• Vietnamnet global

04/11/2024   09:30 (GMT+07:00)

Domestic supply struggles drive Vietnam’s pepper imports to $108 million

Facing limited domestic output and high global prices, Vietnamese companies imported significant quantities of pepper, totaling VND 2.7 trillion ($108 million) in the first 10 months of 2024.

Limited domestic supply has driven pepper prices up. Photo by Minh Khang

According to preliminary statistics, over the past 10 months, enterprises have disbursed $108 million to import pepper. This marks a significant 38.2% increase compared to the same period last year.

Most of the imported pepper comes from Brazil, Indonesia, and Cambodia.

Phan Minh Thong, Chairman of Phuc Sinh Joint Stock Company, stated that Vietnam’s pepper industry is benefiting from high export prices due to limited supply.

“This year, pepper farmers have enjoyed higher selling prices. On the other hand, export companies have struggled to buy sufficient domestic pepper, which is one reason Phuc Sinh has imported significant amounts from Brazil and Indonesia,” Thong explained.

The main reasons include reduced domestic production, farmers holding back supplies to speculate, and prolonged droughts exacerbating the scarcity of local pepper.

On the other hand, the Ministry of Agriculture and Rural Development (MARD) reported that in the first 10 months of 2024, Vietnam exported about 220,300 tons of pepper, with an estimated value of $1.12 billion. Although the export volume decreased by 2.3% compared to the same period last year, the value surged by 48.2%.

The average export price of pepper over the 10 months of 2024 was estimated at $5,084 per ton, up 51.7% from the same period in 2023.

The main export markets include the U.S., Germany, and the United Arab Emirates (UAE), which together accounted for 44.2% of Vietnam’s “black gold” export value over the first 9 months of 2024. Notably, exports to Germany increased by 2.4 times compared to last year.

Tam An

Pepper Market on November 3, 2024

 

Pepper Market on November 3, 2024: Decreased by 2,000 - 2,500 VND last week

Posted onNovember 3, 2024by VPA

 

 

Pepper prices today  (November 3) fluctuated at 140,000 - 141,000 VND/kg, down 2,000 - 2,500 VND/kg over the past week. In the past 10 months alone, businesses spent 108 million USD to import pepper, a sharp increase of 38.2%.

In the domestic market

See more:  Pepper price today November 2

Pepper price  today, November 3, slightly decreased by 200 VND/kg in Dak Nong province and remained stable in other localities.

Overall, last week,  domestic  pepper prices  decreased by 2,000 - 2,500 VND/kg, fluctuating between 140,000 - 141,000 VND/kg.

Of which, pepper prices in Dak Nong and Dak Lak provinces decreased by VND2,500/kg during the week, down to VND141,000/kg.

Similarly, pepper prices in Ba Ria - Vung Tau and Dong Nai provinces are being traded at 141,000 VND/kg, down 2,000 VND/kg.

Pepper prices in Gia Lai and Binh Phuoc provinces also decreased by VND2,000/kg, down to VND140,000/kg.

The market continues to be under pressure as demand slows, while sellers seek to raise capital to invest in coffee, which is currently in harvest season. However, limited supply has helped pepper prices remain 72-76% higher than at the beginning of the year and double the same period last year.

n the world market

Update from the International Pepper Community (IPC), last week, world pepper prices were quite stable and only decreased in Indonesia.

Specifically, the price of Lampung Indonesian black pepper is listed at 6,683 USD/ton, down 0.6% last week.

Meanwhile, pepper prices at other suppliers remained stable. Specifically, Kuching Malaysian black pepper was priced at USD 8,500/ton, while Brazilian ASTA 570 black pepper was traded at USD 6,400/ton.

Vietnam's 500 g/l and 550 g/l black pepper  for export   is offered at USD 6,500 - 6,800/ton.

Update pepper information

According to preliminary statistics, in the past 10 months alone, businesses spent 108 million USD (equivalent to 2,700 billion VND) to  import   pepper. Compared to the same period last year, imports of this item increased sharply by 38.2%.

In particular, businesses mainly import pepper from Brazil, Indonesia and Cambodia.

