Pepper Market June 23, 2025

 

Prices fell again at the beginning of the week

Pepper prices today (June 23) dropped to 120,000 VND/kg. Recently, Vietnam's pepper exports to the US have slowed down, while other major markets such as Germany, India, China... have increased quite strongly.

In the world market

In the world market, pepper prices in leading producing countries also remained stable.

At the end of the most recent trading session, the International Pepper Community (IPC) reported that the  export  price  of Indonesian black pepper was at 7,461 USD/ton, Malaysian ASTA black pepper reached 9,000 USD/ton, while the price of Brazilian black pepper ASTA 570 stood at 6,050 USD/ton.

In Vietnam, the export price of black pepper is fluctuating between 6,000 - 6,100 USD/ton for 500 g/l and 550 g/l.

According to information from Peppertrade, due to the sharp drop in black pepper prices in Vietnam, Brazilian exporters through the Brazilian Spice Association (BSA) have decided to suspend all offers and hold inventories for an indefinite period.

Type name	World black pepper price list
	June 23 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	7,461	–
Brazilian Black Pepper ASTA 570	6,050	–
Kuching Black Pepper (Malaysia) ASTA	9,000	–
Vietnamese black pepper (500 g/l)	6,000	–
Vietnamese black pepper (500 g/l)	6,100	–

At the same time of survey, the price of Indonesian Muntok white pepper was recorded at 10,079 USD/ton, Malaysian ASTA white pepper reached 11,750 USD/ton and Vietnamese white pepper stood at 9,000 USD/ton.

Type name	World white pepper price list
	June 23 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	10,079	–
ASTA Malaysian White Pepper	11,750	–
Vietnam white pepper	9,000	–

Update pepper information

Recently, Vietnam's pepper exports to the US market have tended to slow down, while other major markets such as Germany, India, China, etc. have increased quite strongly.

Vneconomy reported that in the first 5 months of the year, the US continued to be the largest export market for Vietnamese pepper, accounting for 24.7% of total volume and 26.8% of total export turnover. In the first 5 months of 2025, the country  imported   24,687 tons of pepper, worth 184.9 million USD, with an average price of 7,489.6 USD/ton. Although the volume decreased by 13.7% compared to the same period last year, the turnover increased sharply by 43.5%, while the average export price increased by 66.3%.

In May 2025 alone, the US imported 6,926 tons, worth 52.37 million USD, with an average price of 7,561.7 USD/ton - the highest price among the markets. Thus, compared to April 2025, output increased by 2.4%, turnover increased by 6.2%, and price increased by 3.8%. Compared to the same period last year, it increased by 18.6% in volume, 81.9% in turnover, and 53.3% in price.

The German market ranked second. In the first 5 months of 2025, this country imported 8,451 tons of pepper from Vietnam, reaching a turnover of 63.67 million USD. Compared to the same period last year, output increased by 23.5%, turnover increased by 93.9%, or nearly double.

Notably, not only has the volume increased sharply, but the export price to Germany also tends to increase steadily, reflecting the shift in consumption towards high-quality, organic or sustainably produced products.

“With the rise of green retail channels and European restaurants prioritizing transparent supply, Vietnamese pepper has the potential to expand its market share in Germany if it takes advantage of the EVFTA,” said the Vietnam Pepper and Spices Association (VPSA).

India ranks third in the pepper import markets from Vietnam. As the world's leading spice consumer and producer, India is not only a competitor of Vietnam in the pepper market but also an important customer. In the first 5 months of 2025, India imported 7,501 tons of pepper, equivalent to 53.28 million USD, with an average price of 7,102.6 USD/ton. Compared to the same period in 2024, the volume increased by 10.1%, the turnover increased by 90.2%, and the export price increased by 72.8%.

These impressive figures reflect India's domestic supply shortage and growing demand in the premium consumer segment, especially from food, pharmaceutical and organic product processors.

In addition to the three key markets above, Middle Eastern countries such as the UAE also show clear potential. Although the export volume to this market in the past 5 months only reached 3,960 tons, down 28.8% compared to the same period, the turnover still reached 26.93 million USD, up 16.5% - thanks to a sharp increase in export prices.

According to VietnamBiz.vn

PEPPER TRADE JUNE 20 - WARNING INFORMATION...

