Pepper prices rising in Vietnam

Pepper prices rose in the central highlands and southern Vietnam 3.6% to VND86,000 ($3.50) per kilogram on Monday as sinking supply fuels higher demand, according to the Vietnam Pepper Association.

Climbing prices were recorded in the central highlands provinces of Dak Lak and Dak Nong, as well as the southern provinces of Ba Ria – Vung Tau and Binh Phuoc, near Ho Chi Minh City.

The association has reported that Vietnam’s pepper production is set to fall 10-15% to 160,000-165,000 tons this year.

Prices are therefore expected to rise even further to around VND100,000.

Indonesian black pepper prices are now around $3,906 per ton, while Malaysia’s Kuching ASTA price is at $4,900.

Global demand is set to fall this year due to geopolitical tensions, experts have predicted.

The Vietnam Pepper Association targets a pepper and spice exports of around $2 billion next year, equivalent to about 400,000-500,000 tons.

Last year the country exported 267,000 tons of spices worth $912 million, up 16.6% in volume, but down 6% in value.