The Ministry of Agriculture and Rural Development shows that in the first 8 months of 2024, Vietnam exported 185,000 tonnes of pepper, earning about 891 million USD, a slight decrease of 1.4% in output but a sharp increase of 44.9% in value. Thus, the target of a billion-dollar export value of pepper is within reach. The average export price of pepper in the first 8 months of this year is estimated at 4,810 USD/tonne, a sharp increase of 47% over the same period last year. In August 2024 alone, pepper exports increased by 9.7% in volume and 75.1% in value compared to the same period in 2023, as the average export price increased by 69.6%.

Vietnam's pepper exports are expected to reach US$1 billion in 2024 due to high global demand and limited supply, according to the Vietnam Pepper and Spices Association (VPSA).

The pepper industry is on track to return to the "billion-dollar" club, with export revenues hitting 764.2 million USD as of July 30.

Brazil, the world’s second biggest black pepper producer and exporter, has suffered crop failure, driving global prices skyward for the remaining months of 2024. Production in Vietnam, Malaysia and Indonesia is also forecast to fall sharply due to the impacts of El Nino.
In the next three to five years, pepper supply will lag behind demand. The VPSA forecast a fluctuation in the pepper prices in the coming time due to formidable challenges in the market.

According to a survey conducted by the VPSA in three Central Highlands localities in July, along with extreme weather caused by climate change, farmers chose durian and coffee production over pepper as the first two fetch higher prices.

Vietnam’s key pepper planting areas of Gia Lai, Dak Lak and Dak Nong in the Central Highlands, and Binh Phuoc, Dong Nai and Ba Ria – Vung Tau in the Southeastern region slashed cultivation acreage by 50% as compared to peak cultivation times.

T.Huong

Source: Vitic/kinhtedothi