Pepper prices on 05/29/2024: Soar by up to VND 6,000/kg

Pepper prices on May 29 globally

The global pepper market on May 29 experienced mixed fluctuations.

The price of black pepper from Lampung, Indonesia, saw a slight decrease of 0.2%, reaching $ 5,111/ton. Meanwhile, the price of white pepper from Muntok, Indonesia, decreased by 0.19% to $ 7,412/ton.

The price of black pepper ASTA Kuching from Malaysia remained stable at $ 4,900/ton, while the price of white pepper ASTA from this country maintained at $ 7,300/ton.

In the Brazilian market, the price of black pepper ASTA 570 surged by $ 900 to reach $ 5,900/ton.

In Vietnam, the export prices of black pepper grades 500 and 550 g/l remained stable at $ 4,800 and $ 5,000/ton, respectively. The export price of white pepper remained anchored at $ 7,200/ton.

The world pepper price today has slightly decreased in Indonesia but surged by over 15% in Brazil and remained unchanged in other countries.

Thus, the global pepper price on 05/29/2024 shows mixed fluctuations compared to yesterday.

Pepper prices on May 29 domestically  

Domestically, the pepper market on May 29 has significantly increased compared to yesterday.

Specifically, in Dak Lak, pepper is being purchased at VND 126,000/kg after a sharp increase of VND 6,000.

In Dak Nong, the price of pepper today has risen by VND 5,500, reaching VND 125,000/kg.

In Gia Lai, the current price of pepper is at VND 123,000/kg, up by VND 4,000.

Similarly, traders in Dong Nai have purchased pepper at VND 123,000/kg.

The latest price of pepper in Ba Ria - Vung Tau on May 29 is VND 123,000/kg, increasing by VND 3,000.

With a staggering increase of VND 6,000, traders in Binh Phuoc are trading pepper at VND 125,000/kg.

The domestic pepper price today saw a sharp increase ranging from VND 3,000 - 6,000/kg, bringing this agricultural product to the high level of VND 126,000/kg.

Ms Oanh, who owns a pepper plantation in Gia Lai, said: "In previous years, the pepper price continuously plummeted, so I reduced half of the area, down to just over 100 pepper poles". This is also the story of many pepper-growing households this year, leading to a decrease in the supply.

Ms Thanh Mai, a pepper trader in the Central Highlands region, shared that intense heat over the past few months has reduced pepper productivity by more than 30% among farmers. Additionally, during the years 2018-2020, the pepper price dropped sharply, leading many long-standing plantations to be cleared for planting durian and some other crops with higher economic value.

"This has reduced the supply compared to the same period last year and previous years, pushing pepper prices higher", she explained.

Sharing the same view, Mrs. Hoang Thi Lien, Chairwoman of the Vietnam Pepper Association, stated that pepper reserves in recent years have decreased significantly. Vietnam, Indonesia, and Brazil are all forecasted to reduce seasonal output due to the impact of El Nino.

Meanwhile, apart from the United States, markets such as Pakistan, Germany, South Korea, and India are increasing their purchases of Vietnamese pepper by double digits, driving demand higher and continuously pushing pepper prices up.

In addition to these factors, according to exporting companies, the shortage of empty containers has also caused sea freight rates to increase by an average of about 30% in recent weeks, resulting in additional costs for pepper.

Therefore, VSPA recommends that exporting companies be cautious in their pepper procurement and export activities to avoid similar risks as those seen in coffee or rice prices in recent times.

Thus, the domestic pepper price on 05/29/2024 is trading around the range of VND 123,000 - 126,000/kg.

$ 1 = VND 25.235 - Source: Vietcombank