Pepper prices adjusted down across the board?

Pepper price forecast on June 18, 2024 is widely adjusted down. Domestic pepper prices have continuously decreased and suddenly increased in recent days. Pepper prices have skyrocketed in the past month. Pepper prices were around 120,000 VND/kg in mid-May, then by the end of May they had increased to 127,000 - 129,000 VND/kg and reached 150,000 VND/kg on June 5.

Pepper growers are generally happy with high prices and want to increase prices further. Adjusting import and selling prices is extremely important for businesses to avoid price risks. Businesses need to adjust export prices accordingly if domestic pepper prices increase. Otherwise, they will face risks in terms of reputation and orders.

According to industry experts, the adjustment of pepper prices is necessary to "rebalance" the market. In the context of low global pepper supply but increasing demand, the price level is unlikely to decrease significantly when pepper prices have entered a new price increase cycle.

Often intercropped with coffee, pepper and this crop are closely related in price, so when coffee prices increase, pepper prices are also expected to increase and people may hold on to their stocks in the hope that prices will increase. With both of these commodities in the market, a similar trend may be taking place.

It is forecasted that in the second half of this year, at this rate, pepper may reach the 200,000 VND/kg mark. There will be adjustments at some point in the growth cycle due to speculation. Pepper prices continue to rise due to long-term supply shortage.

From other crop years, the high pepper price can trigger some pepper growers and agents to sell their stockpiled pepper on the market due to the consequences of hot speculation.

Pepper price today, June 17, 2024, in the Central Highlands and Southeast regions increased sharply, from 13,000 VND/kg in some localities, trading around 168,000 VND/kg, the highest purchase price in Dak Nong province is 170,000 VND/kg.

Accordingly, Dak Lak pepper price is purchased at 170,000 VND/kg, an increase of 13,000 VND/kg. Chu Se pepper price (Gia Lai) is currently at 168,000 VND/kg, an increase of 13,000 VND/kg compared to yesterday. Dak Nong pepper price today is recorded at 170,000 VND/kg, an increase of 13,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices today increased by 13,000 VND/kg. Specifically, in Ba Ria - Vung Tau, it reached 169,000 VND/kg, an increase of 13,000 VND/kg; in Binh Phuoc, pepper prices reached 168,000 VND/kg, an increase of 13,000 VND/kg.

Domestic pepper price on June 17 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	168,000	+13,000
­­ Dak Lak	VND/kg	170.0000	+13,000
Dak Nong	VND/kg	170,000	+ 13,000
Binh Phuoc	VND/kg	168,000	+ 13,000
Ba Ria - Vung Tau	VND/kg	169,000	+13,000

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,418 USD/ton, down 0.53%; the price of Brazilian black pepper ASTA 570 at 7,900 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 8,377 USD/ton, down 0.54%; Malaysian ASTA white pepper price remains at 7,300 USD/ton.

The price of Vietnamese black pepper increased sharply across the board, reaching 7,800 USD/ton (up 6.84%); 550 g/l at 8,000 USD/ton (up 2.56%); and white pepper at 12,000 USD/ton (up 12.14%).

Statistics from the Ministry of Agriculture and Rural Development show that pepper area and output are decreasing, in 2020 the area was more than 130,000 hectares, in 2023 it was only 120,000 hectares, output reached 190,000 tons. It is estimated that this year's pepper output will continue to decrease to only about 170,000 tons, the lowest level in the past 5 years.

Industry experts also warn that currently, durian profits are 20 times higher than pepper. Therefore, it is predicted that pepper acreage will continue to decrease as farmers are massively cutting down pepper to switch to durian.

Although the yield is low, thanks to the high price, growers make big profits. Currently, each hectare brings in 500 - 600 million VND. After deducting costs, growers make a profit of about 350 - 400 million VND/ha, even some pepper gardens cultivated according to organic standards recorded profits of up to 500 million VND/ha.

In particular, according to a representative of an export purchasing enterprise, this year, pepper growers are not selling as much as in previous years due to the support of high prices of other agricultural products such as durian and coffee. Many people are willing to store for 2-3 years because they have other sources of income. Therefore, the supply of pepper to the market is currently very low, creating conditions for pepper prices to stay high.

* Information for reference only. Prices may vary by location.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-1862024-gia-tieu-dieu-chinh-giam-tren-dien-rong-326687.html