Vietnam ranks number 1 in the world in pepper production.

Vietnam – the world's leading country in pepper production

The impact of climate change in 2024 will partly affect pepper production of farmers. However, some areas of the provinces recorded favorable weather conditions. In Dak Nong, the capital of Vietnam's pepper, the output was recorded to be equivalent to last year.

Vietnam is the world leader in pepper production.

Production in some areas in the remaining key provinces such as Gia Lai, Binh Phuoc, Dong Nai and Ba Ria - Vung Tau also has a positive trend when pepper prices increase, so farmers boldly invest in caring for and restoring existing pepper gardens. Meanwhile, in Dak Lak province, the province with the second largest pepper area and output, it is assessed that it has decreased when people switch to growing durian and there are not many new plantings.

After reaching a record 290,000 tons in 2019, Vietnam's pepper output has continuously decreased over the years. In 2023, output will increase slightly, to 190,000 tons (up more than 3.8%) compared to 183,000 tons in 2022.

Vietnam's pepper output in 2024 is estimated at 170,000 tons, which could be the lowest output in the past 10 years, since 2015.

In 2024, Vietnam exported 250,600 tons of pepper of all kinds, of which black pepper reached 220,269 tons and white pepper reached 30,331 tons. Total export turnover reached 1 billion 318.3 million USD, black pepper reached 1 billion 117.7 million USD, white pepper reached 200.6 million USD. Compared to 2023, export volume decreased by 5.1%, however, export turnover increased by 45.4%. The average export price of black pepper in 2024 reached 5,154 USD/ton, up 49.7% and white pepper reached 6,884 USD/ton, up 38.9% compared to last year.

India emerges as second largest pepper producing country

According to the International Pepper Community (IPC), in 2023, India surpassed Brazil to become the second largest pepper producing country in the world, however, most of India's pepper production is consumed domestically. In 2024, India's pepper production reached 125,000 tons and was the country that recorded the highest increase in pepper production with about 7% (8,000 tons) compared to 2023. However, the situation is not expected to improve next year, as the output could decrease by up to 38%.

As of October 2024, India exported 16,807 tons of pepper, up 34% (4,234 tons) over the same period in 2023, with the United States being the largest export market. Meanwhile, India's imports in the first 6 months of 2024 reached 17,428 tons, up 7.9% over the same period in 2023. Vietnam, Sri Lanka and Brazil are the three main suppliers to India.

According to IPC data, the FOB export price of black pepper from India recorded an increase of 11%, the lowest increase among producing countries, from an average of USD 6,713/ton in 2023 to USD 7,460/ton in 2024.

Brazil records highest decline in pepper production

According to IPC, in 2024, Brazil is the country that recorded the highest decrease in pepper production with about 29% equivalent to 28,000 tons from 98,000 tons to 70,000 tons due to the impact of climate change, especially drought leading to lack of irrigation water. However, IPC forecasts that the situation will be more positive in 2025 if the climate and weather conditions are favorable.

According to Comexstat, in 2024, Brazil exported 61,665 tons of pepper, with an export turnover of 286.1 million USD. Compared to 2023, the export volume decreased sharply by 23.6% (19,037 tons) while the turnover increased by 13.4%.

The UAE is Brazil's largest pepper export market, accounting for 13.3% and increasing by 7.1% compared to 2023, reaching 8,179 tons. Vietnam ranked second, accounting for 12.3%, but Brazil's exports to Vietnam decreased by 54.5% to 7,556 tons. Pakistan ranked next, reaching 6,572 tons, up 4.4%.

Notably, exports to the United States increased sharply, reaching 3,728 tons compared to 301 tons exported the previous year. Exports to the German market also increased by 14.1% to 4,193 tons after Brazil completed factories that can treat Salmonella bacteria.

Brazil's FOB black pepper export price recorded a sharp increase compared to producing countries with an increase of 48.4%, from an average of 3,125 USD/ton in 2023 to 4,639 USD/ton in 2024.

Malaysia – the 4th country with the highest increase in production

Malaysia is the fourth country with the highest production increase in 2024 according to the IPC report, with an increase of about 2,000 tons to 25,000 tons. This increase is likely to continue next year.

As of October 2024, Malaysia exported 4,788 tons of pepper, a slight decrease compared to 2023. Following the general trend, compared to 2023, in 2024 Malaysia also recorded an increase of 37% for FOB black pepper prices and 26% for white pepper.

According to the International Pepper Community (IPC), the world recorded a decrease of about 4% in global pepper production in 2024 compared to 2023, equivalent to 22,000 tons, to 558,000 tons. This decrease mainly comes from Brazil and Vietnam.

The average FOB price of black pepper from major producing countries in 2024 increased by about 45% compared to the previous year. Meanwhile, the average FOB price of white pepper recorded a lower increase of about 34%.

Source: https://congthuong.vn/viet-nam-dung-so-1-the-gioi-ve-san-luong-ho-tieu-370080.html