In 2023, Vietnam exported 267,000 tons of pepper, up 16.6% in quantity, with an estimated value of 912 million USD. In particular, the US is still the largest market for Vietnam’s pepper supply, accounting for 23.5% of the total export value of pepper…
Vietnam is leading in exporting pepper to the US market.
Like “black gold”, Vietnam’s pepper accounts for 60% of global production. According to the General Department of Customs, in 2023, Vietnam exported 267,000 tons of pepper, with an estimated value of 912 million USD. This increased by 16.6% in quantity but decreased by 6% in value.
The reason for the decline in export value is that the average export price of Vietnam’s pepper decreased by 19.4% compared to 2022, reaching about 3,420 USD/ton in 2023.
In particular, according to the structure of Vietnam’s pepper export category, black pepper accounts for 71.2%, the rest is white pepper and ground pepper.
Currently, the US is Vietnam’s largest customer, accounting for 23.5% of the total export value of this item by the end of November 2023. Vietnam is also the largest pepper supplier to the US market. China ranks second, accounting for 14.1%; followed by India and Germany, accounting for 5.4% and 4.3% of the total export value, respectively.
According to the Vietnam Pepper and Spice Association (VPSA), Vietnamese exporters have an advantage over some countries such as India, Malaysia, and Indonesia,… thanks to the EVFTA Agreement, which reduces the import tax on ground or crushed pepper to the EU from 4% to 0%.
In addition, the US has reduced pepper imports from India. Meanwhile, Vietnam’s pepper has good prices and increasingly high quality, so it is favored by this country. Vietnam’s pepper industry is highly appreciated for its processing capacity with the proportion of processed goods accounting for about 30% of total export turnover.
Vietnamese exporters have an advantage over some countries thanks to the EVFTA Agreement.
Despite the advantages, according to VPSA, pepper exports are expected to remain low due to the lack of domestic supply, and inventory from last year to 2024 reached the lowest level in many years. This will push up the price of pepper.
Surveys in pepper-growing areas of Vietnam show that the area is gradually narrowed. In some places, due to adverse weather, the output decreases. This year’s pepper crop is expected to decrease by 10-15%, estimated at 160,000 – 165,000 tons.
Currently, black pepper is purchased by traders for 95,000 VND/kg; dried red ripe pepper is up to 130,000 VND/kg. Compared to the same period last year, the pepper price at this time increased by about 30%. This is the highest price in the last three years.
According to data from VPSA, the pepper price on January 07 fluctuated between 81,000 – 83,000 VND/kg. Last week, the pepper market tended to go up. Compared to the beginning of the week, key provinces recorded an increase from 500 VND/kg to 2,000 VND/kg.
Based on a survey, the lowest price is now 81,000 VND/kg in Gia Lai province, up 1,000 VND/kg. Next is Dong Nai province with an increase of 1,500 VND/kg to 81,500 VND/kg.
After increasing 500 VND/kg, the pepper price in Dak Lak and Dak Nong is now at 82,000 VND/kg.
Similarly, pepper prices in Ba Ria – Vung Tau and Binh Phuoc provinces increased by 2,000 VND/kg and 1,500 VND/kg, respectively, to 82,500 VND/kg and 83,000 VND/kg./.