Pepper prices on 07/04/2024: Sharp drop by VND 5,000

Pepper prices on July 4 globally

The global pepper market on July 4 experienced a decrease in Indonesia and Vietnam's export markets.

Accordingly, the price of black pepper in Lampung, Indonesia, slightly decreased by 0.01%, to $ 7,109/ton. Meanwhile, the price of white pepper in Muntok also saw a 0.01% drop, reaching $ 9,052/ton.

The price of Kuching ASTA black pepper in Malaysia remains stable at $ 7,500/ton, while the price of ASTA white pepper is at $ 8,800/ton.

In the Brazilian market, the price of ASTA 570 black pepper fell by 0.34%, down to $ 7,250/ton.

In Vietnam, the export price of 500 g/l black pepper dropped significantly by 6.67%, trading at $ 6,000/ton. The 550 g/l black pepper also decreased by 4.55%, priced at $ 7,000/ton. The price of white pepper for export is at $ 9,500/ton, marking a 5.56% reduction.

Glolabl pepper prices today saw slight decreases in Indonesia and Brazil but experienced a sharp decline in Vietnam's export market. Prices in other countries remained stable.

Last week, the pepper market showed mixed reactions with only Sri Lanka and Malaysia recording increases. Specifically, in South Asia, after 5 weeks of consecutive increases, both domestic and export pepper prices in India fell last week. Meanwhile, Sri Lanka's domestic pepper prices saw an increase.

In Southeast Asia, both domestic and international pepper prices in Indonesia saw declines after 2 weeks of price increases. Malaysia's domestic and export pepper prices continued to rise since last week.

Brazil's black pepper prices continued to decline from the previous week. Both China's white pepper and Cambodia's black pepper prices remained stable and unchanged. After 2 weeks of declines, pepper prices saw an increase last week in the US market as shipping costs remained high.

Thus, global pepper prices on 07/04/2024, trended lower compared to yesterday.

Pepper prices on July 4 domestically

Domestically, pepper prices on July 4 saw significant declines compared to yesterday.

In Dak Lak, pepper was purchased at VND 151,000/kg, down by VND 3,000.

Dak Nong saw a decrease of VND 1,000, with prices trading at VND 151,000/kg.

Gia Lai's purchasing price fell to VND 149,000/kg, a decrease of VND 5,000.

Dong Nai traded pepper at VND 149,000/kg, after a reduction of VND 3,000.

Ba Ria - Vung Tau recorded a decrease of VND 5,000, bringing prices down to VND 150,000/kg.

Similarly, Binh Phuoc traded pepper at VND 150,000/kg.

The domestic black pepper price today has dropped sharply by VND 1,000 - 5,000, bringing the commodity down to VND 151,000/kg.

Statistics from the Ministry of Agriculture and Rural Development show that the area and output of pepper are declining. In 2020, the area was over 130,000 ha, but by 2023, it had decreased to 120,000 ha, with an output of 190,000 tons. Estimated pepper production this year is expected to further decrease to around 170,000 tons, the lowest in the past 5 years.

According to the Vietnam Pepper and Spice Association (VPSA), pepper prices have remained low for years, leading to a decrease in cultivated areas. Old pepper gardens have been replaced by other crops, especially durian.

Moreover, abnormal weather conditions such as prolonged heat and drought this year have contributed to a significant decrease in output. This year's production is estimated to be around 170,000 tons, a 10% decrease compared to last year, marking the lowest level in the past 5 years.

Industry experts also warn that currently, profits from durian cultivation are much higher than from pepper. Therefore, the pepper cultivation area may continue to decrease as farmers switch to growing durian.

Thus, the domestic pepper price on 07/04/2024 is trading around VND 149,000 - 151,000/kg.

$ 1 = VND 25.213 - Source: Vietcombank.