Vietnam’s 10 largest pepper export markets include the United States, United Arab Emirates, India, Germany, Netherlands, Philippines, Thailand, Russia, UK, and Korea.
In the 9 months of 2023, pepper exports to most major markets decreased sharply.
In August 2023, Vietnam’s pepper exports to many markets increased by 2 to 3 digits compared to the same period last year, including the United Arab Emirates, India, Netherlands, Philippines, Korea, etc.
In contrast, pepper exports to the US, Thailand, Russia, and the UK decreased. Overall, in the first 8 months of 2023, pepper exports to most major markets decreased sharply compared to the same period last year, except for the Philippines.
According to the Vietnam Pepper Association, the actual inventory of pepper in the residents is not much but mostly in agents and some speculators. Meanwhile, some enterprises have enough goods for processing at the end of the year so they do not need to buy at this time.
On September 23, 2023, the pepper price in the domestic market was between 70,000 – 72,500 VND/kg. In particular, Gia Lai has the lowest purchase price of 70,000 VND/kg. The pepper price in Dong Nai was a bit higher with 70,500 VND/kg. The two provinces of Dak Lak and Dak Nong had the same purchase price of 71,000 VND/kg. Similarly, in Binh Phuoc and Ba Ria – Vung Tau, the price was stable at 72,000 VND/kg and 72,500 VND/kg, respectively.
An update from the International Pepper Association (IPC) on September 22 (local time) showed that the price of Lampung black pepper (Indonesia) was 4,309 USD/ton, up 0.09%; black pepper ASTA 570 (Brazil) at 2,950 USD/ton; and black pepper Kuching ASTA (Malaysia) at 4,900 USD/ton.
PEPPER EXPORT IN 2023 IS EXPECTED TO INCREASE BY 3 – 5% IN VOLUME
The global pepper prices are forecast to decrease in the short term.
According to the IPC, harvest output from producing countries such as Brazil, Indonesia, and India is forecast to decrease compared to 2022. However, the difficult situation of the global economy, high inflation, and people tightening their expenses are the reasons why major economies such as the US and the EU reduce pepper imports.
It is forecast that world pepper prices will continue to decline in the short term despite the published data showing that the harvest from producing countries will decrease.
In Vietnam, pepper export is forecast to remain at a low level due to the lack of domestic supply and low demand in the US and EU markets.
Currently, the pepper volume for exports originating from Vietnam has all gone. In the last months of this year, enterprises will export the available imports and inventories.
The total inventory and imports is estimated at 80,000 tons. Domestic consumption is about 10,000 tons and the amount of inventory transferred to next year is about 30,000 tons. There are about 50,000 tons left for export in the last months of this year.
Ms. Hoang Thi Lien – Chairman of the Vietnam Pepper Association – said that: By the end of August 2023, Vietnam’s pepper exports reached about 188,000 tons. In the remaining months of 2023, we believe that pepper exports will increase by 3 – 5% in volume compared to 2022 (reaching 232,000 tons). So the export volume of pepper will be about 240,000 – 250,000 tons. Achieving this figure requires great efforts from businesses in the industry and positive signals from the market.
“The market is always in demand, sometimes the trading is vibrant, but there is also quite time. But we expect that export turnover will increase by 3 – 5% in output compared to the same period last year”, Ms. Lien said.
This is one of the important factors in recognizing the development or narrowing of a commodity industry, as well as the efforts of businesses and farmers to cooperate throughout the supply chain. The market is the criteria in addition to output and the movement of supply and demand factors that will determine the market and prices./.