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

  • South Korea’s first lady brings hope to ill boy

    South Korea’s first lady Kim Keon-hee – wife of current president of the Republic of Korea, Yoon Suk Yeol – met with a 14-year-boy with congenital heart disease during her trip to the Kingdom for the ASEAN Summit. After their meeting it was announced that the

  • Hun Sen gets Covid, shuns G20, APEC summits

    Prime Minister Hun Sen said he has tested positive for Covid-19 in Indonesia, where he is slated to attend the G20 summit in his capacity of the ASEAN chair. In a social media post addressing the Cambodian public, he said: “Before leaving Cambodia, I always

  • Moody’s sets outlook rating to ‘negative’ for Cambodia

    US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings. “The negative outlook reflects a deteriorating external position as illustrated by the severe

  • Hun Sen’s Covid infection caused by ‘weakened antibody’ after summit

    Prime Minister Hun Sen said exhaustion from heavy workload before and during the recent ASEAN Summit may have led to him contracting Covid-19 due to his weakened immune system, while rejecting speculations that the infection was caused by leaders of some countries who did not

  • Korean first lady paves way for ill boy’s surgery

    A 14-year-old boy with congenital heart disease who was lucky enough to meet with South Korean first lady Kim Keon-hee may get the chance of a lifetime and receive surgery and treatment at Asan Medical Center in Seoul, South Korea. After seeing his plight, many

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol