Pepper Prices Surge, Bringing Short-Term Gains for Farmers

Dong Nai Province, Vietnam – Farmers across Dong Nai, especially in Long Khanh City, are entering the peak pepper harvest season with a welcome surprise: pepper prices have climbed sharply compared to previous years. With global demand projected to remain strong, the upward trend in pepper prices is expected to continue.

Farmers Enjoy Immediate Profits

Despite recent years of uncertainty, local growers are currently benefiting from the price spike. However, the pepper industry remains volatile and vulnerable to market swings.

Long Khánh is known for its fertile red basalt soil that supports a variety of fruit crops, but it also has rocky, laterite hills ideal for pepper cultivation. In Tan Thuy quarter, Bau Sen ward, nearly 70 hectares of pepper are being harvested, with prices at over 180,000 VND per kilogram, giving farmers a much-needed income boost.

  • Mr. Su Tac Phi, who owns over 3 hectares of intercropped pepper and coffee, has maintained his pepper fields for over a decade despite previous market downturns. By applying modern farming techniques, his family expects to harvest over 5 tonnes this season, generating hundreds of millions of VND in net profit after expenses.

  • Mr. Ly Cun Gieng, with over 1 hectare of pepper intercropped with coffee, also reports higher yields than last year despite enduring a long, hot dry season. He plans to reinvest in better crop care to secure even greater productivity next year.

Local Support for Sustainable Production

According to Pham Thi Cam Nhung, Chairwoman of the Bau Sen Farmers’ Association, the area’s soil is naturally suited for pepper. The local government encourages farmers to expand pepper acreage and has been establishing farmer clubs and cooperatives to transfer technology and technical knowledge. The long-term goal is to link farmers with enterprises, ensuring a stable, sustainable market for pepper.

Challenges and Long-Term Risks

Currently, Long Khánh has nearly 600 hectares of pepper, mainly in the wards and communes of Bao Quang, Bau Tram, Hang Gon, Bau Sen, Phu Binh, and Bao Vinh. Training programs on modern cultivation techniques, pest control, and water-saving irrigation systems have helped farmers improve yields and profitability.

However, price volatility and climate risks continue to threaten the sector:

  • The 2024 dry season was exceptionally severe, reducing yields by 20–40% in some areas.

  • Many growers saw uneven fruit setting, with the second flowering producing smaller, empty seeds, leading farmers to harvest only the first batch and accept lower yields.

  • Shrinking cultivation area—as some farmers switched to other crops—has reduced overall supply. While this shortage has temporarily pushed prices up, it also highlights the fragility of the pepper industry.

Call for Sustainable Development

Le Tuan Hai, who cultivates about 1 hectare of pepper in Bao Quang commune, welcomes the higher prices but stresses the need for a long-term strategy. He calls on the government to support sustainable, organic production and strengthen farmer cooperatives, ensuring stable development and improved product quality.