Brazil, Indonesia and Cambodia are the three main pepper suppliers of Vietnam.

Domestic pepper prices remain high, forcing businesses to increase pepper imports from three main markets including Brazil, Indonesia and Cambodia.

According to preliminary statistics from the General Department of Customs, in the past 10 months alone, pepper businesses spent 108 million USD (equivalent to 2,700 billion VND) to import pepper. Compared to the same period last year, imports of this item increased sharply by 38.2%. Of which, businesses mainly imported pepper from Brazil, Indonesia and Cambodia.

Brazil, Indonesia and Cambodia are the three main sources of Vietnamese pepper. Photo: NH

On the other hand, according to the Ministry of Agriculture and Rural Development, pepper is the agricultural product with the strongest export growth in the first 10 months of 2024, reaching 1.12 billion USD, up 48% over the same period last year. Thus, after only 10 months, this industry has soon surpassed the 1 billion USD mark for the first time in 6 years.

This impressive growth momentum comes from high pepper prices due to a decline in global supply while demand recovers strongly in major markets, especially the US and the European Union (EU).

Thus, although Vietnam is the country with the world's top pepper production and export, since the beginning of the year, businesses still have to spend a large amount of money to buy this item.

Pepper is considered as the “black gold” of our country. Currently, Vietnam holds the number 1 position in the world in both production and export. Of which, our country’s pepper output accounts for 40%, and exports account for 60% of the world market share.

However, in the past, pepper prices were very low, and many farmers switched to other crops. In addition, unfavorable weather conditions led to a sharp decline in pepper output. Therefore, businesses in this industry had to increase pepper imports from Cambodia, Brazil and Indonesia to serve production in order to consolidate the world's leading position that Vietnam has held for more than two decades.

“The Vietnamese pepper industry is benefiting from high export prices due to limited supply. Accordingly, this year pepper farmers benefit from very high selling prices. On the contrary, export enterprises cannot buy much domestic pepper. This is also part of the reason why Phuc Sinh has had to import a lot of pepper from Brazil and Indonesia this year. The reason is that, due to reduced output, farmers are holding back pepper for speculation. Along with that, the prolonged drought has made domestic pepper supply increasingly difficult,” said Mr. Phan Minh Thong - Chairman of the Board of Directors of Phuc Sinh Joint Stock Company.

According to the forecast of the Vietnam Pepper and Spice Association, global pepper prices will continue to increase in the next 10-15 years, with the possibility of reaching a peak of VND350,000-400,000/kg. Factors such as limited pepper supply due to El Nino and demand for clean, organic pepper in developed markets are considered long-term growth drivers for the pepper industry.

Solutions and development orientation, Vietnam Pepper and Spice Association recommends that Vietnam pepper industry focus on product quality, diversify export markets and develop brands. Producing clean pepper, organic pepper and signing long-term contracts with major retailers in Europe will help stabilize output and increase the competitiveness of Vietnamese pepper in the international market.

Source: https://congthuong.vn/brazil-indonesia-va-campuchia-la-3-nguon-cung-ho-tieu-chinh-cua-viet-nam-356294.html