On February 23, 2025, the domestic pepper market saw slight increases, following previous fluctuations, as well as updates on international pricing trends highlighting the current dynamics affecting producers and consumers alike.
According to the Vietnam Pepper and Spice Association (VPSA), on this date, the average purchase price for peppers across major regions rose approximately 1,000 VND per kilogram. Specifically, prices for peppers were recorded at 160,800 VND/kg, with regions such as Gia Lai reporting similar increases, from 159,000 VND/kg to 160,000 VND/kg. The same surge was noted for Dak Lak and Binh Phuoc provinces.
This price uptick has been attributed to stable demands consistent across local markets, as many regions maintain well-established purchasing levels. Reports from VPSA affirm, “Pepper prices show slight increases, reflecting stable demand and high levels of buyer interest.”
Internationally, the International Pepper Community (IPC) reported significant price variations as well, with Malaysia and Indonesia maintaining elevated prices after recent surges. Particularly, the price of Indonesian Lampung black pepper has reached $7,287 per ton, and Malaysian black pepper is now quoted at $9,500 per ton.
Despite the apparent increase, the Vietnamese pepper industry faces underlying challenges. Experts warn of risks posed by declining cultivation areas, noting, “Despite recent price increases, the reduction in cultivation area poses risks for sustainable production.” Many farmers have shifted from pepper to more lucrative crops like coffee and durian due to past issues such as crop diseases impacting pepper yields.
Farmers’ adaptability remains under scrutiny as the assessment of long-term strategies is necessary to sustain production without jeopardizing quality. Current agricultural statistics indicate Gia Lai province maintains nearly 7,500 hectares of pepper farms with average yields of 3.5 tons per hectare, signaling potential for improvement.
Yet, as price trends fluctuate, experts continue to stress the need for enhancing farming practices, arguing, “Farmers should diversify methods to include organic practices and improve pest management.”
Looking forward, the global pepper market is expected to maintain its positive outlook, albeit with cautions about climate variations affecting production capabilities worldwide. Indications are strong for steady price increases, largely influenced by increased export demands against the backdrop of shrinking global supply.
While Vietnam has successfully exported 7,535 tons worth approximately $51.5 million since the beginning of February, recovery patterns evidenced by the Chinese market's slow rebound continue to hinder full market potential.
For now, Vietnamese farmers find some relief as the price rises could improve their incomes. Still, the historical trend of reduced cultivation areas over the past decade means without adequate counter-measures, these gains could be fleeting. The future of the rice and spice industries may hinge on finding the correct balance between sustaining quality production and adapting to market conditions, as the country potentially approaches its major harvest season with increased demands on the horizon.