Pepper price today February 7, 2024, forecast of traders' activities after Lunar New Year, difficulties awaiting Vietnamese pepper

Pepper price today, February 7, 2024, in the domestic market increased slightly in some key localities, trading from 81,000 - 84,000 VND/kg.

Pepper price today February 7, 2024, forecast of traders' activities after Lunar New Year, difficulties awaiting Vietnamese pepper. (Source: Incredibleman)

Pepper price today February 7, 2024 in the domestic market increased slightly in some key localities, trading from 81,000 - 84,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 81,500 VND/kg.

Pepper prices today in Dong Nai province (81,000 VND/kg); Dak Nong, Dak Lak (83,500 VND/kg); Ba Ria - Vung Tau (83,500 VND/kg) and Binh Phuoc (84,000 VND/kg).

Thus, pepper prices today increased slightly in some key growing areas, the highest price of 84,000 VND/kg was recorded in Binh Phuoc .

According to Mr. Nguyen Tan Hien, Vice President of the Vietnam Pepper and Spice Association (VPSA), 2024 will be a very difficult year for the Vietnamese pepper industry, as the inventory carried over from 2023 is at its lowest level in the past 5 years.

Output in 2023 will reach about 180,000 - 190,000 tons, but 264,000 tons have been exported. In mid-November 2023, pepper prices increased to nearly 90,000 VND/kg, but export enterprises could not collect several hundred tons of goods. The above two factors show that the amount of pepper in the population is still very low.

It is forecasted that in 2024, pepper production in major countries such as Vietnam, India, Indonesia, and Brazil will reach its lowest level in the past 5 years and will also be the year when pepper imports to Vietnam will be lower than in 2023 and previous years.

Because Vietnam imports pepper mostly from Indonesia and Brazil, but Indonesia's crop is not good, pepper prices are increasingly expensive and up to 1,000 USD/ton higher than Vietnam's.

Brazil sells pepper at very competitive prices, so Vietnam imports a large amount of pepper from this country. This year, drought has caused crop failure, so Brazilian farmers are in no hurry to sell at low prices. Brazil is offering pepper at prices 50-100 USD/ton lower than Vietnam's, at this price it is impossible to import pepper for processing and selling profitably.

Therefore, it can be affirmed that pepper imports in 2024 will be lower than in 2023 and may be the lowest in the past 5 years. In addition, the inventory carried over from 2023 is at a low level, so it is unlikely that pepper exports in 2024 will be larger than in 2023.

According to the International Pepper Community (IPC), global pepper production in 2023 will reach 539 thousand tons, down 4.3% compared to 2022. The decline mainly comes from Brazil, India and Indonesia. Global production in 2024 is forecast to continue to decrease by 1.1%, equivalent to 6,000 tons.

China's annual import demand is about 65,000 - 70,000 tons. Normally, after the Lunar New Year, Vietnam enters the peak harvest season, which is also the time when Chinese traders increase their search for goods sources. In 2023, the world's second largest economy imported more than 60,000 tons of pepper from Vietnam, the rest was imported from Indonesia and Cambodia.

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