The pepper price on August 5, 2024, in the Southeast and the Central Highlands decreased by 1,000 VND/kg compared to yesterday, trading between 145,000 and 146,000 VND per kg.
At the end of July 2024, the average pepper price in the domestic market was around 148,000–149,000 VND/kg. Thus, the pepper price on the last day of the month did not pass the mark of 150,000 VND/kg.
The average domestic pepper price in July reached 150,000 VND/kg, an increase of 82.9% compared to January and 120.6% over the same period in 2023. On average, the price of black pepper in the 7 months of 2024 increased by 66.5% compared to last year. A shortage of supply due to reduced harvests in Vietnam and Brazil is the main reason for the increase in pepper prices since the beginning of the year.
The pepper price has decreased to 145,000 – 146,000 VND per kg today.
The exports of the world’s major producing countries are the opposite. In the first half of 2024, the top two exporters in the world, Vietnam and Brazil, decreased by 6.8% and 6%, respectively. In the same direction, Malaysia’s exports also decreased by 8.1%. Meanwhile, exports from Indonesia and India increased by 48.3% and 34.1%, respectively.
At the end of the last trading session, the IPC listed the price of Indonesian Lampung black pepper at 7,176 USD/ton and Muntok white pepper at 8,793 USD/ton.
Brazil’s ASTA 570 black pepper price was 6,750 USD/ton. Malaysia’s ASTA black pepper price was 8,500 USD/ton, and the ASTA white pepper price was 10,400 USD/ton.
The price of Vietnam‘s black pepper simultaneously remained at a high level of 6,000 USD/ton for 500 g/l and 6,600 USD/ton for 550 g/l. The price of white pepper was 8,800 USD/ton.
The seasonal situation and pepper production of countries will have a strong impact on domestic pepper prices. Brazil continues to harvest pepper in Espírito Santo and in Para in November. It is estimated that this country will harvest more than 60,000 tons. Climate change (La Nina) will affect the production situation of pepper in Brazil in the coming months.
According to some farmers in Espirito Santos, the harvest in 2024 may be 25–30% lower due to the heat. In general, production in 2024 may decrease by 20–25% compared to 2023. The average export price of Brazilian pepper in the first half reached 3,810 USD/ton, up 29.3% over the same period last year. The export price in June increased by 31.1% compared to January 2024.
Indonesia is expected to start the harvest in August (one month later than previous years), but production is also not positive.
The main pepper crop in Sri Lanka will end in July. It is forecast that Sri Lanka’s 2024 pepper production could reach 27,000 tons, thanks to favorable weather conditions. The main export market of Sri Lankan pepper is mainly India because Sri Lankan pepper has a high piperin content suitable for producing oil and pepper oil resin.
Overall, the market is still facing a shortage of supply. This will push up domestic and global pepper prices. However, how much to increase and when to increase are still in question.