Production & Value:
There are 154,038 tons of pepper from Vietnam were exported in the first 6 months of 2021. Which is valued $496.8 million US dollar. The value increased 39% in compare with it was in the same time 2020. However, total exporting quantity is reduced by 7.5%
(Vietnam Black Pepper Corn)
Market share:
Asia is still the area where imported the largest volume of pepper from Vietnam with 50.1% market share. However, the quantity is reduced 15.2% in compare with it was last year. The leading importing market is China with 28,348 tons, reduced 21.6%. Middle East countries imported 10,240 tons, increased 70.4%. India imported 8118 tons, reduced 6.4%. Pakistan 7771 tons, increased 7.9%. Korean, Iran, Taiwan, Malaysia increased the importing volume.
The American markets imported 13.7% higher volume. In additional, the US is the leading market where imprted 32,714 tons. While Canada imported 1827 tons, increased 22.3%.
The EU area imported more 1.5% quantity. Germany is the leading market, imported 6016 tons, decreased 7.8%. The Netherland imported 4427 tons, increased 0.7%. The UK brought 3498 tons, increased 14.9%. The Russian decreased their demand to 3122 tons which is equal 5.9%. The Ireland imported 2702 tons, increased 181.8%.
The African countries decresed their importing by 33.1%. Price of black pepper moved up almost 2 times in compare with 2020. Thus, it affect heavily to buying ability from African area. The Egyptian bought 3811 tons, decreased 42.9%. The South Africa imported 1479 tons, increased 17.5%. The Senegal and Gambia markets decreased their pepper importing to 1107 tons and 608 tons. There are 39.2% and 20.5% decreased importing quantity in these 2 countries.
(Vietnamese white pepper corn)
Vietnamese white pepper is being exported to traditional markets. Germany imported 2794 tons, the US imported 2108 tons, China imported 1763 tons, Netherlands imported 1584 tons and Thailand bought 913 tons. The white pepper is assured pesticide and free chemical. Thus, the EU market has been importing most quantity of white pepper corn and white pepper ground from Vietnam.
(Vietnamese freeze dried red pepper)
Types of Vietnamese Pepper:
Beside black pepper and white pepper, Vietnamese pepper manufacturers started to produce freeze dried red pepper. The farmers have to collect ripped pepper fruit. And then immediately bring it to factory for instant freeze-dried. Thus, ripped pepper fruit could keep the original red color. This is the value added product. The price is around $18 – $19 per kg FOB Hochiminh. And the production is less as not much exporters can make it. However, it is surely understood that Vietnamese exporters have been trying to make value added products instead of selling only the raw materials. There are more and more ground white pepper, ground black pepper which are being exported from Vietnam for recent 5 years.
(Mixed Black/White/Red Pepper Corn)
Regarding the price of black pepper:
The average rate of black pepper is $4095/mt for 500gl in June 2021. And the price of white pepper is $5800/mt. These prices are 2 times higher than they were in 2020. Price of black pepper felt to bottom level in March 2020. And it has been increasing every month until now. In 2021, there is shortage 30% in black pepper production due to bad crop.
Hence, the price of black pepper might be higher in the 2nd half of the year
In the first half of the year, the Vietnamese pepper exporters have been facing huge problems named: FREIGHT COST. The shipping companies take chance to increase the freight every week. It was charged $3000 per 40ft from Vietnam to Eastside of the US and $1200 per 40ft from Vietnam to the European ports. And the freight costs are now $20,000 and 15,000 to the US and EU. The exporters signed contracts for 3-6 months supplying and at one price CNF. Thus, they are paying their own pocket for all these increasing freight cost.
As per Vietnam Pepper Association, some exporters are about to bankcrupt due to problem of shipping companies. And this situation keeps continueing. The shipping lines expect the freight cost would be higher than $20,000 per 40ft to the US and EU ports later this year. Some freight quotation is now $30,000 to the US port. Moreover, on the last days of June, Covid-19 the 4th wave has been spreading badly in Hochiminh city. It is the first time Vietnamese facing hundred and thousand cases per day. Cities have been locking down.
All these lead the Vietnamese exporters to more difficult for producing and exporting pepper in the end of the year.