Pepper exports topped 203,000 tons, fetching US$1 billion, in the first nine months of 2024, with prices rising to their highest levels in eight years.

This meant value was up 46.9% year-on-year despite a 1.5% drop in volumes, according to customs data. The average export price was $6,239 per ton in September, a 67.5% jump from a year ago.

Businesses said prices have increased due to a decline in supply caused by weather conditions and farmers’ crop switching.

Experts said domestic pepper prices are likely to rise further this year, especially with Tet (Lunar New Year) coming around in a few months.

The Ministry of Industry and Trade’s import and export department forecast global prices to remain high as the country’s pepper production is expected to decrease next year due to drought.

The Vietnam Pepper Association does not expect global production to meet demand in the next three to five years.

Pepper is an important agricultural product for Vietnam, which is also the world’s largest exporter of the spice with a 60% market share. Its exports last year were worth $912 million.