According to the Ministry of Industry and Trade, Vietnam is currently the largest pepper supplier to the US market, accounting for 72% of this country’s pepper import market in the first quarter of 2022.
In the first quarter of 2022, the US increased pepper imports from major sources, including Vietnam. Based on the data from the US International Trade Commission, this market imported 14,385 tonnes of pepper from Vietnam, worth 69.5 million USD, up 16.3% and 81.9% respectively compared to the same period in 2021.
Vietnam is currently the largest pepper supplier to the US. Vietnam’s pepper market share in total US imports increased from 65.4% in the first quarter of 2021 to 72.38% in the first quarter of 2022. Meanwhile, India, Vietnam’s competitor recorded a decrease in market share from 9.32% in the first quarter of 2021 to 8.74% in the first quarter of 2022.
The average export price of Vietnamese pepper to this market reached 4,834 USD/tonne, an increase of 56.4%. The price of Vietnamese pepper is lower than Indonesian pepper (USD 6,174/tonne) and India (USD 4,320/tonne).
According to the General Department of Customs, in April 2022, Vietnam exported 24,630 tonnes of pepper, reaching 114 million USD, up 3.8% and 2.1% respectively. Overall, in the first four months of the year, Vietnam exported 77,810 tonnes of pepper, reaching 362.7 million USD, down 16, .6% in volume and up 28% in value.
Regarding export markets, in April 2022, the amount of Vietnamese pepper exported to the main markets fluctuated in contrast. While the amount of pepper exported to the US, Germany, the UK, and the Philippines decreased, pepper exports to India, UAE, South Korea, and the Netherlands recorded positive growth. Notably, pepper exports to India increased by up to 152% compared to the same period last year.
In the first four months of 2022, pepper exports to other countries increased, except for the UK market. Overall, in the first four months of 2022, the US was the largest pepper import market, reaching 20,135 tonnes, worth 99.4 million USD. The second place was India, reaching 6,588 tonnes, worth 29.7 million USD. The third place was UAE, reaching 5,976 tons, worth 26.7 million USD.
Export turnover also grew well in export markets, especially, India and South Korea increasing by three figures, 139%, and 127% respectively compared to the same period last year.
In April 2022, the average export price of Vietnamese pepper reached 4,629 USD/tonne, down 1.6% compared to March 2022 but up 41.8% compared to April 2021. Overall, in the first four months of the year, the average export price of Vietnamese pepper reached 4,662 USD/tonne, up 53.4% compared to the same period in 2021.
The average export price of Vietnamese pepper over the months between 2020-2022. (Photo: Ministry of Industry and Trade)
Regarding domestic pepper prices, according to the Vietnam Pepper Association, black and white pepper prices in the domestic market started to recover in May 2022. However, the recovery did not last since speculators constantly sold.
Meanwhile, the demand from foreign markets at this time is not high. Currently, it is still the time of delivery of goods signed last year, so foreign customers have not signed new contracts. This led to Vietnamese exporters not buying goods for storage, which cause pepper prices to go down. Whether or not the price of pepper rises again will depend heavily on the purchasing needs of the Chinese market.
Recorded on May 26, domestic black pepper prices continued to record a decline to 70,500 – 73,500 VND/kg. Compared to May 1, pepper price has decreased by 5,500 -6,000 VND/kg.