Pepper growers profit big as prices soar

Productivity has decreased but thanks to high prices, pepper growers earn 500-600 million VND per hectare for this year's crop.

Starting from March, pepper growers in Dong Nai, Binh Phuoc, Dak Lak, Gia Lai entered the harvest season. Compared to last year, this year's pepper price has increased dramatically, helping growers make big profits.

At the end of the session on March 13, pepper price reached 95,000 VND per kg, up 36% over the same period last year. This is the highest level in the past 5 years.

Mr. Pham Van Trung in Dong Nai said he has just harvested 3 tons of pepper this season. With a selling price of 95,000 VND per kilogram, his family can earn nearly 300 million VND. "I have just sold about 1 ton of good pepper, the remaining 2 tons are waiting for the price to increase further," he said.

Currently being bought by traders at 105,000 VND for grade 1 pepper, Ms. Mai Anh said she is very excited because this year has high profits. "Pepper prices are currently up 36% compared to the same period last year. Therefore, with 2 tons of harvest, I earn more than 140 million VND (after deducting expenses)," Ms. Mai Anh said.

Black pepper at a garden in the Central Highlands. Photo: Minh Anh — Black pepper at a garden in the Central Highlands. Photo: *Minh Anh*

According to a report by the Ministry of Agriculture and Rural Development, pepper is one of the commodities that has seen a shocking increase in price recently. In February this year, the average export price of pepper from Vietnam was estimated at 4,082 USD per ton, up 3% compared to January and 36% compared to the same period last year.

Explaining the high pepper prices, according to growers, this year's output is lower than previous years because people have reduced care. Accordingly, in the golden age, each hectare of pepper yielded 7-8 tons, now it is only 4-5.5 tons.

Sharing the same view, Mr. Pham Trung, a pepper trader in the Southeast region, said that this season's supply has decreased while market demand has increased, so pepper prices have continuously increased in the first two months of the year. "Every year, at this time, I buy several tons a day, but now I only buy a few hundred kilograms because it's the first time I buy and the harvest area is not large," Mr. Trung said.

Low productivity, however, thanks to high prices, 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 per hectare.

Mr. Nguyen Hung - who has 2 hectares of pepper in Dak Lak - said that this year's pepper crop is the biggest profit after 4 years of losses or break-even.

Domestically, the price of black pepper in February increased by VND10,000-11,000 per kilogram compared to the end of January 2024. At the end of the trading session on the commodity exchange on March 12, pepper was being sold at VND95,000 per kilogram. At growers, the price of this item was purchased at a higher level, fluctuating between VND96,000-105,000.

According to a report by the Ministry of Industry and Trade, Vietnam's current crop output will decrease by about 10.5% compared to the previous crop, down to 170,000 tons, the lowest level in the past 5 years. Meanwhile, the supply from Indonesia, Brazil, Malaysia, and Cambodia is not enough to compensate for the decrease in Vietnam's exports, which will push pepper prices up "hotly" right from the beginning of the season.

The Ministry also believes that the global pepper market will be vibrant. Due to seasonal differences, pepper prices will continue to remain high. Among countries with large pepper production, Brazil has passed its harvest season, Vietnam has entered its season, while Indonesia and Malaysia's main crop season is in July every year.

Currently, consumers around the world are willing to pay high prices for high-quality pepper. In particular, the US, EU, Middle East markets, etc. are increasing their demand for imported products that meet sustainability requirements in terms of social, environmental and economic aspects throughout the entire supply chain.

According to the Vietnam Pepper and Spice Association, the Vietnamese pepper industry accounts for 40% of output, but 60% of export market share. Vietnam has been the world leader in pepper production and export for over 20 years.

Statistics from customs show that in the first two months of the year, Vietnam's pepper exports reached about 35,000 tons, worth 143 million USD, down 12.3% in volume, but up 12.9% in value. Vietnam reduced pepper exports to many traditional markets, such as: the US, the Philippines, the United Arab Emirates, France, China..., but increased exports to markets such as India, Germany, South Korea, and the UK.

Thi Ha

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