Should farmers sell early or borrow capital to store pepper?

Domestic pepper price today

Pepper price today December 7, 2024, domestic pepper price continues to increase compared to yesterday December 6, 2024; average at 144,600 VND/kg, many localities increased.

Accordingly, pepper prices today, December 7, 2024, Ba Ria - Vung Tau pepper prices, Dak Lak pepper prices, Binh Phuoc pepper prices all increased by 1,000 VND/kg; Dak Nong pepper prices increased by 1,200 VND/kg, and Gia Lai pepper prices increased the highest by 2,000 VND/kg.

Pepper price today December 7, 2024 is still high compared to yesterday December 6, 2024. Photo: Le Son

Specifically, the price of pepper in Binh Phuoc and Ba Ria - Vung Tau are both at 144,000 VND/kg; the price of pepper in Dak Lak and Gia Lai are both at 145,000 VND/kg; the price of pepper in Dak Nong is at 145,200 VND/kg. The average price of pepper today, December 7, 2024, is at 144,600 VND/kg, an increase of 1,200 VND/kg compared to yesterday, December 6, 2024.

Pepper prices have now passed the downward cycle and are starting an upward cycle due to a decrease in supply. However, due to low purchasing pressure at the beginning of the season, farmers should not be too eager to sell pepper early, especially should not borrow money to store pepper to avoid risks due to market fluctuations.

The current pepper price is around 144,000 VND/kg, creating optimism for pepper growers after a period of stagnation. According to experts, the scarcity of supply due to the lowest inventory level in the past 6-8 years has created a great driving force for price increases. In addition, export demand from major markets such as the US and EU remains high, further supporting the market.

Pepper price update today 12/7/2024

World pepper price today

Update on world pepper prices from the International Pepper Community (IPC), at the end of the most recent trading session, the market was basically stable compared to the previous update, except for the Indonesian market with slight fluctuations.

Specifically, IPC listed the price of Indonesian Lampung black pepper at 6,703 USD/ton; up 0.28%; the price of Muntok white pepper at 9,147 USD/ton, up slightly 0.27%.

The price of Brazilian ASTA 570 black pepper increased slightly by 0.8% to 6,275 USD/ton; The price of Malaysian ASTA black pepper was at 8,200 USD/ton, and the price of this country's ASTA white pepper reached 10,400 USD/ton.

Of which, the price of Vietnamese black pepper is stable at 6,200 USD/ton for 500 g/l, 550 g/l remains at 6,500 USD/ton; the price of white pepper is at 9,300 USD/ton, unchanged.

Vietnamese farmers need to carefully consider whether to sell pepper early or store it. Photo: Le Son

According to estimates from the Import-Export Department (Ministry of Industry and Trade), the export value of pepper in the first 11 months of 2024 reached 234.7 thousand tons and reached a turnover of 1.22 billion USD, down 4.4% in volume but up 46.5% in value over the same period in 2023. The average export price of pepper is estimated at 5,198 USD/ton, up 53.3% over the same period in 2023. This result helps pepper become the agricultural product with the strongest increase in export turnover in the first 11 months of the year.

In November 2024 alone, the average export price of pepper reached 6,856 USD/ton, continuing to increase by 4.7% compared to the previous month and increasing by 78.7% compared to the same period in 2023. This is also the highest price achieved in many years.

Pepper prices have doubled compared to the previous period, creating a great incentive for farmers to invest heavily in pepper. However, this crop also faces many challenges, including climate change, increasingly complex pests and diseases, competition with other crops, and high production costs.

In addition, exporters are facing increasing logistics costs, especially transportation and storage costs. This not only increases financial pressure but also increases product prices, reducing competitiveness in the global market.

With the goal of exporting an additional 50,000 tons of pepper in the last two months of 2024, the Vietnamese pepper industry is expected to reach a turnover of 300 million USD, making an important contribution to the total export revenue of the year. However, the 2025 harvest is forecast to face great difficulties due to climate change, which could extend the harvest period by 1.5 - 2 months, increasing supply pressure in the context of high demand.

Experts recommend that farmers should not rush to sell or borrow money to store pepper, to avoid risks from price fluctuations. Instead, they need to balance their finances and closely monitor market developments to choose the right time to sell, optimizing profits.

Towards 2025, the pepper and spice industry will focus on supporting farmers, cooperatives and businesses to meet international standards on food quality and safety. This is part of a long-term strategy to increase product value, expand markets and enhance the position of Vietnamese pepper in the world market.