According to estimates, Vietnam’s pepper exports in January 2024 reached 20,000 tons, worth 79 million USD. This result was down 1.4% in quantity but up 1.9% in value compared to December 2023. It increased by 60.2% in quantity and 83.9% in value over January 2023.
The average export price of Vietnam’s pepper in January 2024 was estimated at 3,953 USD/ton, up 3.4% compared to December 2023 and 14.8% compared to January 2023.
In 2023, Vietnam mainly exported black pepper, accounting for 69.51% of the total volume and 70.67% of the total pepper export turnover of the country in 2023. Therefore, the growth of black pepper exports has had a positive impact on the whole industry.
Pepper export price in Januany 2024 increased by 14.8% compared to the same period last year.
Vietnam exports black pepper to more than 100 countries and territories around the world. In particular, Vietnam’s traditional export markets for black pepper include China, the US, India, the UAE, and the Philippines.
According to data from the Ministry of Agriculture and Rural Development, the area of pepper cultivation in Vietnam in 2023 reached 115,000 ha, down 5,000 ha compared to 2022. Production in 2023 reached 190,000 tons, up 3.8% compared to 2022.
The pepper harvest in 2024 has started in some districts of Dak Nong province, but the production is not much. Due to climate change, the harvest season in 2024 is later than in 2023.
Vietnam is currently the world’s No. 1 pepper producer, contributing about 40% of the global supply. Pepper production is forecast to continue to decrease to 180,000 – 200,000 tons in 2024 from 220,000 tons in 2023.
According to the Vietnam Pepper and Spice Association, recent prolonged heavy rains in the Central Highlands and Southern provinces have made it difficult for pepper growers. This is causing concerns about a potential decline in production in the next harvest in 2024.
The International Pepper Community (IPC) forecasts that global pepper production in 2024 will continue to decrease by 1.1%, equivalent to a decrease of 6,000 tons. This reduction is mainly from Vietnam, while Brazil and India are forecast to increase their production this year. Other producing countries can maintain pepper production with unconsiderable change.
Adverse weather conditions caused by El Nino are affecting pepper yields and harvests. In particular, the weather is “very dry” in Brazil and prolonged heavy rains in the Central Highlands and Southern provinces of Vietnam will reduce pepper production in the coming time.
The IPC also forecasts that global pepper prices will increase in the first quarter of 2024 as production continues to decline in major producing countries. This will also affect Vietnam’s export pepper prices./.