Currently, pepper harvesting is in progress in many localities in the Southeast and Central Highlands. The fact that pepper prices increased during this period is surprising because normally when the harvest is in full swing, prices decrease.
Pepper prices increased sharply, about to exceed 100,000 VND/kg
The lowest pepper price is 97,000 VND/kg in Dong Nai, Dak Nong and Gia Lai. In Binh Phuoc, Ba Ria-Vung Tau, and Dak Lak, the price is up to 98,000 VND/kg. Compared to the same period last year, pepper prices are currently about 33,000 VND/kg higher.
Pepper prices increased sharply due to limited supply due to prolonged heat, affecting the current harvest output. Besides, pepper is often intercropped in coffee gardens, so these two items are closely related in price. Normally, people will sell coffee when the price is high to prepare money to store pepper. This year, coffee prices have only increased but not decreased and are currently more than 20,000 VND/kg higher than pepper prices. Therefore, many people continue to hold on to pepper and refuse to sell it with the expectation that the price will increase sharply like coffee in the near future. This causes the supply of pepper on the market to be low.
According to the General Department of Customs, in March, pepper exports reached nearly 26,000 tons, worth 117 million USD; decreased 27.5% in volume but increased nearly 5% in value. The average export price of pepper in March reached 4,305 USD/ton, up 44.5% over the same period in 2023.
In the first 3 months of 2024, Vietnam’s pepper exports reached 57,000 tons, worth 236 million USD; decreased by 25% in quantity but increased by 1% in value. The average export price of pepper reached 4,153 USD/ton, an increase of 35.5% over the same period in 2023.
According to experts, in recent times durian and coffee prices have increased higher than pepper prices, causing the area and output of these products to decrease and prices to increase. Besides, factors such as harsh weather, political instability in many places affecting goods transportation, exchange rate fluctuations… also have a strong impact on pepper prices. With the current trend, pepper prices are likely to increase because they have to compete in economic efficiency with strong competitors such as durian and coffee.
