Pepper price today November 2, 2023, pepper 'hit' by global geopolitical context, expecting purchasing power from a market of over a billion people

Pepper prices today in the domestic market are stable in some key localities, trading from 65,500 - 68,500 VND/kg.

Pepper price today November 2, 2023, pepper 'hit' by global geopolitical context, expecting purchasing power from a market of over a billion people. (Source: Pixabay)

Pepper prices today in the domestic market decreased slightly in some key localities, trading from 65,500 - 68,500 VND/kg.

Specifically, pepper price today in Gia Lai is at 65,500 VND/kg.

Pepper prices today in Dong Nai province (66,500 VND/kg); Dak Nong, Dak Lak (67,000 VND/kg); Binh Phuoc (68,000 VND/kg) and Ba Ria - Vung Tau are at the highest level of 68,500 VND/kg.

In October 2023, domestic pepper prices lost 3,000 - 3,500 VND/kg, in the context of the US dollar affecting exports and the war in the Middle East causing concerns for economies.

In September, the volume of Vietnamese pepper exported to many markets increased sharply compared to the same period last year, including: the US (up 21.9%), India (up 153.7%), Germany (up 148.1%), the Netherlands (up 23.2%)... In addition, the Chinese market also increased by 3.2%.

In the first 9 months of the year, China surpassed the US to become Vietnam's largest pepper export market with a volume of 55,985 tons, worth 124.9 million USD, an increase of 4.7 times in volume and 4.8 times in value compared to the same period last year.

This market accounts for 27.7% of our country's total pepper export volume, a significant increase compared to 6.8% in the same period.

According to the Vietnam Pepper and Spices Association (VPSA), except for China, it is forecasted that the upcoming consumption demand of countries around the world may decrease.

It is forecasted that this market of over 1 billion people may import about 10,000 tons of pepper from Vietnam in the fourth quarter of 2023, thereby making the market more vibrant in the last two months of the year. It is expected that in 2023, Vietnam's pepper exports to China will reach more than 60,000 tons out of the total of nearly 70,000 tons imported by this Northeast Asian country.

Ms. Hoang Thi Lien - President of VPSA commented that the world geopolitical context has affected the global market, including oil prices and the world trade situation in general. Many countries are facing foreign currency shortages. Vietnam depends on the export market, so it has witnessed a decline in all industries in general, and the spice group is no exception.

Besides, the macro management policies, purchasing power and consumption power of major markets, including the US and EU, which are our key markets, will likely have difficulty recovering in the short term.

According to the general assessment of domestic enterprises, the 2024 pepper crop will decrease by about 10-15%, with an estimated harvest output of 160,000-165,000 tons. The current problem is how to stabilize prices to help people stabilize their acreage in the context of having to compete with other crops.

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