Việt Nam pepper price surges to decade high

Việt Nam pepper price surges to decade high

Pepper prices are currently fluctuating between VNĐ159,000 and VNĐ161,000 per kilo, marking the highest levels in nearly a decade.

A farmer in Đắk Nông Province harvests pepper. Pepper prices are currently fluctuating between VNĐ159,000 and VNĐ161,000 per kilo. — VNA/VNS Photo

 Việt Nam's pepper price has surged to around VNĐ160,000 per kilo in the Central Highlands and Southeast regions even though it is the pepper harvest season, according to the Việt Nam Pepper and Spice Association. 

Pepper prices are currently fluctuating between VNĐ159,000 and VNĐ161,000 per kilo, marking the highest levels in nearly a decade. 

Meanwhile, export prices of Vietnamese pepper products are hovering between US$7,000 and $7,200 per tonne, depending on the type of pepper. 

The global market's demand for pepper is robust, with forecasts indicating a reduction in global pepper production in 2025, primarily due to shrinking cultivation areas in Việt Nam and adverse weather conditions in India.

Việt Nam’s pepper output for the 2024-2025 crop year is predicted to reach 172,000 tonnes, representing a 2 per cent year-on-year decrease and a significant 47 per cent drop compared to previous years. However while global demand for pepper remains strong,  this could lead to further increases in prices.

In the first two months of 2025, Việt Nam exported 27,416 tonnes of pepper, generating a turnover of $184.9 million. Although the export volume decreased by 11.9 per cent compared to the same period in 2024, the export turnover increased by an impressive 48.1 per cent. 

This indicates that the export value of Vietnamese pepper continues to remain high, driven by a strong average export price of $6,648 per tonne for black pepper and $8,501 per tonne for white pepper.

Việt Nam now accounts for about 40 per cent of total global output and nearly 55 per cent of the world’s pepper export turnover. Despite facing growing competition from other nations, Việt Nam’s pepper and spice industry continues to assert its importance on the international stage. 

To maintain its competitive edge, Việt Nam's pepper industry is focusing on improving product quality, enhancing risk management practices, and expanding international cooperation.

The surge in pepper prices is having a positive impact on farmers. High prices are not only generating substantial income but also motivating farmers to invest in their crops and improve the care of their pepper gardens. 

Additionally, the high price environment is encouraging farmers to stockpile their pepper, reducing the pressure to sell immediately after harvest.

As the global competition in the pepper industry intensifies, Việt Nam is not only aiming to maintain its output but also focusing on developing deeply processed pepper products to add more value. 

The country is gradually transitioning from exporting raw pepper to exporting value-added products. This shift is intended to boost profitability and generate sustainable economic benefits.

The Deputy Director of the Department of Crop Production and Plant Protection, Ministry of Agriculture and Environment, Nguyễn Quý Dương, pointed out that Việt Nam’s favourable climate and soil conditions make it the largest pepper producer and exporter in the world. 

In 2024, Việt Nam reached a total pepper growing area of 110,500 hectares, with an average yield of 26 quintals per hectare, which is double the global average. 

This will result in an estimated output of around 200,000 tonnes, with pepper export turnover reaching approximately USD 1.32 billion, making a significant contribution to the country’s agricultural economy.

Looking ahead, Việt Nam’s pepper development strategy aims to stabilise the growing area at about 80,000 to 100,000 hectares, with an output of 200,000 to 230,000 tonnes by 2030. 

The plan also includes a target of having 40 per cent of the growing area certified under international standards like GAP, VietGAP and GlobalGAP. 

Furthermore, Việt Nam is focusing on expanding organic pepper production, with the goal of cultivating 5,000 hectares of organic pepper by 2030, which will account for five per cent of the country’s total pepper-growing area.

The chairwoman of the Việt Nam Pepper and Spice Association, Hoàng Thị Liên, aid that many enterprises are now shifting towards developing deeply processed products to enhance export value. This transition is expected to not only increase profitability but also strengthen Việt Nam’s position in the global pepper market.

However, Việt Nam's pepper industry faces several challenges, including climate change, the threat of harmful organisms, stricter quality requirements from international markets, along with rising transportation costs. 

Bizhub