Pepper prices experienced a turbulent week.

A turbulent week for Vietnamese pepper.

The pepper market experienced significant fluctuations last week (August 5-11), with prices plummeting to around 140,000-141,000 VND/kg on August 6. Specifically, in Dak Lak, Dak Nong, Dong Nai, Ba Ria-Vung Tau, and Binh Phuoc provinces, pepper was purchased at 141,000 VND/kg on August 6, a decrease of 6,000 VND/kg compared to the previous day. Similarly, in Gia Lai province, the price also stood at 140,000 VND/kg, a decrease of 6,000 VND/kg. This is the deepest drop in nearly two months.

Pepper prices experienced a turbulent week. (Illustrative image)

The downward trend continued on August 7th, with a decrease of 1,000-4,000 VND/kg in some localities compared to the previous day, recording transactions around 137,000-139,000 VND/kg; the highest purchase price in Dak Nong , Dak Lak, and Gia Lai provinces was 139,000 VND/kg.

On August 8th, in the Southeast region, pepper prices continued to fall by 2,000 VND/kg in some localities compared to the previous day, trading around 135,000-137,000 VND/kg. The highest purchase price was recorded in Dak Nong, Dak Lak , and Gia Lai provinces at 137,000 VND/kg.

The pepper market then recovered slightly, fluctuating in the 141,000 – 142,000 VND/kg range towards the end of the week. Pepper prices experienced a turbulent week.

Seasonal conditions and pepper production in other countries have significantly impacted domestic pepper prices. According to the Vietnam Pepper and Spice Association, Brazil is continuing its pepper harvest in the Espírito Santo region and in the Para region in November, with an estimated additional 60,000 tons expected nationwide. Furthermore, the news that Indonesia is entering its harvest season, expected in August (later than in previous years when it started in July), is likely contributing to the cooling down of domestic pepper prices.

However, the continued supply shortage is putting pressure on prices. Specifically, as of the end of June 2024, Vietnam had exported nearly 143,000 tons of various types of pepper. Compared to the 2024 harvest of approximately 170,000 tons, the remaining production is estimated at nearly 28,000 tons. The inventory carried over from the 2023 crop, plus imports in 2024, amounts to approximately 40-45,000 tons (including informal imports).

Forecasts indicate that pepper prices will continue to fluctuate erratically.

On the first day of the new week (August 12th), pepper prices continued their slight upward trend, increasing by 3,000 – 4,500 VND/kg in some key growing areas and fluctuating around 145,000 – 146,500 VND/kg.

In Vietnam, the coffee harvest season begins in early January, and after the Lunar New Year, farmers enter the peak harvesting period. Therefore, there are still 7-8 months until the next harvest (expected after the Lunar New Year, from February 2025), while the amount of coffee remaining in the hands of farmers, dealers, and businesses is limited. The overall picture of the global pepper industry shows that the market is facing a supply shortage. This will likely push domestic pepper prices up further.

Speaking with a reporter from the Industry and Trade Newspaper, Mr. Hoang Phuoc Binh – Standing Vice Chairman of the Chu Se Pepper Association – said that pepper prices have risen again this year, but farmers are not under pressure to sell early as in previous years because coffee and durian prices have also increased, and many households have stable incomes. Although pepper prices fluctuated unusually last week, they are still recovering and rising, which is an optimistic sign bringing much hope to growers. It is predicted that pepper prices will continue to fluctuate unusually in the coming period.

According to experts, the domestic pepper industry is on the rise, with opportunities to increase export turnover. Businesses need to focus on improving quality and paying attention to preliminary processing and processing procedures to meet market demands. This is an incentive for farmers to cooperate with businesses to produce pepper intensively using organic methods and meeting export standards, thereby improving quality and economic value.

Regarding this matter, Ms. Hoang Thi Lien – President of the Vietnam Pepper and Spice Association – shared that Vietnam is currently the world's largest pepper exporter, accounting for approximately 55% of the total global pepper exports. With a processing capacity of 140,000 tons per year, Vietnam continues to have the potential to further increase the proportion of processed exports (currently, the proportion of processed goods is only 30%). Increasing deep processing will help diversify products, improve quality and value, and participate more deeply in the value chain… these are solutions to revitalize the pepper industry.

According to preliminary statistics released by the Vietnam Pepper and Spice Association (VPSA), in July 2024, Vietnam exported 21,771 tons of various types of pepper, with a total export value of 129.9 million USD.

Overall, in the first seven months of the year, pepper exports reached 164,357 tons, including 145,330 tons of black pepper and 19,027 tons of white pepper. Total export value reached US$764.2 million, with black pepper accounting for US$652.0 million and white pepper for US$112.2 million.

Compared to the same period in 2023, export volume decreased by 2.2%, however, export value increased by 40.8%. The average export price of black pepper in the first seven months reached US$4,568/ton, and white pepper reached US$6,195/ton, increasing by US$32.7% for black pepper and US$25.0% for white pepper respectively compared to the same period last year.

The United States is Vietnam's largest pepper export market, with a 48.4% increase in the first seven months and accounting for 26.4% of the market share, reaching 43,349 tons. Following the US are Germany with 10,941 tons, up 97.3%; the UAE with 10,897 tons, up 39.2%; India with 8,744 tons, up 39.7%; and China in fourth place with 8,059 tons, down 84.6% compared to the same period last year.

Source: https://congthuong.vn/gia-ho-tieu-chung-kien-mot-tuan-song-gio-338401.html