(VAN) Pepper prices on 07/17/2024 declined slightly in Indonesia. Domestically, pepper prices decreased by VND 2,000, reaching VND 148,000 – 149,000/kg.
Update on domestic and global pepper prices on 07/17/2024
Pepper prices on July 17 globally
Around the world, the pepper market on July 17 continues to decline slightly in Indonesia.
Accordingly, the price of black pepper Lampung in Indonesia decreased by 0.18%, to $ 7,190/ton. Meanwhile, the price of white pepper Muntok from this country decreased by 0.19%, to $ 9,154/ton.
The price of black pepper Kuching ASTA in Malaysia remains at $ 7,500/ton, while the white pepper ASTA from this country is priced at $ 8,800/ton.
In the Brazilian market, the price of black pepper ASTA 570 decreased by 0.35%, to $ 7,125/ton.
In Vietnam, the price of black pepper for export grade 500 g/l is trading at $ 6,000/ton, while type 550 g/l is trading at $ 6,600/ton. The price of white pepper for export remains steady at $ 8,800/ton.
Global pepper prices are slightly decreasing in Indonesia and Brazil, while other countries remain stable.
According to the IPC, some experts in Indonesia and Brazil have indicated that the 2024 harvest has been affected by prolonged drought, leading to the lowest expected production in several years for both countries.
The VSPA anticipates that production in other pepper-producing countries such as India, Indonesia, and Brazil will also decrease. This will result in a reduced amount of pepper imported into Vietnam by the end of 2024.
Vietnam primarily imports pepper from Indonesia, but prices in Indonesia are becoming increasingly expensive as the country’s main customers, including Japan, South Korea, Taiwan, and China, are willing to pay higher prices. Therefore, Indonesia only sells to Vietnam when there is a surplus supply.
As for Brazil, although its prices are lower than those in Vietnam, due to the drought and poor harvest, Brazilian farmers are not in a hurry to sell at low prices. Currently, Brazil’s prices are about $ 50-100/ton lower than those in Vietnam. Importing at this price for export processing would not be profitable for Vietnamese enterprises.
Thus, global pepper prices on 07/17/2024, are slightly down in Indonesia and Brazil compared to yesterday.
Pepper prices on 07/17/2024 domestically
In the domestic market, pepper prices on July 17 have decreased by VND 2,000 compared to yesterday.
Dak Lak is purchasing pepper at VND 148,000/kg;
The price of pepper in Dak Nong has fallen to VND 149,000/kg.
Similarly, in Gia Lai, pepper is being purchased at VND 148,000/kg.
Traders in Dong Nai are buying pepper at VND 148,000/kg.
The price of pepper in Ba Ria – Vung Tau is now VND 149,000/kg.
Traders in Binh Phuoc are purchasing pepper at VND 148,000/kg.
Today domestic pepper prices have dropped sharply, pushing the commodity down to the threshold of VND 149,000/kg.
Despite the sharp decline in domestic pepper prices in recent times, the current price level still reassures farmers about developing their pepper crops.
According to the Department of MARD of Dong Nai province, there were times when farmers massively planted pepper, causing the area to increase significantly. In 2018, the pepper area in Dong Nai province reached 19,000 ha. After that, pepper prices dropped sharply due to large supply, leading farmers to neglect their gardens, and pepper productivity decreased by 30-50% compared to before. Farmers continuously cut down pepper plants, and now the total pepper area in the province is about 11,000 ha.
In the early months of 2024, pepper prices surged, at times reaching nearly VND 200,000/kg, motivating farmers to focus on caring for and improving their existing pepper gardens. Some farmers with old pepper gardens have boldly invested in replanting or expanding their areas compared to before.
Thus, domestic pepper prices on 07/17/2024, are trading around VND 148,000 – 149,000/kg.
$ 1 = VND 25.218 – Source: Vietcombank.
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