 

Warning information about scams and commercial fraud in the UAE

The UAE is a major global hub for trade and business, making it a target for many forms of commercial fraud and scams. Fraudsters are constantly changing their tactics, forms and methods of fraud, but some of the common types of commercial fraud and scams observed in the UAE include:

I. Forms of fraud and commercial fraud

1. Receive goods without paying and then run away

Nowadays, it is very common in the Middle East for importers to flee to their home country or close their offices after receiving the goods. This makes it difficult to find and recover assets. Fraudsters impersonate buyers in their scams, and they often request payment by T/T upon receipt of goods or bank transfer or Western Union. When working with new buyers, never pay via T/T on delivery and do not use Western Union for business transactions.

Currently, this situation is very common, the purchasing business receives the goods and does not pay or the selling business receives the money but does not deliver the goods. Or the purchasing business does not receive the goods and does not pay (especially for fresh fruit, causing damage to the selling business).

2. Margin Fraud

Escrow is a valid method. It is a third party arrangement that holds the buyer’s funds until the seller delivers the goods. Escrow is a secure way to protect both parties – the seller and the buyer. However, like all international payment methods, scammers have found ways to cheat honest businesses out of their money using escrow.

Escrow fraud occurs when a scammer sets up a new online escrow service with low fees and attractive offers. Buyers and sellers sign up, the buyer sends money to the site, and the escrow site suddenly shuts down and the money disappears. When paying a company through escrow, first make sure the escrow company is legitimate.

3. Forging documents and papers from banks

Businesses need to be extremely careful not to be scammed by scammers who forge bank documents or papers such as money transfer orders, etc., then send them to businesses and deliver the goods. This is a common form of fraud, so businesses must check if the money has reached their account before delivering the goods.

4. Hacking business information during transactions

Many businesses that are victims of computer, email or account hacking have no choice in the matter as computers can be compromised while users are online. However, some of the disadvantages associated with getting the victim to open a file allow the scammer to access sensitive information. This is similar to phishing, in that the scammers “copy” legitimate documents that the victim is used to receiving. In many cases, fraudulent businesses modify LCs, modify bank payment orders, modify emails about payment accounts, payment banks, etc. to deceive partners. This phenomenon is very common today.

5. Fraud is the partner for transaction

Scammers send emails asking for the business’s banking details. These can be very convincing if the scammer is impersonating a company that the business regularly deals with, or a company that regularly pays deposits directly to the business. When asked to provide banking details, even bank account numbers, other payment methods. Therefore, businesses should be proactive and always call the partner company directly and ask directly if the request is valid and correct before transferring money.

6. Bank employees collude with buyers

In some cases, businesses buying and selling goods signed a DP payment contract through the bank. When the original documents were sent to the bank, bank officials colluded with the purchasing business and handed over all original documents to the purchasing business to pick up the goods without payment.

7. Delivering but not receiving the goods or leaving them for a while causing the goods to be damaged

Currently, a common form is that the purchasing enterprise completes the procedures to receive the goods but the payment terms are TT postpaid. When the goods arrive at the port, they do not receive the goods immediately (usually for agricultural products, fresh goods). Leaving them at the port for a while will cause the goods to lose quality, high storage costs, then refuse to receive the goods or force the price down, etc. Many export enterprises that apply TT postpaid payment and do not deposit will suffer great losses if the importing enterprise does not receive the goods. At that time, the exporting enterprise has to bear many costs such as transportation to and from, storage, and other costs.

8. Non-delivery scam

The exporter absconds when he receives the money and does not deliver the goods, the importer receives nothing or an empty container, this triggers an automatic shipping document and “proof” that the seller has completed the transaction, the seller has received the money and the buyer has received nothing. The complication here is that the payment and shipping documents can be very legitimate and international trade depends on them.

9. Issuance of guaranteed checks

Currently, in the Middle East, purchasing enterprises often apply the form of payment by issuing a check with the total contract value and giving it to the seller as a guarantee. That check will be recorded as valid for a certain period of time. After receiving the goods, the purchasing enterprise does not pay the seller. Usually, that guarantee check is a fake check, the purchasing enterprise does not have money in its account. In fact, there is no money in the account of the importing enterprise or if there is money, they will withdraw it immediately after receiving the goods.

