In the first 7 months of 2023, China remains Vietnam’s key pepper export market with 52,327 tons, accounting for 31.1% of the export market share and up 665% over the same period last year.
According to the Vietnam Pepper Association (VPA), in July 2023, Vietnam exported 15,152 tons of pepper of all kinds: black pepper reached 12,841 tons and white pepper reached 2,311 tons. Total export turnover reached 58.6 million USD, black pepper reached 45.0 million USD, and white pepper reached 11.8 million USD. Compared to the last month, exports decreased by 28.6% and turnover decreased by 26.3%.
In 7 months of 2023, pepper exports to China increased by 665% over the same period in 2022.
The average export price of black pepper in July reached 3,683 USD/ton, down 0.3%, and white pepper reached 5,207 USD/ton, down 1.1% compared to June 2023.
Olam, Nedspipce, and Pearl were the three largest exporters in July with 1,722 tonnes, 1,142 tonnes, and 1,140 tonnes respectively.
The US continued to be Vietnam’s largest pepper export market in July, reaching 3,319 tons but decreased by 30.9% compared to the last month. Exports to China also decreased sharply by 53.4%, reaching 1,958 tons.
Accumulated from the beginning of the year to the end of July 2023, Vietnam exported 168,138 tons of pepper of all kinds, of which black pepper reached 151,218 tons, and white pepper reached 16,920 tons. Total export turnover reached 542.7 million USD, black pepper reached 463.0 million USD, and white pepper reached 79.7 million USD.
Compared to the same period last year, exports increased by 16.6%, equivalent to 23,962 tons, but export turnover decreased by 16.2%, equivalent to 104.7 million USD.
The average export price of black pepper in the first 7 months of 2023 reached 3,505 USD/ton, and white pepper reached 5,040 USD/ton.
Despite a decrease in exports in the last 2 months to the Chinese market, China is still the main export market of Vietnam with an average of 52,327 tons, accounting for 31.1% of the export market share and up 665% over the same period in 2022.
Next is the US reaching 29,213 tons, accounting for 17.4% and down 11.1%. Exports to some other traditional markets also decreased such as the UAE decreased by 34.9%; India decreased by 37.9%; Germany decreased by 21.5%; The Netherlands decreased by 13.3%; etc.
Only a few markets recorded positive results such as Turkey increased by 81.4%; France increased by 36.4%; Philippines increased by 25.0%, and Iran increased by 27.9%.
The main export markets for white pepper are the US, China, Germany, the Netherlands, and Thailand. Leading white pepper exporters include Nedspice, Olam, Pearl, Lien Thanh, and Phuc Sinh.
China remains Vietnam’s key pepper export market.
According to the World Bank (WB), the world’s leading economies such as the US, the EU, and China have a positive outlook at the end of the year. This will bring a good impact on the purchasing power of goods, including pepper and spices.
Besides, in the general concern of the world that the food situation is likely to be in short supply, India has issued restrictions on rice exports, and Russia announced its withdrawal from the Black Sea agreement. These are supportive signals for the agricultural product market in general and spices globally in particular.
It is forecast that the global pepper market will increase due to reduced supply, and increased demand. Currently, the supply of pepper in Vietnam is not much. In Indonesia, pepper production in 2022 decreased by 22% compared to 2021, which is expected to continue to decrease by 15% in 2023.
In India, the weather in the main production region is unfavorable, causing production forecast to fall by 30-32%, while demand for pepper in the domestic market increased dramatically as the festive season is coming.
In Brazil, it is forecast that in the 2023 crop, the country’s pepper production will decrease by about 10-15% compared to the 2022 crop. Therefore, the purchase of pepper is difficult when people tend to reserve the goods. Meanwhile, delivery and exports at Vitoria Port of Brazil are facing difficulties.
According to the Vietnam Pepper Association, Vietnam’s 2023 crop has basically ended, with an estimated output of nearly 200,000 tons, up 9.3% compared to the 2022 crop.
However, currently, domestic pepper supply is only available in some warehouses and speculators with a total output expected to be insufficient to export for the last months of the year if the average export is from 15,000 to 20,000 tons per month. This will have a positive impact on the price of black pepper in the domestic market./.