Price continues to increase sharply by 5,000 VND
In the world market
In the world market, world pepper prices generally did not record any new fluctuations on the first day of the week.
The International Pepper Community (IPC) is listing the highest price of Malaysian ASTA black pepper at $9,000 per tonne, followed by Indonesian black pepper at $7,528 per tonne, while Brazilian ASTA 570 black pepper is priced at $5,850 per tonne.
Vietnam's black pepper export price fluctuates between 5,800 - 5,900 USD/ton for 500 g/l and 550 g/l black pepper.
|
Type name |
World black pepper price list |
|
|
June 30 (Unit: USD/ton) |
% change from previous day |
|
|
Lampung Black Pepper (Indonesia) |
7,528 |
– |
|
Brazilian Black Pepper ASTA 570 |
5,850 |
– |
|
Kuching Black Pepper (Malaysia) ASTA |
9,000 |
– |
|
Vietnamese black pepper (500 g/l) |
5,800 |
– |
|
Vietnamese black pepper (500 g/l) |
5,900 |
– |
At the same time of survey, the price of Indonesian Muntok white pepper was traded at 10,169 USD/ton, while Malaysian ASTA white pepper reached 11,750 USD/ton and Vietnam at 8,800 USD/ton.
|
Type name |
World white pepper price list |
|
|
June 30 (Unit: USD/ton) |
% change from previous day |
|
|
Muntok Indonesian White Pepper |
10,169 |
– |
|
ASTA Malaysian White Pepper |
11,750 |
– |
|
Vietnam white pepper |
8,800 |
– |
Update pepper information
Normally, from April onwards, the spice market in general and pepper market in particular are the most active in the year. However, this year, the world pepper market is gloomy as trade tensions increase. Import demand from many countries is low, and tariffs are unclear, making businesses cautious in signing contracts.
However, most forecasts suggest that the long-term pepper price outlook remains very positive.
The Import-Export Department (Ministry of Industry and Trade) forecasts that in the short term, domestic pepper prices are expected to stabilize or decrease slightly due to unstable export demand and tight supply. However, in the medium and long term, global supply shortages may support pepper prices to increase again.
The American Spice Trade Association (ASTA) recently warned about the risk of rising global pepper prices due to supply shortages and new US tariff policies, expected to take effect from July 9. In particular, the reciprocal tax rate of up to 46% on black pepper exported from Vietnam is causing concern for businesses and importers.
“The main reason for the decline in global black pepper supplies is a decline in production in Vietnam, the world’s largest exporter of black pepper,” Laura Shumow, executive director of ASTA, told EatingWell magazine.
“After pepper prices fell sharply in 2018 due to oversupply, many farmers in Vietnam switched to other crops. Since pepper plants take several years to produce fruit, the consequences of this switch are only now beginning to show.”
Although Indonesia, India and Brazil are also major producers, the farming decisions of Vietnamese farmers still have far-reaching impacts on global supply chains.
“Black pepper prices are cyclical – production drops when prices are low and increases again when prices are high,” Shumow explains.
Recent crop reports from ASTA show that pepper production in Vietnam and many major exporting countries has been low for the past few years, and it is forecast that it will take a few more years for supply to catch up with demand.
The American Spice Trade Association (ASTA) predicts that global supply will not recover soon due to the chain reaction from farmers in Vietnam – the world’s largest black pepper exporter – switching crops.
In addition, geopolitical factors, climate change, rising transportation costs and new tax policies from the US are also putting pressure on pepper prices.
According to VietnamBiz.vn
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