IN THE DOMESTIC MARKET
Today’s pepper price on July 5, 2024, in the Southeast region continues to be adjusted down from 4,000 to 5,000 VND/kg. Pepper is traded for around 145,000–146,000 VND per kg. The highest price in Dak Lak, Dak Nong, and Ba Ria-Vung Tau provinces is 146,000 VND/kg.
Accordingly, the price of Dak Lak pepper is 146,000 VND/kg, a decrease of 5,000 VND/kg compared to yesterday’s price. The price of pepper in Chu Se (Gia Lai) is currently 145,000 VND/kg, down 4,000 VND/kg compared to yesterday. The price of Dak Nong pepper today is 146,000 VND/kg, a decrease of 5,000 VND/kg.
The pepper price continues to drop sharply to 145,000 VND/kg.
In the Southeast, the price of pepper today has decreased by 4,000–5,000 VND/kg. Specifically, in Ba Ria-Vung Tau, the price has decreased by 4,000 VND to 146,000 VND/kg. In Binh Phuoc, it has decreased by 5,000 VND/kg to 145,000 VND/kg.
The domestic pepper price continues to drop by 4,000–5,000 VND, trading at 145,000–146,000 VND/kg. Compared to yesterday, domestic pepper prices today have decreased sharply in some key localities. The highest price for pepper is 146,000 VND/kg.
Based on data from the Ministry of Agriculture and Rural Development, the area and pepper production are decreasing. In 2020, the area was more than 130,000 hectares; however, in 2023, it was only 120,000 hectares. Pepper production is forecast to continue to decline, from 190,000 tons in 2023 to 170,000 tons this year, the lowest in the past 5 years.
According to the Vietnam Pepper and Spice Association (VPSA), unusually hot and dry weather this year is the main reason for the sharp decline in production.
IN THE WORLD MARKET
At the end of the last trading session, the International Pepper Community (IPC) listed the price of black pepper Lampung (Indonesia) at 7,129 USD/ton, up 0.28%; Brazil ASTA black pepper 570 at 7,250 USD/ton; and black pepper Kuching (Malaysia) ASTA at 7,500 USD/ton.
Pepper supply is forecast to be lower than global demand in the coming time.
The price of Muntok white pepper is 9,077 USD/ton, up 0.27%, and the Malaysia ASTA white pepper price is 8,800 USD/ton.
Vietnamese black pepper is traded at 6,000 USD/ton for 500 g/l and 6,600 USD/ton for 550 g/l. White pepper price is 9,000 USD/ton.
The IPC has slightly increased pepper prices in Indonesia, while pepper export prices in Vietnam and Brazil have remained the same.
Experts warn that durian’s profitability is much higher than that of pepper. Farmers tend to convert to durian cultivation, reducing the area of pepper. By the end of May, Vietnam exported 109,330 tons of pepper, accounting for nearly 65% of the current crop, reducing the supply to the export market. This is a significant challenge for the pepper market, as supply is forecast to be lower than global demand.
Mr. Hoang Phuoc Binh, Vice Chairman of the Chu Se Pepper Association (Gia Lai), said that due to the impact of the pandemic and conversion to other crops, especially durian, the area of pepper has decreased sharply.
“The area of Vietnamese pepper may be only about 60,000–70,000 hectares, or half of the data published in 2021. With the fact that pepper prices have been at a low level for a long time, the area will continue to drop, leading to a decrease in output,” Mr. Hoang Phuoc Binh said.
According to estimates by some industry experts, at the current price, the profit of pepper is only approximately 5,000 USD/ha, while the profit of durian is more than eight times higher, up to more than 40,000 USD/ha. This causes the destruction of pepper for durian cultivation, which greatly affects the supply of this spice.