AsemconnectVietnam - On Monday, domestic pepper prices in Vietnam's Central Highlands remained unchanged at VND69,000 – 72,000 per kg compared to Yesterday, according to Kinhtedothi.vn.

In Ba Ria-Vung Tau province, the maximum price for pepper stayed at VND72,000 per kg, while in Gia Lai province, the lowest price to VND69,000 per kg. Farmers in Binh Phuoc sold pepper for VND71,000 per kilogram, in Dong Nai province for VND29,500 per kilogram, and in Dak Lak and Dak Nong provinces for VND70,000 per kilogram.
Last week, pepper prices decreased by 1,000 VND in Ba Ria - Vung Tau and by 1,500 VND in the remaining localities. Since the beginning of the year, exports have decreased in the US and European markets, causing pepper prices to not recover strongly when the concern of low output in most countries is always present.
In the first 5 months of the year, imports from the Americas decreased by 13.1%, accounting for 18% of Vietnam's pepper export market share, of which the export volume to the US decreased by 15.5% to 21,093 tonnes. The European region accounted for 16.8% of the market share and decreased by 9.4% over the same period last year. Of which, Germany: 3,707 tonnes, down 37%; Netherlands: 3,409 tonnes, down 13.8%: UK: 2,124 tonnes, down 13.9%.
The psychology of waiting for more new crops from Indonesia in July-August and Brazil, in the hope that prices will decrease, there has not been an exciting transaction from the EU and US markets.
In that context, exports to Asia and Africa accelerated, helping the domestic pepper market increase well even after this year's harvest took place.
In fact, the amount of inventory from previous years has also helped buyers from the EU and the US hesitate to join the market in the past 5 months. It can be said that buyers consider the current price to be not attractive, not competitive, plus the psychology of waiting for new crops of Indonesia and Brazil, so they are trying to force the market to push the price down.
In that picture, the brightest point is China. This is the main export market with 46,169 tonnes, accounting for 35% of the market share and increasing by 1,668.9% over the same period. The reason is that China has to replenish its stockpiles after a period of "closure" because of Covid-19. Not only increasing imports from Vietnam, China also imports strongly from Indonesia, Brazil and Cambodia.
However, by the beginning of June 2023, the Chinese market, after having absorbed enough, reduced pepper imports. This move pushed pepper prices below the mark of 70,000 VND/kg in many localities.
Commenting on the market in the third quarter of 2023, experts estimate that much depends on the output of this year's harvest of Brazil and Indonesia. According to initial assessment, the output will decrease, plus the US and Europe will increase additional purchases for stockpiles (like China in the first 5 months of the year) to help the global pepper market prosper in the second half of the quarter.
Following are domestic pepper prices on June 26, 2022, in the main pepper growing and consumption regions: