AsemconnectVietnam - On Friday, domestic pepper prices in Vietnam's Central Highlands increased by 1000 VND to 149,000-150,000 VND per kg compared to Yesterday, according to Kinhtedothi.

In the short term, the pepper market is less energised, mainly because domestic coffee prices are rising again, causing capital flows to shift to coffee trading.
Hoàng Phước Bình, standing vice chairman of Chư Sê Pepper Association (Gia Lai Province), said the average production cost of pepper is currently fluctuating VNĐ60,000 - VNĐ70,000 per kilo due to higher material costs and other costs. Thus, the current selling price is more than double the production cost, helping pepper growers make a large profit. Therefore, many pepper growers are not in a hurry to sell their goods, unless they need the capital.
Currently, many pepper growers expect that the low supply at present will push pepper prices back up soon.
Many industry experts have predicted that pepper prices in the future may break the peak of VNĐ250,000 per kilo - the highest level of the pepper price cycle ten years ago.
According to the Vietnam Pepper Association, the current price level of Vietnamese pepper is still quite low compared to the price of pepper in other major producing countries. Therefore, the increase in Vietnamese pepper prices is still relatively large.
In addition, Việt Nam's pepper export to China in the second quarter of 2024 was lower than expectations. So, some businesses predict purchasing demand from China to gradually increase again from the third quarter of 2024 for the needs of the year-end festivals. This is expected to push pepper prices up in the last months of the year.
The Vietnam Pepper and Spice Association has just announced that in the first 15 days of July 2024, Vietnam exported 9,993 tonnes of pepper, valued at 56.5 million USD, which decreased sharply monthly.
The main export enterprises include Olam Vietnam: 1,272 tonnes, Phuc Sinh: 1,224 tonnes; Simexco Dak Lak: 839 tonnes, Nedspice Vietnam: 796 tonnes and Pearl: 649 tonnes.
Forecasting coffee market trends for the last six months of 2024, based on factors such as weather conditions, crop yields, and global consumption demand, coffee prices may not cool down soon. The global coffee supply remains unstable due to climate change impacts and geopolitical factors.
However, Vietnam, with favourable climate conditions and government support policies, has a great opportunity to increase production and exports. In general, amidst the volatile global coffee market, the efforts and innovation of Vietnamese businesses and farmers will play a decisive role in maintaining the position and sustainable development of the coffee industry.
According to the Vietnam Industry and Trade Information Center (VITIC), the rapid increase in freight costs and port congestion in Asia are affecting prices in import markets, and may cause shipping delays, leading to price increases in the medium and long term. The US Department of Commerce released data showing that the country's gross domestic product (GDP) in the second quarter of 2024 increased by 2.8%, higher than the forecast of 2%, and much higher than the growth rate of 1.4% in the first quarter.
Following are domestic pepper prices on July 26, in the main pepper growing and consumption regions:

T.Huong

Source: Vitic/Kinhtedothi