A farmer taking care of her black pepper garden in Đắk Nông Province. — VNA/VNS Photo
Domestic black pepper prices reached a new record at VNĐ111,000-112,000 per kg (US$4.36-4.4) last week, surging by an additional VNĐ10,000 per kg from the beginning of last week.
Early last week, black pepper prices in the Vietnamese market held steady at approximately VNĐ101,000-102,000 per kg.
The unexpected price rises on May 15 and 16, caused a significant spike in domestic prices to VNĐ111,000 - 112,000 per kg. Although there was a slight correction of around VNĐ1,000 per kg, prices of black pepper remain remarkably high.
Experts attribute the surge in domestic black pepper prices to a combination of supply shortages and increased demand in major markets such as Europe, the US and China.
Black pepper prices have been steadily rising on international exchanges, with black pepper currently in the the range of $4,900 - 5,200 per tonne and white pepper, between $6,500 - 7,300 per tonne, depending on the category.
Việt Nam, being one of the major black pepper producers was badly hit by adverse growing conditions, due to some unusual weather conditions and farmers shifted their focus to other crops, particularly fruit trees, as black pepper prices had previously remained low.
With the current rise in black pepper prices, the Vietnam Pepper Association (VPSA) anticipates that the export value of pepper will reach an impressive $1 billion for the year.
According to the Ministry of Agriculture and Rural Development, black pepper exports in the first four months of the year amounted to 84,000 tonnes, generating revenue of VNĐ353 million, down 18.3 per cent year-on-year in volume, but up 11.5 per cent in value.
The average export price of black pepper during the first four months of the year was estimated at $4,214 per tonne, a 36.4 per cent increase from the same period in 2023.
The US, Germany and India emerged as the top three export markets for Vietnamese black pepper during the first quarter of 2024, collectively accounting for a market share of 41.5 per cent. — VNS