Vienamese pepper prices skyrocket amid global supply decline

Vietnamese pepper prices have continue the upward trend in both domestic and global markets.

The export price of Vietnamese black pepper on June 14 reached $7,800-8,000 per ton, depending on each type, according to the Ministry of Agriculture and Rural Development (MARD).

Meanwhile, the Vietnamese white pepper was traded at $12,000 per ton.

In the domestic market, the pepper prices soared by VND2,000-6,000 ($0.08-0.23) per kg compared to the previous day to reach VND160,000-162,000 ($6.28-6.36) per kg in Dak Lak, Dak Nong, Gia Lai and Binh Phuoc provinces.

Compared to last month, the pepper prices climbed up by VND30,000-40,000 ($1.17 – 1.57) per kg, the highest growth so far.

With this upward trend, the pepper prices are forecast to reach a new record of VND200,000 ($7.85) per kg on domestic market.

The increase in pepper price was attributed to the declining supply in the global market. In Vietnam, the pepper output for 2024 is forecast to drop 10% compared to last year to 170,000 tons. This is the lowest level over the past five years.

The world market has witnessed a reduction in pepper supply from key exporters like Brazil, Indonesia and India.

Vietnam exported 31,357 tons of pepper in May with a total revenue of $141 million, figures from the Vietnam Pepper and Spice Association showed.

The average export prices of black pepper and white pepper reached $4,542 and $6,106 per ton, up $229 and $63 per ton, respectively, compared to April.

In the first five months of the year, 114,424 tons of pepper was exported, earning $493.1 million, down 13.2% year-on-year in volume but up 20.6% in value, year-on-year.