The market is unlikely to fall further, positive signals appear, and Vietnamese consumers are at risk of facing strong competition.

Pepper prices today, August 6, 2024, in the domestic market turned to increase in key localities, trading from 146,000 - 147,000 VND/kg.

Pepper price today August 6, 2024: The market is unlikely to fall further, positive signals appear, and there is a risk of strong competition for Vietnamese pepper. (Source: Pixabay)

Pepper price today, August 6, 2024, in the domestic market turned to increase in key localities, trading from 146,000 - 147,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 146,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (147,000 VND/kg); Dak Lak (147,000 VND/kg); Dak Nong (147,000 VND/kg); Ba Ria - Vung Tau (147,000 VND/kg) and Binh Phuoc (147,000 VND/kg).

Thus, after a slight increase, domestic pepper prices today stabilized in key localities. The highest pepper price was at 147,000 VND/kg.

The law of pepper prices this year is not the same as in previous years. Specifically, the average domestic pepper price in July 2024 reached 150,000 VND/kg, an increase of 82.9% compared to January and an increase of 120.6% compared to the same period in 2023. On average, the price of black pepper in the first 7 months of 2024 increased by 66.5% compared to 2023.

The main reason for the sharp increase in pepper prices is the decrease in harvest output in both Vietnam and Brazil - the world's two leading pepper producing countries.

Experts predict that Vietnam’s pepper output may drop to its lowest level in the past five years, with an estimated 170,000 tons. This means that the supply for export will no longer be abundant until the end of the year, especially when businesses are facing a global supply shortage due to reduced output in many other pepper-producing countries such as Brazil, Indonesia, etc.

In the long term, VPSA assesses that in the next 3-5 years, the amount of pepper produced will not be able to meet the world's consumption demand, which is also a factor pushing up pepper prices in the coming time.

Commenting on the market this week, experts said that the rebound last weekend was a positive sign. Over the past two weeks, domestic pepper prices have dropped by 10,000 VND/kg. Experts said that prices have hit rock bottom and are unlikely to fall further. This week, pepper prices will recover, but without additional factors to boost prices, the target of reaching 150,000 VND/kg will be difficult to achieve.

In the context of declining output, in the first 6 months of the year, Vietnam imported 18,002 tons of pepper of all kinds, of which black pepper reached 16,357 tons and white pepper reached 1,645 tons. The total import turnover reached 69.6 million USD, an increase of 18.9% compared to the same period last year. The 3 main countries supplying pepper to Vietnam include: Brazil: 7,241 tons, down 22.3%; Cambodia: 6,212 tons, up 34.5%; Indonesia: 2,991 tons, up 67.3%.

According to the Vietnam Pepper and Spice Association, Brazil currently has 3 sterilized pepper factories and is building 2 more factories that will be completed in 2025. In the future, Brazilian pepper will compete better with Vietnam, so the imported supply will be less, so Vietnamese businesses need to be proactive in raw material sources.

Source: https://baoquocte.vn/gia-tieu-hom-nay-682024-thi-truong-kho-giam-sau-hon-xuat-hien-tin-hieu-tich-cuc-nguy-co-tieu-viet-bi-canh-tranh-manh-281429.html