How much pepper has Vietnam imported from the Brazilian market?

According to data from the Brazilian State Center for Foreign Trade Statistics, Brazil's pepper exports in June reached 5,333 tons, worth 22.9 million USD, down 9.7% in volume and 9.4% in value compared to the previous month, but up 7.4% in volume and 45.8% in value compared to the same period last year.

Việt Nam đã nhập khẩu bao nhiêu hồ tiêu từ thị trường Brazil?

In the first 6 months of the year, Brazil exported 37,181 tons of pepper worth 141.7 million USD, down 6% in volume compared to the same period last year but still up 21.4% in value thanks to high prices.

On average, in the first 6 months of the year, Brazil's pepper export price reached 3,810 USD/ton, up 29.3% over the same period. In June alone, it reached 4,300 USD/ton, the highest level recorded in many years.

Vietnam, the world's leading pepper producer and exporter, is the largest customer of Brazil's pepper industry. In the first half of this year, Brazil exported 5,910 tons of pepper to Vietnam, down 21.5% compared to the same period last year and accounting for nearly 16% of the South American country's total pepper exports.

Brazil's pepper export price to Vietnam averaged 3,488 USD/ton, up 19% compared to the first half of last year, but the lowest among the top 15 pepper importing countries from Brazil. At the same time, it was significantly lower than Vietnam's average export price of 4,454 USD/ton to the international market during the same period.

Brazil's other leading pepper export markets in the first half of 2024 include: India with 3,892 tons, up 47.2%; Pakistan with 3,703 tons, up 63.3%... In addition, the amount of pepper shipped to the US and EU increased sharply. Specifically, exports to the US increased nearly 8 times to 1,402 tons, to Germany increased by 14.8%, France increased by 37.1%, Italy increased by 150%. However, some other markets such as Senegal, Morocco, Egypt, the Netherlands... witnessed a decline.

According to the Vietnam Pepper and Spices Association (VPSA), in the first half of 2024, Vietnam imported 18,002 tons of pepper of all kinds, of which black pepper reached 16,357 tons and white pepper reached 1,645 tons, with a total import turnover of 69.6 million USD, up 18.9% over the same period last year. The three main pepper suppliers to Vietnam include: Brazil reached 7,241 tons, down 22.3%; Cambodia reached 6,212 tons, up 34.5%; Indonesia reached 2,991 tons, up 67.3%.

Data from the International Pepper Association (IPC) shows that the current price of Lampung black pepper in Indonesia is at 7,223 USD/ton, the price of Brazilian black pepper ASTA 570 is at 7,125 USD/ton, the price of Kuching black pepper in Malaysia ASTA is stable at 7,500 USD/ton, the price of Indonesian Muntok white pepper is around 9,196 USD/ton, the price of Malaysian white pepper ASTA is at 8,800 USD/ton, the price of Vietnamese black pepper 500 gr/l is at 6,000 USD/ton; 550 gr/l is at 6,600 gr/l, the price of white pepper is at 8,800 USD/ton.

Thus, this is the first rare time in many years that Brazilian black pepper prices have surpassed those of Vietnam.

Speaking to reporters from the Industry and Trade Newspaper, Ms. Hoang Thi Lien - President of the Vietnam Pepper and Spice Association (VPSA) - said that in Brazil, where prices are usually lower than in Vietnam, now they are even higher than in Vietnam. Although the price of Brazilian pepper is higher than in Vietnam, Vietnamese businesses still have to import, but they are no longer importing in large quantities like before. The reason is that the price is too high, causing the profit margin of businesses to narrow due to having to add shipping costs and many other costs.

In recent days, domestic pepper prices have tended to decrease but are still at their highest level in the past 8 years. According to farmers in pepper growing areas, although prices have increased, growers have not benefited much, because most of the old pepper gardens have been replaced by durian and some other crops with higher economic value. Due to the impact of climate change, pepper productivity has decreased sharply in recent years, averaging 20-30%.

Brazil is currently the world's second largest producer and exporter of black pepper after Vietnam, accounting for 17-18% of global supply. However, the country's pepper exports are facing the risk of a decline for the third consecutive year due to crop failure.

Brazil is expected to enter the next harvest in August in the Espirito Santos region and November in the Para region. It is estimated that Brazil will harvest around 60,000 tons more. Some experts believe that signs of a shortage in supply compared to demand are also a factor affecting prices.

Meanwhile, rapidly rising freight costs and port congestion in Asia are also impacting prices in import markets, potentially causing shipping delays. This could lead to price increases in the medium to long term.

Pepper prices are very difficult to predict at this time. In the context of the current double difficulties surrounding businesses, Ms. Hoang Thi Lien said that the Association recommends that businesses need to be cautious in trading activities.

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