According to the Import-Export Department (Ministry of Industry and Trade), world pepper prices in May continued to increase. At Lampung ASTA port of Indonesia, on May 28, the price of black pepper for export increased by USD 400/ton compared to the end of April, to USD 5,111/ton.

In Brazil, on May 28, the export price of black pepper increased by USD 350/ton compared to April 29, to USD 5,000/ton.

At the Ho Chi Minh City port area, on May 28, the price of black pepper 500g/l and 550g/l for export increased by USD 600/ton and USD 700/ton respectively compared to the end of April, to USD 4,800/ton and USD 5,000/ton.

The Import-Export Department predicts that pepper prices will continue to increase in the near future, but the growth rate will slow down. There is currently a shortage of pepper supply while demand has recovered strongly from major markets such as Europe, the US and China. This year's pepper output in Vietnam and many major producing countries is forecast to decline, due to the impact of the El Nino and the decline in cultivated area.

Pepper consumption also continues to grow. According to estimates by the Import-Export Department, in May, Vietnam exported 30 thousand tons of pepper, worth USD 135 million, an increase of 3.7% in volume and an increase of 49.9% in value compared to May 2023. In the first five months of 2024, Vietnam's pepper exports are estimated to reach 113 thousand tons, worth USD 487 million, a decrease of 14.1% in volume, but an increase of 19.7% in value compared to the same period last year.

According to Vietnam Pepper and Spice Association, the US continues to be Vietnam's largest pepper export market with 30,466 tons, accounting for 26.6% and an increase of 44.4% over the same period. Germany became Vietnam's second largest export market with 7,532 tons, accounting for 6.6% and an increase of 103%.

The Vietnam Pepper and Spice Association forecasts that this year's output is expected to decrease by 10% to about 170,000 tons compared to last year, the lowest level in the last 5 years.

Olam Vietnam continues to be the leading export enterprise in the first 5 months of 2024 with 10,762 tons, accounting for 9.4% and an increase of 56.7% over the same period.

A number of businesses had a sudden increase in export volume, such as Sinh Loc Phat, with an increase of 171.6%; Simexco Dak Lak (151%); Hanfimex (112.5%); Intimex Group increased (83%).

Kylie Nguyen