Mr. Phan Minh Thong - Chairman of the Board of Directors of Phuc Sinh Joint Stock Company, said that the Vietnamese pepper industry is benefiting from high export prices due to limited supply.

Accordingly, this year pepper farmers benefited from the high selling price. On the contrary, export enterprises could not buy much domestic pepper. This is also part of the reason why Phuc Sinh had to import a lot of pepper from Brazil and Indonesia this year.

The reason is that, due to the decrease in output, people are holding back pepper for speculation. Along with that, the prolonged drought has made the domestic pepper supply increasingly difficult.

On the other hand, the Ministry of Agriculture and Rural Development said that in the first 10 months of 2024, Vietnam exported about 220,300 tons of pepper, with an estimated value of 1.12 billion USD. Although the volume of pepper exported decreased by 2.3% compared to the same period last year, the value increased sharply by 48.2%.

The average export price of pepper in the first 10 months of 2024 is estimated at 5,084 USD/ton, an increase of 51.7% over the same period in 2023.

In terms of markets, the US, Germany and the United Arab Emirates (UAE) are the three largest customers, accounting for 44.2% of the export value of "black gold" of our country in the first 9 months of 2024. Of which, exports to the German market increased 2.4 times compared to the same period last year, according to  vietnamnet .

According to VietnamBiz.vn

 

 

Pepper Market on November 1, 2024: Market plummets

Posted onNovember 1, 2024by VPA

01
Nov

Pepper prices today (November 1) fluctuated between 141,000 - 142,500 VND/kg, down sharply by 1,000 - 1,500 VND compared to yesterday. Pepper is the agricultural product with the strongest export growth in the first 10 months of the year, reaching 1.12 billion USD, up 48% over the same period last year.

In the world market

Updated from the International Pepper Association (IPC), in the most recent trading session, the price of Indonesian Lampung black pepper continued to increase slightly by 0.16% compared to the previous trading session, listed at 6,691 USD/ton.

Meanwhile, pepper prices at other suppliers remained stable. Specifically, Kuching Malaysian black pepper was priced at USD 8,500/ton, while Brazilian ASTA 570 black pepper was traded at USD 6,400/ton.

Vietnam's 500 g/l and 550 g/l black pepper  for export   is offered at USD 6,500 - 6,800/ton.

---

Lampung Black Pepper (Indonesia)	6,691
Brazilian Black Pepper ASTA 570	6,400
Kuching Black Pepper (Malaysia) ASTA	8,500
Vietnamese black pepper (500 g/l)	6,500
Vietnamese black pepper (500 g/l)	6,800

-----

Update pepper information

According to the Ministry of Agriculture and Rural Development, pepper is the agricultural product with the strongest export growth in the first 10 months of 2024, reaching 1.12 billion USD, up 48% over the same period last year.

Thus, after only 10 months, this industry has soon surpassed the 1 billion USD mark for the first time in 6 years.

This impressive growth momentum comes from high pepper prices due to a decline in global supply while demand recovers strongly in major markets, especially the US and EU.

Data from the European Statistical Office (Eurostat) shows that in the first 8 months of 2024, the EU  imported   44,870 tons of pepper from non-bloc markets, worth nearly 216 million EUR, up 33.3% in volume and 49.5% in value over the same period last year.

Of which, Vietnam is the largest pepper supplier to the EU, with imports reaching over 29,736 tons, worth 138.3 million EUR, up 41.8% in volume and 66.5% in value.

Vietnam's pepper market share in the EU's total imports from extra-bloc markets accounted for 66.3% of the total volume and 63% of the total value in the first 8 months of 2024.

According to data from the US International Trade Commission, in the first 8 months of the year, the world's largest importing country bought 63,294 tons of pepper of all kinds, worth 306.9 million USD, up 37% in volume and 44.8% in value over the same period last year.

Of which, Vietnam is the largest pepper supplier to the US with a volume of 49,277 tons, up 35.4% over the same period and accounting for nearly 78% of the market's import capacity.

