Pepper prices continue to rise vertically?

Pepper prices are forecast to continue to increase dramatically on June 28, 2024. The reason why pepper prices have been continuously increasing in recent months is due to a sharp decrease in supply due to a decrease in the area of ​​this crop. At the same time, in the 2024 harvest, pepper output decreased due to crop failure due to unfavorable weather factors.

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.

According to the Vietnam Pepper and Spice Association (VPSA), in recent years, pepper prices have remained low, causing a decrease in acreage. Old pepper gardens have been replaced by other crops, especially durian.

In addition, this year's unusually hot and dry weather has caused output to continue to decline sharply. This year's output is expected to be only about 170,000 tons, down 10% compared to last year, the lowest level in the past 5 years.

Industry experts also warn that currently, durian profits are much higher than pepper. Therefore, pepper acreage may decrease as farmers cut down pepper and switch to durian.

This year, the high pepper price is a good thing for pepper farmers to make up for the years when the price was too low (2019 and 2020). However, VPSA also recommends that farmers should not massively expand the pepper growing area, but focus on investing and caring for the pepper plants in an intensive manner so that they can develop sustainably and stably.

In the domestic market, pepper prices today, June 27, 2024, in the Southeast region increased sharply by 5,000 VND/kg in some localities, trading around 150,000 VND/kg, the highest purchase price in Dak Lak province was 151,000 VND/kg.

Accordingly, Dak Lak pepper price is purchased at 151,000 VND/kg. Chu Se pepper price (Gia Lai) is currently at 150,000 VND/kg. Dak Nong pepper price today is recorded at 150,000 VND/kg.

Pepper price forecast June 28, 2024: Pepper price continues to increase sharply

In the Southeast region, pepper prices today increased by 5,000 VND/kg. Specifically, in Ba Ria - Vung Tau, it was 150,000 VND/kg; in Binh Phuoc, pepper prices reached 150,000 VND/kg.

Domestic pepper price on June 27 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	150,000	+5,000
­­ Dak Lak	VND/kg	151,000	+5,000
Dak Nong	VND/kg	150,000	+5,000
Binh Phuoc	VND/kg	150000	+5,000
Ba Ria - Vung Tau	VND/kg	150,000	+5,000

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,112 USD/ton, up 0.31%; the price of Brazilian black pepper ASTA 570 at 7,500 USD/ton, up 300 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 7,500 USD/ton.

Muntok white pepper price is 9,056 USD/ton, up 0.32%; Malaysian ASTA white pepper price is at 8,800 USD/ton.

Vietnam's black pepper price is trading at 7,550 USD/ton for 500 g/l, up 24.50%; 550 g/l is at 8,150 USD/ton, up 28.83%; white pepper price is at 11,550 USD/ton, up 31.60%. IPC sharply reduced pepper prices in Indonesia, sharply increased Vietnam's pepper export prices.

Currently, most opinions of experts, businesses, and the Vietnam Pepper and Spice Association all agree that the price will increase in the medium and long term.

PTEXIM Corp – a business with more than 20 years of experience exporting pepper from Vietnam, assessed that the inventory level of intermediary traders is at its lowest level in many years.

In a recent interview with the press, Mr. Le Duc Huy - General Director of Simexco Daklak stated that the shortage of supply while the demand is high is the main reason for the sharp increase in pepper prices recently.

In the long term, the demand for spices will increase while Vietnamese pepper has reached the point of aging, and the current price is still not enough to stimulate people to grow more.

According to Mr. Le Duc Huy, it is difficult to determine at what price people can return to pepper. Even if the pepper price reaches 100,000 VND/kg, it is still not attractive enough for people to grow it again. Because if compared to the profits from other crops, especially durian, the income from pepper is still much lower.

This person said that inventories will continue to decrease in the next 3-5 years. In the long term, pepper prices will hardly decrease further.

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

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-2862024-gia-tieu-tiep-tuc-tang-dung-dung-328617.html