Pepper Market June 13, 2025

 

Pepper export price increased by more than 60% in the first 5 months of the year

Pepper prices today  (June 13) are stable at around 139,000 - 140,000 VND/kg. In the world market, Indonesian pepper prices continued to increase for the second consecutive day. In the first 5 months of the year, Vietnam's pepper exports decreased in volume but increased in value, mainly due to an average export price increase of 61.1%.

Update pepper price

In the domestic market

Pepper prices  today in key provinces and cities continue to be stable, fluctuating between 139,000 - 140,000 VND/kg, unchanged from yesterday.

According to the survey, Dak Lak currently records the highest price, reaching 140,000 VND/kg. In two other localities in the Central Highlands region, Dak Nong and Gia Lai,  pepper prices   are being traded at 139,000 VND/kg.

In the Southeast region, pepper prices in Ba Ria - Vung Tau, Dong Nai and Binh Phuoc provinces are also commonly at 139,000 VND/kg.

Province/district (survey area)	Purchase price on June 13 (Unit: VND/kg)	Change from previous day (Unit: VND/kg)
Dak Lak	140,000	–
Gia Lai	139,000	–
Dak Nong	139,000	–
Ba Ria – Vung Tau	139,000	–
Binh Phuoc	139,000	–
Dong Nai	139,000	–

In the world market

In the recent trading session, the International Pepper Community (IPC) continued to adjust the price of Indonesian black pepper to 7,526 USD/ton, up 0.17% (13 USD/ton) compared to the previous day.

Meanwhile, the  export  price  of Malaysian black pepper remains stable at 9,100 USD/ton; Brazilian black pepper ASTA 570 is 6,175 USD/ton. The export price of Vietnamese black pepper fluctuates between 6,300 - 6,400 USD/ton for 500 g/l and 550 g/l.

Type name	World black pepper price list
	June 13 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	7,526	+0.17
Brazilian Black Pepper ASTA 570	6.175	–
Kuching Black Pepper (Malaysia) ASTA	9,100	–
Vietnamese black pepper (500 g/l)	6,300	–
Vietnamese black pepper (500 g/l)	6,400	–

At the same time of survey, the price of Indonesian Muntok white pepper increased by 18 USD/ton to 10,167 USD/ton.

The export price of Malaysian ASTA white pepper and Vietnamese white pepper continued to move sideways at USD 11,850/ton and USD 9,300/ton.

Type name	World white pepper price list
	June 13 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	10,167	+0.18
ASTA Malaysian White Pepper	11,850	–
Vietnam white pepper	9,300	–

Update pepper information

World pepper prices in early June in most major growing countries decreased, except for prices in Indonesia which increased.

 According to the Import-Export  Department  (Ministry of Industry and Trade), usually from April is the period when the spice market in general and pepper market in particular is 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 the tariff rate is unclear, making businesses cautious in signing contracts.

Along with the world trend, domestic pepper prices in early June 2025 decreased significantly compared to early May 2025.

In the short term, domestic pepper prices are forecast to remain stable 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.

According to data from the Customs Department, Vietnam's pepper exports in May reached 26.3 thousand tons, worth 182.2 million USD, down 0.4% in volume and 1.0% in value compared to April; down 15.3% in volume but up 30.6% in value compared to May 2024.

Vietnam's average pepper export price in May reached 6,923 USD/ton, down 0.6% compared to April, but up 54.3% compared to May 2024.

In terms of markets, Vietnam's pepper exports to many key markets decreased in volume compared to May 2024, while exports increased to markets such as India, the UK, Egypt, and Russia. Of which, exports to the largest market, the US, decreased by 9.3%, followed by the German market, which decreased by 13.8%...

In the first 5 months of the year, Vietnam's pepper exports reached 99.9 thousand tons, worth 690.4 million USD, down 12.5% ​​in volume but up 40.5% in value over the same period in 2024. Mainly due to the average export price reaching 6,910 USD/ton, up 61.1% over the same period in 2024.

