Pepper price today August 7, 2024: Unexpected market developments, Vietnamese pepper exports to the billion-people country have decreased sharply, here is the reason. (Source: Getty)

Pepper prices today, August 7, 2024, in the domestic market suddenly decreased sharply in key localities, trading from 140,000 - 141,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 140,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (141,000 VND/kg); Dak Lak (141,000 VND/kg); Dak Nong (141,000 VND/kg); Ba Ria - Vung Tau (141,000 VND/kg) and Binh Phuoc (141,000 VND/kg).

Thus, after a sideways session, domestic pepper prices today unexpectedly dropped sharply in key localities. The highest pepper price was at 141,000 VND/kg.

According to the Vietnam Pepper and Spice Association (VPSA), in July 2024, Vietnam exported 21,771 tons of pepper of all kinds, with a total turnover of 129.9 million USD. Compared to June, export volume decreased by 22.7%, turnover decreased by 7.9%. Compared to the same period in July 2023, export volume increased by 43.7%, turnover increased by 128.9%.

The average export price of black pepper in July reached 5,861 USD/ton, white pepper reached 7,558 USD/ton, up 15.7% for black pepper and 9.2% for white pepper compared to the previous month.

The US remained Vietnam's largest export market in the month, accounting for 27.2% of total exports to 5,914 tons, followed by the following markets: UAE: 2,509 tons, Germany: 1,415 tons, Netherlands: 940 tons, France: 936 tons. Exports to China reached only 606 tons, down 76.5% compared to June.

In the past 7 months, Vietnam exported 164,357 tons of pepper of all kinds, with a total turnover of 764.2 million USD. Compared to the same period in 2023, the export volume decreased by 2.2%, however, the export turnover increased by 40.8%. The average export price of black pepper in the 7 months reached 4,568 USD/ton, white pepper reached 6,195 USD/ton, up 32.7% for black pepper and 25.0% USD for white pepper compared to the same period last year.

The US is Vietnam's largest pepper export market in the first 7 months, up 48.4% and accounting for 26.4% of the market share, reaching 43,349 tons. Next are the markets: Germany: 10,941 tons, up 97.3%; UAE: 10,897 tons, up 39.2%; India: 8,744 tons, up 39.7%; China ranked 4th with 8,059 tons, down 84.6% over the same period.

According to VPSA, in 2024, China's economy will grow lower than expected, people's spending needs will tighten or inventory will still be sufficient, which is one of the reasons why this country will continue to limit pepper purchases from Vietnam. In addition, the increase in pepper prices in the domestic market is not as expected due to low demand from the market of more than a billion people. Currently, pepper prices in the Chinese market are lower than those in Vietnam, which may be the main reason for restricting pepper imports from Vietnam.

According to Chinese Customs data, Vietnam was the second largest pepper supplier to the world's second largest economy (after Indonesia) in the first half of this year with 1,515 tons, down 7.6% compared to the same period last year. At the same time, Vietnam's market share in China accounted for 32.7%, down from 36.5% in the same period last year.

The average import price of pepper into the Chinese market in June was more than 4,400 USD/ton, up 22% over the same period last year but down 7.4% compared to May.