Vietnam's pepper industry benefits from high export prices; output decreases, farmers tend to speculate

Pepper prices today, November 5, 2024, in the domestic market continue to be stable in some key localities, trading from 140,000 - 141,000 VND/kg.

Pepper price today November 5, 2024: Vietnam's pepper industry benefits from high export prices; output decreases, farmers tend to speculate. (Source: EMediHealth)

Pepper prices today, November 5, 2024, in the domestic market continue to be stable in some key localities, trading from 140,000 - 141,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 140,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (140,000 VND/kg); Dak Lak (141,000 VND/kg); Dak Nong (141,000 VND/kg); Ba Ria - Vung Tau (141,000 VND/kg) and Binh Phuoc (140,000 VND/kg).

Thus, maintaining a stable momentum, domestic pepper prices today continue to move sideways in key growing areas. The highest pepper price is at 141,000 VND/kg.

Overall, pepper prices are still under pressure from low demand and the continued rise of the US dollar. Vietnam’s pepper exports have continuously decreased in recent months.

The Ministry of Agriculture and Rural Development said that in the first 10 months of 2024, Vietnam exported about 220.3 thousand tons of pepper, with an estimated value of 1.12 billion USD. Officially surpassing 1 billion USD after many years of waiting. Although the volume of pepper exported decreased by 2.3% compared to the same period last year, the value increased sharply by 48.2%.

The average export price of pepper in the first 10 months of 2024 is estimated at 5,084 USD/ton, an increase of 51.7% over the same period in 2023.

Mr. Phan Minh Thong, Chairman of the Board of Directors of Phuc Sinh Joint Stock Company, said that the Vietnamese pepper industry is benefiting from high export prices due to limited supply.

Accordingly, this year pepper farmers benefited from the high selling price. On the contrary, export enterprises could not buy much domestic pepper. This is also part of the reason why Phuc Sinh had to import a lot of pepper from Brazil and Indonesia this year.

The reason is that, due to the decrease in output, people are holding back pepper for speculation. Along with that, the prolonged drought has made the domestic pepper supply increasingly difficult.

According to experts, Vietnam is about to enter the harvest season with an estimated output of around 170,000 tons, accounting for about 35-40% of the global supply. Therefore, the world pepper price may still fluctuate. The overall pepper supply is still lower than the demand, so the price of this item is likely to remain at a good level.

In particular, the current pepper price is quite high compared to previous years, many farmers have made high profits. Short-term price increases and decreases may occur because this commodity is affected by many factors.

In the short term, the pepper market is expected to continue to face many fluctuations. Pepper prices may remain stable or decrease slightly due to limited supply and no signs of strong recovery in demand.

According to Dak Lak Newspaper, along with the country's export growth, the export situation of goods in the province continues to achieve many positive results. The total export turnover of the whole province in the first 9 months of 2024 reached more than 1.4 billion USD (an increase of 29% over the same period last year).

Besides coffee, pepper is a commodity with high growth rate in both volume and export price of the province. By the end of the third quarter of 2024, pepper export of Dak Lak province reached more than 31,000 tons with an average price of 6,239 USD/ton, up 83.3% and 67.5% respectively over the same period last year.

Source: https://baoquocte.vn/gia-tieu-hom-nay-5112024-nganh-ho-tieu-viet-nam-huong-loi-nho-gia-xuat-khau-cao-san-luong-giam-ba-con-xu-huong-dau-co-292576.html