Pepper prices today, December 6, 2024

Today's world pepper prices

According to the International Pepper Association (IPC), the world pepper price update at the end of the most recent trading session showed that the market remained largely stable compared to the previous update, with only slight fluctuations in the Indonesian and Malaysian markets.

Specifically, IPC listed the price of Indonesian Lampung black pepper at US$6,684/ton, up 0.4%; and Muntok white pepper at US$9,123/ton, a slight increase of 0.41%.

Brazilian ASTA 570 black pepper prices remained stable at US$6,225/ton; Malaysian ASTA black pepper prices were at US$8,200/ton, down 1.22%; and Malaysian ASTA white pepper prices reached US$10,400/ton, down 0.96%.

Specifically, the price of Vietnamese black pepper remained stable at US$6,200/ton for the 500 g/l grade, and US$6,500/ton for the 550 g/l grade; the price of white pepper remained unchanged at US$9,300/ton.

World pepper prices today, December 6, 2024, remain basically stable. Photo: Le Son

According to Ms. Hoang Thi Lien, President of the Vietnam Pepper and Spice Association (VPSA), Vietnam is expected to export 50,000 tons of pepper in the last two months of 2024, earning approximately 300 million USD. Looking ahead to 2025, the pepper and spice industry will focus on supporting farmers, cooperatives, and businesses to meet international standards for quality and food safety. This is part of a long-term strategy to enhance product value, expand markets, and improve the position of Vietnamese pepper in the global market.

Recent fluctuations in pepper prices highlight the complexity and numerous challenges facing Vietnam's pepper industry. To adapt to market changes and ensure sustainable development, the industry needs comprehensive solutions, ranging from improving product quality to diversifying markets and building brands.

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