Pepper prices hit record highs

(ĐN)- Unfavorable weather conditions have led to a poor harvest for pepper in 2025, reducing productivity. The drop in supply has driven pepper prices to nearly 180,000 VND/kg at the beginning of the harvest season, almost double compared to the previous year. Experts predict that prices may continue to rise as export markets recover.

According to farmers in Dong Nai, the prolonged drought and erratic weather in 2024 significantly impacted pepper yields, with many areas experiencing a 20-40% reduction. Some farms had two flowering phases, but the second round produced lower-quality seeds, leading farmers to harvest only once, further affecting output. However, with prices soaring to nearly 180,000 VND/kg, many growers remain optimistic about higher profits compared to previous seasons.

Since the COVID-19 pandemic, export difficulties caused pepper prices to plummet, even below production costs, leading to a sharp decline in cultivation areas nationwide. Poor harvests further tightened supply, contributing to the steady price increase since 2024.

According to the Vietnam Pepper and Spice Association, Vietnam’s pepper export revenue reached nearly $1.32 billion in 2024. While export volume declined by 5.1% compared to 2023, export revenue surged by 45.4%. Dong Nai alone recorded pepper export earnings of $137 million, a 37.4% increase from 2023. Forecasts for 2025 suggest that global pepper output will continue to decrease while demand remains steady, potentially driving prices to new record highs.

By the end of 2024, Dong Nai's total pepper cultivation area had shrunk to 10,000 hectares, a reduction of 1,300 hectares from the previous year and nearly half the province’s peak planting area of 19,000 hectares. According to the Department of Agriculture and Rural Development, although cultivation areas are not expected to expand significantly, total production is projected to rise through the adoption of advanced agricultural techniques. The province aims to enhance the value of its pepper industry by strengthening its reputation for quality, particularly through organic production chains that meet export standards for demanding markets.

Many farmers are embracing this shift. Dao Van Lanh, a pepper farmer in Xuan Tho (Xuan Loc district), shared that with prices rebounding, he has reinvested in his existing pepper garden and replanted aging, low-yielding trees. Encouraged by rising prices, more farmers are revamping old plantations or expanding new ones. They are increasingly adopting organic farming methods to produce safe, high-quality pepper that meets stringent export requirements, giving them a competitive edge in global markets.

Similarly, Pham Xuan Hoan, a farmer in Lam San, has been involved in the Large-Scale Safe Pepper Farming Project for the past six years. He believes that organic farming benefits not only the plants but also the health of farmers and their families. Healthier soil and plants, combined with proactive disease prevention, enhance the plants' resilience, reducing the need for chemical treatments.

Truong Dinh Ba, Chairman of the Lam San Farmers' Association, noted that since 2024, as pepper prices began to recover, farmers have prioritized better care for their crops, and some have replanted old fields. The organic pepper production chain in Lam San now includes 700 households covering 877 hectares. Participating farmers receive partial subsidies for farming materials and access to technical training. Notably, pepper produced within this organic supply chain is purchased by cooperatives at prices 2,000 VND/kg higher than the general market rate, giving farmers greater confidence in their production methods.

Reported by B.N