Pepper export to the Chinese market increased by 174%
According to the Vietnam Pepper and Spices Association (VPSA), in 2023, Vietnam exported 264,094 tons of pepper of all kinds, of which black pepper reached 236,148 tons and white pepper reached 27,946 tons.
Total export turnover reached 906.5 million USD, black pepper reached 770.6 million USD, white pepper reached 135.9 million USD. Compared to 2022, export volume increased by 13.8%, but export turnover decreased by 8%.
 |
| In 2023, Vietnam's pepper exports to the Chinese market will reach 60,135 tons, accounting for 22.8% of Vietnam's pepper export market share and increasing by 174.0%. |
The average export price of black pepper reached 3,585 USD/ton, white pepper reached 5,091 USD/ton, compared to 2022, the export price of black pepper reached 3,591 USD/ton, white pepper reached 5,095 USD/ton, respectively decreased by 420 USD for black pepper and 635 USD for white pepper.
The leading exporters in 2023 include: Olam Vietnam with 20,306 tons, accounting for 7.7% and compared to last year, the export volume decreased by 30.3%. Next are Nedspice Vietnam with 19,187 tons, accounting for 7.3%, up 13.9%; Tran Chau with 16,538 tons, accounting for 6.3%, down 35.7%; Phuc Sinh with 15,802 tons, accounting for 6%, up 6.6%; Haprosimex JSC with 10,927 tons, accounting for 4.1%, down 14%.
The leading white pepper exporters include: Nedspice Vietnam with 3,652 tons; Olam Vietnam with 3,350 tons; Tran Chau with 2,305 tons; Lien Thanh with 2,010 tons and Phuc Sinh with 1,882 tons.
Asia is Vietnam's largest pepper export market, accounting for 52.7% and compared to 2022, export volume increased by 29.6%, of which the leading market is China, reaching 60,135 tons, accounting for 22.8% of Vietnam's export market share and increasing by 174%.
Next are the Indian markets with 12,812 tons, accounting for 4.9% and increasing by 4.2%; the UAE with 12,132 tons, accounting for 4.6%, decreasing by 24.7%; the Philippines with 8,021 tons, accounting for 3%, increasing by 27.5%.
The Americas region ranked second in terms of export market share, accounting for 22.8% and exports increased by 0.3%, of which the United States was the second largest export market for Vietnamese pepper, reaching 54,271 tons, accounting for 20.5%, down 0.8% compared to last year.
Exports to European markets accounted for 19.5%, down 1.4% compared to last year. The main export markets included: Germany reached 9,216 tons, accounting for 3.5%, down 4.5%; the Netherlands reached 7,946 tons, accounting for 3.0%, down 1.9%; Russia reached 5,490 tons, accounting for 2.1%, down 12.7%; the UK reached 4,923 tons, accounting for 1.9%, down 3.0%.
Exports increased by 72.8% to Türkiye, reaching 4,482 tonnes; France increased by 37.2% to 4,134 tonnes; Spain increased by 11.5% to 2,939 tonnes and exports to Ireland decreased by 75.8% to 1,194 tonnes.
Exports to Africa increased by 7.8%, of which Egypt reached 4,247 tons, up 23.5%; South Africa reached 2,408 tons, up 17.0%; Senegal reached 2,372 tons, up 41.1%...
According to the Ministry of Agriculture and Rural Development, Vietnam's pepper area in 2023 will reach 115 thousand hectares, a decrease of 5 thousand hectares compared to 2022. Vietnam's pepper output in 2023, according to VPSA's assessment, will reach 190 thousand tons, an increase of 3.8% compared to 2022.
The average domestic pepper price at the beginning of the year reached 57,000 VND/kg and was at its lowest level since March 2021. The price increased at the end of the first quarter of 2023 and did not change much until November 2023. In December, the price continuously increased, reaching 86,000 VND/kg at one point, leading to the average price for the whole month reaching 81,000 VND/kg, an increase of 42% compared to the beginning of the year.
The reason for the year-end price increase is that there is not much inventory left, the US market unexpectedly consumed strongly in the last 3 months of the year, especially December when the import volume reached over 6,200 tons (the highest import month), these could be orders delivered by businesses before the end of the year so they were forced to buy goods, combined with the slow harvest season in Dak Nong causing a shortage of goods leading to an increase in domestic prices.
The increase in domestic prices also led to an increase in the export prices of black pepper and white pepper. On average, the export price of black pepper at the end of the year increased by 5.0% and the price of white pepper increased by 1.9%.
2024 output forecast to drop 10.5%
The International Pepper Community (IPC) forecasts that global pepper output in 2024 will decrease by about 1.1%, equivalent to 6,000 tons. Brazil and India are forecast to increase output in 2024, but it will depend on weather factors, while Vietnam will decrease. Other producing countries may maintain pepper output with insignificant changes. Pepper trade in 2024 may continue to slow down due to the impact of geopolitical conflicts, climate change, inflation, etc.
Prices are expected to improve after the Lunar New Year when Chinese traders increase their purchasing power in the market, especially at the beginning of the second quarter of the year. In addition, other markets will also have to start buying again despite the economic crisis, which may cause year-end inventories to continue to decrease.
In the domestic market, the Ministry of Agriculture and Rural Development assessed that due to the impact of climate change, this year's harvest is later than last year. Vietnam's pepper output in 2024 is estimated at 170 thousand tons, down 10.5% compared to 2023.
The Import-Export Department forecasts that pepper exports in 2024 will be favorable in terms of price. Vietnam's pepper output in the 2024 crop is forecast to decrease, although the world economic situation still has many potential risks, however, businesses are forced to buy reserves to compensate for previous supply shortages. This is believed to be the reason for the sharp increase in pepper prices.
Ms. Hoang Thi Lien - Chairwoman of VPSA - said that shipping rates have not shown any signs of cooling down in the short term as tensions in the Red Sea continue to increase, putting pressure on the global supply chain.
In addition, recently, under the promotion of the American Spice Association, the US Food and Drug Administration has continuously announced a number of MRLs established for spices, most of which are active ingredients detected with high frequency in pepper.
On the positive side, this helps export enterprises more clearly identify US regulations, and Vietnamese pepper producers can come up with more suitable cultivation methods to meet this market.
VPSA will continue to work with the American Spice Association to coordinate proposals for additional MRLs to be established for active ingredients that are commonly found in pepper and other spices in the coming period.
The 2024 pepper harvest has also begun in some districts of Dak Nong province, but the harvest is mainly scattered in some districts and is not much. According to VPSA, export enterprises are almost only buying in moderation to deliver to signed orders. At the same time, they are waiting for more harvest to be able to buy at better prices.
World pepper prices are forecast to remain high even as Vietnam has entered a new harvest season. This year, Vietnamese pepper growers are not rushing to sell as much as in previous seasons due to the support of rising prices of other agricultural products such as durian and coffee.
Ms. Hoang Thi Lien also expects that in 2024, the Vietnamese pepper industry will likely continue to exploit the US, China, EU and other potential markets. With its position as the world's number 1 pepper supplier thanks to its stable supply and guaranteed quality, Vietnamese pepper will have an advantage when penetrating the markets.
Source link
Comment (0)