According to VietnamBiz.vn

Pepper Market on October 31, 2024

 

Pepper Market on October 31, 2024: Indonesia increases again, domestic pepper crop is at risk

Posted onOctober 31, 2024by VPA

October 31

Pepper prices today, October 31, range from 143,000 to 144,500 VND/kg. Domestically, next year's harvest is forecast by some sources to remain the same or increase slightly, fluctuating between 170,000 and 180,000 tons. The harvest may be delayed due to weather.

In this context, pepper prices are not expected to fluctuate much. The driving force for strong growth last season was the lack of demand from China. According to statistics from the International Pepper Community, in recent months, this market has increased imports from other countries.

Domestically, next year's harvest is forecast by some sources to remain the same or increase slightly, fluctuating between 170,000 - 180,000 tons. Harvest time may come later due to weather.

However, in late October 2024, the press reported on the risk of many flowers falling off, resulting in low fruit set rates and a high risk of crop failure in Ba Ria - Vung Tau.

According to VOV, many pepper farmers in Chau Duc, Xuyen Moc districts and Phu My town, Ba Ria - Vung Tau province said that this year the rain came late, the hot and dry weather and low humidity were not favorable for pepper to bloom.

Mr. Tuyen, who owns nearly 1 hectare of pepper, in Binh Ba commune, Chau Duc district, said that the weather this year is unfavorable, so the productivity is not as good as last year. Meanwhile, pepper harvesting workers are scarce, so the rental price is also high. If the workers do it themselves, it will be more convenient.

“This year’s pepper yield is not as good as last year’s, and it is difficult to find workers because everyone is working for the company. Luckily, my family’s pepper garden has 4 workers to pick pepper and will be harvested by the end of this month. This year’s yield is not as good as last year’s, and the price is higher than last year’s. If the garden owner joins in the harvest, it will be more favorable,” Mr. Tuyen told VOV.

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,680 USD/ton, up 0.18%; the price of Brazilian black pepper ASTA 570 at 6,400 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,500 USD/ton.

Muntok white pepper price is 9,144 USD/ton, down 0.17%; Malaysian ASTA white pepper price is at 11,000 USD/ton.

Vietnam black pepper price is traded at 6,500 USD/ton for 500 g/l; 550 g/l at 6,800 USD/ton; white pepper price is at 9,500 USD/ton. IPC increases Indonesian pepper price again.

According to KTĐT.vn

 

Reviving the pepper 'kingdom' in Gia Lai

Posted onOctober 27, 2024by VPA

October 27

After a period of hardship due to the tragic drop in pepper prices, mass pepper deaths, and the consequence of  Gia Lai farmers  bearing a thousand billion bank debt, many people have now returned to pepper cultivation.

Currently in Gia Lai , many pepper growing areas   have been and are being reconstructed in an effort to revive the one-time " Pepper Kingdom " in the two districts of Chu Se and Chu Puh.

A time of "black gold"

Pepper plants in Gia Lai have helped  farmers' lives  improve, leading to many prosperous residential areas. In particular, the two districts of Chu Se and Chu Puh are known as the "Kingdom of Pepper" because of their suitable climate and soil, so pepper grown here has the highest yield in the country, about 3 - 6 tons/ha.

In the years 2010 - 2012 and the peak of 2014 - 2015, pepper prices peaked at 200,000 - 250,000 VND/kg and were considered "black gold". The Chu Se pepper brand was born, becoming a major brand of Gia Lai when it was present in over 80 countries and territories.

Mr. Hoang Phuoc Binh, Permanent Vice President of Chu Se Pepper Association, recalled: “After the pepper harvest, farmers have billions of dong, can afford to build houses, buy expensive furniture. Pepper billionaires driving cars to visit the gardens is a daily occurrence here.”

That is why people rushed to grow pepper. The whirlwind of pepper development in Gia Lai increased rapidly, beyond the recommendations of the authorities on the process of selecting varieties, planting, and caring. According to the plan, by 2015, the pepper area of ​​Gia Lai was 6,000 hectares and would remain the same until 2020, but statistics by mid-2017 showed that the pepper area in Gia Lai had reached 18,000 hectares, behind Dak Nong with 30,000 hectares and Dak Lak with 25,000 hectares.

