Cambodian pepper revenue falls as climate cuts harvest, prices rise on global shortage

PHNOM PENH, Jan 27, 2026 (KPT) – Cambodia earned just over $31 million from pepper exports in 2025, down 12 percent from more than $35 million the previous year, the Ministry of Commerce said Tuesday.

Officials attributed the decline not to weaker demand but to climate-related impacts on harvest volumes, as global supplies tighten and prices trend upward.

Farmers reported unusual weather patterns had sharply reduced yields. Vathna of La Plantation pepper farm said heavy rains followed by drought cut output from 70 tons to just 20 tons this year.

Despite lower harvests, market conditions remain favorable. Mak Ny, president of the Cambodia Pepper and Spices Federation, said domestic prices for standard pepper have risen to 25,000–26,500 riel per kilogram, higher than last year, driven by stronger orders and shrinking global stockpiles.

“Demand is still there, and prices are improving because supply in the global market is tightening,” he said.

Cambodia produces between 17,000 and 20,000 tons of pepper annually across more than 6,000 hectares. About 80 percent of exports are shipped to Vietnam for processing and re-export, with other markets including China, Taiwan, Thailand, Japan, South Korea and the European Union.

Production is concentrated along the Cambodia–Vietnam border, with Tboung Khmum, Mondulkiri and Ratanakiri accounting for more than 80 percent of output.

Trade data shows the industry’s underlying strength, with pepper exports posting a 37 percent compound annual growth rate from 2020 to 2024 and achieving a revealed comparative advantage of 5.06 percent in 2024, underscoring Cambodia’s competitiveness in global spice markets.