Logo of Phnom Penh Post newspaper Phnom Penh Post - VN pepper prices skyrocket

VN pepper prices skyrocket

Content image - Phnom Penh Post
Pepper prices in Vietnam rose to a one-year high last week. VIETNAM NEWS AGENCY/VIET NAM NEWS

VN pepper prices skyrocket

Pepper prices in Vietnam rose to a one-year high last week, driven by Chinese consumption recovery and higher demands from local businesses.

Farmers in the Central Highlands and the south of Vietnam sold pepper at 48,000-50,000 dong ($2.08-2.17) per kg on Wednesday, depending on the location, a 26.6-31.1 per cent increase from last month, reported tintaynguyen.com.

The price in Ba Ria-Vung Tau province reached 50,000 dong, the highest since January last year.

Domestic pepper prices have surged in the last few weeks because the Chinese market has recovered from the deadly Covid-19 pandemic, and local companies have stepped up buying to fulfil their contracts.

Vietnam Pepper Association (VPA) president Nguyen Nam Hai said: “Recently, pepper prices have increased. There are several reasons for this improvement. Firstly, Covid-19 in China is basically over, so demands from Chinese customers are higher.

“Secondly, many local businesses sold their stock before the contracts were due, so now they are rushing to buy pepper from farmers to meet demands from their customers,” said Hai

With the surging prices, farmers have stopped selling their stock, pushing prices even higher, he added.

However in the long term, the pepper prices are unlikely to see a spike like this because of a global supply glut.

Hai said: “In general, since 2014, Vietnam and many countries such as Brazil and Cambodia have expanded production areas.

“While global annual production growth is around eight per cent, consumption growth is just around two per cent. So in the long term, pepper prices are unlikely to increase like they used to.”

Ministry of Industry and Trade data shows that Vietnam has about 100,000ha of pepper area with capacity of 247,000 tonnes.

Coffee in the Central Highlands, Vietnam’s largest coffee-growing area, also witnessed growth of around eight per cent compared to last month to 31,600-32,000 dong per kg on Wednesday.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • Hun Sen: Lakes filled in for national developments

    Prime Minister Hun Sen has announced continued operations to fill some lakes in Phnom Penh to create land for developments, though he is against the unrelated practice of damming rivers or blocking waterways. Speaking at the inauguration of the Ministry of Public Works and Transport

  • Koh Preus upgrades 70% complete

    Initial construction of a nearly $30 million tourism infrastructure project on Preah Sihanouk province’s Koh Preus Island is “about 70 per cent complete”, according to an official with the developer. Heng Thou, construction site manager of Angela Real Estate Co Ltd (ARE), told The Post that

  • Local media loses a giant, and The Post a great friend

    Cheang Sokha, a gifted and streetwise reporter who rose to the highest ranks of Cambodian media and was beloved for his sharp intelligence, world-class humour and endless generosity, died on Friday in his hometown of Phnom Penh. He was 42. His wife, Sok Sophorn, said he

  • Cambodia, India agree to start direct flights, tourism exchanges

    Cambodia and India have agreed to start direct flight connections and promote closer tourism exchanges and cooperation in all areas after the Covid-19 saga comes to a close. The agreement was reached during a meeting between Cambodian Minister of Tourism Thong Khon and newly-minted Indian