1. BRAZILIAN BLACK PEPPER

For past 2 decades, the Vietnamese & Indian farmers, producers have been controlling price levels in International market. However, since 2017, the Brazilian black pepper has been introduced as cheaper and higher quality source for this king of spice!

Price of Black pepper from Vietnam crop 2020

(Fresh Pepper Trees in Brazil platation)

For now, Brazil is rank 2 producer of black pepper in the world. Since 2016, Brazil farmers mostly produce black pepper and continue increasing quantity.

In 2016 total exporting black pepper of Brazil was 31,085 tons. After 1 year, they increased exporting quantity dramatically to 59,501 tons equal to 91% in compared with 2016.

At the end of 2018, Brazil had exported 72,580 tons increased 22% in compare with 2017. The Brazilian exporters have been sending their black pepper to more than 80 countries. Germany is their main market with 14,677 tons equal to 21% total production. The next biggest market is USA with 10,764 tons and Vietnam with 6541 tons!

The main quality of Brazilian black pepper is B1 ASTA (density 560gl min, like 560gl MC of Vietnamese). They also produce black pepper B2 (density 500gl min, like 500gl FAQ of Vietnamese). Their black pepper size is very big. Therefore, Vietnamese producers import Brazilian black pepper to mix with their best quality Black Pepper 5MM then export to other markets.

(Black Pepper, Green Pepper, Red Pepper Corn)

At the moment, the Brazil black pepper is leading of market price. With high technology growing, harvesting, their expenses for producing one kg of dried black pepper is cheaper than other originals. Their production is also increasing time to time. Hence, consumers are being served black pepper at cheaper price and higher quality. This is a good thing.

 

2. WHAT ABOUT VIETNAMESE BLACK PEPPER?

Vietnamese and Indian control prices of black pepper market for 2 decade. Their farmers and exporters rose up the price of black pepper more than real value. The price reached to peak in October of 2015, it was $11,000 per ton for black pepper 500gl. At that time, all farmers cut down their coffee, cashew nut, rubber trees for replacing with new black pepper. The Vietnamese Government expects total plantation square of black pepper is 50,000ha until 2021. However, it was 150,000 ha in 2018 already.  And then… the production is over supply in 2017-2018 season, when those new black pepper were being harvested. Therefore, price has been falling down. Until September of 2019, the price is $2350 per ton for black pepper 570 ASTA grade, reduced 80% in compare with it was in 2015.

 

New crop black pepper price in Vietnam is cheap because too much supplying

(Black Pepper Trees in Vietnam Died without taking care from farmers)

Vietnamese farmers have been paying for what they controlled market in the past. Many houses were seized by the banks. Many lands were destroyed by insects because no one took care of it. Many farmers had to run away from their home lands in Chu Se, Gia Lai, run away from debt. Gia Lai is mother land for black pepper.

 

Now people stays here for growing Organic Banana! Not Black pepper anymore!

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