Skyrocketing prices have brought pepper – Vietnam’s “black gold” – back to its golden age. In the first 9 months of the year, pepper exports earned more than 1 billion USD. Thus, after exactly a decade, pepper exports officially became a billion-dollar agricultural product (in 2014 reached 1.2 billion USD) of Vietnam. In 2015, pepper prices reached a historic peak when they reached 230 million VND/ton.
The “black gold dream” was warned by the person known as the “pepper king” from the beginning of the year, when pepper prices began to spike.
“Year gold price
2015 about 35 million VND/tael. That is, 1 ton of pepper costs 230 million VND, equivalent to 6.5 taels of gold. This is also the reason why many people considered pepper to be the ‘black gold’ product of Vietnam at that time.”
Mr. Phan Minh Thong – Chairman of Phuc Sinh Group – in a sharing recalled the golden age of pepper.
Also during this period, according to Mr. Thong, farmers in many provinces massively expanded pepper growing areas, even in places not suitable for this crop, causing output to increase sharply, supply exceeding demand, leading to continuous prices. plummeted. As a result, at times, pepper prices fell below cost, farmers suffered heavy losses, significantly narrowed their acreage or switched to other crops.
Last August, Phuc Sinh returned to the position of Vietnam’s No. 1 pepper exporter after many years of being surpassed by FDI enterprises.
2024 is a perfect year to look back at the glories and struggles of the pepper industry’s past.
Photo: Vietnam pepper export turnover (billion USD).
As an industry insider, Mr. Thong said, 2024 is a perfect year to look back at the glories and past struggles of the pepper industry.
In the past, pepper prices in Vietnam had a sharp increase from 2010 to its peak in 2015. At that time,
Pepper became a billion-dollar industry when the price reached 230 million VND/ton (2015).
In comparison, the gold price during this period is about 35 million VND/tael and the USD price is 21,350 VND per 1 USD; 230 million VND per ton of pepper is equivalent to 6.5 trees of gold or 10,700 USD. This is also the origin of the saying that pepper was a “black gold” product at that time.
Given the price, people in the pepper production chain began to speculate. According to Mr. Thong’s observations, in 2015, many farmers still stored 3 or 5 tons of pepper in their homes. They expected the price to increase to 250 million VND/ton before selling it.
Adversity occurred immediately after that, after reaching its peak, the price turned and continued to decrease. By 2019, pepper price was only 36 million VND/ton, “evaporating” 85% in 3.5 years. Vietnam’s pepper output at that time was also at its peak, nearly 300,000 tons – a record number, increasing from 122,000 tons (2015).
This has pushed many people into debt, bankruptcy, and many pepper fields were abandoned.
1 ton of pepper per year
2014 has a price equal to 6.5 gold bars
g, dream “black gold” material
come back?
According to Mr. Thong, pepper plants are difficult to grow and care for. If they are not watered periodically and not taken care of regularly, they can easily die. Due to the crisis in 2015, many people neglected the pepper industry.
By the end of 2023, the national pepper output will reach about 170,000 tons and by 2024 it will decrease to about 160,000 tons, down from the peak of 300,000 tons in 2015.
Compared to the current domestic pepper price of 140,000 – 142,000 VND/kg, gold price of 83 million VND/tael, USD price of 25,500 VND per 1 USD, there are very few people selling pepper to the market, Mr. Thong commented. .
According to this person, pepper prices may continue to increase, and farmers have the right to dream about the unfinished “black gold dream”, but they also need to remember the lessons of the past.
Photo: Pepper king Phan Minh Thong warns about the ‘black gold dream’ and its consequences in the past.
It is noted that the average price of Vietnamese pepper exported in September 2024 reached 6,239 USD/ton, an increase of 67.5% compared to the same month last year and this is also the month that recorded the highest export price in many years. .
On the world market, at the end of the most recent trading session, the International Pepper Association (IPC) listed the price of Vietnamese black pepper at 6,800 USD/ton for 500g/l type; type 550g/l at 7,100 USD/ton; White pepper price is at 10,150 USD/ton.
Meanwhile, the price of pepper in the domestic market ranges from 146,000-150,000 VND/kg depending on the type.
The Import-Export Department (Ministry of Industry and Trade) forecasts that world pepper prices will remain high in the short term due to limited supply.
In the long term, export pepper prices will still be supported, because Vietnam’s output of this product in the 2025 crop is expected to decrease. The 2025 pepper crop in our country will be harvested almost entirely in February, with some regions lasting until March and April, 1-2 months later than previous years due to the effects of prolonged drought. .
According to information from the Vietnam Pepper and Spice Association (VPSA), the amount of pepper in the population is almost gone, only remaining in agents and warehouses of businesses. It is forecast that in the next 3–5 years, global pepper production will still not be enough to meet consumer demand.
Agricultural experts also agree that pepper has entered a new price increase cycle. This cycle will last 10-15 years and the price may peak at 350,000-400,000 VND/kg.
According to preliminary data from Customs, in September this year, Vietnam exported 20,000 tons of pepper, earning 125 million USD. Compared to the same period last year, pepper exports increased 10.4% in volume and 84.9% in value. The average export price reached 6,239 USD (more than 153 million VND) per ton, up 67.5% – the highest level in 8 years.
Cumulatively in the first 9 months of the year, Vietnam has earned more than 1 billion USD from 203,000 tons of pepper. Although export volume decreased by 1.5% over the same period last year, value increased by 46.9%.
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