Pepper
prices today, October 31, range from 143,000 to 144,500 VND/kg.
Domestically, next year's harvest is forecast by some sources to remain
the same or increase slightly, fluctuating between 170,000 and 180,000
tons. The harvest may be delayed due to weather.
In
this context, pepper prices are not expected to fluctuate much. The
driving force for strong growth last season was the lack of demand from
China. According to statistics from the International Pepper Community,
in recent months, this market has increased imports from other
countries.
Domestically,
next year's harvest is forecast by some sources to remain the same or
increase slightly, fluctuating between 170,000 - 180,000 tons. Harvest
time may come later due to weather.
However,
in late October 2024, the press reported on the risk of many flowers
falling off, resulting in low fruit set rates and a high risk of crop
failure in Ba Ria - Vung Tau.
According
to VOV, many pepper farmers in Chau Duc, Xuyen Moc districts and Phu My
town, Ba Ria - Vung Tau province said that this year the rain came
late, the hot and dry weather and low humidity were not favorable for
pepper to bloom.
Mr.
Tuyen, who owns nearly 1 hectare of pepper, in Binh Ba commune, Chau
Duc district, said that the weather this year is unfavorable, so the
productivity is not as good as last year. Meanwhile, pepper harvesting
workers are scarce, so the rental price is also high. If the workers do
it themselves, it will be more convenient.
“This
year’s pepper yield is not as good as last year’s, and it is difficult
to find workers because everyone is working for the company. Luckily, my
family’s pepper garden has 4 workers to pick pepper and will be
harvested by the end of this month. This year’s yield is not as good as
last year’s, and the price is higher than last year’s. If the garden
owner joins in the harvest, it will be more favorable,” Mr. Tuyen told
VOV.
At
the end of the most recent trading session, the International Pepper
Community (IPC) listed the price of Lampung black pepper (Indonesia) at
6,680 USD/ton, up 0.18%; the price of Brazilian black pepper ASTA 570 at
6,400 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at
8,500 USD/ton.
Muntok white pepper price is 9,144 USD/ton, down 0.17%; Malaysian ASTA white pepper price is at 11,000 USD/ton.
Vietnam
black pepper price is traded at 6,500 USD/ton for 500 g/l; 550 g/l at
6,800 USD/ton; white pepper price is at 9,500 USD/ton. IPC increases
Indonesian pepper price again.
After a period of hardship due to the tragic drop in pepper prices, mass pepper deaths, and the consequence of Gia Lai farmers bearing a thousand billion bank debt, many people have now returned to pepper cultivation.
Pepper plants in Gia Lai have helped farmers' lives
improve, leading to many prosperous residential areas. In particular,
the two districts of Chu Se and Chu Puh are known as the "Kingdom of
Pepper" because of their suitable climate and soil, so pepper grown here
has the highest yield in the country, about 3 - 6 tons/ha.
In
the years 2010 - 2012 and the peak of 2014 - 2015, pepper prices peaked
at 200,000 - 250,000 VND/kg and were considered "black gold". The Chu
Se pepper brand was born, becoming a major brand of Gia Lai when it was
present in over 80 countries and territories.
Mr.
Hoang Phuoc Binh, Permanent Vice President of Chu Se Pepper
Association, recalled: “After the pepper harvest, farmers have billions
of dong, can afford to build houses, buy expensive furniture. Pepper
billionaires driving cars to visit the gardens is a daily occurrence
here.”
That
is why people rushed to grow pepper. The whirlwind of pepper
development in Gia Lai increased rapidly, beyond the recommendations of
the authorities on the process of selecting varieties, planting, and
caring. According to the plan, by 2015, the pepper area of Gia Lai was
6,000 hectares and would remain the same until 2020, but statistics by
mid-2017 showed that the pepper area in Gia Lai had reached 18,000
hectares, behind Dak Nong with 30,000 hectares and Dak Lak with 25,000
hectares.
The
immediate billion-dollar profit has caused many farmers to rush to buy
land and switch to growing pepper. Not only that, pepper varieties are
bought in a floating market, techniques vary from person to person, and
chemical fertilizers and pesticides are poured into the garden with the
ambition of making pepper grow quickly and achieve the highest yield.
But
the consequences of rapid growth came quickly. Pepper was infected with
an incurable disease. There were hectares of pepper gardens that were
left with only bare stalks after only half a month of disease. Along
with the drought and heavy rains during the period of 2015 - 2019, many
large pepper growing areas in Gia Lai were in dire straits. From about
18,000 hectares, Gia Lai's pepper area was reduced by more than half. By
2020, pepper prices had dropped to a record low, only 36,000 - 40,000
VND/kg.
There was a time when pepper poles were sold by people at cheap prices.
