According to the Export-Import Department, in June, Vietnam’s pepper exports reached 25 thousand tonnes, worth 106 million USD, up 14.4% in volume and 7.3% in value compared to May. Overall, in the first 6 months of 2022, Vietnam’s pepper exports were estimated at 125 thousand tonnes, valued at 566 million USD. The figure was down 19% in volume but up 14% in value compared to the same period in 2021 thanks to the increase in export prices.

  Accordingly, the average export price of Vietnamese pepper in the first half of this year was estimated at 4,546 USD/tonne, up 41% compared to the same period in 2021. (Photo: Internet)

After declining last year, the percentage of black pepper in total exports is trending upwards in the first 5 months of this year, accounting for 71% of the volume (equal to 71,737 tonnes). The second place is ground black pepper with a percentage of 13% (13,106 tonnes). White pepper accounts for 11% (11,261 tonnes), the rest are ground white pepper and pepper soaked in vinegar, green, pink, etc.

The trend towards price competition is considered to continue as buyers wait for opportunities to buy goods at good prices. Meanwhile, sellers and speculators only sell out at a certain level in the hope of exporting to China soon to be cleared.

According to the Import-Export Department, Vietnam’s pepper price depends on the Chinese market at the moment when European and American importers have signed contracts until the end of this year.

Enterprises have stored enough goods for production and export, so the buying force is slower and weaker than market development.

China’s tightening control of the COVID19 pandemic at the border has significantly affected pepper exports to this market. According to data from the Vietnam Pepper Association (VPA), the amount of pepper exported to China in May was only 263 tonnes, a decrease of 18 times compared to 4,726 tonnes in the same period.

This caused the amount of pepper exported to this market in the first 5 months of the year to reach 2,610 tonnes, a decrease of 9 times (21,047 tonnes) compared to 23,657 tonnes in the same period last year. China has fallen to 9th place in Vietnam’s pepper consumption market from second place last year, with the proportion falling to 2.6% from 20% in the same period.

Regarding the pepper price today (July 7), the market continues to be unchanged, maintained in the range of 69,000 – 72,000 VND/kg. In particular, Gia Lai and Dong Nai are still the two provinces with the lowest price of 69,000 VND/kg.

Next are Dak Lak and Dak Nong provinces with the same transaction level of VND 70,500/kg, and Binh Phuoc with the level of VND 71,000/kg. Similarly, today’s pepper price in Ba Ria – Vung Tau is stable at the highest level of VND 72,000/kg.

It is forecast that in the coming time, the global pepper market will be under pressure due to geopolitical tensions in Eastern Europe and China’s Zero COVID policy.

Although pepper production in Vietnam in the 2022 crop decreased compared to 2021, Brazil’s pepper production increased. Meanwhile, freight rates remain high.

Currently, Vietnam’s domestic pepper market is quite gloomy because exporters do not buy from importers who are not interested in signing contracts.