The export price of pepper has skyrocketed, bringing nearly 900 million USD to Vietnamese enterprises. — VNA/VNS Photo
At the beginning of the week, pepper prices continued their upward trend, averaging at VNĐ152,700 (US$4.75) per kilogramme, according to giatieu.com.
The highest price for pepper - referred to as 'black gold' in Việt Nam - was reported in Đắk Nông, Đắk Lắk and Bình Phước provinces, at VNĐ153,000 per kilogramme.
Although this price is still far from the historic peak of VNĐ180,000 per kilo in June, it is about 80 per cent higher than at the start of the year and double that at this time last year.
In the global market, according to data from the International Pepper Community (IPC), at the end of the most recent trading session, the price of Vietnamese black pepper was $6,100 per tonne for the 500 gram per litre (g/l) type. Meanwhile, 550 g/l pepper was priced at $6,500 per tonne and white pepper was priced at $8,800 per tonne.
The latest report from the Ministry of Agriculture and Rural Development (MARD) shows that the average export price of pepper over the past eight months is estimated at $4,810 per tonne, a significant increase of 47 per cent compared to the same period last year.
Price increases for 'black gold' have been steady since 2023. This year in particular has witnessed a sharp rise in average export pepper prices, jumping from $4,000 per tonne in January to $5,954 per tonne in August.
Vietnamese enterprises have earned approximately $891 million from selling 185,000 tonnes of 'black gold'.
Regarding export markets, the US remains the largest customer, spending $205.3 million to purchase nearly 43,170 tonnes of Vietnamese pepper.
Compared to the same period last year, pepper exports to this market increased by 47.5 per cent in volume and by 74.9 per cent in value.
Among the top three pepper export markets, Germany and the United Arab Emirates (UAE) are heavily investing to stockpile this 'black gold' from Việt Nam.
The volume of pepper exported to Germany doubled compared to the same period last year, with export value reaching over $57 million.
Pepper exports to the UAE also rose by 40.2 per cent in volume and by a strong 113.9 per cent in value.
Hoàng Thị Liên, Chairwoman of Việt Nam Pepper and Spices Association (VPSA) said that the reduced harvest in Việt Nam and Brazil is the primary factor driving up global pepper prices.
Việt Nam and Brazil, the two largest pepper-producing countries that dominate the global export market, have seen their exports decrease by 6.8 per cent and 6 per cent respectively compared to the same period last year. The strong supply growth from Indonesia and India has been insufficient to offset the decline in Việt Nam and Brazil.
Currently, Việt Nam's pepper stocks are running low, so the country's pepper exports are expected to be lower than usual in the final months of this year, continuing until around March 2025 when the new harvest season begins.
The global price of this commodity is therefore expected to continue rising and remain at a high level. — VNS