PHOTO: TRAN HIEU
Households
mortgaged their land and houses to borrow money from banks, hoping to
change their lives from “black gold” and eventually suffered the
consequences. Each wooden pole used to grow pepper, which at its peak
cost 80,000 – 140,000 VND, was uprooted by farmers and sold for a cheap
price of 15,000 – 20,000 VND. Sadness spread quickly in the “Pepper
Kingdom” like a nightmare. The once luxurious villas became deserted
because many owners had to leave their homeland to work far away,
working hard to earn money to pay off bank loans.
Mr.
Hoang Phuoc Binh sighed: "No development can go on forever, it must
have a period of stagnation and problems arising like a sine wave graph.
Pepper is the same!"
Pepper reconstruction
Since
the beginning of 2024, pepper prices have increased again. If at the
end of May, pepper prices fluctuated between 115 and 117 million
VND/ton, by October 22, domestic pepper prices increased by 500,000 to 1
million VND/ton in key growing areas, ranging from 144 to 145 million
VND/ton. According to experts, this sudden increase only occurred in one
day because export enterprises lacked export goods in signed contracts,
so there was a phenomenon of massive hoarding.
The
International Pepper Community (IPC) reported that the export price of
Vietnamese black pepper is listed at 6,500 - 6,800 USD/ton, while white
pepper fluctuates around 9,500 USD/ton. Pepper exports are positive,
bringing pepper back to Vietnam's billion-dollar commodity. The Vietnam
Pepper and Spice Association (VPSA) said that from the beginning of the
year to October 15, Vietnam exported nearly 210 tons of pepper, worth
1.05 billion USD (down 1.9% in volume but up 47% in value compared to
the same period in 2023).
With
prices rising again, many farmers in Gia Lai have begun to explore and
replant pepper trees. However, the old pain still haunts them, so they
are currently only planting sparingly or replanting on old pepper trees
interspersed in coffee gardens.
Rebuilding pepper after the disaster
Photo: TRAN HIEU
Mr.
Hoang Phuoc Binh said: “The increase in pepper prices is an opportunity
to revive this high-value crop in the coming time. We regularly
propagate and encourage people to be careful in choosing varieties when
planting new crops and thoroughly apply scientific intensive farming
measures to avoid risks. We also connect with purchasing enterprises and
fertilizer suppliers to cooperate with people to build demonstration
models of organic and clean pepper production for people to learn and
apply to improve economic efficiency. This is a long-term direction,
suitable for export market demand.”
The
plan of Gia Lai Provincial People's Committee is to develop and
maintain a stable pepper area of about 10,000 hectares by 2030,
promote the development of pepper production in an organic direction,
applying high technology...
Mr.
Tran Minh Trieu, Vice Chairman of the People's Committee of Chu Se
District, said that the pepper growing area recorded at the end of July
2024 in the whole district was 1,132 hectares, a slight increase
compared to a few years ago. The fact that people are returning to
develop pepper growing areas in the district is a good sign, because
this is one of the crops with high economic value, suitable for the
local climate and soil conditions.
“We
recommend that people should not plant new trees en masse, and should
consult experts to ensure that the garden grows safely, stably, and
avoids disease,” said Mr. Trieu.
Pepper price today,
October 27, fluctuated at 145,000 - 146,000 VND/kg, overall over the
past week the domestic market still increased by 1,000 - 1,500 VND.
In the world market
Updated
from the International Pepper Community (IPC), in the most recent
trading session, the price of Indonesian Lampung black pepper was listed
at 6,724 USD/ton, down a total of 1.03% over the past week.
Similarly, Kuching Malaysia black pepper prices decreased by 2.3% to USD 8,500/ton.
Meanwhile, Brazilian black pepper ASTA 570 remained flat last week at $6,400/ton.
Vietnam's 500 g/l and 550 g/l black pepper for export is offered at USD 6,500 - 6,800/ton.
Update pepper information
By
the end of the third quarter, pepper exports from Vietnam and Brazil –
the world’s two leading producing countries – recorded a decrease of
2.8% and 15.3% respectively compared to the same period last year, down
to 200,268 tons and 49,366 tons.
In
addition to the reduction in output due to unfavorable weather, pepper
exports from Vietnam and Brazil are also affected by mixed fluctuations
in demand from major consumer markets.
For
example, in Vietnam, in the first 9 months of this year, Vietnam's
pepper exports to most markets recorded a sharp increase, but China -
the largest consumer market last year - decreased sharply by 84.1%,
reaching only 8,905 tons.
So
far, Chinese demand has been weak, with the country buying only a
limited amount of pepper. Some traders say the slowing growth of the
Chinese economy could be the reason for this.
However,
the high pepper prices since late last year have helped Vietnam and
Brazil achieve their best export turnover in many years, while also
encouraging farmers to invest in maintaining and expanding their pepper
farms.
