On 7th August, the price of pepper ranged between 71,000 to 74,500 VND/kg. The domestic market experienced a continuous increase for six days before stabilizing. Last week, local pepper prices rose by 3,500 to 4,000 VND/kg. However, global pepper prices showed mixed reactions, with only Indonesian white pepper experiencing a decrease.

In various regions, the prices for pepper are reported as follows:

- Dak Lak and Dak Nong provinces: 72,000 VND/kg

- Gia Lai province: 71,000 VND/kg

- Dong Nai province: 71,500 VND/kg

- Ba Ria - Vung Tau province: 74,500 VND/kg

- Binh Phuoc province: 73,500 VND/kg

Currently, pepper prices remain stable across localities compared to the previous day. The domestic market witnessed a six-day continuous increase before leveling off last week.

Internationally, the International Pepper Community noted that pepper markets showed contrasting reactions, with only Indonesian white pepper experiencing a decrease. The past week saw a recovery in the USD, which negatively affected commodity prices, including export prices in Indonesia.

Despite global financial and monetary policy changes, the pepper market was less impacted than other markets. Supply and demand remained key factors influencing pepper prices in various countries.

Presently, although the supply of pepper is being supplemented by countries like Indonesia, Brazil, and Malaysia due to their harvests in Q3 2023, there is still a lingering concern of supply shortage. The decrease in production is attributed to unusual weather conditions and reduced cultivation areas due to low profits.

It is predicted that global pepper production in 2023 will continue to decrease by about 1% compared to 2022, reaching approximately 531,000 tons. In reality, many pepper farmers in major producing countries like Vietnam, Brazil, and Indonesia are gradually shifting to grow other higher-value crops. Consequently, the forecast for global pepper production continues to decline.

Recent prolonged floods have affected pepper-growing regions in the Central Highlands of Vietnam. In response to continuous land subsidence, the Prime Minister urgently ordered relevant ministries and departments to ensure the safety of residents, dam safety, landslide prevention, and soil subsidence management, especially in Lam Dong and Dak Nong provinces. In reality, many pepper gardens have been submerged, posing concerns about decreased yields for the next harvest season. Experts predict that due to the aforementioned factors, pepper prices will continue to show positive trends this week.

However, it is unlikely to witness another six-day consecutive price increase like the one at the beginning of August 2023. Market resistance is expected, along with the introduction of new supplies from Indonesia and Brazil. While not seeing a sharp rise, it is anticipated that domestic pepper prices will reach the target of 75,000 VND/kg.

According to: Kinhtedothi