Coffee, pepper prices on 5-day rising streak

By Thi Ha   February 21, 2024 | 11:48 pm PT
Coffee, pepper prices on 5-day rising streak
Coffee harvested in Gia Lai Province. Photo by Duc Hoa
Coffee and pepper prices rose for a fifth consecutive day on Wednesday, with the former hitting a new all-time high of VND82,500 (US$3.36) per kilogram.

Coffee prices rose by VND300 on Wednesday, marking a total increase of VND3,500 from last week.

Pepper prices have jumped by VND10,000 from last week to VND91,000 per kilogram, and a total of 10-12% this month.

The prices of the two commodities have been surging due to high demand and declining supply, according to experts.

Many businesses are stepping up purchases to stockpile for export, pushing up prices.

This year the climate has wreaked havoc on the coffee and pepper production.

The El Nino phenomenon is likely to reduce yields, the Meteorological and Hydrological Administration has assessed.

Many pepper farmers have also switched to other crops due to low prices in the last few years.

Vietnam’s pepper production is set to fall by 10-15% this year to 160,000-165,000 tons, according to the Vietnam Pepper Association.

Coffee production is expected to fall by 10% this year as farmers shift to other crops like durian and fruits due to climate change, the Vietnam Coffee-Cocoa Association said.

The association said coffee and pepper prices might rise further in June since major economies are likely to cut interest rates then and coffee roasters usually buy more around that time of the year.

Vietnam is the world's second largest coffee exporter after only Brazil.

Dak Lak Province accounts for over 30% of its coffee production.

Buon Me Thuot, its capital, is a well-known coffee label.

"Buon Ma Thuot coffee" is currently sold and consumed in more than 70 countries and territories.

Vietnam is also the world's largest pepper producer with a 40% share of global output.

It supplies a variety of pepper products, such as black, green, white, ground, and vinegar-soaked peppers.

In 2023 it exported 267,000 tons for $912 million, up 16.6% in volume but down 6% in value from the previous year.

The average export price was around $3,420 per ton, a decrease of 19.4% from 2022.

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