According to surveys and information from many gardeners and businesses, on August 7, pepper prices in some key domestic growing areas such as the Central Highlands, Southeast... continued to be under pressure to decrease by 1,000-4,000 VND/kg compared to a few days ago. Thereby, the average pepper price in the domestic market decreased, currently fluctuating around 136,000-140,000 VND/kg.

Specifically, in the Central Highlands region, pepper prices today in Dak Lak decreased by 2,000 VND/kg, down to a common price of 139,000 VND/kg. Pepper prices in Gia Lai and Dak Nong decreased by 1,000-2,000 VND/kg, down to a common price of 138,000-140,000 VND/kg.

In the Southeast region, pepper prices today in Ba Ria - Vung Tau , Dong Nai, Binh Phuoc decreased by 3,000-4,000 VND/kg, down to 136,000-138,0000 VND/kg depending on the region and type of goods.

Thus, since reaching a peak of over VND200,000/kg in early June 2024, pepper prices have continuously decreased and are now back at their lowest level in many months. However, compared to the low price of the same period last year, pepper prices are currently VND55,000-60,000/kg higher.

According to the Vietnam Pepper and Spice Association (VPSA), in recent months, major customers such as the US, Europe, India... have all increased their purchases of pepper from Vietnam, while China's purchases have decreased sharply.

Specifically, in the first 6 months of 2024, China fell from No. 1 to No. 5 in the list of Vietnam's largest pepper exporting countries with a volume of 7,451 tons (55,000 tons in 2023), worth 20 million USD, down sharply by 85.2% in volume and 81.7% in value compared to the same period last year. China's market share also narrowed to 5.2% compared to 33% in the same period last year.

Speaking to Tuoi Tre Online recently, Ms. Hoang Thi Lien - President of VPSA, said that it could be due to the sharp increase in purchases last year, the warehouse was full, so this year the demand in the Chinese market decreased, in addition to the current economic difficulties in China.

However, Ms. Lien said that the decrease in world and domestic pepper prices is not necessarily due to China reducing its purchases, but may be due to an increase in short-term supply due to people selling at high prices (May-June).

"Now, if we want prices to increase, there must be market momentum and demand. The US and Europe account for nearly 50% of Vietnam's exports and have bought heavily in the first 6 months of the year. If these two markets do not buy much in the last months of the year, prices may find it difficult to rebound strongly as before," Ms. Lien commented.

However, according to Ms. Lien, even though after Indonesia, Brazil will enter the season, followed by Vietnam, pepper prices will hardly decrease further because in reality, world supply is still not enough to meet demand.

Sharing the same view, many experts believe that the current pepper supply is still low, especially Vietnam (a country that supplies 40-50% of the world's pepper) has not been able to increase strongly.

"Pepper supply cannot be high, at least in the next 2-3 years, because the area has continuously decreased in recent years, while people have not planted much new trees. If new trees are planted, pepper will need 3 years to be harvested," said a representative of an export enterprise.