Pepper price today December 14, 2023, despite the decrease in exports to the largest market, Vietnamese pepper prices continue to increase, why?

Pepper prices today, December 14, 2023, in the domestic market continued to increase sharply in some key localities, trading from 76,500 - 79,000 VND/kg.

Pepper price today December 14, 2023, despite the decrease in exports to the largest market, Vietnamese pepper prices continue to increase, why? (Source: thehindubusinessline)

Pepper prices today, December 14, 2023, in the domestic market continued to increase sharply in some key localities, trading from 76,500 - 79,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 77,000 VND/kg.

Pepper prices today in Dong Nai province (76,500 VND/kg); Dak Nong, Dak Lak (78,000 VND/kg); Ba Ria - Vung Tau (79,000 VND/kg) and Binh Phuoc (79,000 VND/kg).

Thus, in the domestic market, pepper prices recorded two consecutive days of increase in key production areas.

Pepper prices have now increased by more than 8% compared to early December and by nearly 18% since early November 2023, despite the fact that Vietnam's largest black pepper consumer, China, has sharply reduced imports. The main reason for the increase in pepper prices is due to the high demand for year-end orders while inventories have decreased, while the main harvest in 2024 is still more than 2 months away.

In addition, the continuous increase in pepper prices is partly due to concerns that future supply will not meet export demand. In recent years, facing competition from many other crops with high commercial value such as coffee and durian, the area and output of domestic pepper have been decreasing, from more than 130,000 hectares in 2020 to only 120,000 hectares in 2023. The average profit from durian is currently 20 times higher than that of pepper, so it is forecasted that the pepper area will continue to decrease in the coming time.

In the world market, Mr. Mak Ny, President of the Cambodia Pepper and Spice Federation (CPSF), said that the country's pepper industry is placing high hopes on exporting to the Chinese market as pepper samples have been sent to domestic buyers, according to the Khmer Times .

Specifically, the President of the Cambodian Pepper and Spice Federation shared on December 5 that the Chinese, American and other markets in the Middle East and North Africa are new hopes for local pepper.

“CPSF members have been in talks with their counterparts in China and some pepper samples have been sent back to the country for quality testing. The federation has high hopes for direct export of this item to China soon,” said Mr. Mak Ny.

Additionally, in May this year, the General Administration of Customs of China (GACC) approved an export proposal from Cambodia, allowing local pepper to be exported to the Chinese market.

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