AsemconnectVietnam - On Friday, domestic pepper prices in Vietnam's Central Highlands rose by 5000 VND-7500 VND to VND112,000 - VND113,000 per kg compared to Yesterday due to concerns about low supply from now until the end of the year and high stockpiling sentiment, according to Kinhtedothi.

A business ranked in the top 10 in terms of export market share of this product said that pepper prices have increased in recent times because demand exceeds supply. In the long term, the demand for pepper will increase while Vietnamese pepper trees are aging, and current prices cannot stimulate people to plant more. Therefore, inventory in the next 3 - 5 years will continue to decrease. A similar situation also occurs in other leading exporting countries, besides Vietnam. Like Brazil, this country's pepper has always been considered "cheap", but now it is almost equal to Vietnam's. The upcoming harvest is predicted to reduce output, and the country's exporters are also slowing down the pepper supply process to wait for new price increases.
Brazil and Indonesia will have no more supply until August. The pepper prices of Brazil and Indonesia are now higher than Vietnamese pepper, so the price increase potential of Vietnamese pepper is still very high.
Vietnam exported 83,067 tonnes of pepper, valued at 352 million USD in the first four months of this year, down 19.4% in volume but up 10.3% in value, the Vietnam Pepper and Spice Association (VPSA) has reported.
The average export price of black pepper was 4,065 USD per tonne and white pepper 5,678 USD per tonne, up 19.4% and 14.5%, respectively, compared to the same period in 2023.
Asia currently accounts for 36.2% of Vietnam's total pepper exports, but in the reviewed period, export volume to the regional market decreased by 52% from the same period in 2023, with the biggest decrease from the China, down 95.2%, followed by UAE with 23%.
India is currently the largest importer of Vietnamese pepper in Asia in the period with 5,552 tonnes, accounting for 6.7% and up 23.9% over the same period. Exports also skyrocketed in some markets such as the Republic of Korea, Pakistan, and the Philippines with 157.4%, 59.7% and 18.5%, respectively.
The American market recorded a hike of 40.6% in the reviewed period, accounting for 30.2% of the market share, of which the US was Vietnam’s biggest pepper importer with 22,774 tonnes, a sharp rise of 45.2% year on year.
The European region accounted for 26.8% of Vietnam's pepper export market share, up 33.6% over the same period last year; in which German market grew at 104.7%, the Netherlands 52.8%, and Russia 68.7%.
Meanwhile, exports decreased by 4.7% in the African region. However, the traditional market of Egypt is showing positive signs as exports increased by 10.7% to 1,977 tonnes after the government provided foreign currency support to pay for imports.
Following are domestic pepper prices on May 17, 2024, in the main pepper growing and consumption regions: