Pepper export prices grow by double digits

According to data from the General Department of Customs, cited by the Import-Export Department ( Ministry of Industry and Trade ), Vietnam's pepper exports in February 2024 reached 18,000 tons, worth 73 million USD, an increase of 3.1% in volume and 5.2% in value compared to January 2024, but a decrease of 35.2% in volume and 12.5% in value compared to February 2023.

Export prices for pepper have seen double-digit growth.

In the first two months of 2024, Vietnam's pepper exports reached approximately 35,000 tons, worth $143 million, a decrease of 12.3% in volume but an increase of 12.9% in value compared to the same period in 2023.

In February 2024, the average export price of Vietnamese pepper was estimated at US$4,082 per ton, an increase of 2.0% compared to January 2024 and a sharp increase of 35.9% compared to February 2023. For the first two months of 2024, the average export price of Vietnamese pepper was estimated at US$4,041 per ton, an increase of 28.7% compared to the same period in 2023.

In February 2024, the price of black pepper in the domestic market fluctuated upwards and remained at a high level. This upward trend is predicted to continue in the short term due to limited supply.

Following the Lunar New Year holiday, the harvest yield remains low due to a shortage of labor among farmers. Furthermore, the surge in demand for pepper from China has driven prices up.

On February 28, 2024, the price of black pepper increased by 10,000 – 11,000 VND/kg compared to the end of January 2024 (depending on the surveyed area), reaching 91,000 – 94,000 VND/kg.

The global pepper market is expected to be volatile. Due to seasonal variations, pepper prices are likely to remain high for several more months.

Among the major pepper-producing countries, Brazil has finished its harvest season, Vietnam is now entering its harvest season, while the peak season for Indonesia and Malaysia is in July each year.

Vietnam's 2024 harvest is projected to decrease by approximately 10.5% compared to the previous season, falling to 170,000 tons – the lowest level in the last five years. Meanwhile, supply from Indonesia, Brazil, Malaysia, and Cambodia will not be sufficient to compensate for Vietnam's reduced exports, which will likely drive up pepper prices sharply from the beginning of the season.

Vietnam remains the world's largest exporter of pepper. Last year, the country exported pepper to more than 100 countries and territories. Traditional export markets for Vietnam include China, the United States, India, the United Arab Emirates, and the Philippines. Therefore, Vietnam's supply of this "black gold" will have a significant impact on the global market.

Currently, many domestic businesses are increasing their purchases to ensure export schedules, and pepper prices reached a new peak of 96,000 VND/kg on March 4th. Experts predict that domestic pepper prices will remain high, and the upward trend will continue.

Mr. Hoang Phuoc Binh – Vice Chairman of the Chu Se Pepper Association ( Gia Lai ) – predicts that pepper prices will continue to rise and could easily return to over 100,000 VND/kg in the near future. Global and Vietnamese pepper production is forecast to decrease, and many farmers are not in a hurry to sell their pepper to the market, contributing to scarcity and keeping prices high.

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