The average pepper export price between January and April of 2024 was US$4,214 per tonne, a notable rise of 36.4%.

April alone saw the country ship abroad 27,000 tonnes of black pepper, earning approximately US$117 million, just up 2.2% in volume, but up to 40.4% in value against the same month last year. 

Notably, Pakistan, Germany, the Republic of Korea, and India recorded triple-digit growth rates among markets witnessing greater imports of black pepper.

Though Vietnam’s black pepper accounts for 40% of global export output and holds a 60% market share worldwide, its prices remain low among the exporting countries.

Statistics show Vietnamese black pepper prices range from US$4,200 to US$4,300 per tonne, lower than similar products from Brazil (US$4,900), Indonesia (US$4,703), or Malaysia (US$4,700). Likewise, white pepper from Vietnam is priced at US$6,000 per tonne, which is still less than that of comparable items from Malaysia and Indonesia.

The impact of the climate phenomenon El Niño has reduced the supply from the two leading pepper producers - Brazil and Vietnam, thus fueling the product price and leading to a new cycle of price hikes for black pepper, said Hoang Thi Lien, chairwoman of the Vietnam Pepper Association.

Domestic pepper prices have consequently surged by 44.7% compared to April last year, rising from VND67,000 per kilo to VND97,000 per kilo.

However, the domestic pepper industry is facing challenges, including product quality improvement, that need to be addressed to satisfy demanding markets such as the US and EU. In addition, the cultivation area is being downsized, leading to an output decline. Without proper business strategies to be introduced, Vietnam will lose out to Brazil, a major export rival in the coming years.

Source: VOV