The immediate billion-dollar profit has caused many farmers to rush to buy land and switch to growing pepper. Not only that, pepper varieties are bought in a floating market, techniques vary from person to person, and chemical fertilizers and pesticides are poured into the garden with the ambition of making pepper grow quickly and achieve the highest yield.

But the consequences of rapid growth came quickly. Pepper was infected with an incurable disease. There were hectares of pepper gardens that were left with only bare stalks after only half a month of disease. Along with the drought and heavy rains during the period of 2015 - 2019, many large pepper growing areas in Gia Lai were in dire straits. From about 18,000 hectares, Gia Lai's pepper area was reduced by more than half. By 2020, pepper prices had dropped to a record low, only 36,000 - 40,000 VND/kg.

There was a time when pepper poles were sold by people at cheap prices.

PHOTO: TRAN HIEU

Households mortgaged their land and houses to borrow money from banks, hoping to change their lives from “black gold” and eventually suffered the consequences. Each wooden pole used to grow pepper, which at its peak cost 80,000 – 140,000 VND, was uprooted by farmers and sold for a cheap price of 15,000 – 20,000 VND. Sadness spread quickly in the “Pepper Kingdom” like a nightmare. The once luxurious villas became deserted because many owners had to leave their homeland to work far away, working hard to earn money to pay off bank loans.

Mr. Hoang Phuoc Binh sighed: "No development can go on forever, it must have a period of stagnation and problems arising like a sine wave graph. Pepper is the same!"

Pepper reconstruction

Since the beginning of 2024, pepper prices have increased again. If at the end of May, pepper prices fluctuated between 115 and 117 million VND/ton, by October 22, domestic pepper prices increased by 500,000 to 1 million VND/ton in key growing areas, ranging from 144 to 145 million VND/ton. According to experts, this sudden increase only occurred in one day because export enterprises lacked export goods in signed contracts, so there was a phenomenon of massive hoarding.

The International Pepper Community (IPC) reported that the export price of Vietnamese black pepper is listed at 6,500 - 6,800 USD/ton, while white pepper fluctuates around 9,500 USD/ton. Pepper exports are positive, bringing pepper back to Vietnam's billion-dollar commodity. The Vietnam Pepper and Spice Association (VPSA) said that from the beginning of the year to October 15, Vietnam exported nearly 210 tons of pepper, worth 1.05 billion USD (down 1.9% in volume but up 47% in value compared to the same period in 2023).

With prices rising again, many farmers in Gia Lai have begun to explore and replant pepper trees. However, the old pain still haunts them, so they are currently only planting sparingly or replanting on old pepper trees interspersed in coffee gardens.

Rebuilding pepper after the disaster

Photo: TRAN HIEU

Mr. Hoang Phuoc Binh said: “The increase in pepper prices is an opportunity to revive this high-value crop in the coming time. We regularly propagate and encourage people to be careful in choosing varieties when planting new crops and thoroughly apply scientific intensive farming measures to avoid risks. We also connect with purchasing enterprises and fertilizer suppliers to cooperate with people to build demonstration models of organic and clean pepper production for people to learn and apply to improve economic efficiency. This is a long-term direction, suitable for export market demand.”

The plan of Gia Lai Provincial People's Committee is to develop and maintain a stable pepper area of ​​about 10,000 hectares by 2030, promote the development of pepper production in an organic direction, applying high technology...

Mr. Tran Minh Trieu, Vice Chairman of the People's Committee of Chu Se District, said that the pepper growing area recorded at the end of July 2024 in the whole district was 1,132 hectares, a slight increase compared to a few years ago. The fact that people are returning to develop pepper growing areas in the district is a good sign, because this is one of the crops with high economic value, suitable for the local climate and soil conditions.

“We recommend that people should not plant new trees en masse, and should consult experts to ensure that the garden grows safely, stably, and avoids disease,” said Mr. Trieu.

According to Thanh Nien

Pepper Market October 27, 2024

 

Pepper Market October 27, 2024: Market increased by 1,000 - 1,500 VND last week

Posted onOctober 27, 2024by VPA

October 27

Pepper price today, October 27, fluctuated at 145,000 - 146,000 VND/kg, overall over the past week the domestic market still increased by 1,000 - 1,500 VND.

