Vietnamese black pepper is currently in the harvest season, but the price keeps rising. On February 22, the price of black pepper was recorded at around 90,000 VND/kg, higher than the previous day by 1,500 – 2,000 VND/kg, and an increase of about 50% compared to the same period last year.
This is also the highest price level of this agricultural product in the past 3 years.
Hot black pepper market
Mr. Dang Duong Minh Hoang – the owner of a 50-hectare farm growing rubber, avocado, and black pepper in Bu Gia Map district, Binh Phuoc province – said with the current price of black pepper at 90,000 VND/kg, farmers are making a profit of over 50%. If farmers practice organic farming and reduce production costs, the profit will be even higher.
However, the black pepper area around Mr. Hoang’s farm has decreased by 40-50% as local farmers have switched to growing durian and stopped replanting when the pepper garden became old and diseased. This is also one of the reasons for the increase in pepper prices.
According to data from the Ministry of Agriculture and Rural Development, the black pepper cultivation area in Vietnam in 2023 reached 115,000 ha, a decrease of 5,000 ha compared to 2022, with a yield of 190,000 tons.
According to the forecast of the International Pepper Community (IPC), global black pepper production in 2024 is expected to continue to decrease by 1.1%, equivalent to a decrease of 6,000 tons. This reduction is mainly from Vietnam, while Brazil and India are forecasted to increase production in 2024.
According to preliminary statistics from VPSA, in the first 15 days of February 2024, Vietnam has exported 5,687 tons of black pepper, earning a value of 22.7 million USD, equivalent to an average price of about 4,000 USD/ton.
According to the Import and Export Department – Ministry of Industry and Trade, in January, Vietnam exported 20,000 tons of black pepper, worth 79 million USD, with an average export price of 3,953 USD/ton, up 14.8% compared to January 2023.
Coffee prices continue to reach new record highs
As for coffee, prices are continuing to reach historic highs, surpassing 80,000 VND/kg, reaching 82,500 – 83,400 VND/kg, an increase of 800 – 900 VND/kg compared to the previous day.
According to data from the General Department of Customs, Vietnam’s coffee exports in January 2024 reached 238,266 tons, up 14.8% compared to December 2023 and up 67.4% compared to January 2023.
The coffee export turnover in January 2024 reached 726.6 million USD, up 21.2% compared to December 2023 and up 133.7% compared to January 2023.
The average coffee export price in January 2024 reached 3,050 USD/ton, up 39.6% compared to January 2023.
This price level exceeds the predictions of industry experts as the supply of Robusta coffee in Vietnam is limited due to unfavorable weather conditions and a decrease in cultivation area.
Meanwhile, the demand from Europe, where Vietnamese coffee accounts for 40% of its imports, is increasing due to concerns about supply disruptions caused by the impact of the Asia-Europe sea route having to change its schedule to avoid the Suez Canal due to conflicts in the Red Sea.
