Pepper price today March 2, 2024, farmers keep their goods more carefully, excited about the harvest, exporters are worried and unhappy

Pepper price today, March 2, 2024, in the domestic market suddenly decreased in some key localities, trading from 92,000 - 93,500 VND/kg.

Pepper price today March 2, 2024, farmers keep their goods more carefully, excited about the harvest, exporters are worried and unhappy. (Source: Food and Wine)

Pepper prices today, March 2, 2024, in the domestic market suddenly decreased in some key localities, trading from 92,000 - 93,500 VND/kg.

Specifically, pepper price today in Gia Lai is at 92,000 VND/kg.

Pepper prices today in Dong Nai province (92,000 VND/kg); Dak Nong, Dak Lak (93,000 VND/kg); Ba Ria - Vung Tau (93,000 VND/kg) and Binh Phuoc (93,500 VND/kg).

Thus, after 2 sessions of increase, pepper prices today turned to decrease in localities, the decrease ranged from 500 - 1,500 VND/kg. The highest pepper price was recorded in Binh Phuoc at 93,500 VND/kg.

Recently, the news of a sharp increase in pepper prices has brought joy to farmers. In just 3 months, pepper prices have increased by 30% to VND95,000/kg. However, for export enterprises, joy may not come to them due to the burden of costs when the selling price has not increased commensurate with the input price.

Raw pepper prices increased sharply while export pepper prices in January only increased slightly by 4.6% to 4,000 USD/ton, forcing exporters to spend more money to collect goods, even with pre-signed orders at lower selling prices than import prices.

Mr. Le Duc Huy, General Director of Dak Lak 2-9 Import-Export Company Limited (Simexco DakLak), said that the current high price of raw pepper has increased input costs for businesses.

“In the past, 8 million VND could buy 2 tons of pepper, but now you can’t even buy one ton. The current price is twice as high as before. This requires large capital for export enterprises, which means they have to borrow more from banks, leading to increased financial costs and eroding profits,” said Mr. Huy.

Rising prices due to reduced output have also caused businesses to be unable to collect goods. Ms. Hoang Thi Lien, Chairwoman of the Vietnam Pepper and Spice Association (VPSA), said that although businesses have paid deposits, farmers may not deliver the goods. At that time, exporting companies face the risk of not having goods to deliver to importers.

In February 2024, although localities entered the peak harvest season, domestic pepper prices still increased by 10,000 VND/kg. The main reason is still the concern about supply shortage, farmers this year keep their goods more carefully. High demand to meet orders signed right after Tet pushed the market up.

This year's pepper harvest, pepper farmers are excited because they can sell at a higher price than the previous harvest.

According to the Dong Nai Provincial People's Committee, on the last day of February 2024, the price of pepper sold by farmers in the garden fluctuated from 91,000 - 92,000 VND/kg, the price of pepper after being added with quality bonuses fluctuated from 96,000 - 98,000 VND/kg, an increase of more than 20,000 VND/kg compared to the beginning of the season.

In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 3,891 USD/ton, down 0.26%; the price of Brazilian black pepper ASTA 570 at 4,400 USD/ton, up 50 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 6,135 USD/ton, down 0.26%; Malaysian ASTA white pepper price remains at 7,300 USD/ton.

Vietnam black pepper price is trading at 3,900 USD/ton for 500 g/l, 4,000 USD/ton for 550 g/l; white pepper price is at 5,700 USD/ton. IPC reduces Indonesian pepper price, increases Brazilian pepper price compared to yesterday.

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