II. How to prevent commercial fraud and scams

Here are some ways to ensure international transactions go as smoothly as possible:

1. Check contact information

When signing a transaction contract, the buyer or seller must have a phone number and be willing to agree to make a phone call, check via Skype or video. If the only way to contact is an email address, be careful. It is also helpful to see a physical address (not a PO box), but some companies that provide services rather than products, such as consultants, may work from home and are not willing to provide an address. Also, see how quickly the partner company responds to queries. If it takes several days to receive a response, it is worth noting. In addition, businesses can hire a consulting firm, law firm, etc. to verify the information of the partner company. Furthermore, businesses can also ask the Trade Office or the Vietnamese Embassy in the host country to verify information about the legality of the partner company.

2. Rely on international banks or escrow

Payment methods that bypass banks can be risky. While fees are higher and paperwork is more complicated, relying on an international bank to issue a letter of credit or using a trusted escrow service is a much safer alternative for both buyer and seller.

3. Avoid shipping fraud

No buyer wants to pay for goods that are not delivered, or are not delivered in the correct quantity, or are of poor quality. To avoid shipping fraud, use international payment methods such as documents of acceptance (D/A) or escrow and security services that allow the buyer to inspect the goods before paying. Additionally, buyers can request an independent cargo quality inspection unit to inspect the quality of the goods before loading them into containers.

4. Use free payment methods

The saying is true: “There is no such thing as a free lunch”. Offering huge profits or impressive profit margins for free products or services or “no strings attached” services can be scams. Nowadays, Vietnamese businesses are often asked by their partners to use TT payment method (due to low fees) and are often scammed.

5. Some places where scams often occur

We all wish it didn’t happen, but some regions have high levels of fraudulent activity. Some regions in the Middle East, Europe, Africa, and Central America are notorious for fraudulent transactions. When engaging trading partners from such regions, take extra precautions and safety measures.

6. Maintain evidence, documentation and paper trail

Sellers and buyers should have clear documentation that specifies the product, shipping method, payment method, expected delivery date, and any special terms such as pre-inspection or customs and tariff information. Additionally, retain correspondence such as mail, email, receipts, and third-party interactions (escrow services, etc.) in case of a dispute over non-payment or non-delivery of goods.

III. Measures to ensure safety when trading

1. Business Verification

Always verify the legitimacy of a business, especially a new or unfamiliar one. Check their licenses with the relevant economic departments (e.g. Dubai Economy and Tourism, UAE Ministry of Economy).

2. Be careful when trading online

Use trusted e-commerce platforms, check reviews and verify the authenticity of the seller. Avoid clicking on suspicious links in emails or SMS.

3. Protect personal and financial information

Never share sensitive information such as PINs, OTPs (One Time Passwords) or bank account information over phone, email or unverified websites.

4. Build contracts according to international standards

It is necessary to draw up the terms of the contract according to the international commercial contract standards (Incoterm). Before signing any commercial agreement, carefully read and understand all the terms and conditions. If necessary, seek legal advice.

5. Secure payment methods

Use secure payment methods and methods that provide business protection. Businesses should use banks as intermediaries (bank payments) to ensure safety for both sellers and buyers. Before transferring money, it is necessary to check multiple channels such as email, phone, text messages to ensure the correct account number and bank... to avoid cases where hackers hack emails to change the account number and bank name.

IV. How to deal with fraud and commercial fraud

No matter how careful you are, you can still fall victim to international trade fraud. When you find yourself in this situation, time is of the essence – act immediately.

1. The first step is to contact the buyer or seller. Sometimes the problem is simply a misunderstanding, a wrong order, or something beyond the trading partner’s control. If you are dealing with a reputable seller or buyer, they will be more than happy to talk to you to resolve the situation.

2. Step two is mediation , if the buyer or seller refuses to contact. Some escrow services and international payment sites offer mediation services, you can hire an independent mediator or contact the International Trade Council.

3. Step 3 is to work with your bank, scammed buyers who paid for their goods with a credit card or through their local bank can request a payment hold or chargeback. Again, timing is important here and holds/refunds are at the discretion of the financial institution and their policies.

4. As a final step, if contact, conciliation, credit/cheque retention or claim for reimbursement is unsuccessful, you can file a lawsuit with International Arbitration or Judicial Authority or contact the Vietnamese Embassy in the UAE and the Vietnamese Trade Office in the UAE for assistance.

