Pepper price today September 29, 2023, Vietnamese pepper export price decreased by more than 26%, farmers may 'miss the wave' of increase

Pepper prices today in the domestic market moved slightly sideways in some key localities, trading from 69,000 - 72,000 VND/kg.

Pepper price today September 29, 2023, Vietnamese pepper export price decreased by more than 26%, farmers may 'miss the wave' of increase. (Source: arabstuffs.com)

Pepper prices today in the domestic market moved slightly sideways in some key localities, trading from 69,000 - 72,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 69,000 VND/kg.

Pepper prices today in Dong Nai province (69,500 VND/kg); Dak Nong, Dak Lak (70,000 VND/kg); Binh Phuoc (71,000 VND/kg) and Ba Ria - Vung Tau are at the highest level of 72,000 VND/kg.

Currently, the actual pepper inventory among the people is not much, most of it is in the hands of agents and some speculators. However, some processing enterprises have enough goods to process at the end of the year, so there is no real need to buy at this time.

Vietnam's main import markets such as China, Europe, and the US have not seen any sudden changes in demand as the USD has increased, and there is expected to be another interest rate hike by the Fed later this year.

In the long term, Vietnam’s pepper supply is forecast to be in short supply due to reduced productivity. The next crop’s productivity is forecast to be affected by reduced planting area and harsh weather affecting productivity. The reduced area is due to fierce competition from other crops such as durian and passion fruit, forcing farmers to cut down pepper.

The Vietnam Pepper and Spice Association believes that if the cutting down of pepper to switch to fruit trees continues, there may be a shortage of supply in the next 3 years.

Experts say that if Vietnam's output drops sharply in the next three years due to the strong wave of crop conversion, farmers may miss the pepper price wave.

Because when cutting down, it takes 3 years to reinvest and the profit is zero. It is not until the 4th year that people can harvest a little. If pepper prices increase due to a shortage of supply, it will take them a long time to harvest and benefit from the new gardens.

According to the latest report of the Import-Export Department ( Ministry of Industry and Trade ), in August 2023, the average export price of Vietnam's pepper reached 3,741 USD/ton, up 0.3% compared to July 2023, but still down 8.1% compared to August 2022.

In the first 8 months of 2023, the average export price of Vietnam's pepper reached 3,273 USD/ton, down 26.3% over the same period in 2022.

Also in August 2023, Vietnam's pepper exports to many markets increased by 2 to 3 digits compared to the same period last year, including: United Arab Emirates, India, Netherlands, Philippines, South Korea, ...

On the contrary, pepper exports to the US, Thailand, Russia, and UK markets decreased. In the first 8 months of 2023, pepper exports to most major markets decreased sharply compared to the same period last year, except for the Philippines.

Source