Vietnam is expected to export over $1 billion worth of pepper in 2024, driven by strong global demand and constrained supply, according to the Vietnam Pepper and Spice Association (VPSA). The pepper sector is set to rejoin the “billion-dollar” club, with export revenues reaching $764.2 million as of July 30. During this period, over 164,300 tonnes of pepper were sold internationally, with average export prices of $4,568 per tonne for black pepper and $6,195 per tonne for white pepper, marking increases of 32.7% and 25% year-on-year, respectively. The United States was the top buyer, followed by Germany, the United Arab Emirates (UAE), and India.
Global pepper prices have surged due to crop failures in Brazil, the world’s second-largest producer and exporter, and reduced production forecasts in Vietnam, Malaysia, and Indonesia as a result of El Niño effects. Domestic pepper prices in Vietnam reached VND 150,000 (over $6) per kilogram in July, up 82.9% from January and 120.6% from the previous year. The VPSA anticipates price fluctuations due to ongoing market challenges.
A recent VPSA survey in July revealed that farmers in key pepper-growing regions are shifting to durian and coffee production, which offer higher returns. In response, pepper cultivation in major areas such as Gia Lai, Dak Lak, Dak Nong, Binh Phuoc, Dong Nai, and Ba Ria–Vung Tau has been reduced by 50% compared to peak levels.
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