List of UAE scam businesses

In recent years, fraud and commercial fraud have been very common in the UAE, not only for foreign enterprises, but also for enterprises in the UAE. In response to the above situation, the Vietnam Trade Office in the UAE would like to send a list of companies in the UAE that have committed fraud and commercial fraud against Vietnamese companies and companies in the UAE as follows:

1. Bab Al Rehab Foodstuff Trading LLC
2. Odessa Point Trading LLC
3.Digital Genius Technologies
4. Daemo International
5. Noor Al Sidra Trading
6. Fair Words Goods Trading
7. Wahat Al Rayan Trading
8. Max Clove Technologies
9. Future Star Electromechanical Works
10. Alpha Star Building Contracting
11. Harun Abdul Latif Foodstuff Co LLC
12. Max Clove Technologies LLC
13. Anoh Arya General Trading LLC
14. Green Rock General Trading LLC
15. Rasha Gulf Oil Trading FZC
16. Regal Plus General Trading LLC
17. Vision General Trading LLC
18. Grow Fresh General Trading LLC
19. Fresh Spice Foodstuff Trading LLC
20. Bab Al Rizq Foodstuff Trading LLC
21. Commodity King Trades LLC
22. Sohaz Foodstuff Trading Co LLC
23. Bab Al Rizq Foodstuff Trading LLC
24. White Jewel General Trading LLC LLC
25. Commodity King Traders LLC
26. Sama Al Ahlam Foodstuff Trading LLC
27. Al Jazan Foodstuff Trading LLC
28. Sky Max Star Trading LLC
29. Sana Manufacture of Plastic Bags LLC
30. Grow Fresh General Trading LLC
31. Kapaz General Trading LLC
32. Natal General Trading LLC
33. Reesha General Trading LLC
34. Agro Link Foods FZE
35. Qasr Alkaram Foodstuff Trading LLC
36. Ahmed Taha General Trading LLC
37. Mirzaaz Foodstuff Trading LLC
38. Crezantium International FZ LLC
39. Natal General Trading LLC
40. Max Star
41. Seven Emirates Spices LLC
42. Ultimate General Trading LLC
43. Foot Print General Trading LLC
44. MKN Fruits and Vegetables Trading LLC

Vietnam Trade Office in UAE

IMPORTANT STATEMENT REGARDING BRAZILIAN BLACK PEPPER TRADE

 June 19th. 

Due to the sharp drop in the price of Black Pepper in the VTN, BRAZILIAN exporters through the BSA (Brazilian Spice Association) decided to suspend all offers and hold their stocks for an indefinite period.

Pepper Market June 13, 2025

 

Pepper export price increased by more than 60% in the first 5 months of the year

Pepper prices today  (June 13) are stable at around 139,000 - 140,000 VND/kg. In the world market, Indonesian pepper prices continued to increase for the second consecutive day. In the first 5 months of the year, Vietnam's pepper exports decreased in volume but increased in value, mainly due to an average export price increase of 61.1%.

Update pepper price

In the domestic market

Pepper prices  today in key provinces and cities continue to be stable, fluctuating between 139,000 - 140,000 VND/kg, unchanged from yesterday.

According to the survey, Dak Lak currently records the highest price, reaching 140,000 VND/kg. In two other localities in the Central Highlands region, Dak Nong and Gia Lai,  pepper prices   are being traded at 139,000 VND/kg.

In the Southeast region, pepper prices in Ba Ria - Vung Tau, Dong Nai and Binh Phuoc provinces are also commonly at 139,000 VND/kg.

Province/district (survey area)	Purchase price on June 13 (Unit: VND/kg)	Change from previous day (Unit: VND/kg)
Dak Lak	140,000	–
Gia Lai	139,000	–
Dak Nong	139,000	–
Ba Ria – Vung Tau	139,000	–
Binh Phuoc	139,000	–
Dong Nai	139,000	–

In the world market

In the recent trading session, the International Pepper Community (IPC) continued to adjust the price of Indonesian black pepper to 7,526 USD/ton, up 0.17% (13 USD/ton) compared to the previous day.

Meanwhile, the  export  price  of Malaysian black pepper remains stable at 9,100 USD/ton; Brazilian black pepper ASTA 570 is 6,175 USD/ton. The export price of Vietnamese black pepper fluctuates between 6,300 - 6,400 USD/ton for 500 g/l and 550 g/l.

Type name	World black pepper price list
	June 13 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	7,526	+0.17
Brazilian Black Pepper ASTA 570	6.175	–
Kuching Black Pepper (Malaysia) ASTA	9,100	–
Vietnamese black pepper (500 g/l)	6,300	–
Vietnamese black pepper (500 g/l)	6,400	–

At the same time of survey, the price of Indonesian Muntok white pepper increased by 18 USD/ton to 10,167 USD/ton.

