In strong upward momentum
On the afternoon of May 22, the director of a company in the pepper industry shared: “We just signed a large order with an importer in Europe, the selling price is much higher than last year.”
To date, the export orders this enterprise signed with importers from the US, Europe, etc. have been filled by the end of November this year. The company is actively purchasing raw pepper to prepare to pay orders. “In the world market, the supply of pepper is limited, demand has increased sharply, pushing prices up and the goods are more popular than before,” this director told PV. VietNamNet.
Export prices of black pepper 500 and 550 g/l on May 22 remained at 4,600 USD and 4,700 USD/ton, respectively; The export price of white pepper is anchored at 6,600 USD/ton.
In the pepper capital of the Central Highlands, the price of this type of grain increased to 115,000-116,000 VND/kg; In Binh Phuoc and Ba Ria – Vung Tau, pepper prices range from 116,000-117,000 VND/kg.
Compared to the bottom of 34,000 VND/kg in 2020, the price of Vietnam’s “black gold” seed has increased by 81,000 VND/kg, equivalent to an increase of 238%. Compared to the same period last year, prices increased by 54.7%.
Ms. Nguyen Thi Long – a pepper purchasing business in Quang Phu town (Cu M’Gar, Dak Lak), said that during this year’s pepper harvest, her family buys about 20 tons every day. less than half compared to previous years.
According to her, the pepper area decreased so the output she purchased also decreased. Along with that, pepper growers have the mentality of not wanting to sell much when they see the price increase of this product.
Most farmers are hoarding pepper and hoping to sell it at a higher price. Ms. Long predicted that pepper prices would reach 150,000 VND/kg by 2025. Therefore, after purchasing, she did not sell all but stored about 50% of the output to wait for high prices.
Customs statistics show that by the end of April 2024, our country had exported 83,067 tons of pepper. Of which, black pepper reached 73,555 tons, white pepper reached 9,512 tons. Pepper export turnover reached 352 million USD. Compared to the same period last year, export volume decreased by 19.4% but value increased by 10.3%.
The average export price of black pepper in 4 months reached 4,065 USD/ton, white pepper reached 5,678 USD/ton, up 19.4% and 14.5% respectively over the same period last year.
Pepper prices will be super expensive
Exchange with Reporter. VietNamNet, Mr. Hoang Phuoc Binh, Vice Chairman of Chu Se Pepper Association (Gia Lai), admitted that pepper prices are increasing rapidly. Farmers can sell pepper at the warehouse for 120,000 VND/kg.
“It has been a long time since pepper has had such a high price. Pepper price peaked at 230,000 VND/kg in 2015 and then plummeted, reaching a bottom of 34,000 VND/kg in 2020, then maintaining at a low level,” Mr. Binh said.
According to him, global pepper production decreased sharply. In Vietnam, the amount of inventory transferred from last year to this year is insignificant. Supply is not enough to meet demand, so prices increase.
With current market developments, Ms. Hoang Thi Lien – President of the Vietnam Pepper and Spice Association (VPSA) – pointed out that the main reason is the limited global supply of pepper.
This year, Vietnam’s pepper output is forecast to reach only 170,000 tons, down 10% compared to last year – the lowest level in the last 5 years. Because, the area is shrinking after a long period of low pepper prices, along with the impact of El Nino.
A similar situation also occurs in major pepper producing countries in Asia such as Indonesia, India, Malaysia, Sri Lanka, and Brazil due to the impact of El Nino.
Ms. Lien commented that, with the current situation, global pepper production cannot meet consumer demand, which will still tend to increase in the next 3-5 years. In our country, this strong grain entered a new cycle of price increases, making up for the years when prices were too low.
Sharing the same opinion, Mr. Hoang Phuoc Binh also said that a new price increase cycle of pepper has officially begun. In particular, this cycle will last for the next 10 years and the price may reach a new peak of 350,000-400,000 VND/kg – a super expensive level. However, the price will fluctuate but in the long term it will still follow an upward trend.
Pepper area is still decreasing due to aging and people changing crops. While there is no new planting at this time, it will still not be possible to increase output in the next 4 years. Therefore, pepper will maintain a supply shortage, Mr. Binh said.
According to VietnamNet.vn
