Vietnam is almost out of pepper, pepper export price is at an unprecedented high

According to the Customs Department, in September this year, our country exported 20,000 tons of pepper to various markets, with a turnover value of 125 million USD. Compared to the same period last year, pepper exports increased by 10.4% in volume, especially in value, up to 84.9%. The average pepper export price reached 6,239 USD/ton (equivalent to more than 153 million VND), up 67.5% - the highest level in the past 8 years.

In the first 9 months of 2024, Vietnam exported 203,000 tons of pepper, earning more than 1 billion USD. Although the export volume decreased by 1.5% compared to the same period last year, the value increased by 46.9%. This has brought the pepper industry back to the billion-dollar export group after many years of "decline".

Việt Nam gần như — Farmers in Dak Song district, Dak Nong harvest pepper. Photo: Duy Hau.

Currently, domestic pepper prices are also slightly increasing compared to last week, currently trading at an average of 147,500 - 149,000 VND/kg. Of which, pepper prices in Binh Phuoc are at the highest level, reaching 149,000 VND/kg.

Pepper prices in Gia Lai, Dak Lak, Dong Nai, and Ba Ria-Vung Tau provinces were purchased at VND148,000/kg (up VND1,000/kg compared to the weekend); in Dak Nong province, pepper prices were at VND147,500/kg.

The increase in pepper prices is a common picture of the global pepper market due to reduced supply due to unusual weather and the "hand" of speculators contributing to the price increase. Accordingly, in the first 18 days of September 2024, the export price of pepper from major producing countries in the world increased sharply, not just Vietnam.

For example, in Brazil, on September 18, 2024, the export price of black pepper increased sharply by 555 USD/ton compared to August 30, 2024, to 7,000 USD/ton. At Kuching port, Malaysia, on September 18, 2024, the export price of black pepper increased by 300 USD/ton compared to the end of August 2024, to 8,800 USD/ton. The export price of white pepper increased by 500 USD/ton compared to the end of August 2024, to 10,900 USD/ton.

Similarly, in Indonesia, the export price of black pepper increased by USD 60/ton compared to August 30, 2024, to USD 7,589/ton. The export price of white pepper increased by USD 289/ton compared to August 30, 2024, to USD 9,154/ton.

Currently, the export price of black pepper from Vietnam is at 6,800 USD/ton for 500 grams/liter; 550 grams/liter is at 7,100 USD/ton. The price of white pepper from Vietnam is at 10,150 USD/ton, an increase of 1,350 USD/ton compared to the end of August 2024.

The Import-Export Department (Ministry of Industry and Trade) forecasts that in the long term, pepper export prices will still be supported due to the expected decrease in Vietnam's pepper output in the 2025 crop. It is expected that Vietnam's 2025 pepper crop will be harvested almost entirely in February 2025, with some regions extending to March and April, 1-2 months later than previous years due to the impact of prolonged drought, making pepper supply increasingly difficult.

In 2023, the country's pepper output will reach about 170,000 tons and in 2024 it will decrease to about 160,000 tons, which is nearly half the peak of 300,000 tons in 2015.

Vietnam’s pepper industry is forecast to continue to benefit from high export prices due to reduced supply. According to the Vietnam Pepper and Spice Association (VPSA), pepper is almost gone from the population, remaining only in agents and warehouses of businesses.

VPSA said that the inventory from the 2023 crop carried over plus the import volume in 2024 is about 40,000-45,000 tons (including unofficial imports), showing that the export source until the end of the year will be lower than every year and until March 2025 when the 2025 crop is expected to be harvested.

According to the Import-Export Department, in terms of market structure, in the first 8 months of 2024, pepper exports to most markets increased. Notably, pepper exports to Germany, the United Arab Emirates, South Korea, and Pakistan recorded triple-digit increases.

In the EU, this market is also increasing pepper imports from Vietnam. Specifically, in the first 7 months of 2024, it reached 24.88 thousand tons, worth 112.5 million EUR (equivalent to 125.2 million USD), up 38.9% in volume and 58.1% in value over the same period last year.

"In general, Vietnam's pepper industry still has an advantage in the EU market thanks to its quality supply and competitive prices. However, to increase the value of pepper in the coming time, Vietnam needs to focus on producing organic spices for export, meeting global tastes in general and the EU market in particular," said the Import-Export Department.

According to the Vietnam Trade Office in Belgium and the EU, the global organic spice market is quite large and is growing at 7.5% per year in the period 2021 - 2026. It is forecasted that by 2026, the global organic spice market will be nearly 20 billion Euros. In Europe, countries such as Switzerland, the Netherlands, Germany, France, Italy, etc. are major spice import markets. In particular, spices with sustainability certification (organic, Fairtrade, RA) have great export potential to this market.

In Europe, the growth rate of organic spice consumption is forecast to be particularly high in Sweden and the UK, with an increase of more than 5.5% per year over the next 7 years. Therefore, the potential for Vietnam to export pepper to Europe will be very large if our country can meet the consumer tastes of the people.

Source: https://danviet.vn/viet-nam-gan-can-sach-ho-tieu-gia-tieu-xuat-khau-tang-cao-chua-tung-co-20241001152537325.htm