Production decreased, people hoarded goods for speculation, Vietnamese businesses took advantage to import

Pepper price today, November 10, 2024 in the domestic market is stable in some key localities, trading from 138,000 - 139,000 VND/kg.

Pepper price today November 10, 2024: Production decreased, people hoarded goods for speculation, Vietnamese businesses took advantage to import. (Source: Borneo Talk)

Pepper price today, November 10, 2024 in the domestic market is stable in some key localities, trading from 138,000 - 139,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 138,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (138,000 VND/kg); Dak Lak (139,000 VND/kg); Dak Nong (139,000 VND/kg); Ba Ria - Vung Tau (139,000 VND/kg) and Binh Phuoc (138,000 VND/kg).

Thus, continuing the stable trend, domestic pepper prices today remained stable in most key growing areas, with the only slight increase of 500 VND/kg recorded in Dak Lak. The highest pepper price was at 139,000 VND/kg.

Preliminary statistics from the Vietnam Pepper and Spices Association (VPSA) show that in October 2024, Vietnam imported 4,818 tons, of which black pepper reached 4,566 tons and white pepper reached 252 tons, with a total import turnover of 29.3 million USD, an increase of 98.3% compared to the previous month.

Indonesia continued to be the main supplier of pepper to Vietnam in the month, reaching 3,970 tons, accounting for 82.4%; followed by Brazil: 501 tons, accounting for 10.4%.

With low supply in the last crop season, domestic enterprises have increased pepper imports. In the first 10 months of the year, import volume increased by 27.1% compared to the same period last year. Notably, due to increased freight rates and Brazilian pepper not being as cheap as before, Vietnam has imported more from countries in the same region.

Indonesia became the largest pepper supplier to Vietnam, accounting for 36%, reaching 10,287 tons, up 257.2% over the same period. Cambodia accounted for 23.4%, reaching 6,695 tons, up 96.7%.

Vietnamese pepper processing and exporting enterprises said: Vietnam's pepper inventory is currently very low, and the 2025 harvest is expected to be 1-2 months later than usual and output will decrease due to drought. Meanwhile, Indonesia has just finished the 2024 harvest, output is still abundant and prices are continuously cooling down, so businesses are taking advantage of the opportunity to buy. In addition to Indonesia, Vietnam also prioritizes imports from neighboring countries such as Cambodia instead of distant sources such as Brazil to save on transportation costs.

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.

In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,706 USD/ton, up 0.61%; the price of Brazilian black pepper ASTA 570 at 6,300 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,400 USD/ton.

Muntok white pepper price is 9,180 USD/ton, up 0.61%; Malaysian ASTA white pepper price is at 11,000 USD/ton.

Vietnam black pepper price is traded at 6,500 USD/ton for 500 g/l; 550 g/l at 6,800 USD/ton; white pepper price at 9,500 USD/ton. IPC continues to increase Indonesian pepper price.

Pepper price today, November 10, 2024 in the domestic market is stable in some key localities, trading from 138,000 - 139,000 VND/kg.

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