Pepper Prices in July: Reach the Highest in the Past 10 Years

[Update July 10th, 2024] Pepper prices in the Vietnam market increased for the 4th consecutive day. It reaches the highest price range in 10 years. Notably, many farmer households are still limiting pepper sales with the expectation that prices will increase further. This post updates the pepper prices in Vietnam and the International market in July 2024. Also, give the experts predictions about the price in the future.

1. Pepper prices in Vietnam market in July

Pepper prices (July 10th) in all key growing areas increased for the 4th consecutive day with 2,000 VND/kg (0,079 USD). Thereby, bringing the average price of pepper to around 153,000 VND/kg (6.02 USD) on par with the end of last June.

Specifically, in the Central Highlands region. 

• The price in Dak Lak increased by 2000 VND/kg (0,079 USD), reaching 154,000 VND/kg (6,06 USD).
• Pepper price in Gia Lai increased by 2,000 VND/kg (0,079 USD), reaching 153,000 VND/kg (6.02 USD).
• Today’s pepper price in Dak Nong increased by 2,000 VND/kg (0,079 USD), reaching 154,000 VND/kg (6.06 USD).

In the Southeast region.

• Pepper prices today in Ba Ria – Vung Tau and Dong Nai both increased by 2,000 VND/kg (0,079 USD), reaching 153,000 VND/kg (6.02 USD).
• Pepper price in Binh Phuoc increased by 2,000 VND/kg, reaching 154,000 VND/kg (6.06 USD).

From the beginning of 2024 Vietnamese pepper prices have been on the rise, especially in the first half of June. When the price increased “hot”, reaching a peak of 180,000 VND/kg (7.08 USD) on June 12, many people expected pepper to increase.

However, after reaching the peak, the prices have decreased and changed continuously. It fluctuates around 150,000 – 160,000 VND/kg (5.9 – 6.29 USD) but is still a record high in the past 10 years. High pepper prices make farmers excited and feel more secure in taking care of their pepper gardens. In particular, with the current high price increase, pepper has become a “potential product” and farmers are not in a hurry to sell it.

2. Pepper price in the world market

On the world market, based on quotes from export businesses and export prices in other countries, the International Pepper Association (IPC) updated pepper prices for all types of transactions on the international market on July 9th (local time) as follows:

• Indonesia’s Lampung black pepper price decreased slightly by 0.1%, reaching 7,155 USD/ton; Muntok white pepper price also decreased by 0.1%, reaching 9,110 USD/ton.
• Brazil’s ASTA 570 black pepper price continued to decrease for the second consecutive day, down 0.35% to 7,150 USD/ton.
• Malaysia’s ASTA black pepper price remained stable at 7,500 USD/ton; The country’s ASTA white pepper price was also maintained at 8,800 USD/ton.
• Vietnam’s pepper prices of all kinds are also kept stable. In particular, the price of Vietnamese black pepper type 500 gr/l reached 6,000 USD/ton; type 550 gr/l reached 6,600 USD/ton.
• Similarly, Vietnam’s white pepper price was stable at 8,800 USD/ton.

3. Prediction for the prices

Many farmers say that even though prices have gone up, growers have not benefited. There are only half of these areas used for growing peppers. For this reason, pepper is so expensive right now, even though farmers don’t have much to sell. However, pepper productivity has dropped significantly in recent years, on average by 20–30%, as a result of climate change. In light of this, pepper stockpiles from significant consumer markets like the US, China, and the Middle East have also drastically dropped.

Experts predict that pepper prices will keep rising. Short-term adjustments might occur, but they won’t be that noticeable. Farmers still find pepper too expensive to sell at the current price. Due to the extremely favorable prices for durian and coffee, farmers can save pepper. To test the market, they still decide to sell “drip” even in this day and age when prices are rising.

The demand for pepper is predicted by VSPA to reach 529,000 tons globally in 2024, surpassing production by 64,000 tons. Many industry experts predict that pepper prices will soon surpass the peak of the previous price cycle due to the current scarcity of pepper supply.

Havigo Company Limited operates in the field of agricultural export. We wish to bring high-quality Vietnamese agricultural products such as spices, rice, beans, and fruits… to the world. We supply you with high-quality products at the best price. If you find interest in importing Peppercorns from Vietnam, please contact us for better support via WhatsApp: +84 979 58 58 56.