The rising demand from the world’s largest markets such as the US, China, and the EU has led to an increase in world market prices. As a result, the prices of Vietnam’s pepper have been going up sharply ever since.
PEPPER PRICES ARE RISING STRONGLY, WHICH MAKES FARMERS SO EXCITED
Pepper prices in key growing areas have continued to rise from 2,000 to 3,000 VND/kg and reached the new highest level in the last two years.
The price of pepper has increased to the highest ever since.
Specifically, in Central Highland, the pepper price in Daklak reached 115,000 VND per kg, which was up 2,000 VND per kg compared to previous days. In Gia Lai and Dak Nong, prices were at 115,000–116,000 VND/kg, up 2,000–3,000 VND per kg compared to previous days.
The price in Ba Ria-Vung Tau was at its highest level, reaching 117,000 VND per kg.
Ms. Nguyen Thi Long’s family (Quang Phu town, M’Gar district, Daklak province) purchased about 20 tons of pepper per day, a decrease of 20–30 tons compared to previous years.
According to Ms. Long, the purchasing amount has decreased due to the reduction in pepper area, and farmers have not sold much yet. Most of them are keeping coffee and pepper to wait for higher prices. Ms. Long expects that the pepper price will reach 150,000 VND per kg by 2025 and the coffee price will reach 120,000 VND per kg. Therefore, she decided to store about 50% of the output to sell it at better prices in the future.
EXPORT PEPPER PRICES ARE INCREASING HIGH
According to the Vietnam Pepper and Spice Association (VPSA), in the first 4 months of this year, Vietnam’s pepper exports decreased in quantity but increased in value thanks to high export prices. Notably, pepper exports to the US increased sharply by 45.2% but decreased by more than 95% in the Chinese market.
Vietnam is increasing the export of processed pepper products.
In April 2024 alone, Vietnam exported 26,245 tons of pepper of all kinds, including 23,705 tons of black pepper and 2,540 tons of white pepper, for a turnover of 116.5 million USD. Compared to March, export quantity increased by 2.2% and value increased by 5.2%.
The average export price of Vietnam’s black pepper in the month reached 4,292 USD/ton, up 4%. The export price of white pepper reached 6,034 USD/ton, up 6.5% compared to March 2024.
In the first 4 months of the year, Vietnam exported 83,067 tons of pepper of all kinds, with a total export turnover of 352 million USD. Compared to the same period last year, export volume decreased by 19.4%; however, turnover increased by 10.3%. The average export price of black pepper was 4,065 USD/ton and white pepper was 5,678 USD/ton. These figures were up 19.4% and 14.5% for black and white pepper, respectively, over the same period last year.
Asia now accounts for 36.2% of Vietnam’s total pepper export; however, in the first 4 months of 2024, export volume to this region has shifted. In particular, it decreased by up to 52% compared to the same period in 2023. China had the strongest decrease at 95.2% and the UAE followed by 23%.
Currently, India was the largest import market for Vietnam’s pepper in Asia in the first 4 months of the year, with 5,552 tons, accounting for 6.7%, which was up 23.9% over the same period. Exports also increased in some markets, such as Korea (157.4%), Pakistan (59.7%), and the Philippines (18.5%).
Notably, pepper exports to American countries increased sharply, reaching 40.6% and accounting for 30.2% of the export market share. In particular, the US was Vietnam’s largest single export market, with an output of 22,774 tons. This was an increase of 45.2% over the same period in 2023 and accounted for 27.4% of total export output.
The EU accounts for 26.8% of Vietnam’s pepper export market share, an increase of 33.6% over the same period last year. The German market was in the lead in pepper imports from Vietnam, with an increase of 104.7%. The Netherlands increased by 52.8%, and Russia increased by 68.7%.
In terms of structure, Vietnam is increasing the export of processed pepper products. The proportion of black pepper exports decreased from 75.78% in the first quarter of 2023 to 67.11% in the first quarter of 2024. In contrast, the export proportion of ground black pepper increased from 10.49% to 16.06%; ground white pepper increased from 3.97% to 5.52%./.