The export price of Malaysian ASTA white pepper and Vietnamese white pepper continued to move sideways at USD 11,850/ton and USD 9,300/ton.

Type name	World white pepper price list
	June 13 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	10,167	+0.18
ASTA Malaysian White Pepper	11,850	–
Vietnam white pepper	9,300	–

Update pepper information

World pepper prices in early June in most major growing countries decreased, except for prices in Indonesia which increased.

 According to the Import-Export  Department  (Ministry of Industry and Trade), usually from April is the period when the spice market in general and pepper market in particular is most active in the year. However, this year, the world pepper market is gloomy as trade tensions increase. Import demand from many countries is low, and the tariff rate is unclear, making businesses cautious in signing contracts.

Along with the world trend, domestic pepper prices in early June 2025 decreased significantly compared to early May 2025.

In the short term, domestic pepper prices are forecast to remain stable or decrease slightly due to unstable export demand and tight supply. However, in the medium and long term, global supply shortages may support pepper prices to increase again.

According to data from the Customs Department, Vietnam's pepper exports in May reached 26.3 thousand tons, worth 182.2 million USD, down 0.4% in volume and 1.0% in value compared to April; down 15.3% in volume but up 30.6% in value compared to May 2024.

Vietnam's average pepper export price in May reached 6,923 USD/ton, down 0.6% compared to April, but up 54.3% compared to May 2024.

In terms of markets, Vietnam's pepper exports to many key markets decreased in volume compared to May 2024, while exports increased to markets such as India, the UK, Egypt, and Russia. Of which, exports to the largest market, the US, decreased by 9.3%, followed by the German market, which decreased by 13.8%...

In the first 5 months of the year, Vietnam's pepper exports reached 99.9 thousand tons, worth 690.4 million USD, down 12.5% ​​in volume but up 40.5% in value over the same period in 2024. Mainly due to the average export price reaching 6,910 USD/ton, up 61.1% over the same period in 2024.

In the first 5 months of the year, Vietnam's pepper exports to key markets had uneven growth in export volume, in which, exports to some markets decreased such as: USA, UAE, Netherlands, Thailand, Egypt, Russia... On the contrary, the amount of pepper exported to some markets increased such as: Germany, India, UK, South Korea...

Can the upward momentum of pepper prices be maintained in 2025?

 

Can the upward momentum of pepper prices be maintained in 2025?

Declining production is expected to be the main driver for pepper prices in 2025.

Pepper prices  increase for second consecutive year 

In 2024, the pepper market recorded the second consecutive year of strong growth in price and  export  turnover . Accordingly, domestic pepper prices at the end of this year nearly doubled compared to the beginning of the year to 140,000 VND/kg.

 Source: Giatieu.com (H.My compiled)

Regarding consumption, Vietnam exported 250,600 tons of pepper of all kinds, earning 1.3 billion USD, down 5.1% in volume but up 45.4% in value compared to the previous year. The main reason is that 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.

Declining manufacturing activity has contributed to pushing up domestic and export prices in recent times.

 Source: General Department of Customs (compiled by H.Mị)

According to the Vietnam Pepper and Spice Association (VPSA), unfavorable weather conditions have negatively affected pepper production. In Dak Nong, the capital of Vietnam’s pepper, output was recorded at the same level as last year.

In addition, the trend of crop conversion is also affecting output. Typically, in Dak Lak province, the province with the second largest pepper area and output in the country, it is assessed that it has decreased as people switch to growing durian and there is not much new planting.

It is expected that farmers will start harvesting pepper after Tet and it will last until the end of April.

Talking to us at the VPSA summary conference held on January 16, Mr. Thai Nhu Hiep - Chairman of the Board of Directors and Director of Vinh Hiep Company Limited, said that in recent years, the Central Highlands has had plants that have brought good economic efficiency, including coffee, durian, etc. As for pepper, although it also brings very high values, the cost of land improvement is very high, and this work is very difficult and risky. Therefore, the pepper growing area in Vietnam is increasingly narrowing.

Major pepper growing countries such as Indonesia and Brazil also recognize that growing  coffee   is more efficient and profitable. At the same time, coffee consumption is increasing while supply is decreasing. As for pepper, consumer demand has not increased at all, and price increases sometimes come from speculation and resale between traders.

“When prices are high, people can abstain from using pepper but cannot abstain from drinking coffee,” said Mr. Hiep.

