From the beginning of the year until now, the average export price of pepper has reached 5,005 USD/ton, up 50.1% over the same period, with a turnover of 1.04 billion USD. Thus, Vietnam’s pepper exports have officially exceeded the 1 billion USD mark for the first time in 8 years.
According to data from the General Department of Customs, the average export price of Vietnam’s pepper in the first 15 days of October exceeded 6,500 USD/ton, a slight increase of 0.7% compared to the previous month and an increase of 67.6% compared to the previous month. same period last year. This is also the highest export price achieved in nearly 8 years, since March 2017.
Since the beginning of the year until now, the average export price of pepper has reached 5,005 USD/ton, an increase of 50.1% over the same period. Thanks to that, although the export of this product decreased by 2.5% in volume, the turnover still increased strongly by 46.4%, reaching 208,776 tons with a turnover of 1.04 billion USD. Thus, Vietnam’s pepper exports have officially exceeded the 1 billion USD mark for the first time in 8 years.
In addition, pepper prices were under downward pressure in the third quarter and early October when agricultural companies, agents and intermediaries were actively selling black pepper. This activity is mainly driven by liquidity needs, as sellers seek to raise capital to invest in coffee, an agricultural product that is in harvest season. Currently, domestic pepper prices are still nearly 80% higher than at the beginning of the year and double the same period last year.
According to forecasts of the Import-Export Department (Ministry of Industry and Trade), limited global supply, especially in Vietnam, will be the main factor supporting stable pepper prices at a high level. However, the downside of this situation is that consumption demand is affected, especially from the Chinese market.
Although high pepper prices bring attractive profits to farmers and export businesses, it also reduces consumer demand. Consumers, especially households, tend to limit spending on this item when prices increase.
The Chinese market, which is one of the largest pepper consuming markets in the world, is showing more caution in importing. Weak demand from this market has partly restrained the increase in pepper prices.
In the long term, export pepper prices will still be supported because Vietnam’s 2025 pepper crop output is expected to decrease. As expected, Vietnam’s 2025 pepper crop 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 influence of Prolonged drought makes pepper supply increasingly difficult.
This is expected to continue to support high pepper prices in the near future. High pepper prices create many opportunities for Vietnamese farmers and export businesses, but also pose many challenges. Businesses need to have flexible business strategies to make the most of this opportunity, while coping with potential risks.
