| Vietnam is the largest pepper supplier in the Korean market. Vietnam's pepper output in 2024 is forecast to decrease by 10% to 15% |
In the first 10 months of 2023, pepper exports earned 750.8 million USD.
According to preliminary statistics of the Vietnam Pepper Association, in October 2023, Vietnam exported 19,193 tons of pepper of all kinds, with a total export turnover of 72.7 million USD. Compared to September 2023, the volume of pepper exported increased by 15.4%, and the turnover increased by 17.3%. The average export price of black pepper in October 2023 reached 3,664 USD/ton, white pepper reached 5,211 USD/ton, down 0.7% for black pepper and up 1.1% for white pepper compared to September 2023.
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| China is still Vietnam's largest pepper export market. |
In October 2023, the US market accounted for 26.9% of Vietnam's pepper exports, reaching 5,169 tons and up 34.5% over the previous month. Next, the Chinese market reached 1,738 tons, down 21.9% over the previous month; the Indian market reached 1,300 tons, up 31% over the previous month...
The main exporting enterprises in October included: Nedspice reached 1,921 tons, up 46.3%; Olam Vietnam reached 1,918 tons, up 44.0%; Phuc Sinh reached 1,113 tons, down 19.9%; Harris Freeman reached 1,028 tons, up 50.7% and Tran Chau reached 894 tons, down 13.2%...
By the end of October 2023, Vietnam exported 223,578 tons of pepper of all kinds, of which black pepper reached 200,571 tons and white pepper reached 23,007 tons. Total export turnover reached 750.8 million USD, of which black pepper reached 640.2 million USD and white pepper reached 110.6 million USD.
Compared to the same period last year, pepper export volume increased by 14.6%, but export turnover decreased by 11.7%. The average export price of black pepper in the first 10 months of 2023 reached 3,553 USD/ton, white pepper reached 5,082 USD/ton, compared to the same period last year, the export price of black pepper decreased by 17.6% for black pepper and 15.6% for white pepper.
Nedspice is the largest pepper exporter in 10 months, reaching 15,462 tons, up 8.5% over the same period in 2022. Following are some of the leading exporters in the Vietnam Pepper Association, including: Olam Vietnam reaching 15,326 tons; Tran Chau reaching 14,144 tons; Phuc Sinh reaching 12,720 tons and Haprosimex JSC reaching 9,015 tons.
In the first 10 months of 2023, China was still Vietnam's largest pepper export market, reaching 57,723 tons, accounting for 25.8% of the market share and increasing by 265.3% over the same period. However, China's import volume in recent months has been on a downward trend after having purchased enough goods from the first two quarters of the year.
The United States is Vietnam's second largest pepper export market, reaching 42,600 tons, accounting for 19.1% of market share and down 6.3% over the same period.
The European region accounted for 19.0% of the export market share and decreased by 4.8% compared to the same period, of which Germany decreased by 7.4% to 7,754 tons, the Netherlands decreased by 4.7% to 6,582 tons, Russia decreased by 8.1% to 4,662 tons, and the UK decreased by 8.1% to 4,077 tons.
Pepper exports to the Indian market reached 10,538 tons, down 8.5% over the same period; to the UAE market reached 10,025 tons, down 29.8% over the same period.
Pepper exports to South Korea, Japan, and Pakistan also decreased while exports to the Philippines, Thailand, Iran, and Saudi Arabia increased compared to the same period.
The two markets of Türkiye and France recorded strong export increases of 69.7% and 31.1%, reaching 3,900 tons and 3,097 tons, respectively.
Pepper exports to the African market increased by 9.9%, of which Egypt increased by 30.1% to 3,687 tons, South Africa increased by 10.5% to 1,957 tons and Senegal increased by 35.6% to 1,863 tons.
Export market still lacks positive signals
The Import-Export Department (Ministry of Industry and Trade) forecasts that pepper exports will remain low due to the lack of domestic supply and the lack of demand in the US and EU markets. Currently, the amount of pepper exported from Vietnam has run out.
In the last months of this year, the company will export from the imported and stockpiled goods from before. The total amount of imported and stockpiled goods is estimated to reach about 80,000 tons, while domestic consumption is about 10,000 tons and the stock carried over to next year is about 30,000 tons, leaving about 50,000 tons for export in the last months of this year.
According to the Vietnam Pepper Association, pepper trading in Vietnam is active from May to July because the harvest has just ended and the pepper is still fresh. However, in the third and fourth quarters, customers will look to countries like Brazil and Indonesia to buy because this is the pepper harvest time in these two countries.
According to the Vietnam Pepper Association, the actual pepper inventory among the people is not much, most of it is only in the hands of agents and some speculators. Meanwhile, some processing enterprises also have enough goods to process at the end of the year, so there is no real need to buy at this time.
In the long term, Vietnam's pepper supply is forecast to be in short supply due to fierce competition from other crops such as durian and passion fruit.
Ms. Hoang Thi Lien - President of the Vietnam Pepper Association commented that if the cutting down of pepper to switch to fruit trees continues, there may be a shortage of supply in the next 3 years. "If Vietnam's output decreases sharply in the next 3 years due to the strong wave of crop conversion, farmers may "miss the wave" of pepper prices" , Ms. Hoang Thi Lien shared.
Regarding the market, Ms. Hoang Thi Lien commented that in the context of economic recession, the Russia-Ukraine conflict and the Israel-Palestine conflict affect the global market, including oil prices and the world trade situation in general.
Many countries are facing foreign currency shortages. Vietnam, which depends on export markets, has seen a decline in its overall product lines, and pepper and spices are no exception.
Besides, macro management policies, purchasing power, and consumption of major markets, including the US and EU, which are key markets of Vietnam, will likely have difficulty recovering in the short term.
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