The pepper price has continued to increase sharply for nearly a week. The recent strong increase in pepper prices is due to limited supply while demand from the US, China, and the EU is high.
Pepper prices in key growing areas across the country have remained around new highs.
Specifically, in the Central Highlands, the price of pepper in Dak Lak reached 113,000 VND/kg. In Gia Lai, pepper is purchased by traders for 113,000 VND per kg. This price is similar in Dak Nong.
In the Southeast region, the price of pepper in Ba Ria, Vung Tau, and Binh Phuoc is fluctuating between 114,000 and 116,000 VND/kg.
The pepper price has continued to increase sharply for nearly a week.
According to the Vietnam Pepper and Spice Association, in recent years, pepper prices have maintained a prolonged low, causing the growing area to decline. Old pepper gardens were replaced with other crops, especially durian. In addition, adverse weather conditions have resulted in a sharp decrease in production. This year’s production is expected to be only about 170,000 tons, down 10% from last year, the lowest level in the last five years.
A high pepper price is a good signal for farmers to compensate for the years when prices were too low (2019 and 2020). According to experts, with the development of prices since the beginning of the year, pepper is entering a new cycle of price increases. The main reason is the limited global supply of pepper.
The Vietnam Pepper and Spice Association forecasts that pepper prices will continue to increase in the coming time. However, the association also recommends that farmers not massively expand the area. Instead, they should focus on investing and taking care of peppers in intensive farming so that pepper plants develop sustainably and stably.
Along with the increasing price of pepper, the coffee price also increased sharply, reaching 130,000–140,000 VND/kg. The price is also fluctuating around 105,000 VND/kg. At current prices, coffee is more profitable than pepper.
However, over the past time, both coffee and pepper have been strongly dominated by durian. Durian is bringing in many times more profit than pepper and coffee.
Regarding exports, the Vietnam Pepper and Spice Association said that by the end of April 2024, Vietnam had exported 83,067 tons of pepper of all kinds, of which black pepper reached 73,555 tons and white pepper reached 9,512 tons.
The total export turnover of pepper reached 352 million USD. Compared to the same period last year, exports decreased by 19.4%, but turnover increased by 10.3%. The average export price of black pepper in 4 months reached 4,065 USD/ton, and white pepper reached 5,678 USD/ton. These figures were up 19.4% and 14.5% for black pepper and white pepper, respectively, compared to the same period last year. /.