Pepper market July 10th 2024 - Prices Increased sharply

 

Pepper prices increased sharply, export turnover increased by 30.5% in the first half of the year

Posted onJuly 10, 2024by VPA

10
Jul

In the first 6 months of 2024, exports to the US increased by 44.6% to 37,435 tons, accounting for 26.3% of the market share. Next are the markets of Germany, India, China,...

According to statistics from the Vietnam Pepper and Spice Association (VPSA), in the first 6 months of 2024, by the end of June 2024, Vietnam has  exported   142,586 tons of pepper of all kinds, down 6.8%. in volume but increased by 30.5% in turnover.

Of which, the amount of black pepper exported reached 125,959 tons, white pepper reached 16,627 tons. Total export turnover reached 634.2 million USD, black pepper reached 539.9 million USD, white pepper reached 94.3 million USD.

In the first 6 months of 2024, the US is Vietnam's largest pepper export market with a volume of 37,435 tons, an increase of 44.6% over the same period last year, accounting for 26.3% of the market share. Next are markets such as Germany with 9,526 tons, an increase of 106.7%; UAE: 8,388 tons, up 15.2%; India: 8,173 tons, up 45.7%, China: 7,453 tons, down 85.2% and Netherlands: 6,019 tons, up 52.1%.

Top white pepper export markets: Germany: 2,454 tons, US: 2,044 tons, Netherlands: 1,779 tons, Thailand: 1,732 tons and China: 1,567 tons...

Along with that, Vietnam  imported   18,002 tons of pepper of all kinds, of which black pepper reached 16,357 tons, white pepper reached 1,645 tons, total import turnover reached 69.6 million USD, an increase of 18.9% over the same period. period last year. The three main pepper supply countries to Vietnam include: Brazil reaching 7,241 tons, down 22.3%; Cambodia reached 6,212 tons, an increase of 34.5%; Indonesia reached 2,991 tons, an increase of 67.3%.

The continuous increase in pepper prices   is the reason why although export value has increased, quantity has decreased. Currently, the average export price of Vietnamese pepper has increased by 1,000 USD/ton compared to the same period in 2023. Specifically Specifically, the price of black pepper reached more than 4,300 USD/ton, white pepper reached nearly 6,000 USD/ton.

The main reason for the sharp increase in pepper prices is that global pepper output has decreased significantly due to the El Nino phenomenon and the decline in planted area, and the amount of inventory from last year transferred to this year in Vietnam (the largest pepper exporting country). world today) is almost negligible while demand in major markets such as Europe, America and China has increased sharply.

“This is pushing pepper into a new price increase cycle. This cycle will last for the next 10 years and the price can reach 350,000 - 400,000 VND/kg," Mr. Hoang Phuoc Binh, Standing Vice Chairman of Chu Se Pepper Association (Gia Lai) shared with  VnEconomy.

According to VPSA's assessment, Vietnam's pepper output in 2024 is estimated to decrease by 10% compared to 2023, to only about 170,000 tons. This is the lowest level in the past 5 years.

In Brazil, one of the major pepper exporting countries, the 2024 pepper crop here will be severely affected by prolonged drought. Brazil's pepper output is expected to be the lowest in many years, down 20-40% compared to the previous year. If experts' predictions about Brazil are correct, the pepper market can only become vibrant again from September onwards.

Sharing with VTV Online, a representative of the Import-Export Department (Ministry of Industry and Trade) predicted that the increase in domestic pepper prices will push up export pepper prices and the pepper industry can be expected to earn billions of USD in exports this year. now.

Not only that, in the world market it is also forecast that pepper prices will continue to increase but the growth rate will slow down. In the domestic market, black pepper prices have increased sharply due to limited supply, but people should not massively expand planting areas but focus on investing and taking care of intensive farming so that pepper plants can develop sustainably. and stable.

As for domestic businesses, VPSA recommends that export businesses be careful in purchasing and exporting activities to avoid risks similar to the  recent coffee or  rice  prices.

According to VietnamBiz.vn