Vietnamese Pepper Exports Soar: How Low Harvests Are Shaping the Market?
Vietnamese Pepper Prices See a Steady Increase
Pepper prices in Việt Nam continued to rise at the start of the week, averaging $4,75 per kg. Đắk Nông, Đắk Lắk, and Bình Phước provinces reported the highest price at $4,76 per kg. While still far from the historic peak of $5,60 per kg seen in June, current prices are 80% higher than at the beginning of the year and double compared to the same time last year.Global Pepper Prices Surge as Supply Tightens
On the global stage, Vietnamese black pepper was priced at $6,10 per kg for the 500 g/l type and $6,50 per kg for the 550 g/l type. White pepper was priced even higher, reaching $8,80 per kg, according to the International Pepper Community (IPC). Data from Việt Nam's Ministry of Agriculture and Rural Development (MARD) shows the average export price of pepper over the past eight months has reached $4,81 per kg. This represents a 47% increase compared to the same period last year.US and UAE Among Top Buyers of Vietnamese Pepper
Vietnamese enterprises earned approximately $891 million by selling 185,000 tonnes of pepper, with the US as the largest customer. The US spent $205.3 million on nearly 43,170 tonnes of Vietnamese pepper. Compared to the same period last year, pepper exports to the US increased by 47.5% in volume and 74.9% in value. Germany and the United Arab Emirates (UAE) have also ramped up their stockpiling. Exports to Germany doubled in value to over $57 million, while exports to the UAE rose by 40.2% in volume and 113.9% in value.Reduced Harvests in Key Countries Push Prices Up
Hoàng Thị Liên is the Chairwoman of the Việt Nam Pepper and Spices Association (VPSA). She attributed the price rise to reduced harvests in Việt Nam and Brazil. These two major pepper-producing countries have seen their exports fall by 6.8% and 6% respectively compared to last year. Increased supply from Indonesia and India hasn't been enough to offset these declines. Việt Nam's pepper stocks are running low, so experts expect exports to remain below average until March 2025, when the next harvest season begins. As a result, global pepper prices are likely to continue rising and stay high.Pepper prices in both domestic and global markets are climbing due to reduced harvests and low stock levels in key producing countries like Việt Nam and Brazil. Experts expect this trend to continue until early 2025, with prices remaining elevated due to tight supply.