Explain the reason for the sharp drop in pepper prices?

Pepper price today, November 13, 2024, in the Southeast region decreased sharply by 2,000 - 2,200 VND/kg in most key regions, trading around 138,000 - 139,000 VND/kg; the highest purchase price in Dak Nong, Dak Lak, Binh Phuoc provinces.

Accordingly, Dak Lak pepper price was purchased at 139,000 VND/kg, down 2,000 VND/kg. Chu Se pepper price (Gia Lai) was purchased at 138,000 VND/kg, down 2,000 VND/kg. Dak Nong pepper price today was recorded at 139,000 VND/kg, down 2,200 VND/kg.

In the Southeast region, pepper prices today fluctuated compared to yesterday. Specifically, in Binh Phuoc, pepper prices today were stable at 139,000 VND/kg. In Ba Ria - Vung Tau, it is currently at 138,000 VND/kg, down 2,000 VND/kg.

Pepper price today November 13, 2024: Explaining the reason for the sharp drop in pepper prices

Thus, domestic pepper prices today fell sharply in key growing areas. The highest pepper price was at 139,000 VND/kg.

World pepper price today

Update on world pepper prices from the International Pepper Association (IPC), at the end of the most recent trading session, IPC listed the price of Indonesian Lampung black pepper at 6,518 USD/ton, down 0.60%, and the price of Muntok white pepper at 9,122 USD/ton, down 0.60%.

The price of Brazilian ASTA 570 black pepper was at USD 6,000/ton, down 5.00%. The price of Malaysian ASTA black pepper was at USD 8,500/ton; the price of this country's ASTA white pepper reached USD 11,000/ton.

Of which, the price of Vietnamese black pepper dropped sharply to 6,200 USD/ton for 500 g/l, down 4.84%; 550 g/l at 6,500 USD/ton, down 4.62%; white pepper price at 9,400 USD/ton, down 1.06%.

Mr. Hoang Phuoc Binh, Vice President of the Chu Se Pepper Association (Gia Lai), said that the pepper price in Vietnam has decreased because Indonesia has just entered the harvest season. On the other hand, because it is the beginning of the coffee season, many agents are taking advantage of selling pepper in stock to buy coffee.

Mr. Binh predicts that the price of pepper in the 2025 crop will be higher than in the 2024 crop (at its highest, it will be 160,000 VND/kg). The primary reason is that the prolonged heat in early 2024 is greatly affecting pepper productivity, leading to a continued decrease in output in 2025.

Not only Vietnam, output is also forecast to decrease in many other countries. Meanwhile, most pepper growers in Vietnam currently have other sources of income from coffee, durian, etc., so they are not in a hurry to sell after harvest but will wait until they see a better price.

Pepper processing and exporting enterprises said that the amount of pepper in stock in Vietnam is currently very low, while the 2025 harvest is expected to be 1-2 months later than usual and output will decrease due to drought.

This will create a certain shortage in supply, thereby positively affecting world pepper prices.

Indonesia has just finished its 2024 harvest, with abundant supplies and continuously falling prices, creating favorable conditions for businesses to take advantage of buying. In addition to Indonesia, Vietnam also prioritizes importing from neighboring countries such as Cambodia to save on transportation costs, instead of importing from distant sources such as Brazil.

Domestic pepper price on November 13, 2024