Delayed new crop supply causes imbalance in supply and demand in pepper supply chain

Pepper price today, September 14, 2024, in key areas remained stable compared to yesterday, trading around 152,000 - 156,000 VND/kg, the highest purchase price in Dak Nong and Dak Lak provinces was 156,000 VND/kg.

Accordingly, the price of Dak Lak pepper was purchased at 156,000 VND/kg, stable compared to yesterday. The price of Chu Se pepper (Gia Lai) was purchased at 154,000 VND/kg, an increase of 1,000 VND/kg compared to yesterday. The price of Dak Nong pepper today is at 156,000 VND/kg, unchanged compared to yesterday.

Pepper price today September 14: Delayed supply of new crop causes imbalance in supply and demand in pepper supply chain

In the Southeast region, pepper prices today remained stable compared to yesterday. Specifically, in Binh Phuoc, pepper prices today remained at 152,000 VND/kg. In Ba Ria - Vung Tau, it was at 155,000 VND/kg, stable compared to yesterday.

Thus, after 2 days of increase, domestic pepper prices today recorded a second day of stability in key localities. Today's pepper prices maintained a sideways trend in key regions, only Gia Lai province increased by 1,000 VND/kg, fluctuating in the price range of 152,000 - 156,000 VND/kg, pepper growing areas in Dak Lak and Dak Nong were the highest at 156,000 VND/kg.

World pepper price today

Update on world pepper prices from the International Pepper Association (IPC), at the end of the most recent trading session, IPC listed the price of Indonesian Lampung black pepper at 7,562 USD/ton, up 0.04%, and the price of Muntok white pepper at 9,121 USD/ton, up 0.04%.

The price of Brazilian ASTA 570 black pepper remained at $7,400/ton. The price of Malaysian ASTA black pepper was at $8,800/ton; the price of this country's ASTA white pepper reached $10,900/ton.

Vietnam's black pepper price is trading at 6,800 USD/ton for 500 g/l, down 4.41%; 550 g/l is at 7,100 USD/ton, down 1.76%; white pepper price is at 10,150 USD/ton.

World pepper prices are forecast to remain high in the coming time. Brazil is currently the second largest producer and exporter of black pepper in the world after Vietnam, accounting for 17-18% of the total global supply. Therefore, the continuous crop failure in Brazil will have an impact on the market, expected to push global pepper prices up in the last months of 2024 when pepper supply from other major producing countries such as Vietnam, Malaysia, Indonesia, etc. also decreases.

Mr. Marcellus Giovanni, CEO of Brazspice Spices International, said that through surveys of pepper gardens in major areas such as Dak Nong, Dak Lak, Binh Phuoc, Ba Ria – Vung Tau and Dong Nai, although there are many pepper chains, there are also many chains with few seeds. Moreover, the current pepper is younger than at this time last year.

The above independent survey shows that there are concerns about the next crop's output, and the harvest time may be delayed. This may cause the new crop supply in Vietnam to be delayed, causing an imbalance in supply and demand in the world pepper supply chain.

According to some experts, due to prolonged drought in April and May in key pepper growing areas, Vietnam's 2025 harvest will be delayed.

It is forecasted that the 2025 pepper crop will be harvested almost entirely in February, with many regions extending to March and April, 1 to 2 months later than previous years due to the impact of prolonged drought.

The demand for pepper in the world market is still very vibrant, especially from traditional markets. However, demand from China tends to fluctuate with prices. When pepper prices increase, demand from this market may decrease.

Domestic pepper price on September 14 , 2024