Supply is decreasing, supporting pepper prices

The Chairman of Vinh Hiep Company believes that the trend of increasing export value but decreasing export volume will continue in 2025 when the world's inventory is not much left. Meanwhile, in Vietnam, the goods are mainly in the hands of speculators. They have been buying since the price was around 110,000 VND/kg. These people use money from taking profits from other agricultural products that have just experienced a hot period such as coffee, durian, ... to buy pepper.

“Speculators think that pepper prices could reach VND200,000/kg in 2025-2026. We cannot judge whether that view is right or wrong, but we can clearly see that output is gradually decreasing,” said Mr. Hiep.

According to VPSA's forecast, global pepper output in 2025 will continue to decrease compared to 2024, marking the fourth consecutive year of decline since 2022. This reflects the fact that pepper is no longer the main crop of many farmers, especially in the context of the significant increase in economic value of other crops such as durian, coffee and oil palm. In addition, climate change with extreme weather events has reduced productivity and increased the cost of maintaining pepper production.

“Global pepper prices in 2025 are expected to remain high due to reduced supply, while demand in major markets such as the US and Europe remains stable. Demand for pepper in the food and spice processing industries remains the main driver of the market,” VPSA said.

Regarding export activities, Mr. Hiep said that currently, businesses have also learned from the previous crop year when they only sign export contracts when they are sure they have purchased the goods.

“In the previous crop year, many businesses “short-sold” pepper, meaning they signed sales contracts and then purchased pepper from farmers. However, last year, farmers’ economic life improved a lot, so the pressure to sell pepper to make ends meet was not great. This put businesses at great risk when it was difficult to buy goods to deliver to  importing  businesses ,” Mr. Hiep shared.

According to VietnamBiz.vn

PEPPER hilights 9th June 2025 – Week 23

 

 

We would like to send you a quick highlight report 9th June 2025 – Week 23.



At the beginning of April, the U.S. government began imposing tariffs on most countries around the world. This has disrupted business activities in many countries, leading to a sharp decline.

Inventory situation:

* Vietnam: 

In the first five months of the year, Vietnam exported up to 100,693 tons, while domestic inventory is forecasted to have decreased significantly as the 2025 crop is expected to be the lowest in the past five years. Therefore, when prices fall, selling pressure in the market is minimal, and at times, domestic traders continue to purchase stocks for speculation.

* Other countries: 

The tariffs from the U.S. have significantly reduced the import demand of countries over the past two months. Most customers prefer to use existing inventory while waiting for clearer tariff levels. However, this has led to a sharp decrease in inventory in importing countries. If the tariff situation becomes clearer in the next 2-3 weeks, it is likely to stimulate increased imports in Q3 and Q4 to replenish the shortage of imported goods that occurred in Q2.

Price situation:

* Despite facing a significant shock from tariffs and a sharp decline in demand over the past three months, the pepper market remains relatively stable, with a decrease of only 5% compared to the beginning of 2025. This clearly reflects that the total global demand still exceeds the global supply of pepper, and the trend of increasing prices remains evident if positive supporting information emerges.

Crop situation in countries in Q3 & Q4 of 2025:

* In the coming months, Indonesia will enter the harvest season in July and August, but preliminary assessments indicate that the harvest in Indonesia has decreased significantly by about 20-30% compared to 2024 due to climate change.

* Brazil’s harvest is expected to be 20% better than in 2024, with an increase of about 15,000 tons compared to the 2024 crop year. However, Brazilian farmers are not under pressure to sell as they have already achieved profits and good cash flow from coffee cultivation.

Clove season starting in all the origins, starting with COMOR in June 2025

 

Over all  Clove market is silent.  

Price stands range bound at origin countries and also at  buying destination
Keeping Indonesia out from the main stream;  
India continues to be the leading single largest buyer and importer of Clove from any origin.   Whether it is from  Madagascar,  or  Comor,  or Zanzibar or Sri Lanka or Indonesia or Brazil -  India continues to be the largest single importer.   
Of course,  Brazil Clove never comes to India because of duty factor.
Indian domestic market is sluggish, and demand is very poor.  As local demand is very poor and sluggish, Indian import also is very slow or NIL .     Secondly, Origins are not seriously offering, as it is off season
Indonesia crop 2025 is reported to be failure;  production is almost 40% less as hearing from islands of  Indonesia.   Confirmations are yet to come.   So this is early report.   However, overall report from Indonesia is that,  export surplus would be lower compared to previous years.
Comor 2025 season just started.  Expected shipment would start by end of June or early July.  Price quotation would be available after June 15, 2025.   Crop size is reported to be expecting nearly 4000 Mt - a good and more than last 3 years
As we are on the verge of  new Clove season starting in all the origins,  starting with COMOR in June 2025, let us examine what exactly is the "problems and challenges of  CLOVE INDUSTRY:   I would say the major factor is the "extensive speculative forward deals" happening without any logic,  and the consequent  defaults either side, and some times, over supply,  and price non-parity.
Clove has become more of an "industrial commodity" than a normal staple or food commodity.  And many investors are in the "clove industry" for INVESTMENT TRADING as well.
All the above factors make CLOVE PRICE vulnerable,  and supply chain inconsistant.  Speculative Stockists and Investment Stockists make the trade totally imbalanced and biased.

