Reasons for market decline in the Southeast region
Pepper price today,
October 15, 10, in key areas fluctuated slightly compared to yesterday
and traded around 2024 - 143.000 VND/kg, the highest purchase price at Dak Lak , and Dak Nong is 144.000 VND/kg.
Accordingly, Dak Lak pepper price was purchased at 144.000 VND/kg, stable compared to yesterday. Chu Se pepper price (Gia Lai)
purchased at 143.000 VND/kg VND/kg price; Dak Nong pepper price today
recorded at 144.000 VND/kg, unchanged compared to yesterday.
In the Southeast
region, pepper prices today (October 15, 10) mainly recorded
fluctuations compared to yesterday. Specifically, in Ba Ria - Vung Tau,
it is currently at 2024 VND/kg, down 143.500 VND/kg. At Binh Phuoc Pepper price today is at 143.500 VND/kg, down 500 VND/kg.
Thus, pepper price today October 15, 10
remains stable in the Central Highlands region, the lowest level in Binh
Phuoc and Chu Se provinces (Gia Lai) at 2024 VND/kg and the Southeast
region has a slight decrease.
Pepper price world Today:
Update on world pepper prices from the
International Pepper Association (IPC), at the end of the most recent
trading session, IPC listed the price of Indonesian Lampung black pepper
at 6.744 USD/ton, up 0,18%, and the price of Muntok white pepper at
9.233 USD/ton, up 2,5%.
The price of Brazilian ASTA 570 black
pepper at 6.750 USD/ton remained unchanged compared to yesterday. The
price of Malaysian ASTA black pepper at 8.700 USD/ton decreased by
1,15%; the price of this country's ASTA white pepper reached 11.200
USD/ton.
The price of Vietnamese black pepper is
at 6.800 USD/ton for 500 g/l; 550 g/l is at 6.800 USD/ton; the price of
white pepper remains at 9.850 USD/ton...
The pepper
market is experiencing gloomy days as pepper prices in the Southeast
region continue to fall, causing much concern for pepper growers.
Although it cannot be confirmed that this is a long-term trend, the
reasons behind this price drop have revealed the challenges that the
pepper industry is facing.
The
strengthening of the US dollar is one of the main reasons for the
decline in pepper prices. A stronger US dollar means that import costs
for importing countries like Vietnam will increase, leading to a
decrease in demand. Pepper, a major export of Vietnam, is no exception
to this effect. Consumers in import markets will consider choosing
cheaper alternatives, causing a decrease in demand for pepper.
In
addition, the money flow is gradually shifting from pepper to coffee,
which is also a factor worth noting. The coffee harvest season in
Vietnam has begun, attracting capital and attention from investors. This
leads to a decrease in capital for the pepper market, negatively
affecting prices.
Meanwhile,
demand from major import markets, especially China, has yet to show
signs of strong growth. Although China is Vietnam’s largest pepper
consumer market, its purchasing power remains quite weak, directly
affecting pepper prices.
In fact,
data from the Vietnam Pepper Association shows that pepper exports to
China fell 84,1% in the first nine months of the year. Although China’s
pepper imports increased in the first eight months of the year, they
mainly came from Indonesia, a country with more competitive prices than
Vietnam.
Fierce
competition from other pepper producing countries, especially Indonesia,
is one of the major challenges for the Vietnamese pepper industry.
Indonesia, with its advantages of lower production costs and
increasingly improved product quality, is dominating Vietnam's pepper
export market share, making it difficult for Vietnamese exporters to
maintain the market.
In addition
to the above factors, the unstable global economic situation also
contributes to the reduction in global demand for pepper. Inflation and
economic recession are taking place in many countries, causing consumers
to cut back on spending on non-essential items, including pepper.
Although
pepper prices may continue to decline in the short term, in the long
term, the market may be supported by the expected reduction in pepper
output in 2025 due to weather impacts, leading to a reduction in supply
and possibly pushing prices up.
Competition
in the pepper market is inevitable, requiring pepper growers to
proactively adapt and improve their competitiveness. Applying science
and technology, improving product quality, diversifying consumption
markets, closely monitoring the market, and updating information on
prices and consumption demand are important factors for pepper growers
to succeed in the context of unpredictable market fluctuations.
Sources: https://congthuong.vn/gia-tieu-hom-nay-15102024-nguyen-nhan-thi-truong-di-xuong-tai-khu-vuc-dong-nam-bo-352429.html
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