HCMC – Domestic pepper prices in Vietnam in July shot up by 82.9% against January and 128.6% over the same period last year to VND150,000 per kilogram, according to the Vietnam Pepper and Spice Association (VPSA).
Black pepper prices in the first seven months of this year soared by 66.5% compared to the same period last year.
Export prices followed the same trajectory, with black pepper reaching US$5,000 per ton in June, up by nearly 32% from US$3,900 per ton in January. In the first half of the year, export prices increased by more than 17% compared to the same period last year.
The VPSA attributed the sharp price increase to lower output in Vietnam and Brazil, which resulted in a supply shortfall. Climate change has caused flooding, pest outbreaks, and lower yields, negatively impacting pepper productivity.
Rising shipping costs and port congestion in Asia, particularly in Singapore and Malaysia, are also affecting prices and causing shipping delays. Analysts predicted these port bottlenecks could persist in the foreseeable future, with freight rates having increased fivefold since the start of the year.
Production in other major pepper-producing countries like Brazil and Indonesia is expected to decline this year, further tightening global supply. The VPSA anticipates continued price volatility in the pepper market in the rest of this year. Businesses and farmers are advised to prepare for these new conditions.
