Pepper price today, July 16, 2024 in the domestic market is stable in some key localities, trading at 150,000 - 151,000 VND/kg.
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| Pepper price today July 16, 2024: The highest price in 10 years, the reason why growers do not benefit much. (Source: Times of India) |
Pepper price today, July 16, 2024 in the domestic market is stable in some key localities, trading at 150,000 - 151,000 VND/kg.
Specifically, pepper price today in Gia Lai is at 150,000 VND/kg.
Pepper prices today in the provinces of Dong Nai (150,000 VND/kg); Dak Lak (150,000 VND/kg); Dak Nong (151,000 VND/kg); Ba Ria - Vung Tau (151,000 VND/kg) and Binh Phuoc (150,000 VND/kg).
Thus, domestic pepper prices today are stable in key localities. The highest pepper price is at 151,000 VND/kg.
After reaching a peak of 180,000 VND/kg on June 12, domestic pepper prices have dropped sharply three times in the past month, interspersed with slight increases and decreases.
Compared to the peak of June 2024, pepper prices have lost 30,000 VND/kg. However, the current price range is still the highest price threshold in the past 10 years.
According to farmers in pepper growing areas, although prices have increased, growers have not benefited much, because most of the old pepper gardens have been replaced by durian and some other crops with higher economic value. Due to the impact of climate change, pepper productivity has decreased sharply in recent years, averaging 20-30%.
Last week, the rapid increase in domestic coffee prices has absorbed all the capital from pepper. Currently, the supply to the market is "dripping". No business is buying thousands of tons of pepper at this time, making the demand in the market "fragile".
In addition to supply and demand issues, maritime transport congestion continues to affect exports in general and pepper in particular.
Container shipping rates have skyrocketed due to delays and rerouting. According to the Financial Times, freight rates have increased fivefold in the past year and it is only a matter of time before consumers have to bear some of the increased costs. The increased freight rates are being built into the cost of goods, which is also a factor that will push pepper prices up further in the future.
Vietnam is benefiting from the wave of shifting orders from the US and has many advantages to boost exports to China. Pepper is also one of the export products affected as above. This year, the billion USD export turnover is likely to be completed with the current high export price of pepper.
According to VPSA, the average export price of black pepper in the first 6 months reached 4,365 USD/ton, white pepper reached 5,983 USD/ton, an increase of 922 USD for black pepper and 1,028 USD for white pepper compared to the same period in the first 6 months of 2023.
Commenting on the market this week, experts said that there is no driving force to push prices up. However, domestic pepper prices have formed a new price range and are unlikely to decrease further. Pepper prices fluctuate around 150,000 VND/kg. If coffee prices adjust down this week after the past 2 weeks of hot growth, capital will flow back to pepper, expected to push prices up to 155,000 VND/kg.
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