Pepper price today December 26, 2023, mixed fluctuations, speculative activities may continue to support the market

Pepper prices today, December 26, 2023, in the domestic market fluctuated in some key localities, trading from 79,000 - 83,000 VND/kg.

Pepper price today December 26, 2023, mixed fluctuations, speculative activities may continue to support the market. (Source: EMediHealth)

Pepper prices today, December 26, 2023, in the domestic market fluctuated in some key localities, trading from 79,000 - 83,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 79,000 VND/kg.

Pepper prices today in Dong Nai province (79,500 VND/kg); Dak Nong, Dak Lak (82,000 VND/kg); Ba Ria - Vung Tau (79,000 VND/kg) and Binh Phuoc (83,000 VND/kg).

Thus, domestically, the Central Highlands market increased by 500 - 1,000 VND/kg, while the Southeast decreased in Ba Ria and increased in Binh Phuoc and Dong Nai.

Domestic pepper prices have rebounded and reached their highest level since early 2022 due to the 2024 crop outlook being less optimistic and inventories remaining low, while demand from major markets in Europe and the US is showing signs of recovery. Inventories in Vietnam are believed to be mainly in the hands of traders and speculators, and speculation may continue to support the market in the short term until the new harvest takes place.

In the first half of December alone, the price of raw black pepper in the Central Highlands provinces increased by 12-14% (8,500 - 10,000 VND/kg) compared to the end of last month to 79,500 - 82,000 VND/kg, the highest level recorded since March 2022. If calculated from the beginning of November until now, the domestic black pepper price has increased by about 20 - 22%.

In the Central Highlands provinces, many farmers are cutting down pepper to switch to other crops, mostly durian. The main reason is that pepper prices have been low for a long time, making farmers discouraged and reducing investment in pepper garden care, causing many pepper plants to become sick, reducing productivity by about 30% compared to the peak period.

Ms. Hoang Thi Lien, President of the Vietnam Pepper and Spice Association (VPSA), said that the area and output of pepper are decreasing, in 2020, the area reached more than 130,000 hectares, in 2023 it will be 120,000 hectares, the output will reach 190,000 tons. Currently, the profit from durian trees is 20 times higher than that of pepper. Therefore, it is forecasted that the pepper area will decrease further as farmers cut down to switch to durian cultivation.

Mr. Hoang Phuoc Binh, Vice President of Chu Se Pepper Association (Gia Lai), commented that under the impact of disease factors, switching to other crops, especially durian, the pepper acreage could decrease sharply.

According to Ba Ria - Vung Tau newspaper, in the past 7 years, when pepper prices have continuously decreased sharply, pepper growers in the province such as Chau Duc and Xuyen Moc districts are no longer interested in investing and caring for their plants.

In 2016, the pepper growing area in Ba Ria-Vung Tau increased to 13,000 hectares, exceeding the planned 5,000 hectares. However, when pepper prices plummeted and at one point hit rock bottom at around 34,000 VND/kg, households cut down pepper plants and switched to other crops.

By the end of 2022, the pepper growing area in the province is 10,552 hectares, of which the harvested area is 9,904 hectares, with an output of 19,901 tons. Thus, in the past 5 years (from 2018 to 2022), the pepper growing area has decreased by 2,570 hectares.

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