In the first 5 months of the year, Vietnam's pepper exports to key markets had uneven growth in export volume, in which, exports to some markets decreased such as: USA, UAE, Netherlands, Thailand, Egypt, Russia... On the contrary, the amount of pepper exported to some markets increased such as: Germany, India, UK, South Korea...

Can the upward momentum of pepper prices be maintained in 2025?

 

Can the upward momentum of pepper prices be maintained in 2025?

Declining production is expected to be the main driver for pepper prices in 2025.

Pepper prices  increase for second consecutive year 

In 2024, the pepper market recorded the second consecutive year of strong growth in price and  export  turnover . Accordingly, domestic pepper prices at the end of this year nearly doubled compared to the beginning of the year to 140,000 VND/kg.

 Source: Giatieu.com (H.My compiled)

Regarding consumption, Vietnam exported 250,600 tons of pepper of all kinds, earning 1.3 billion USD, down 5.1% in volume but up 45.4% in value compared to the previous year. The main reason is that the average export price of black pepper in 2024 reached 5,154 USD/ton, up 49.7% and white pepper reached 6,884 USD/ton, up 38.9% compared to last year.

Declining manufacturing activity has contributed to pushing up domestic and export prices in recent times.

 Source: General Department of Customs (compiled by H.Mị)

According to the Vietnam Pepper and Spice Association (VPSA), unfavorable weather conditions have negatively affected pepper production. In Dak Nong, the capital of Vietnam’s pepper, output was recorded at the same level as last year.

In addition, the trend of crop conversion is also affecting output. Typically, in Dak Lak province, the province with the second largest pepper area and output in the country, it is assessed that it has decreased as people switch to growing durian and there is not much new planting.

It is expected that farmers will start harvesting pepper after Tet and it will last until the end of April.

Talking to us at the VPSA summary conference held on January 16, Mr. Thai Nhu Hiep - Chairman of the Board of Directors and Director of Vinh Hiep Company Limited, said that in recent years, the Central Highlands has had plants that have brought good economic efficiency, including coffee, durian, etc. As for pepper, although it also brings very high values, the cost of land improvement is very high, and this work is very difficult and risky. Therefore, the pepper growing area in Vietnam is increasingly narrowing.

Major pepper growing countries such as Indonesia and Brazil also recognize that growing  coffee   is more efficient and profitable. At the same time, coffee consumption is increasing while supply is decreasing. As for pepper, consumer demand has not increased at all, and price increases sometimes come from speculation and resale between traders.

“When prices are high, people can abstain from using pepper but cannot abstain from drinking coffee,” said Mr. Hiep.

Supply is decreasing, supporting pepper prices

The Chairman of Vinh Hiep Company believes that the trend of increasing export value but decreasing export volume will continue in 2025 when the world's inventory is not much left. Meanwhile, in Vietnam, the goods are mainly in the hands of speculators. They have been buying since the price was around 110,000 VND/kg. These people use money from taking profits from other agricultural products that have just experienced a hot period such as coffee, durian, ... to buy pepper.

“Speculators think that pepper prices could reach VND200,000/kg in 2025-2026. We cannot judge whether that view is right or wrong, but we can clearly see that output is gradually decreasing,” said Mr. Hiep.

According to VPSA's forecast, global pepper output in 2025 will continue to decrease compared to 2024, marking the fourth consecutive year of decline since 2022. This reflects the fact that pepper is no longer the main crop of many farmers, especially in the context of the significant increase in economic value of other crops such as durian, coffee and oil palm. In addition, climate change with extreme weather events has reduced productivity and increased the cost of maintaining pepper production.

“Global pepper prices in 2025 are expected to remain high due to reduced supply, while demand in major markets such as the US and Europe remains stable. Demand for pepper in the food and spice processing industries remains the main driver of the market,” VPSA said.

Regarding export activities, Mr. Hiep said that currently, businesses have also learned from the previous crop year when they only sign export contracts when they are sure they have purchased the goods.

