Market flat, exports down sharply, inventories down to 6-year low

Pepper prices today, September 25, 2024, in the domestic market are stable in key localities, trading from 150,000 - 151,000 VND/kg.

Pepper price today September 25, 2024: Market is flat, exports decrease sharply, inventory drops to lowest level in 6 years. (Source: Food and Wine)

Pepper prices today, September 25, 2024, in the domestic market are stable in key localities, trading from 150,000 - 151,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 150,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (150,000 VND/kg); Dak Lak (151,000 VND/kg); Dak Nong (151,000 VND/kg); Ba Ria - Vung Tau (150,000 VND/kg) and Binh Phuoc (150,000 VND/kg).

Thus, after 2 days of mixed developments, domestic pepper prices today stabilized in key localities. The highest pepper price was at 151,000 VND/kg.

According to statistics, in the first 15 days of September 2024, Vietnam exported 6,917 tons of pepper, with a total export turnover of 42.3 million USD. Meanwhile, in the first 15 days of August 2024, Vietnam exported 10,082 tons of pepper, with a total export turnover of 58.8 million USD. Compared to the previous month, pepper exports are decreasing sharply, equivalent to 30%.

However, experts still maintain their opinion that domestic pepper prices may exceed 160,000 VND/kg before the harvest season in Vietnam.

One of the main reasons for the recent increase is the limited supply worldwide . Looking at the long term in the next 3-5 years, the amount of pepper produced cannot meet the world's consumption demand. Regarding pepper prices this week, experts say it is difficult to have a breakthrough, but there are positive signs when the market is on the rise in the last 2 days of last week.

According to the Vietnam Pepper and Spice Association (VPSA), Vietnam's pepper output in 2024 is estimated to reach only about 170,000 tons, down 10% compared to the previous year. This is also the lowest level in the past 5 years.

Global pepper production in 2024 is expected to reach around 465,000 tonnes, down 1.2% from last year. Meanwhile, global pepper consumption is expected to reach 529,000 tonnes, exceeding production by 64,000 tonnes. This has caused inventories to continue to decline to 428,000 tonnes, the lowest level in the past 6 years.

Also related to pepper output, 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 areas extending to March and April, 1-2 months later than previous years due to the impact of prolonged drought.

Statistics show that pepper exports from major producing countries in the world fluctuated in opposite directions, with declines in the two leading exporters, Vietnam and Brazil, while Indonesia and India recorded high double-digit growth.

According to data from the Brazilian State Center for Foreign Trade Statistics (Comex Stat), in August, Brazil's pepper exports reached 3,685 tons, worth 19.2 million USD, down sharply by 23.8% in volume and 17.8% in value compared to the previous month, and down 28.6% in volume but up 13.5% in value compared to the same period last year.

In the first 8 months of the year, Brazil's pepper exports reached 45,699 tons with a value of 183.4 million USD. Although the volume decreased by 10.4%, the value increased by 19.3% compared to the same period in 2023 thanks to high prices.

Source: https://baoquocte.vn/gia-tieu-hom-nay-2592024-thi-truong-di-ngang-xuat-khau-giam-manh-luong-ton-kho-xuong-muc-thap-nhat-trong-6-nam-287269.html