With nearly 27,000 tons of imported pepper, the US has become the largest export market of Vietnam’s pepper in the past 06 months. Vietnam’s pepper market share in total US imports remained stable at 79.1%.
THE US IMPORTED NEARLY 27,000 TONS OF VIETNAM’S PEPPER, DOMESTIC SUPPLY IS RUNNING LOW
According to statistics from the US International Trade Commission, in the first 06 months of 2023, the US imported nearly 33,660 tons of pepper, worth 155.63 million USD. US pepper imports decreased by 25.7% in volume and 30.3% in value compared to the same period last year.
Notably, in the first 06 months of this year, Vietnam was the largest pepper supplier to the US. Specifically, the US purchased 26,620 tons of pepper from Vietnam, worth 117.79 million USD, down 19% in volume and 26.6% in value over the same period last year.
Although both volume and value decreased, Vietnam’s market share of total US imports remained stable at 79.1% in the first 06 months of 2023.
In the market structure of pepper supply to the US, Vietnam accounts for the largest market share.
At the port of Ho Chi Minh City, the black pepper prices of 500g/l and 550g/l for exports are stable at 3,500 USD/ton and 3,600 USD/ ton. The price of white pepper for export is stable at 5,100 USD/ton (Data recorded on August 28).
In addition, the US market also imported pepper from India and Indonesia, and the amount of pepper imported from these countries was in a downward trend compared to the same period last year.
The average pepper import price in the US in the first 06 months of 2023 reached 4,624 USD/ton, down 6.2% over the same period last year. In particular, the average import price of pepper from Vietnam, India, and Brazil decreased but increased sharply from Indonesia and China.
Data from the US International Trade Commission (USITC) shows that the US imported 64,685 tons of pepper from Vietnam in 2022, up 1.8% compared to 2021 and marking the 7th consecutive year of growth. In 2022, the US is also the largest consumer of Vietnam’s pepper, accounting for 25.3% of the total volume of pepper exports of the country.
According to the General Department of Customs, Vietnam’s pepper exports in August 2023 reached 16,000 tons, worth 60 million USD, up 4.9% in volume and 5.4% in value compared to July 2023. But the figures are down 13.4% in volume and 20.2% in value against August 2022. Accumulated in the first 08 months of 2023, Vietnam’s pepper exports reached about 184,000 tons, worth 600 million USD, up 14.5% in volume, but down 15.9% in value over the same period last year. It is forecast that Vietnam’s pepper exports will remain low in the coming time. The reason is that the domestic supply is no longer abundant, and the demand from the US, EU, and Chinese markets is not high.
Regarding pepper export prices, in August 2023, Vietnam’s average pepper export price was estimated at 3,748 USD/ton, up 0.5% compared to July 2023, but down 7.9% compared to August 2022.
In the first 08 months of 2023, the average export price of Vietnam’s pepper is estimated at 3,263 USD/ton, down 26.5% over the same period last year. In terms of structure, in July 2023, Vietnam’s exports of black pepper and ground black pepper decreased in both volume and value compared to July 2022, while exports of white pepper and ground white pepper decreased in volume, but increased in value.
The supply is running low, the price of pepper increased to the highest 103,000 VND/kg.
DOMESTIC PEPPER PRICE INCREASED BY 1,500 TO 2,000 VND/KG
According to the Ministry of Industry and Trade, the current amount of pepper in the 2023 crop among people and businesses is not much. From now until the end of 2023, pepper is intended for exports mainly from inventories from previous years. This is believed to be the reason why domestic pepper prices increased in August 2023.
On August 28, 2023, the price of black pepper increased by 1,500 – 2,000 VND/kg compared to the end of July 2023, to 68,500 – 72,000 VND/kg (depending on the survey area).
The price of white pepper was 102,000 VND/kg, up by 1,000 VND/kg compared to the end of July 2023, but still lower than 105,000 VND/kg in the same period last year.
Pepper prices on September 6 continued to increase compared to the end of August. Specifically, the highest pepper price in Ba Ria – Vung Tau province reached 73,500 VND/kg, up by 500 VND/kg compared to yesterday. In Binh Phuoc province, the pepper price reached 72,500 VND/kg.
In the Central Highlands provinces, the pepper price in Dak Lak and Dak Nong areas was stable at 71,500 VND/kg. The pepper price in Gia Lai province increased by 500 VND/kg, reaching 70,500 VND/kg.
The current pepper prices are considered the highest prices so far this year./.