“In the previous crop year, many businesses “short-sold” pepper, meaning they signed sales contracts and then purchased pepper from farmers. However, last year, farmers’ economic life improved a lot, so the pressure to sell pepper to make ends meet was not great. This put businesses at great risk when it was difficult to buy goods to deliver to  importing  businesses ,” Mr. Hiep shared.

According to VietnamBiz.vn

PEPPER hilights 9th June 2025 – Week 23

 

 

We would like to send you a quick highlight report 9th June 2025 – Week 23.



At the beginning of April, the U.S. government began imposing tariffs on most countries around the world. This has disrupted business activities in many countries, leading to a sharp decline.

Inventory situation:

* Vietnam: 

In the first five months of the year, Vietnam exported up to 100,693 tons, while domestic inventory is forecasted to have decreased significantly as the 2025 crop is expected to be the lowest in the past five years. Therefore, when prices fall, selling pressure in the market is minimal, and at times, domestic traders continue to purchase stocks for speculation.

* Other countries: 

The tariffs from the U.S. have significantly reduced the import demand of countries over the past two months. Most customers prefer to use existing inventory while waiting for clearer tariff levels. However, this has led to a sharp decrease in inventory in importing countries. If the tariff situation becomes clearer in the next 2-3 weeks, it is likely to stimulate increased imports in Q3 and Q4 to replenish the shortage of imported goods that occurred in Q2.

Price situation:

* Despite facing a significant shock from tariffs and a sharp decline in demand over the past three months, the pepper market remains relatively stable, with a decrease of only 5% compared to the beginning of 2025. This clearly reflects that the total global demand still exceeds the global supply of pepper, and the trend of increasing prices remains evident if positive supporting information emerges.

Crop situation in countries in Q3 & Q4 of 2025:

* In the coming months, Indonesia will enter the harvest season in July and August, but preliminary assessments indicate that the harvest in Indonesia has decreased significantly by about 20-30% compared to 2024 due to climate change.

* Brazil’s harvest is expected to be 20% better than in 2024, with an increase of about 15,000 tons compared to the 2024 crop year. However, Brazilian farmers are not under pressure to sell as they have already achieved profits and good cash flow from coffee cultivation.

Clove season starting in all the origins, starting with COMOR in June 2025

 

Over all  Clove market is silent.  

Price stands range bound at origin countries and also at  buying destination
Keeping Indonesia out from the main stream;  
India continues to be the leading single largest buyer and importer of Clove from any origin.   Whether it is from  Madagascar,  or  Comor,  or Zanzibar or Sri Lanka or Indonesia or Brazil -  India continues to be the largest single importer.   
Of course,  Brazil Clove never comes to India because of duty factor.
Indian domestic market is sluggish, and demand is very poor.  As local demand is very poor and sluggish, Indian import also is very slow or NIL .     Secondly, Origins are not seriously offering, as it is off season
Indonesia crop 2025 is reported to be failure;  production is almost 40% less as hearing from islands of  Indonesia.   Confirmations are yet to come.   So this is early report.   However, overall report from Indonesia is that,  export surplus would be lower compared to previous years.
Comor 2025 season just started.  Expected shipment would start by end of June or early July.  Price quotation would be available after June 15, 2025.   Crop size is reported to be expecting nearly 4000 Mt - a good and more than last 3 years
As we are on the verge of  new Clove season starting in all the origins,  starting with COMOR in June 2025, let us examine what exactly is the "problems and challenges of  CLOVE INDUSTRY:   I would say the major factor is the "extensive speculative forward deals" happening without any logic,  and the consequent  defaults either side, and some times, over supply,  and price non-parity.
Clove has become more of an "industrial commodity" than a normal staple or food commodity.  And many investors are in the "clove industry" for INVESTMENT TRADING as well.
All the above factors make CLOVE PRICE vulnerable,  and supply chain inconsistant.  Speculative Stockists and Investment Stockists make the trade totally imbalanced and biased.

European ports are congested, and the same situation may soon spread to the US and Asia

 

European ports are congested, and the same situation may soon spread to the US and Asia.

