Pepper prices skyrocketed, the highest being 161,000 VND.
Domestic pepper prices are skyrocketing today. The highest pepper price recorded in Dak Nong province is 161,000 VND/kg.
Today, pepper prices in the Central Highlands and Southeast regions increased from 2,000 - 9,000 VND/kg in some localities, trading around 158,600 VND/kg, the highest purchase price in Dak Nong province was 161,000 VND/kg.
Specifically, in Ba Ria - Vung Tau, the price increased to 159,000 VND/kg, an increase of 9,000 VND/kg; in Binh Phuoc, pepper price reached 157,000 VND/kg, an increase of 5,000 VND/kg.
In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 5,614 USD/ton (down 0.02%); the price of Brazilian black pepper ASTA 570 at 6,800 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton. The price of Muntok white pepper was 7,424 USD/ton (up 0.03%); the price of Malaysian white pepper ASTA remained at 7,300 USD/ton.
The continuous increase in demand for pepper from major markets such as the US, Korea, and the EU is one of the reasons for the sharp increase in pepper prices recently. With the continuously increasing prices, the export target of reaching a billion USD by 2024 is completely feasible.
According to the Vietnam Pepper and Spice Association (VPSA), low supply while demand from the US, China, and the EU is increasing, the high USD and the global geopolitical situation make transportation difficult. In addition, speculation is the main reason for the sharp increase in pepper prices in recent times.
The average export price of black pepper in the first 5 months reached 4,197 USD/ton, white pepper reached 5,804 USD/ton, an increase of 754 USD for black pepper and 849 USD for white pepper respectively compared to the same period in 2023.
This is the strongest increase since the beginning of the year. Demand from the US market increased again, while production decreased in Vietnam and other producing countries, helping pepper prices increase by 20,000 VND/kg this week.
The Import-Export Department (Ministry of Industry and Trade) forecasts that pepper prices will continue to increase in the coming time, but the rate of increase will slow down. Currently, the global pepper supply is in short supply while demand is recovering strongly from major markets such as Europe, the US and China. Pepper output this year in Vietnam and many major producing countries is forecast to decrease, due to the impact of the El Nino phenomenon and the decrease in cultivated area.
According to the General Department of Customs, it is estimated that in May 2024, Vietnam exported 30 thousand tons of pepper, worth 135 million USD, up 14.4% in volume and 15.9% in value compared to April 2024. In the first 5 months of 2024, Vietnam exported an estimated 113 thousand tons of pepper, worth 487 million USD, down 14.1% in volume, but up 19.7% in value compared to the same period last year.
