VIETNAM - PEPPER MARKET UPDATE 13TH APRIL 2020 – WEEK 16

Global pepper market is forecast to be slow due to affected by COVID-19.
Disease movements are still complicated, especially in the US&Europe - the major pepper markets in the world, will cause less import demand. The global pepper market maybe continue  faces disrupted supply due to social isolation requirements and restrictions on clearance of cargo from many countries around the world.

Through a quick inspection again with Customs & Department of Agriculture and Rural Development, Vietnam has exported up to 42,330 tons of pepper in March (higher than the figures we forecast last week over 8.000 tons). The first quarter 2020 export reached 83,246 tons that increasing by 12.6% compare with the same period in 2019 (exported 72,726 tons). This is new records from Vietnam and very impressive for everybody too.

March also recorded a sharp increase in imports to more than 10,000 tons from Chinese, it’s biggest quantity was imported within 1 month from China until now. Details of export/import data each country, I will try to analyze and send you within end this week.

Pepper market opening today with less offer from domestic suppliers. Market very steady and China continue buying beside other countries like ASIA/USA/EU.

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VIETNAM-Farmers, businesses struggle as pepper, cashew prices drop

VNA Tuesday, April 07, 2020 11:13



HCM City (VNS/VNA) - The price of pepper and cashew in southern Vietnam is falling as demand has dropped due to the COVID-19 crisis, affecting farmers and businesses.

Currently, the price of pepper in the Central Highlands and southern Vietnam is 34,500–37,500 VND (1.46–1.58 USD) per kilo, the lowest in the past few years.

Ba Ria – Vung Tau province’s pepper is among the highest priced in the region, but its price dropped by 2,000 VND per kilo compared to last week.

The end of February also saw a 5 percent drop of pepper price in Vietnam compared to the end of January.

Hoang Phuoc Binh, deputy chairman of the Chu Se District Pepper Association in Gia Lai province, said that while the farming areas and output of pepper in Vietnam and other countries have risen greatly over the years, demand for pepper has only increased by 2–2.5 percent each year.

The current supply of pepper is large since farmers in large farming areas have been wrapping up their harvest. But the COVID-19 pandemic is causing global market demand lower, so prices are dropping.

Farmers are losing 15,000 VND per kilo as they have had to sell at a low price to have enough money for workers' salaries and equipment.

Pepper export turnover in the first three months of the year was 156 million USD, 18 percent lower year-on-year.

Meanwhile, the price of cashew in southern provinces is 18,000–19,000 VND per kilo, which is about 10,000 VND lower than the beginning of the year.

Unfavourable weather has also dragged down the quality of cashews.

Some farmers are chopping down their cashew crop to switch to growing something else, while cashew processing businesses are also struggling with limited global demand.

Pham Van Cong, chairman of the Vietnam Cashew Association, said that exports and the price of cashew will drop greatly within the year, and that the industry’s 2020 goal of 4 billion USD in export turnover will have to be reevaluated.

Cashew factories have been urged to slow down their transactions, keep up to date with the market, and pay more attention to product quality.

The association, however, noted that demand would not be dramatically low since cashews are considered a nutritious food, and that businesses should not be too pessimistic./.

VNA
https://en.vietnamplus.vn/

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VIETNAM -PEPPER MARKET UPDATE 6TH APRIL 2020 – WEEK 15

First half of March 2020, Vietnam has exported pepper reached 16,689 tons with a turnover 35.21 million USD. Pepper exported in the first 2.5 months reach 57,128 tons, up 5.75% in quantity but down 11.24% in value over the same period last year. The average export price reached 2,110 USD/ton, down 5.25% compared to the average export price of February 2020.

In March, export reached 34,000 tons, bringing the total export volume in the first 3 months of 2020 to approximately 75,000 tons (same period in 2019 was 72,726 ton). This is very impressive record of Vietnam's pepper exports although the export volume to China decreased by over 10,000 tons in the first 3 months because influence of Covid 19. Details of export/import data each country, we will update and send you in the coming week.

At present, Vietnam has basically finished harvested 2020 pepper crop. Farmers/domestic agents only offer a very small quantity to cover temporary costs and continue storage due to low prices. The price is attractive so many customer/exporters… considering to stockpile.

China has better control of Covid, so it has been actively buying large quantity from last week especially white pepper. In addition, the market continues to receive great demand from the USA/UAE for both prompt and further shipment that make market stable and uptrend. Vietnam's currency last week slightly stronger compared to USD but not stability.

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