(HSV VIETNAM GROUP) – After Tet Giap Thin, coffee prices increased for 5 consecutive sessions and set a new peak, while pepper prices also rose to the highest in 4 years.
At the end of the February 21 session, the price of green coffee rose to 82,500 VND per kg, up 300 VND compared to yesterday and up 3,500 VND compared to last week. This is the 5th consecutive increase in coffee since the Lunar New Year until now.
Similarly, pepper also increased for 5 consecutive days, to 91,000 VND per kg, an increase of 10,000 VND compared to before Tet. Thus, pepper prices increased by 10-12% in February.
According to associations, coffee and pepper prices increased sharply in the first sessions of the year due to increased demand while supply decreased compared to the same period in 2023. Many businesses are increasing purchases to ensure export progress, pushing prices up. This year, global pepper production may be in short supply due to climate change. In recent years, pepper prices have dropped so many places have reduced the area.
Recently, according to forecasts of the hydro-meteorological agency, the influence of EL Nino will have a strong impact on the harvest of these agricultural products. In many main production areas such as the Central Highlands and southern provinces, prolonged hot and dry weather will reduce pepper output.
According to the Vietnam Pepper and Spice Association (VPSA), the new crop year is in harvest season but this year's pepper output may decrease by 10-15% to 160,000-165,000 tons.
As for coffee, the Vietnam Coffee and Cocoa Association (VICOFA) forecasts that in the 2023-2024 crop year, output will decrease by 10%. The reason is the impact of climate change, farmers have switched to investing in crops with high economic efficiency such as durian and fruit trees.
According to the VICOFA association, in June if major economies in the world continue to reduce interest rates, coffee and pepper exports will benefit. Because this is when roasters around the world buy inventory and demand will increase. Therefore, the price of coffee and pepper is difficult to go down.
Data from the International Coffee Organization shows that Vietnam is the second country in the world in terms of coffee export market share (February 2021-January 2022 period), ranked only behind Brazil. The largest coffee region in Vietnam is Dak Lak, accounting for over 30% of output, with the brand and geographical indication "Buon Ma Thuot coffee" being present in more than 70 countries and territories.
Vietnam is also currently the world's largest pepper producer with 40% of output, with many diverse products such as black pepper, green pepper, white pepper, powdered pepper, and vinegar-soaked pepper. In 2023, Vietnam's pepper exports will reach 267,000 tons, worth 912 million USD, an increase of 16.6% in volume, but a decrease of 6% in value compared to 2022. The average export price of Vietnam's pepper last year reached about 3,420 USD per ton, down 19.4% compared to 2022.
Ha Diem HSV