According to data from the Ministry of Agriculture and Rural Development, the area of pepper cultivation in Vietnam in 2023 decreased by about 5,000 ha compared to 2022. It is forecast that the production of the harvest in 2024 will decrease by about 10.5%, causing the pepper price in the domestic market to increase sharply.
PEPPER PRICES INCREASE, FARMERS GET MORE PROFITS
Currently, farmers in the Central Highlands and Southeast are entering the pepper harvest season in 2024, however, the harvest is not much. Due to climate change, the harvest in 2024 is delayed. Besides, the pepper area decreased so Vietnam’s pepper production in 2024 is forecast to only reach 170,000 tons, down 10.5% compared to 2023.
Pepper prices increase, growers are happy to take more opportunities.
Pepper prices in the domestic market have been in an upward trend since before the Lunar New Year. In the Central Highlands, the price ranges from 93,500 – 95,500 VND/kg. In Binh Phuoc and Ba Ria-Vung Tau, the pepper price is high, reaching 95,500 VND/kg.
Mr. Tran Vinh Phong, owner of 4,000 pepper pillars (Hoa Tin village, Nhon Hoa town, Chu Puh district, Gia Lai province), said that the weather this year is favorable so pepper is well developed and the yield is about 03 kg of dried pepper/pillar. However, finding laborers to pick pepper is difficult. That is not to mention that he has to increase the wage to 200,000 VND/person/day compared to 180,000 VND/day last year.
“I had to contact everywhere to find nine laborers to pick pepper. Last year, a 4,000-pillar pepper garden required 300 labors, however, this year there are only 250 labors left.” – Mr. Phong said.
Entering this year’s crop, Mr. Pham Van Nghia’s family (Loc Chau 3 village, Tan Nghia commune, Di Linh district, Lam Dong province) had to hire 04 laborers to harvest pepper. His family has 500 pepper pillars that have been planted for nearly 10 years. The total output is expected to reach about 3.5 tons of dried pepper, down more than one ton compared to last year. However, in return, the pepper price is high, over 95,000 VND/kg for dried pepper. Therefore, his family may get a profit of about 250 million VND.
Similarly, Ms. Nguyen Thi Luyen’s family (Loc Chau 3 village, Tan Nghia commune) has nearly 500 pillars planted in the coffee garden. Her family will harvest about 1.7 tons of dried pepper. At the current market price, except for investment costs, the profit is about 120 million VND.
Pepper prices are forecast to maintain high.
PEPPER PRICES ARE FORECAST TO MAINTAIN HIGH
Mr. Hoang Van Sy, a farmer in Dak Sak commune, Dak Mil district, Dak Nong province, is participating in a group of 35 households growing clean pepper with a total area of about 60 ha. After the first harvest, the yield of pepper of all households in the group is uneven this year. Since pepper prices increased sharply compared to last year, households like Mr. Sy’s family do not immediately sell but watch out for the market.
Pepper prices may continue to increase in the short term due to limited supply. Vietnam’s pepper growing area has decreased by about 5,000 ha in 2023, causing a decrease in production of about 10.5% compared to the previous crop.
According to the Import-Export Department (Ministry of Industry and Trade), Vietnam’s pepper exports in February 2024 reached 18,000 tons, worth 73 million USD. This result was up 3.1% in volume and 5.2% in value compared to January 2024, but it decreased by 35.2% in volume and 12.5% in value over February 2023.
In the first two months of 2024, Vietnam’s pepper exports reached about 35,000 tons, worth 143 million USD, down 12.3% in volume but up 12.9% in value over the same period in 2023. Notably, the average export price of pepper is estimated at 4,041 USD/ton, up 28.7% over the same period in 2023.
In 2023, Vietnam is the largest pepper supplier to the US (out of 49 countries and territories in the world that sell pepper to the US). Vietnam’s share of total US imports from the world has increased from 73.85% in 2022 to 77.23% in 2023./.