Domestic pepper prices: Deep decrease, loss of high price threshold
As of 11:30 today (May 25), domestic pepper prices are still trading in the range of 146,000 - 147,000 VND/kg, down 4,000 - 6,500 VND/kg compared to last week. This is also the lowest price recorded in the past 4 months, since January 22.
To summarize last week, domestic pepper prices fluctuated strongly, pepper prices in Dak Lak and Dak Nong provinces witnessed the strongest decrease of VND 6,500/kg, down to only VND 146,500/kg.
In other localities such as Gia Lai, Ba Ria - Vung Tau, pepper prices decreased by VND 5,000/kg compared to last week, to VND 146,000/kg.
In Binh Phuoc province, pepper prices have decreased by VND 4,000/kg and are being traded at the highest level of VND 147,000/kg.
World pepper prices: Indonesia increases sharply across the board
Over the past week, world pepper prices have been adjusted down in Brazil and Malaysia, but have increased sharply on the Indonesian exchange.
The International Pepper Company (IPC) is listing the price of Indonesian black pepper at 7,432 USD/ton, up 1.8% (equivalent to about 131 USD/ton) compared to last week. In the same direction, the price of Indonesian white pepper was quoted at 10,134 USD/ton, up 0.83% (about 83 USD/ton) compared to last week.
On the other hand, the price of Brazilian ASTA 570 black pepper last week decreased sharply by 150 USD/ton, down to 6,650 USD/ton. Similarly, Malaysia's black pepper prices fell by $50/ton to $9,150/ton. Malaysia ASTA white pepper prices decreased by 50 USD/ton, currently standing at 11,850 USD/ton.
In Vietnam alone, the export price of black pepper continues to move sideways in the range of 6,700 - 6,800 USD/kg for the 500 g/l and 550 g/l types. White pepper prices remained stable at 9,700 USD/ton for the whole week.
Assessment and forecast
While Vietnam's pepper exports have been declining, key competitors, especially Indonesia, have recorded strong growth. Recent export growth shows great potential for the Indonesian pepper industry in the global market.
The domestic pepper market is entering a period of stagnation as the cautious mentality is widespread for growers and traders. Selling prices are not attractive, while input costs are high, causing many farmers to stop investing or switch to growing durian and avocado - crops with higher economic value.