According to industry experts, sea freight rates are likely to increase due to the impact of port congestion.

Port congestion

Port congestion  is worsening at key trade gateways in northern Europe and elsewhere, according to  a new report. The report says the trade war could spread maritime disruptions to Asia and the US, pushing up shipping rates.

Specifically, according to a report recently released by British maritime consultancy Drewry, between late March and mid-May, waiting times for berthing increased by 77% at the port of  Bremerhaven  (Germany).

During the same period, delays increased by 37% in Antwerp, Belgium, and by 49% in Hamburg, Germany. Similar problems were also reported in the Dutch ports of Rotterdam and Felixstowe, England.

Labor shortages and low water levels on the Rhine were the main culprits, hindering barge traffic to and from inland points.

Adding to the tensions, US President Donald Trump temporarily lifted 145% tariffs on Chinese goods, a move that has boosted demand for shipping between the world’s two largest economies.

“Delays at ports are extending transit times, disrupting inventory planning and forcing carriers to load more cargo,” Drewry noted in the report.

“Adding pressure is the fact that trans-Pacific trade… is showing signs of entering its peak season early, driven by the temporary US-China tariff relief that is set to expire on August 14,” Drewry added.

Port congestion in Europe. ( Screenshot from Bloomberg ).

Similar trends  are emerging in Shenzhen, China, as well as Los Angeles and New York, where the number of container ships waiting to dock at these locations has increased since late April, the report said.

Hapag-Lloyd AG CEO  Rolf Habben Jansen  said at a conference last week that while he has seen recent signs of improvement at European ports, it will take another six to eight weeks for the situation to be under control.

However  , Torsten Slok, chief economist at Apollo Management, pointed out in a note over the weekend that the tariff truce between the US and China has not yet led to a surge in the number of ships crossing the Pacific.

“This raises the question: Are 30% tariffs on Chinese goods still too high? Or are American companies just waiting to see if tariffs will fall further before increasing shipments?” Slok wrote.

US-EU trade dispute 

US tariffs  – along with threats and sudden truces – make it difficult for importers and exporters to adjust orders, causing demand to fluctuate.

For shipping lines, the unpredictability often leads to delays and higher freight rates, according to  Bloomberg .

The latest blow to global trade came on May 23, when Mr. Trump threatened to impose 50% tariffs on the European Union (EU) from June 1. The move could disrupt transatlantic trade.

“Policy uncertainty will be a dead cost for global trade, adding risk to [corporate] spending plans,” Oxford Economics said in a new note.

Germany, Ireland, Italy, Belgium and the Netherlands are the most vulnerable countries due to their high ratio of goods exports to the US to GDP.

Bloomberg Economics warned in another note that an additional 50% tariff could see EU exports to the US fall by more than half.

The uncertainty surrounding Mr Trump’s policies is adding to the pressure on the shipping industry. Major carriers such as MSC Mediterranean Shipping have announced general rate increases and peak season surcharges starting in June for cargo originating from Asia.  Spot rates are likely to rise in  the coming weeks.

Currently, cargo ships still avoid the Red Sea, where the Houthis began attacking ships in late 2023. Ships are having to go around southern Africa to transport goods on routes connecting Asia, Europe and the United States.

According to VietnamBiz.vn

Shipping costs double as US rushes to buy Chinese goods ahead of tax deadline

 

Shipping costs double as US rushes to buy Chinese goods ahead of tax deadline

Before the tax breaks ended in August, American businesses rushed to import goods from China to avoid tariffs. However, the sudden surge in demand is causing container shipping rates to double.

American companies are rushing  to import   goods from China before a 90-day tariff break ends, but will face a shock of higher shipping costs that could lead to higher prices at stores, the  New York Post  reported  .

Several major shipping lines, including Hapag-Lloyd, have announced plans to raise rates for shipping 40-foot containers from China to U.S. West Coast ports from $3,500 to $6,500 starting June 1, according to multiple affected companies.
Shipping costs to East Coast ports will also increase from $4,500 to $7,500.

