Pepper exports recover but price unstable

Việt Nam’s pepper export turnover in 2021 is estimated to reach the highest level since 2018 thanks to higher export prices, but the global pepper market development looks set to benbsp;unpredictable in 2022.

In 2021, Việt Nam's pepper export volume is estimated to reach 260,000 tonnes, earning US$950 million. Photo vneconomy.vn

Việt Nam’s pepper export turnover in 2021 is estimated to reach the highest level since 2018 thanks to higher export prices, but the global pepper market development looks set to be unpredictable in 2022.

In 2021, Việt Nam's pepper export volume is estimated to reach

260,000 tonnes, earning US$950 million. The export

decreased 9 per cent in volume but jumped 44 per cent in value year-on-year, according to the Việt Nam Pepper Association (VPA).

This year has marked a strong recovery of Việt Nam's pepper industry after four years of struggling with difficulties due to over supply and a strong reduction in prices.

The purchasing prices of the commodity rose by 40-44 per cent from VNĐ51,000-53,000 per kilo in the mid-February to VNĐ76,000-79,500 on March 19.

The price surged to a record of VNĐ90,000 per kilo at the end of October, the highest level since late 2017.

The existing purchasing prices are 53-54 per cent higher than at the beginning of this year and much higher than in recent years, signaling a new bullish cycle for the domestic industry.

The average export price of Vietnamese pepper is US$4,000 per tonne, according to the association.

The main reason for the sharp increase in prices is the reduction in areas growing pepper trees. Farmers decreased the area due to the lower pepper price in recent years, and changed to other produce.

The pepper output in 2021 is estimated at 180,000 tonnes, down 25 per cent compared to 2020. Output is expected to continue to decrease slightly in 2022.

Nguyễn Nam Hải, VPA chairman, said that in 2021, Việt Nam's pepper export price had been increasing because supply could not meet demand and the quality of local pepper had reached export market requirements.

According to VPA, Việt Nam's pepper has continued its leading position in the global pepper market supplying 60 per cent of demand, exceeding exports of other pepper exporting countries such as Brazil and Indonesia.

The quality of local pepper has been improved further, while processed pepper products for export have gradually increased instead of focusing on raw pepper as before.

VPA believes that pepper exports will increase sharply in the first quarter of 2022 with world purchasing demand at about 130,000-160,000 tonnes. Meanwhile, Việt Nam’s total pepper output is expected to reach 150,000 tonnes for the year.

Therefore, the export price of pepper is expected to continue to grow in 2022. The supply and demand for pepper is gradually returning to balance and even to higher demand.

In addition, the Việt Nam-European Union Free Trade Agreement, which took effect from August 1, 2020, has brought great opportunities for pepper production, processing and trading enterprises of Việt Nam.

Việt Nam's pepper exports to most markets, including Germany, the Netherlands, France and Spain recorded high growth in 2021.

Along with supply and demand factors, high production costs are also a factor set to make pepper prices rise in 2022, especially for fertilisers, gasoline and transport.

However, the global pepper market development is unpredictable because the trend of storing pepper by people and speculators is likely to continue in 2022.

Việt Nam's pepper exports over the past 10 years have showed that the domestic pepper industry still faces risk of price decline.

Experts have recommended that to maintain high prices in the long-term, controlling increase in supply is one of the key factors.

Therefore, the authorities should review the area for growing pepper trees and the pepper output nationwide. At the same time, farmers need to change production methods towards organic products and improve product quality, increasing competitiveness and having sustainable consumption.

In the future, the pepper industry must promote development of sustainable organic pepper growing areas by applying GlobalGAP and VietGAP pepper production standards in pepper production and processing, Hải said.

Farmers, processing enterprises and exporters must enhance cooperation in solving the problem of pesticide and chemical residues in pepper that are banned by import countries to improve the quality of export pepper.

At the same time, it should persify high-quality processed pepper products to directly export to large markets like the US and Europe, including pepper oil, white pepper, black pepper, red pepper, powdered pepper and seasoning products made from pepper.

In 2021, Việt Nam exported pepper to more than 110 countries from more than 200 exporters.

In the first 11 months of 2021, the US continued to be the largest pepper import market for Việt Nam, reaching 55,602 tonnes, up 9.6 per cent, followed by the Chinese market with 37,746 tonnes, down 27.3 per cent.

Important Vietnamese markets such as the US, EU, and the Middle East all recorded positive growth, despite COVID-19.

Whole-grain black pepper is still the most exported product, its share of total exports has decreased to 65-70 per cent from about 80 per cent previously. Meanwhile, the volume of processed pepper products has increased significantly.

According to the VPA, the pepper output of Việt Nam in 2018-2020 recorded the highest level ever with a total volume of 760,000 tonnes, an increase of 54.5 per cent compared to 2015-2017.

This huge increase in output caused the average pepper price on the domestic market to decline from VNĐ200,000 per kilo in 2017 to below VNĐ50,000 in 2020. On some occasions in 2020, it dropped to a record low of VNĐ35,000. VNS

Source: VNA
vietnamnews.vn

Related News

Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Businesses need support from vietnamese representative offices abroad

Businesses need support from vietnamese representative offices abroad

VCN - Several heads of Vietnamese representative offices abroad believe that Vietnamese businesses need to prepare solutions to respond to the changing global economy and meet the increasing demands of the international market.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.

More News

Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Developing supporting industries for the billion-dollar export commodity groups

Developing supporting industries for the billion-dollar export commodity groups

VCN - Electronic products and components are one of export commodity groups with turnover exceeding one billion USD, but the supporting industry for this group is still modest.
Village craft products conquer the world

Village craft products conquer the world

VCN - Vietnam's handicraft products have significant potential to captivate international customers, enhancing export value and revenue.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version