The market is plummeting, what is the cause?

Pepper price today, October 12, 2024, in key areas decreased sharply from 1,000 - 3,000 VND/kg compared to yesterday and traded around 143,000 - 145,500 VND/kg, the highest purchase price in Ba Ria - Vung Tau was 145,500 VND/kg.

Accordingly, Dak Lak pepper price is purchased at 144,000 VND/kg, down 3,000 VND/kg compared to yesterday. Chu Se pepper price (Gia Lai) is purchased at 143,000 VND/kg, down 3,000 VND/kg compared to yesterday. Dak Nong pepper price today is recorded at 144,000 VND/kg, also down 3,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices today (October 12, 2024) mainly fluctuated compared to yesterday. Specifically, in Ba Ria - Vung Tau, it is currently at 145,500 VND/kg, down 1,000 VND/kg compared to yesterday. In Binh Phuoc, pepper prices today are at 143,000 VND/kg, down 2,000 VND/kg compared to yesterday.

Thus, the strongest pepper price today, October 12, 2024, is up to 3,000 VND/kg, around. The highest price recorded is 145,500 VND/kg, the lowest price in Binh Phuoc and Chu Se provinces (Gia Lai) is 143,000 VND/kg.

Giá tiêu hôm nay 12/10/2024: Thị trường lao dốc không phanh, nguyên nhân do đâu?

Pepper price today October 12, 2024: The market is plummeting, what is the cause?

World pepper price today:

Update on world pepper prices from the International Pepper Association (IPC), at the end of the most recent trading session, IPC listed the price of Indonesian Lampung black pepper at 6,732 USD/ton, up 0.31%, and the price of Muntok white pepper at 9,002 USD/ton, up 0.31%.

The price of Brazilian ASTA 570 black pepper at 6,750 USD/ton remained unchanged compared to yesterday. The price of Malaysian ASTA black pepper at 8,700 USD/ton decreased by 1.15%; the price of this country's ASTA white pepper reached 11,200 USD/ton.

The price of Vietnamese black pepper remains stable at 6,800 USD/ton for 500 g/l; 550 g/l at 7,100 USD/ton; the price of white pepper remains at 10,150 USD/ton...

Pepper prices have fallen sharply today, clearly reflecting the difficulties currently occurring in the world pepper market. Despite the decline, pepper prices are still double that of the same period last year, reaching VND67,000/kg. However, this decline has raised concerns about the future prospects of the Vietnamese pepper industry.

According to experts, the main reason for this decline is the end of the harvest season in southern India, the world's second largest pepper producer. The end of the harvest has led to increased inventories, creating downward pressure on market prices. In addition, pepper production in 2023-2024 is expected to increase by 6% to around 60,000 tonnes, continuing to create downward pressure on market prices.

However, the problem is not limited to the Indian market. The unstable global economic situation with high inflation, rising interest rates and geopolitical conflicts is pushing the global economy into recession. This makes pepper importers act cautiously, reducing purchases to avoid risks, leading to reduced demand and lower pepper prices.

In addition, pepper production in the three Central Highlands provinces is facing difficulties due to competition from other crops such as durian and coffee. The change in crop structure has reduced the pepper growing area, affecting output and prices.

The 2025 pepper crop in Vietnam is expected to be harvested 1-2 months later than usual, lasting from February to April due to the impact of drought. This could reduce pepper output and create conditions for pepper prices to increase again, however, maintaining high prices is still an unknown due to the unstable global economic situation.

Vietnam’s traditional markets have imported large amounts of pepper in the past nine months and have temporarily stopped buying more, waiting for market developments. Stockpiles of major investors have decreased, but demand is expected to increase from China and Europe at the end of the year, which could push global pepper prices up in the short term.

In summary, the pepper market is facing many uncertainties. Pepper prices have decreased but remain high, production is expected to decrease, and the global economic situation is negatively affecting demand. Vietnamese pepper producers and exporters need to have appropriate strategies to cope with these challenges, from diversifying markets, improving product quality to finding financial support sources to maintain and develop the Vietnamese pepper industry.