Market turns around, Brazil's crop failure will impact the world, Vietnamese businesses face difficulties

Pepper prices today, July 21, 2024, in the domestic market decreased in key localities, trading at 145,000 - 147,000 VND/kg.

Pepper price today July 21, 2024: Market turns around, Brazil's crop failure will impact the world, Vietnamese businesses face difficulties. (Source: Incredibleman)

Pepper price today, July 21, 2024, in the domestic market decreased in key localities, trading at 145,000 - 147,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 145,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (145,000 VND/kg); Dak Lak (147,000 VND/kg); Dak Nong (147,000 VND/kg); Ba Ria - Vung Tau (145,000 VND/kg) and Binh Phuoc (145,000 VND/kg).

Thus, domestic pepper prices today decreased in key localities, the decrease ranged from 1,000 - 3,000 VND/kg. The highest pepper price was at 147,000 VND/kg.

In recent weeks, although pepper prices have somewhat stabilized, they are still fluctuating at their highest level in the past 8 years.

Data from the International Pepper Association (IPC) shows that at the end of the trading session on July 17, the price of Brazilian ASTA black pepper fluctuated at 7,125 USD/ton, up 2.1 times compared to the beginning of this year and 2.3 times higher than the same period last year.

The export price of 500 g/l and 550 g/l black pepper from Vietnam is fluctuating at 6,000 - 6,600 USD/ton, up 54 - 65% compared to the beginning of this year.

In another major producer, Indonesia, pepper prices also increased by about 86% compared to the beginning of this year to $7,223/ton.

Thus, this is the first rare time in many years that Brazilian black pepper prices have surpassed those of Vietnam.

New data released by the Brazilian government shows that the country's pepper exports in June 2024 reached only 5,333 tons, down 9.7% compared to May 2024. In the first 6 months of this year, Brazil exported 37,181 tons of pepper, down 6% compared to the same period in 2023.

Many industry experts and major pepper businesses around the world warn that Brazil is facing the risk of a third consecutive year of decline in export output due to crop failure.

Brazil is currently the second largest producer and exporter of black pepper in the world after Vietnam, accounting for 17 - 18% of the total world supply.

Therefore, the continuous crop failure in Brazil will cause a global ripple effect, expected to push up global pepper prices in the final months of this year when pepper supply from other major producing countries such as Vietnam, Malaysia, Indonesia, etc. also decreases significantly.

Vietnam is also the largest customer of the Brazilian pepper industry, so the shortage of supply will make it difficult for Vietnamese businesses to find alternative sources of supply, especially when the problem of port congestion and increased transportation costs has not been completely resolved.

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,191 USD/ton, down 0.25%; the price of Brazilian black pepper ASTA 570 at 7,125 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 7,500 USD/ton.

Muntok white pepper price is 9,157 USD/ton, down 0.24%; Malaysian ASTA white pepper price is at 8,800 USD/ton.

Vietnam's black pepper price is trading at 6,000 USD/ton for 500 g/l; 550 g/l at 6,600 USD/ton; white pepper price at 8,800 USD/ton. IPC continues to slightly adjust pepper prices in Indonesia.

Source: https://baoquocte.vn/gia-tieu-hom-nay-2172024-thi-truong-quay-dau-brazil-mat-mua-se-tac-dong-toan-cau-doanh-nghiep-viet-gap-kho-279367.html