
Pepper Price Update: Vietnamese Pepper Prices Remain Steady While Global Prices Continue to Rise (August 30, 2024)
According to the latest report from the International Pepper Community (IPC), the global pepper market saw price fluctuations on August 29 (local time), with notable increases across various pepper varieties.
Global Pepper Prices on August 30, 2024
Specifically, the price of Lampung black pepper from Indonesia rose by 0.44%, reaching $7,560 per ton. Similarly, the price of Muntok white pepper from Indonesia experienced a 0.43% increase, climbing to $8,901 per ton.
In Brazil, ASTA 570 black pepper prices held steady at $6,450 per ton, while Malaysia’s ASTA black pepper remained unchanged at $8,500 per ton. Likewise, Malaysia’s ASTA white pepper maintained its price at $10,400 per ton.
In Vietnam, however, pepper prices have seen a significant increase after a prolonged period of stability. For instance, the price of 500g/l black pepper rose by 5.17%, reaching $6,100 per ton, while 550g/l black pepper saw a 4.84% increase, hitting $6,500 per ton. Vietnam’s white pepper also climbed 3.53%, reaching $8,800 per ton.
These shifts reflect an upward trend in the global market, impacting export prices and highlighting the dynamic supply and demand situation worldwide.
Vietnamese Pepper Prices (August 30, 2024)
Domestically, pepper prices across key growing regions have remained stable today. As a result, the average domestic pepper price continues to hover between 142,000 – 143,500 VND per kilogram. The domestic market has stabilized as local businesses have scaled back on purchases after a period of intense buying to prepare for the National Day holiday.
According to the latest report from the Vietnam Pepper and Spice Association (VPSA), in the first seven months of 2024, Vietnam exported nearly 164,400 tons of pepper, generating close to $765 million in revenue. While export volume decreased by 2.2%, the value surged by 40.8% compared to the same period in 2023. Countries such as the U.S., Germany, India, UAE, and China remain significant importers of Vietnamese pepper.
VPSA President Hoang Thi Lien emphasized the growing global demand for pepper, with the EU remaining a major market for Vietnamese pepper. Moreover, Vietnam’s pepper processing capacity is considerable, reaching 140,000 tons per year, which presents an opportunity for the industry to grow in the coming years.
VPSA aims to stabilize pepper acreage, focusing on improving quality and diversifying high-value processed products. They also encourage farmers to adhere to international standards, particularly regarding chemical residues, and to follow sustainable cultivation, pest control, and preservation practices suitable for the climate of different regions.
Challenges and Opportunities
In recent years, low pepper prices have prompted many farmers to switch to other crops. Additionally, unfavorable weather conditions have significantly reduced pepper production. VPSA acknowledges that prolonged droughts have caused a 10% reduction in Vietnam’s pepper output this year, bringing the total down to approximately 170,000 tons compared to 2023. Current stock levels are estimated to be around 30% or roughly 50,000 – 55,000 tons.
Experts believe that the sharp decline in the supply of Vietnamese Pepper has had a significant impact on global pepper prices. In the second quarter of 2024, domestic black pepper prices increased by 93% compared to the beginning of the year and were 2.3 times higher than the same period in 2023. This price increase is expected to continue as demand rises while supply remains constrained.