• The price of pepper continued to increase by 18.5% last week. Therefore, the price of pepper has almost only increased since the beginning of April until now and there are no signs of stopping.
• Besides the supply and demand factors, we can clearly see that many agents and exporters are facing a shortage of raw materials for their signed orders. This leads to a need to intensify the collection of raw materials to ensure the progress of orders to be delivered in the 2nd/3rd/4th quarter 2024. This is the main reason for the continuous and strong price increases in the market recently.
• In addition, the rapid price increase has encouraged speculation activities from agents, exporters, and local farmers in the domestic market as the predicted decrease in raw materials supply is expected to be significant. Vietnam has exported 113,000 tons in the first five months of the year while the supply is narrowing. The amount needed for export has decreased significantly while the harvest season for 2025 is still 8 months away. This is a significant challenge for the pepper market as the supply is forecasted to be lower than the global demand.
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