On November 7, 2024, pepper prices in key areas have dropped sharply by 4,500–5,000 VND/kg to the range of 135,000–136,000 VND/kg.
At the end of the latest trading session, the IPC has listed the price of Indonesia’s black pepper Lampung at 6,634 USD/ton and Muntok white pepper at 9,082 USD/ton, both down 0.47% compared to yesterday.
The price of ASTA 570 black pepper from Brazil is 6,300 USD/ton, down 1.59%. Malaysia’s ASTA black pepper price is 8,500 USD/ton. The ASTA white pepper price from this country reaches 11,000 USD/ton.
Pepper prices have dropped sharply these days.
The price of Vietnamese black pepper remains stable at 6,500 USD/ton for the 500 g/l type and 6,800 USD/ton for the 550 g/l type. The price of white pepper is 9,500 USD/ton.
In the past time, prices in the markets have been pushed higher than the actual supply and demand. Experts believe that pepper prices are being adjusted to reflect their true value at the present time.
The flow of funds towards coffee and weak demand are factors hindering the rise of pepper.
Southeast Asian countries are reducing pepper prices amid a strengthening USD. The US’s presidential election, with Donald Trump’s victory, caused the USD exchange rate to go up strongly, further driving down pepper prices. Currently, the global pepper market is valued at 5.43 billion USD, with an average growth forecast of over 20% during the period from 2024 to 2032.
Recently, the pressure to sell pepper in the market has increased as the coffee harvest begins. Due to the need for significant capital for the coffee harvest, many farmers and agents have switched to selling pepper, putting pressure on domestic pepper prices.
On a global scale, Southeast Asian countries are reducing pepper prices amid the rising value of the USD.
Ten years ago, for the first time, Vietnam’s pepper export turnover reached a record 1.2 billion USD. However, farmers in many provinces have rushed to expand the area for growing pepper, even in unsuitable places, causing a significant increase in production. This led to supply exceeding demand and continuously driving prices down.
In the first nine months of 2024, for the first time in 10 years, pepper exports reached the milestone of 1 billion USD. It is expected to set a new record, the highest ever at 1.3 billion USD by the end of 2024. Now, the global pepper market is valued at 5.43 billion USD, with an average growth forecast of over 20% between 2024 and 2032.