According to the Import-Export Department (Ministry of Industry and Trade), it is forecast that in 2022, world pepper prices will continue to be supported due to scarce supply due to crop failure in the main producing countries.

According to the International Pepper Community (IPC), Brazil is currently the only country with an increase in supply due to the harvest in the north of the country, while other countries are in short supply.

News about the new crop of Vietnam is not very positive, customers may switch to buying more Brazilian pepper due to better freight rates.

Meanwhile, demand for pepper in India improves as the economy reopens after a long period of being impacted by the COVID-19 pandemic.

The price of pepper has increased sharply in recent times, leading to farmers and agents in primary markets keeping their goods from selling in the hope that the price will increase further. As a result, the supply in the market has been affected.

According to Mr. Do Ha Nam, former Chairman of the Vietnam Pepper Association, the pepper price in 2022 would reach VND 100,000/kg from the current VND 80,000.

"Although it is difficult for pepper to return to its golden age in 2016 at 200,000 VND/kg because other countries are preparing to increase supply, it is expected that it can reach 150,000 VND/kg.

As long as Vietnam does not sell, pepper prices will increase. I know there are farmers who can store pepper for 3 years, not needing to sell it right after harvesting like many other agricultural products, which is a factor for pepper prices to increase," said Mr. Nam.

Kylie Nguyen