Today’s pepper price on October 15, 2024, remains stable in the Central Highlands, with the lowest level of 143,000 VND/kg. In the Southeast, prices fell slightly.
At the end of the last trading session, the IPC listed the price of Indonesia’s black pepper Lampung at 6,744 USD/ton, up 0.18%, and Muntok white pepper at 9,233 USD/ton, up 2.5%.
The price of Brazil’s ASTA 570 black pepper is 6,750 USD/ton, which is unchanged compared to yesterday. Malaysia’s ASTA black pepper price is at 8,700 USD/ton, down 1.15%. This country’s ASTA white pepper price reached 11,200 USD/ton.
The price of Vietnam’s black pepper is 6,800 USD/ton for 500 g/l and 6,800 USD/ton for type 550 g/l. The price of white pepper remains at 9,850 USD/ton.
The pepper industry is facing big challenges.
Pepper prices in the Southeast continue to fall, causing a lot of worry for farmers. Although we are not sure that this is a long-term trend, the reasons behind this price decline have revealed the challenges that the pepper industry is facing.
The strengthening of the dollar is one of the main reasons for the decline in the price. A stronger dollar means that import costs for importing countries like Vietnam will increase, leading to a decrease in demand for goods. Pepper, a key export item of Vietnam, is no exception to this influence. Consumers in importing markets will consider choosing lower-priced substitutes, which will lead to less demand for pepper.
Besides, the cash flow is gradually moving from pepper to coffee, which is also a notable factor. The coffee harvest in Vietnam has begun, attracting funding and attention from investors. This leads to a reduction in capital for the pepper market, negatively impacting prices.
Meanwhile, demand from major import markets, especially China, has not shown signs of strong growth. Although China is Vietnam’s largest consumer, its purchasing power is quite weak, directly affecting pepper prices.
In fact, data from the Vietnam Pepper Association shows that pepper exports to China have decreased by 84.1% in the first 9 months of the year. Although China’s pepper imports increased in the first 8 months of the year, they mainly came from Indonesia, a country with more competitive prices than Vietnam.
The fierce competition from other pepper-producing countries, especially Indonesia, is one of the major challenges for Vietnam’s pepper industry. Indonesia, with its advantages of lower production costs and increasingly improved product quality, is dominating Vietnam’s export market share. This is making it difficult for Vietnamese exporters to maintain the market.
In addition to the above factors, the unstable global economic situation also contributes to a decrease in global demand for pepper. Inflation and economic downturns are taking place in many countries, causing consumers to cut spending on non-essential items, including pepper.
Although pepper prices may continue to fall in the short term, the market may be supported by the expectation that pepper production in 2025 will decline due to weather. It leads to a decrease in supply and possibly pushing prices up in the long term.
Competition in the pepper market is clear, requiring farmers to actively adapt and improve their competitiveness. The application of science and technology, improving product quality, diversifying consumption markets, and closely monitoring the market to update prices and consumption needs are important factors to succeed amid unpredictable market fluctuations.