European ports are congested, and the same situation may soon spread to the US and Asia

 

European ports are congested, and the same situation may soon spread to the US and Asia.

According to industry experts, sea freight rates are likely to increase due to the impact of port congestion.

Port congestion

Port congestion  is worsening at key trade gateways in northern Europe and elsewhere, according to  a new report. The report says the trade war could spread maritime disruptions to Asia and the US, pushing up shipping rates.

Specifically, according to a report recently released by British maritime consultancy Drewry, between late March and mid-May, waiting times for berthing increased by 77% at the port of  Bremerhaven  (Germany).

During the same period, delays increased by 37% in Antwerp, Belgium, and by 49% in Hamburg, Germany. Similar problems were also reported in the Dutch ports of Rotterdam and Felixstowe, England.

Labor shortages and low water levels on the Rhine were the main culprits, hindering barge traffic to and from inland points.

Adding to the tensions, US President Donald Trump temporarily lifted 145% tariffs on Chinese goods, a move that has boosted demand for shipping between the world’s two largest economies.

“Delays at ports are extending transit times, disrupting inventory planning and forcing carriers to load more cargo,” Drewry noted in the report.

“Adding pressure is the fact that trans-Pacific trade… is showing signs of entering its peak season early, driven by the temporary US-China tariff relief that is set to expire on August 14,” Drewry added.

Port congestion in Europe. ( Screenshot from Bloomberg ).

Similar trends  are emerging in Shenzhen, China, as well as Los Angeles and New York, where the number of container ships waiting to dock at these locations has increased since late April, the report said.

Hapag-Lloyd AG CEO  Rolf Habben Jansen  said at a conference last week that while he has seen recent signs of improvement at European ports, it will take another six to eight weeks for the situation to be under control.

However  , Torsten Slok, chief economist at Apollo Management, pointed out in a note over the weekend that the tariff truce between the US and China has not yet led to a surge in the number of ships crossing the Pacific.

“This raises the question: Are 30% tariffs on Chinese goods still too high? Or are American companies just waiting to see if tariffs will fall further before increasing shipments?” Slok wrote.

US-EU trade dispute 

US tariffs  – along with threats and sudden truces – make it difficult for importers and exporters to adjust orders, causing demand to fluctuate.

For shipping lines, the unpredictability often leads to delays and higher freight rates, according to  Bloomberg .

The latest blow to global trade came on May 23, when Mr. Trump threatened to impose 50% tariffs on the European Union (EU) from June 1. The move could disrupt transatlantic trade.

“Policy uncertainty will be a dead cost for global trade, adding risk to [corporate] spending plans,” Oxford Economics said in a new note.

Germany, Ireland, Italy, Belgium and the Netherlands are the most vulnerable countries due to their high ratio of goods exports to the US to GDP.

Bloomberg Economics warned in another note that an additional 50% tariff could see EU exports to the US fall by more than half.

The uncertainty surrounding Mr Trump’s policies is adding to the pressure on the shipping industry. Major carriers such as MSC Mediterranean Shipping have announced general rate increases and peak season surcharges starting in June for cargo originating from Asia.  Spot rates are likely to rise in  the coming weeks.

Currently, cargo ships still avoid the Red Sea, where the Houthis began attacking ships in late 2023. Ships are having to go around southern Africa to transport goods on routes connecting Asia, Europe and the United States.

According to VietnamBiz.vn

Shipping costs double as US rushes to buy Chinese goods ahead of tax deadline

 

Shipping costs double as US rushes to buy Chinese goods ahead of tax deadline

Before the tax breaks ended in August, American businesses rushed to import goods from China to avoid tariffs. However, the sudden surge in demand is causing container shipping rates to double.

