AsemconnectVietnam - On Thursday, domestic pepper prices in Vietnam's Central Highlands increased by 3000 VND to 142,000-144,000 VND per kg compared to Yesterday, according to Kinhtedothi.

This is the third consecutive day of increase in the domestic market. At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,537 USD/ton, up 0.16%; the price of Brazilian black pepper ASTA 570 at 6,300 USD/ton, up 1.98%; the price of Kuching black pepper (Malaysia) ASTA at 8,500 USD/ton.
The price of Muntok white pepper was 8,874 USD/ton, up 0.15%; the price of Malaysian white pepper ASTA at 10,400 USD/ton. The price of Vietnamese black pepper was traded at 5,800 USD/ton for 500 g/l; 550 g/l at 6,200 USD/ton; the price of white pepper was 8,500 USD/ton. IPC increased pepper prices in Indonesia and Brazil compared to yesterday.
In an article on the website of the Association of Foreign Investment Enterprises, Mr. Phan Minh Thong - General Director of Phuc Sinh Group said that although Brazil's pepper output has increased, the country's pepper is less popular worldwide.
With the US and Europe imposing restrictions, Vietnam has emerged as the largest importer of Brazilian pepper. This is due to Vietnam's advanced processing plants, allowing them to add value and sell processed products at higher prices, similar to the approach to Indonesian pepper. The perception that Vietnamese agricultural products are inferior has changed, especially the pepper and coffee industries. International visitors flock to Vietnam to buy pepper, causing the price of Vietnamese pepper to increase. High prices encourage farmers to invest time and money in pepper gardens.
The country's pepper output this season was around 170,000 tonnes, down from a peak of 300,000 tonnes in 2015. Meanwhile, Brazil continues to suffer from drought and extreme temperatures, which continue to affect its pepper crop and drive up pepper prices. Global pepper output is around 455,000 tonnes, while demand is around 550,000 tonnes, giving pepper producers hope.
As of now, domestic pepper prices are VND140-142 million/tonne. With gold and USD at current levels, few people are selling pepper. In 2024, prices of agricultural products such as coffee, pepper, rice and cashew nuts will increase, bringing great joy to farmers.
However, the lesson is to avoid overproduction to prevent past tragedies. It is important to manage price increases wisely and focus on sustainable development in the pepper industry.
The Vietnam Pepper and Spice Association (VPSA) forecasts that pepper exports this year will reach over US$1 billion, returning pepper to the group of billion-dollar commodities.
According to VPSA, the rise in Việt Nam's pepper exports is due to the scarcity of global pepper supply.
Brazil is currently the world's second-largest producer and exporter of black pepper after Vietnam, accounting for 17 to 18 per cent of the global supply. The continuous crop failures in Brazil are expected to have a global ripple effect, driving global pepper prices higher in the last months of 2024 when pepper supply from other major producing countries, including Việt Nam, Malaysia and Indonesia, also declines significantly.
Currently, the global pepper supply is being constrained due to the impact of El Nino. In the long term, over the next three to five years, pepper production will be insufficient to satisfy worldwide demand.
Price hikes were also seen in the domestic market. In July, domestic pepper prices reached VNĐ150,000 per kg, up 82.9 percent compared to January and up 120.6 percent from the same period in 2023. On average, black pepper prices have risen 66.5 percent over the first seven months compared to the same period in 2023.
According to the VPSA, the pepper market is facing numerous challenges and prices are expected to continue fluctuating shortly.
Hoàng Phước Bính, Vice Chairman of the Chư Sê Pepper Association in Gia Lai Province, said producers should recognise the start of a new price increase cycle. This cycle is expected to last about ten years.
A survey conducted by the VPSA in early July across three Central Highlands provinces revealed that pepper cultivation and production are increasingly being challenged by competition from durian and coffee crops. New planting areas have been recorded but remain limited and are mainly intercropping pepper with coffee.
The impact of El Nino climate change at the beginning of the year has continuously impacted farmers' pepper cultivation and maintenance. This was followed by La Niña, which has further unsettled farmers, especially at a time when durian and coffee prices are high, making pepper cultivation less attractive for replanting on a large scale.
Through a survey of key pepper-growing areas of Việt Nam, including three Central Highlands provinces (Gia Lai, Đắk Lắk and Đắk Nông) and three Southeast provinces (Bình Phước, Đồng Nai and Bà Rịa-Vũng Tàu), Bính assessed that the area assigned to pepper cultivation has decreased by up to 50 percent compared to its peak.
Following are domestic pepper prices on August 22, in the main pepper growing and consumption regions: