Pepper is one of the key agricultural products of Vietnam, known as a billion-dollar treasure. Notably, Vietnam is leading in pepper exports all over the world with 60% of the market share. Vietnam’s pepper and spices have now been exported to more than 120 countries and territories, occupying many important markets.
In addition to domestic supply, pepper imports are important sources for Vietnam to maintain its position. According to statistics from the Vietnam Pepper Association (VPA), Vietnam’s pepper imports in September reached 2,430 tons with a value of more than 13.6 million USD. This was a sharp increase of 63% in volume compared to the last month.
By the end of September 2024, Vietnam imported 23,778 tons of pepper of all kinds. Total import turnover was 102 million USD, up 15.8% over the same period last year. Black pepper reached 20,890 tons, and white pepper reached 2,888 tons.
About 120 countries and territories are buying pepper from Vietnam.
In terms of market, Brazil, Cambodia, and Indonesia were the three major pepper suppliers to Vietnam.
Pepper imports from Brazil reached 8,512 tons, down 32% over the same period last year.
Cambodia was the second-largest supplier with 6,651 tons, a sharp increase of 95% over the same period last year. Notably, there was a strong growth of 134% in pepper imports from Indonesia with 6,317 tons. This was the third-largest supplier to Vietnam.
According to the VPA, Vietnam’s pepper production in 2024 is estimated to decrease by 10% compared to 2023, to about 170,000 tons – the lowest level in the past 5 years.
The growing area of pepper is shrinking due to farmers switching crops. Meanwhile, the supply of pepper in the global market is nearly 100,000 tons short of demand. According to the Vietnam Pepper and Spice Association (VPSA), the amount of pepper in the community is almost gone, only in the agents and warehouses of the business.
The El Nino at the beginning of the year has continuously impacted the production and maintenance of farmers’ pepper gardens. Next is the La Nina phenomenon, which affects farmers’ psychology, especially when durian and coffee prices are at a high level. As a result, it is not attractive enough for farmers to replant pepper massively.
The Import-Export Department (Ministry of Industry and Trade) forecasts that world pepper prices will remain high in the short term due to limited supply. Brazil and Indonesia are in the harvest, while world demand has not increased sharply, along with China’s not buying much, so prices are only likely to increase slightly.
From the beginning of the year to the end of September 2024, Vietnam has exported 203,000 tons of pepper, worth more than 1 billion USD. This result was down 1.5% in volume but up to 46.9% in value over the same period last year. It is forecast that thanks to high export prices, the pepper industry will earn 1.3 billion at the end of the year.