Vietnam Black Pepper Prices Reach Record Levels

Black pepper, often called the "black gold" of the Central Highlands, has reached its highest price in nearly a decade. The province of Gia Lai, Vietnam, currently cultivates around 7,500 hectares of pepper, with an average yield of 3.5 tonnes per hectare. The sharp rise in prices, combined with stable productivity, has significantly boosted farmers’ profits.

Declining Pepper Cultivation Fuels Price Hike

Over the past decade, many Vietnamese farmers shifted from pepper to coffee and durian, reducing the total area under cultivation. This decline, coupled with rising consumption in Europe and North America, has contributed to the current price surge. According to the Vietnam Pepper Association, exports to the United States increased by over 20% in January 2025, compared to the same period last year.

Weather and Supply Shortages Impact Production

Extreme weather conditions and pest outbreaks have further impacted pepper production, tightening supply. This limited availability has kept global prices on an upward trend. Industry experts warn that while the high prices provide an opportunity for farmers, excessive expansion could lead to market saturation and future price drops.

Sustainable Farming Practices to Ensure Long-Term Stability

Experts recommend that farmers avoid overexpansion and instead focus on organic farming and disease-resistant cultivation. The Vietnamese government has also encouraged farmers to improve product quality and form partnerships with exporters to secure stable pricing.

Conclusion: A Lucrative Yet Cautious Market for Pepper Farmers

While current high prices bring profits, farmers must prioritize sustainable cultivation to avoid long-term volatility. Authorities in Gia Lai aim to maintain a cultivation area of 8,500-10,000 hectares, ensuring a balance between supply and demand. By 2030, the government plans for at least 60% of pepper farms to achieve GAP certification, strengthening Vietnam’s position as a global leader in the pepper trade.

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