“This price increase will reduce profit margins and lead to higher prices for consumers,” said Jay Foreman, CEO of Basic Fun, a toy company in Florida that makes Tonka Trucks.

Shipping typically accounts for only about 3 percent of a manufacturer’s product cost, Foreman said. But the price hike will nearly double Basic Fun’s shipping costs, he said.

Walmart has previously warned that import tariffs would raise consumer  prices   , despite calls from former President Donald Trump that the retailer should “take the tax rather than pass it on to consumers.”

Another shipping price hike — possibly as high as $8,500 per container — is expected to take place on June 15, according to a report in  the Journal of Commerce .

Shipping companies are accused of “extortion” to make up for lost revenue as US companies cut back on imports to avoid the 145% tariffs imposed by President Trump on imports from China last month.

However, on May 12, the White House and Beijing reached a trade truce, temporarily lowering the tariff rate to 30% until August 10.

“Shipping lines are taking advantage of the backlog of cargo sitting at ports and factories in China,” Lou Lentine, CEO of sports equipment company Echelon, told  The Post .

Lentine said shipping companies have quoted up to $6,000 per container to ship treadmills and other equipment made in China and Vietnam — double the usual cost.

“That number is huge,” he said, admitting: “We have to ship the goods, there is no other way.”

Although most importers have contracts with fixed rates, carriers may still apply additional surcharges during peak seasons or adjust to market rates when demand spikes.

“Some of the ports in China are so congested that they’re having to push their cargo out of the country,” said Bobby Shoule, a customs broker at JW Hampton Jr. & Co., a logistics firm in Queens, New York, that has been in business for more than 160 years.

He also noted that large businesses like Home Depot can negotiate to reduce price increases, but small businesses do not have as much leverage.

“We have no choice but to pay that price,” Mr. Foreman lamented.
“There are no regulations or limits on how much carriers are allowed to charge.”

While container prices are still well below their peak during the pandemic — when they soared to more than $20,000 per container in 2021 — port congestion expected in the coming weeks could put supply chains under pandemic-like strain, Shoule warned.

“As the mass of cargo ships stuck in Chinese ports begin to leave and cross the Pacific, the ripple effect will begin to emerge,” Mr. Foreman added.

“This includes congestion at US West Coast ports, misplaced containers, and delays in returning ships to China to resume shipping for the second half of the year.”

According to VietnamBiz.

Dak Nong takes precautions against chemically contaminated pepper

 

Dak Nong takes precautions against chemically contaminated pepper

On May 23, Mr. Ngo Xuan Dong, Deputy Director of the Department of Agriculture and Environment of Dak Nong, said that the unit has just issued a document to propagate and recommend that people use standard white canvas bags to store pepper to avoid contamination of Sudan red into pepper products.

Mr. Dong added that recently, according to warning information from the Ministry of Agriculture and Environment, some shipments of pepper exported from Vietnam were found to be contaminated with Sudan Red, an industrial colorant banned from use in food.

Through initial verification, the main cause is that some people preserve pepper in colored packaging, use poor quality colored drying tarpaulins, and do not meet food standards during harvesting, leading to the contamination of colorants into the product.

The incident was only a small-scale contamination of a few shipments. However, since Sudan Red is an industrial chemical that is not used in food, timely recommendations are needed to prevent possible risks.

Many organizations and individuals in Dak Nong have used standard white packaging to preserve pepper.

The Department of Agriculture is actively coordinating with the Farmers' Association, the Cooperative Union, the Provincial Business Association and related levels and sectors to provide information and propaganda to control and prevent the risk of Sudan Red infection in pepper production.

Dak Nong strives to improve food safety quality of pepper products, contributing to protecting the reputation of the Vietnamese pepper industry in the market.

Dak Nong currently has 33,230 hectares of pepper, with an output of 72,000 tons in 2024. The province's pepper is the leading in the country in terms of area, output, and quality and has been granted the geographical indication "Dak Nong Pepper".