Pepper Prices Stabilize Amid Market Tensions and Increased Hoarding by Growers

As of May 27, 2024, global pepper prices have remained stable, with no fluctuations observed across key producing countries including Indonesia, Malaysia, Brazil, and Vietnam. The domestic pepper market in Vietnam is also experiencing steady prices, ranging from 119,000 to 120,000 VND/kg. This stability is largely attributed to the effective price support from other agricultural products like durian and coffee, leading to significant pepper hoarding by growers.

Stable Pepper Prices Amidst Agricultural Support

In Vietnam, the pepper prices are anchored around 119,000 - 120,000 VND/kg. This follows a sharp increase last week where prices surged by 9,000 VND/kg. The steady domestic prices are primarily due to the support from other agricultural commodities such as durian and coffee, which have encouraged growers to hoard their pepper produce. This hoarding has resulted in challenges for businesses in terms of pepper purchasing and signing new contracts, as consumers have not yet adjusted to the increased prices.

Global Pepper Market Overview

On the global stage, pepper prices as of May 27 have shown no new fluctuations. Key prices are as follows:

World pepper prices today remain stable. Last week, the pepper market grew well with no country reporting a decrease.

Thus, world pepper prices on May 27, 2024 continue to move sideways compared to yesterday.

Pepper prices May 27 in Vietnam

Domestically, the pepper market on May 27 remained stable compared to yesterday.

Specifically, Dak Lak purchases pepper at a price of 119,000 VND/kg;

Dak Nong pepper price today continues to trade at 119,500 VND/kg;

Gia Lai pepper price today is anchored at 119,000 VND/kg;

Dong Nai traders still buy pepper at a price of 119,000 VND/kg;

The latest pepper price in Ba Ria - Vung Tau is 120,000 VND/kg;

Binh Phuoc traders continue to trade pepper at 119,000 VND/kg.

Latest domestic pepper price list dated May 27, 2024. Unit: VND/kg

Despite last week's sharp increase, the domestic pepper market remains stable, with the highest price recorded at 120,000 VND/kg. This price stability is due to the growers' strategic decision to hoard pepper, bolstered by higher income from other crops like durian and coffee.

Challenges in Pepper Purchasing and Export

The hoarding behavior among pepper growers has led to significant challenges for businesses involved in pepper purchasing and exporting. As a representative from a pepper purchasing and exporting business noted, many growers are not selling their produce massively as in previous years, due to the higher prices of durian and coffee. This has resulted in a reluctance to sell pepper, causing difficulties for businesses to purchase sufficient quantities and hesitance in signing new contracts.

Ms. Hoang Thi Lien, President of the Vietnam Pepper Association (VPSA), commented on the situation, saying, "The current price increase is very beneficial for farmers but poses significant challenges for businesses in terms of purchasing goods. Consumers around the world have not yet accepted the rapid price increase, leading to market tensions and high risks for export businesses."

Conclusion

As of May 27, 2024, the pepper market remains stable globally and domestically, with prices anchored around 119,000 - 120,000 VND/kg in Vietnam. The price support from other agricultural products like durian and coffee has led to increased hoarding by growers, posing challenges for businesses in purchasing and exporting pepper. As the market navigates these tensions, the focus remains on balancing supply and demand while managing the risks associated with rapid price changes.

For more detailed updates on pepper prices and market trends, visit MOMEX.