On
average, in the first 9 months of the year, Brazil's pepper export
price reached 4,182 USD/ton, up 36.7% over the same period. The average
pepper export price increased 49.2% over the same period, to 4,942
USD/ton.
In
addition, the decline in export output from Vietnam and Brazil is being
offset by strong increases in some other countries, especially
Indonesia and India. The aggregated data shows that, by the end of
August, Indonesia's pepper export volume increased by 58.6% while
India's increased by 36.8%.
New market, pepper price today
(October 24) fluctuates between 146,000 - 147,000 VND/kg. In contrast
to the domestic market in Vietnam, pepper prices in Indonesia and India
have turned to decrease.
In the world market
Updated
from the International Pepper Community (IPC), in the most recent
trading session, the price of Indonesian Lampung black pepper was listed
at 6,727 USD/ton, continuing to decrease by 26 USD/ton compared to the
previous trading session.
Meanwhile,
pepper prices in other countries remained stable. Brazilian black
pepper ASTA 570 was traded at $6,400/ton, while Malaysian Kuching black
pepper was priced at $8,700/ton.
Vietnam's 500 g/l and 550 g/l black pepper exports are priced at around 6,500 - 6,800 USD/ton.
Update pepper information
In
India, pepper farmers are hoping for a quick recovery in prices after
falling by around Rs 19 per kg in the last fortnight. Last week alone,
domestic pepper prices in India fell by Rs 11 per kg, bringing the total
fall in the last five weeks to around Rs 34 per kg.
The farmers attributed the fall in prices to large imports
from Sri Lanka under the South Asian Free Trade Agreement (SAFTA) with
a duty of 8%. Currently, the price of ungraded pepper in the Kochi
wholesale market is Rs 627 per kg, while graded pepper is Rs 647 per kg.
Kishore
Shamji, a Kochi-based pepper trader and director of the Indian Pepper
and Spices Trade Association (IPSTA), said that almost all the markets
were flooded with Sri Lankan pepper. This situation has put additional
pressure on domestically grown pepper, leading to a fall in prices and
forcing farmers in the southern pepper-growing states to sell off their
stocks.
Even farmer unions that had earlier predicted a recovery in prices are trying to liquidate their stocks, said Kishore Shamji.
Citing
figures, Mr. Kishore Shamji said the total pepper imported from Sri
Lanka in the third quarter accounted for 10,433 tonnes out of the total
12,606 tonnes imported into India.
Mr
Shamji said Sri Lanka's pepper production has crossed 25,000 tonnes and
they are aiming to sell the surplus to India, where there is huge
domestic demand.
However,
he said imported pepper has lower bulk density, higher moisture content
and the presence of mold, contributing to the decline in domestic
pepper prices.
The
Kerala chapter of the Indian Pepper and Spices Manufacturers
Association has urged the government to curb imports, as this is
severely affecting the interests of domestic farmers.
The
association also alleged that loopholes in import policies are allowing
imported pepper, meant for re-export, to enter the domestic market.
Mr.
Shamji also added that the Directorate General of Foreign Trade (DGFT)
allowing the retention of imported pepper for six months before
re-export is a major shortcoming in the import -export policy for a sensitive commodity like pepper, according to Thehindubusinessline .
Currently,
pepper gardens in Ba Ria - Vung Tau are in the fruit growing stage to
prepare for the harvest around mid-January 2025.
However,
due to the impact of unfavorable weather, pepper flowers fell off,
resulting in low fruit set rates and a high risk of crop failure. Many
farmers are worried because pepper prices are currently high, around
150,000 VND/kg, so profits will decrease sharply.
At
this time, pepper gardens are in the fruit-bearing period. Looking at
the percentage of pepper trees bearing fruit, it can be seen that this
year's pepper crop yield will decrease sharply. In Xuyen Moc district,
many pepper gardens have lush, green leaves, but the fruit-bearing rate
is very sparse. Mr. Tran Van Phap in Hamlet 1, Hoa Hung Commune, Xuyen
Moc District, has a pepper garden of 1.1 hectares, sharing that if last
year his family's pepper garden yielded more than 5 tons, this year the
fruit-bearing rate is only about 50% of last year's yield.
According
to Mr. Phap, when people were preparing the trees to flower, the
weather was harsh and prolonged, and drought caused the trees to stop
sprouting and not flower. The trees that did flower fell off in large
numbers, causing the fruit set rate on the trees to be very low.
The
3-hectare pepper garden of Mr. Hoang Van Quan's family in Hoa Hiep
commune is in a similar situation. Despite being invested in quite
systematically and grown organically, the family's pepper yield this
season has still decreased sharply due to the adverse effects of the
weather. The expected yield is only about 6 tons of fruit, equal to 50%
of last year's output.
Meanwhile, pepper prices are high
, so the crop failure is a big regret for farmers. After many years of
falling pepper prices, pepper gardens have been neglected and not
invested in. Now, when pepper prices are high, growers are focusing on
taking care of them, but they are facing unfavorable weather and crop
failure - Mr. Quan regretfully shared.
