As of June 12, pepper prices have surged to the range of 185,000 - 186,000 VND/kg, reflecting an increase of 9,000 - 10,000 VND from the previous day. This rise follows a series of continuous price hikes, with the domestic pepper price now officially hitting 185,000 VND/kg and showing no signs of stabilizing.

The sharp increase in pepper prices, both globally and in Vietnam, is attributed to a decline in output from Brazil and Vietnam, the two key countries influencing global supply, due to droughts caused by El Nino. Additionally, the supply from other countries such as Indonesia, India, Malaysia, and Sri Lanka remain limited.

Apart from supply and demand issues, another factor driving the pepper price surge is the high shipping costs. The global container index, which represents spot container freight rates on major international shipping routes, has returned to its peak levels observed during the Covid-19 pandemic.

Long-term projections indicate that in the next 3-5 years, the production of pepper will not be able to meet the growing global consumer demand.