The global market reacted with mixed results, while the domestic market remained sluggish, raising concerns about supply shortages.

Today's pepper prices in the provinces of Dong Nai (146,000 VND/kg); Dak Lak (146,500 VND/kg); Dak Nong (146,000 VND/kg); Ba Ria - Vung Tau (146,000 VND/kg) and Binh Phuoc (146,000 VND/kg).

Thus, following yesterday's decline, domestic pepper prices continued to fall today in key producing regions, decreasing by 1,000 - 2,000 VND/kg. The highest price reached 146,500 VND/kg.

According to the Vietnam Pepper and Spice Association, Vietnam's pepper exports in the first six months of 2024 reached 142,500 tons, while the 2024 harvest is estimated at approximately 170,000 tons, leaving an estimated remaining production of around 28,000 tons.

The carryover inventory from the 2023 crop, combined with imports in 2024 of approximately 40,000-45,000 tons (including informal imports), indicates that export supplies from August to the end of the year will be lower than usual and will continue until March 2025, when the 2025 crop is expected to be harvested. It is predicted that pepper prices will experience unusual fluctuations, such as the sharp increase of 20,000 VND in the morning on June 11th, followed by a sharp drop in the afternoon.

In early August, domestic pepper prices remained around 147,000-150,000 VND/kg, despite numerous predictions of supply shortages both domestically and globally. Both buyers and sellers are awaiting the latest market developments, as Indonesia is expected to harvest its pepper crop in August.

Some experts continue to predict that signs of supply shortages compared to demand will continue to be observed and reflected in the market in the coming period until the lean season.

Brazil currently has 3 sterilized pepper processing plants and is building 2 more, scheduled for completion in 2025. In the future, Brazilian pepper will become more competitive with Vietnamese pepper, thus reducing imported supply. Therefore, Vietnamese businesses need to proactively secure their own raw material sources.

On the world market, at the close of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at US$7,176/ton; the price of Brazilian ASTA 570 black pepper at US$6,750/ton; and the price of Kuching black pepper (Malaysia) ASTA at US$8,500/ton.

The price of Muntok white pepper is $8,793/ton; the price of Malaysian ASTA white pepper is $10,400/ton.

Vietnamese black pepper is trading at US$6,000/ton for the 500 g/l grade; US$6,600/ton for the 550 g/l grade; and white pepper at US$8,800/ton. At the end of the week, while the Vietnamese domestic market declined, the IPC continued to adjust pepper prices upwards in Indonesia and Malaysia.

IPC notes that the pepper market this week continues to show mixed reactions. After declining for the past three weeks, Indian pepper prices, both domestically and internationally, are trending upwards this week. Meanwhile, Indonesian black pepper prices have remained stable in recent weeks.