Why did pepper export price increase sharply by 47%?

According to the latest data from the Ministry of Agriculture and Rural Development , the export price of pepper in the first 8 months of 2024 reached 4,810 USD/ton, up 47% over the same period.

The high export price of pepper has contributed to a corresponding increase in domestic pepper prices. Since the beginning of 2024, our country's pepper prices have continuously remained high. In the first days of June, domestic pepper prices approached 190,000 VND/kg, the highest level in the past 11 years. At present, pepper prices have cooled down but are still high compared to history. As of August 15, domestic pepper prices were recorded at around 140,000 VND/kg, 1.75 times higher than the price at the beginning of 2024 and 2 times higher than the price in the same period last year.

Pepper export prices remain high (Illustration photo)

The international pepper community commented that the pepper market at the end of August continued to have mixed reactions. According to experts, if the next pepper crop is slightly better than the last one, it will not be able to make up for the lost pepper acreage. Therefore, it is forecasted that the supply will continue to be in short supply in the future.

Currently, Vietnamese pepper accounts for 60% of the world 's export output. Specifically, our country has been the world leader in pepper production and export for over 20 years, accounting for 40% of the harvest output and 60% of the global export market share. Vietnamese pepper and spices are currently exported to more than 120 countries and territories, dominating many important markets.

Mr. Duong Duc Quang - Deputy General Director of the Vietnam Commodity Exchange (MXV) said that if pepper prices continue to maintain above 100,000 VND/kg, the target of achieving export turnover exceeding 1 billion USD in 2024 is feasible. Domestic and international shortages cannot be compensated in a short time, creating conditions for prices to stay high, thereby earning large export turnover despite the decrease in export volume.

The Vietnam Pepper and Spice Association (VPSA) estimates that Vietnam's pepper output in 2024 will only reach about 170,000 tons, down 10% compared to the previous year. This is also the lowest level in the past 5 years. The reason is that many farmers cut down pepper trees when prices fell 4 years ago (pepper prices dropped to only 40,000 VND/kg) to plant more profitable trees such as durian, coffee, etc.

In the domestic market, black pepper prices have increased sharply due to limited supply, but people should not massively expand planting areas but focus on investing and caring for them in an intensive manner so that pepper plants can develop sustainably and stably.

Source: https://congthuong.vn/vi-sao-gia-xuat-khau-ho-tieu-tang-manh-47-342986.html