Pepper price today August 15, 2024: Starting a new price increase cycle, with unpredictable developments, Vietnamese pepper exports have a wide opening to return to the billion-dollar group. (Source: indigo-herbs.co.uk)

Pepper prices today, August 15, 2024, in the domestic market suddenly increased slightly in key localities, trading from 137,500 - 138,500 VND/kg.

Specifically, pepper price today in Gia Lai is at 138,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (138,000 VND/kg); Dak Lak (138,500 VND/kg); Dak Nong (138,500 VND/kg); Ba Ria - Vung Tau (138,000 VND/kg) and Binh Phuoc (137,500 VND/kg).

Thus, after a day of decline, domestic pepper prices today turned to increase slightly in key localities, an increase of 500 - 1,000 VND/kg. The highest pepper price was at 138,500 VND/kg.

Pepper prices are remaining high and are expected to continue to increase as global demand remains high while supply is limited. The Vietnam Pepper and Spice Association (VPSA) forecasts that Vietnam’s pepper exports this year will reach over 1 billion USD, bringing pepper back into the billion-dollar industry group.

According to VPSA, by July 30, Vietnam had exported 164,357 tons of pepper of all kinds; of which black pepper reached 145,330 tons and white pepper reached 19,027 tons. Total export turnover reached 764.2 million USD. With the achieved results, in 5 more months, pepper can completely return to the billion-dollar path.

Compared to the same period in 2023, the export volume of pepper decreased by 2.2%, but the export turnover increased by 40.8%. The average export price of black pepper in 7 months reached 4,568 USD/ton, white pepper reached 6,195 USD/ton, up 32.7% and 25% USD respectively compared to the same period last year.

In July, domestic pepper prices reached VND 150,000/kg, up 82.9% compared to January and up 120.6% compared to the same period in 2023. On average, black pepper prices in 7 months increased by 66.5% compared to the same period in 2023.

VPSA said that pepper prices have increased in the past three months due to reduced harvests in Vietnam and Brazil, leading to a shortage in supply. The pepper market is facing many difficulties and challenges. Prices will continue to fluctuate in the coming time.

According to Mr. Hoang Phuoc Binh, Vice President of the Chu Se Pepper Association (Gia Lai), producers need to realize that a new price increase cycle has begun. This price increase cycle will last about 10 years.

Through a survey in key pepper growing areas of Vietnam including 3 Central Highlands provinces (Gia Lai, Dak Lak, Dak Nong) and 3 Southeast provinces (Binh Phuoc, Dong Nai and Ba Ria Vung Tau), Mr. Hoang Phuoc Binh assessed that the pepper growing area has decreased by 50% compared to the peak period.

From this reality, according to Mr. Hoang Phuoc Binh, this price increase cycle in the context of supply will be lower than previous price increase cycles.

However, according to VPSA, increasingly fierce competition from other crops such as durian and coffee, along with the negative impacts of climate change, are the main reasons why pepper prices are unpredictable. The output of the next crop may be the same or slightly higher than in 2024.

Mr. Hoang Phuoc Binh - Permanent Vice President of Chu Se Pepper Association commented that there is currently a lot of conflicting information about the upcoming pepper crop. Some say it will decrease, others say it will increase, so the information is quite confusing. Some gardeners shared that their pepper gardens did not produce fruit in this new pepper crop. However, some gardeners said that they are expected to have a bumper crop. All of this is due to the influence of weather factors.

In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,334 USD/ton, up 0.49%; the price of Brazilian black pepper ASTA 570 at 6,175 USD/ton, up 1.21%; the price of Kuching black pepper (Malaysia) ASTA at 8,500 USD/ton.

Muntok white pepper price is 8,635 USD/ton, up 0.5%; Malaysian ASTA white pepper price is at 10,400 USD/ton.

Vietnam black pepper price is trading at 5,800 USD/ton for 500 g/l; 550 g/l at 6,200 USD/ton; white pepper price at 8,500 USD/ton. IPC increases pepper prices in Indonesia and Brazil.