American companies are rushing  to import   goods from China before a 90-day tariff break ends, but will face a shock of higher shipping costs that could lead to higher prices at stores, the  New York Post  reported  .

Several major shipping lines, including Hapag-Lloyd, have announced plans to raise rates for shipping 40-foot containers from China to U.S. West Coast ports from $3,500 to $6,500 starting June 1, according to multiple affected companies.
Shipping costs to East Coast ports will also increase from $4,500 to $7,500.

“This price increase will reduce profit margins and lead to higher prices for consumers,” said Jay Foreman, CEO of Basic Fun, a toy company in Florida that makes Tonka Trucks.

Shipping typically accounts for only about 3 percent of a manufacturer’s product cost, Foreman said. But the price hike will nearly double Basic Fun’s shipping costs, he said.

Walmart has previously warned that import tariffs would raise consumer  prices   , despite calls from former President Donald Trump that the retailer should “take the tax rather than pass it on to consumers.”

Another shipping price hike — possibly as high as $8,500 per container — is expected to take place on June 15, according to a report in  the Journal of Commerce .

Shipping companies are accused of “extortion” to make up for lost revenue as US companies cut back on imports to avoid the 145% tariffs imposed by President Trump on imports from China last month.

However, on May 12, the White House and Beijing reached a trade truce, temporarily lowering the tariff rate to 30% until August 10.

“Shipping lines are taking advantage of the backlog of cargo sitting at ports and factories in China,” Lou Lentine, CEO of sports equipment company Echelon, told  The Post .

Lentine said shipping companies have quoted up to $6,000 per container to ship treadmills and other equipment made in China and Vietnam — double the usual cost.

“That number is huge,” he said, admitting: “We have to ship the goods, there is no other way.”

Although most importers have contracts with fixed rates, carriers may still apply additional surcharges during peak seasons or adjust to market rates when demand spikes.

“Some of the ports in China are so congested that they’re having to push their cargo out of the country,” said Bobby Shoule, a customs broker at JW Hampton Jr. & Co., a logistics firm in Queens, New York, that has been in business for more than 160 years.

He also noted that large businesses like Home Depot can negotiate to reduce price increases, but small businesses do not have as much leverage.

“We have no choice but to pay that price,” Mr. Foreman lamented.
“There are no regulations or limits on how much carriers are allowed to charge.”

While container prices are still well below their peak during the pandemic — when they soared to more than $20,000 per container in 2021 — port congestion expected in the coming weeks could put supply chains under pandemic-like strain, Shoule warned.

“As the mass of cargo ships stuck in Chinese ports begin to leave and cross the Pacific, the ripple effect will begin to emerge,” Mr. Foreman added.

“This includes congestion at US West Coast ports, misplaced containers, and delays in returning ships to China to resume shipping for the second half of the year.”

According to VietnamBiz.

Dak Nong takes precautions against chemically contaminated pepper

 

Dak Nong takes precautions against chemically contaminated pepper

On May 23, Mr. Ngo Xuan Dong, Deputy Director of the Department of Agriculture and Environment of Dak Nong, said that the unit has just issued a document to propagate and recommend that people use standard white canvas bags to store pepper to avoid contamination of Sudan red into pepper products.

Mr. Dong added that recently, according to warning information from the Ministry of Agriculture and Environment, some shipments of pepper exported from Vietnam were found to be contaminated with Sudan Red, an industrial colorant banned from use in food.

Through initial verification, the main cause is that some people preserve pepper in colored packaging, use poor quality colored drying tarpaulins, and do not meet food standards during harvesting, leading to the contamination of colorants into the product.

The incident was only a small-scale contamination of a few shipments. However, since Sudan Red is an industrial chemical that is not used in food, timely recommendations are needed to prevent possible risks.

Many organizations and individuals in Dak Nong have used standard white packaging to preserve pepper.

The Department of Agriculture is actively coordinating with the Farmers' Association, the Cooperative Union, the Provincial Business Association and related levels and sectors to provide information and propaganda to control and prevent the risk of Sudan Red infection in pepper production.

Dak Nong strives to improve food safety quality of pepper products, contributing to protecting the reputation of the Vietnamese pepper industry in the market.

Dak Nong currently has 33,230 hectares of pepper, with an output of 72,000 tons in 2024. The province's pepper is the leading in the country in terms of area, output, and quality and has been granted the geographical indication "Dak Nong Pepper".