In
Chau Duc district, the province’s largest pepper growing area, many
farmers are facing a similar situation. Mr. Ho Van Thu’s nearly
2-hectare pepper garden, residing in Binh Gia commune, Chau Duc
district, also saw a decrease in productivity due to the weather. It is
estimated that this pepper crop from Mr. Thu’s garden will yield only
2.5 tons instead of 5 tons like the previous crop.
Mr. Thu said that pepper
is a sensitive plant, as unpredictable as the weather, and crop
failures often occur. This year's yield is expected to decrease by more
than 50%. Mr. Thu said the reason is due to the erratic changes in the
weather. This year the rainy season came late, the weather is dry, hot,
and the humidity is low, which is not favorable for pepper to bloom.
According
to statistics from the Department of Agriculture and Rural Development,
the pepper growing area of the province is currently about 10,500
hectares. Although pepper prices have started to increase again since
the 2023 crop year, farmers have focused on investing in and caring for
pepper plants, but due to the impact of the weather, it is forecasted
that this year's pepper crop will have a sharp decrease in output
compared to last year.
Currently,
pepper growers in the area are focusing on taking care of their plants
to prepare for the new harvest. Given the current fluctuations in the
pepper market, the local agricultural sector recommends that people
focus on taking care of healthy and suitable pepper gardens to stabilize
production. Areas of infected and dead pepper plants should not be
replanted, but should be switched to other suitable crops.
At
the same time, growers need to grasp the market in time to have
appropriate investment levels. At the same time, continue to care for
and prevent pests and diseases to ensure sustainable development of
pepper plants in the following crops. At the same time, people focus on
participating in chains linked with businesses to produce clean,
high-quality products that can be exported to demanding markets,
increasing the value of Ba Ria - Vung Tau pepper.
Pepper
prices today, October 22, range from 143,500 to 145,000 VND/kg. At the
end of October 2023, coffee prices fluctuated around 60,000 VND/kg;
pepper was at 70,000 VND/kg. After one year, both agricultural products
doubled.
At
the end of October 2023, coffee prices fluctuated around 60,000 VND/kg;
pepper was at 70,000 VND/kg. After one year, both agricultural products
doubled.
As
of mid-October 2024, Vietnam's pepper exports officially exceeded 1
billion USD. The Import-Export Department (Ministry of Industry and
Trade) forecasts that world pepper prices will remain high in the short
term due to limited supply. However, high prices limit demand for this
commodity, causing people to tighten spending. In particular, weak
demand from the Chinese market continues to be the reason for
restraining the growth of pepper.
However,
in the long term, pepper export prices will still be supported, because
Vietnam's output of this commodity in the 2025 crop is not expected to
increase. The 2025 pepper crop in Vietnam will be harvested almost
entirely in February, with some regions extending to March and April,
1-2 months later than previous years due to the impact of prolonged
drought...
At
the end of the most recent trading session, the International Pepper
Community (IPC) listed the price of Lampung black pepper (Indonesia) at
6,795 USD/ton, up 0.01%; the price of Brazilian black pepper ASTA 570 at
6,400 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at
8,700 USD/ton.
Muntok white pepper price is 9,302 USD/ton; Malaysian ASTA white pepper price is at 11,200 USD/ton.
Vietnam's
black pepper price is trading at 6,500 USD/ton for 500 g/l; 550 g/l at
6,800 USD/ton; white pepper price at 9,500 USD/ton. IPC kept pepper
prices stable in other countries in the first trading session of the
week.
From
October 19 to 23, 2024, the Vietnam Pepper and Spice Association will
participate in the Sial Paris 2024 International Food Fair - one of the
leading events of the food industry worldwide. This is a great
opportunity to promote Vietnam's diverse pepper and spice products and
agricultural products to buyers and industry experts from all over the
world.
The Association's general booth has 8 participating enterprises displaying high-quality Vietnamese products including:
– Tran Chau Group Joint Stock Company
– Phuc Thinh Import Export Investment Joint Stock Company
– Dong Duong Dragon Import Export Company Limited
– Jayanti Company Limited
– Nguyen Hau Joint Stock Company
– Dung Nhi Thanh Joint Stock Company
– Minh Phong Import Export Joint Stock Company
– Sapo Dak Lak Joint Stock Company.
The
main products on display include: Pepper, Cinnamon, Star Anise, along
with a number of other spices. In addition, the delegation also
introduced a number of other agricultural products such as rice, fruits,
shrimp crackers, demonstrating the richness and diversity of Vietnam's
agricultural sector.
We would like to invite our customers and partners to visit the Association's booth at Hall 4 - J183 to discover the unique flavors and high quality products that Vietnam has to offer.
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