In the first quarter of 2024, while many markets increased their purchases of pepper from Vietnam, China decreased its imports.

According to the General Department of Customs, in the first three months of the year, Vietnam exported 56,712 tons of pepper of all kinds (Black pepper 49,743 tons and white pepper 6,969 tons). Total export turnover was 235.6 million USD (Black pepper 196.9 million USD and white pepper 38.7 million USD). Compared to the same period in 2023, export value and turnover decreased by 26.1% and 0.1%, respectively.

The average export price of black pepper was 3,966 USD/ton and white pepper was 5,552 USD/ton. This was an increase of 562 USD for black pepper and 593 USD for white pepper compared to the same period last year.

Pepper exports to China are waiting for an opportunity.

Ms. Hoang Thi Lien – Chairman of the Vietnam Pepper and Spice Association – said that China was not the market with a strong increase in pepper imports from Vietnam. This is one of the reasons why pepper exports in the first quarter of 2024 decreased. In the first quarter of 2024, this country imported just over 1,000 tons. This may be due to the lack of demand for imports in the Chinese market. It may be because, in 2023, China imported a large volume of nearly 60,000 tons, the inventory remains this year. 

Pepper is a crop with a large transaction volume in the market. Through price adjustment cycles, for example, 2014 – 2015 was the time when the price peaked at 120,000 – 150,000 VND/kg. In 2020, the pepper price was about 50,000 VND/kg. Now, the price is in the cycle with momentum in the market.

The positive impact on pepper prices in the past time comes from the limited supply in the world. The El Nino has caused a decrease in global production including Vietnam and Brazil, the two largest pepper-growing countries.

“The price has increased since September and October last year and lasted to the harvest season in February and March. At the current price, farmers have more income to make up for the years of low prices “, Ms. Hoang Thi Lien emphasized.

Because of the price factor, people make moves in selling or not selling, selling more or less in the market. In the opposite direction, at the current price, buyers do not want to accept. For the long term, in the next 3-5 years, the production of pepper is not enough to meet demand. Buyers are looking forward to a link so that a large number of orders will not be created in the market to down the price. In other words, there is a war between buyers and sellers in the market.

Assessing market trends, Ms. Hoang Thi Lien said that, starting from the second quarter, the Chinese market will show signs of interest in white pepper and black pepper.

Ms. Hoang Thi Lien added that the first thing that the Vietnam Pepper and Spice Association and farmers have to do is to ensure enough supply to the market. With the current output of 170,000 – 190,000 tons, if the production area is not strengthened, the annual output will be reduced. This decline will affect the position of Vietnam’s pepper in the world.

In the coming time, to promote exports to key markets, experts said that businesses themselves must improve quality and reduce production costs to create valuable products of high quality and are more competitive. It aims to diversification of products, markets, and growing areas./.