In the world market

Updated from the International Pepper Community (IPC), in the most recent trading session, the price of Indonesian Lampung black pepper was listed at 6,724 USD/ton, down a total of 1.03% over the past week.

Similarly, Kuching Malaysia black pepper prices decreased by 2.3% to USD 8,500/ton.

Meanwhile, Brazilian black pepper ASTA 570 remained flat last week at $6,400/ton.

Vietnam's 500 g/l and 550 g/l black pepper  for export   is offered at USD 6,500 - 6,800/ton.

Update pepper information

By the end of the third quarter, pepper exports from Vietnam and Brazil – the world’s two leading producing countries – recorded a decrease of 2.8% and 15.3% respectively compared to the same period last year, down to 200,268 tons and 49,366 tons.

In addition to the reduction in output due to unfavorable weather, pepper exports from Vietnam and Brazil are also affected by mixed fluctuations in demand from major consumer markets.

For example, in Vietnam, in the first 9 months of this year, Vietnam's pepper exports to most markets recorded a sharp increase, but China - the largest consumer market last year - decreased sharply by 84.1%, reaching only 8,905 tons.

So far, Chinese demand has been weak, with the country buying only a limited amount of pepper. Some traders say the slowing growth of the Chinese economy could be the reason for this.

However, the high pepper prices since late last year have helped Vietnam and Brazil achieve their best export turnover in many years, while also encouraging farmers to invest in maintaining and expanding their pepper farms.

On average, in the first 9 months of the year, Brazil's pepper export price reached 4,182 USD/ton, up 36.7% over the same period. The average pepper export price increased 49.2% over the same period, to 4,942 USD/ton.

In addition, the decline in export output from Vietnam and Brazil is being offset by strong increases in some other countries, especially Indonesia and India. The aggregated data shows that, by the end of August, Indonesia's pepper export volume increased by 58.6% while India's increased by 36.8%.

According to VietnamBiz.vn

 

Pepper Market on October 24, 2024

 

Pepper Market on October 24, 2024: Price increased to 147,000 VND/kg

Posted onOctober 24, 2024by VPA

October 24

New market,  pepper price today (October 24) fluctuates between 146,000 - 147,000 VND/kg. In contrast to the domestic market in Vietnam, pepper prices in Indonesia and India have turned to decrease.

 

In the world market

Updated from the International Pepper Community (IPC), in the most recent trading session, the price of Indonesian Lampung black pepper was listed at 6,727 USD/ton, continuing to decrease by 26 USD/ton compared to the previous trading session.

Meanwhile, pepper prices in other countries remained stable. Brazilian black pepper ASTA 570 was traded at $6,400/ton, while Malaysian Kuching black pepper was priced at $8,700/ton.

 Vietnam's 500 g/l and 550 g/l black pepper  exports  are priced at around 6,500 - 6,800 USD/ton.

Update pepper information

In India, pepper farmers are hoping for a quick recovery in prices after falling by around Rs 19 per kg in the last fortnight. Last week alone, domestic pepper prices in India fell by Rs 11 per kg, bringing the total fall in the last five weeks to around Rs 34 per kg.

The farmers attributed the fall in prices to large  imports   from Sri Lanka under the South Asian Free Trade Agreement (SAFTA) with a duty of 8%. Currently, the price of ungraded pepper in the Kochi wholesale market is Rs 627 per kg, while graded pepper is Rs 647 per kg.

Kishore Shamji, a Kochi-based pepper trader and director of the Indian Pepper and Spices Trade Association (IPSTA), said that almost all the markets were flooded with Sri Lankan pepper. This situation has put additional pressure on domestically grown pepper, leading to a fall in prices and forcing farmers in the southern pepper-growing states to sell off their stocks.

Even farmer unions that had earlier predicted a recovery in prices are trying to liquidate their stocks, said Kishore Shamji.

Citing figures, Mr. Kishore Shamji said the total pepper imported from Sri Lanka in the third quarter accounted for 10,433 tonnes out of the total 12,606 tonnes imported into India.

Mr Shamji said Sri Lanka's pepper production has crossed 25,000 tonnes and they are aiming to sell the surplus to India, where there is huge domestic demand.

However, he said imported pepper has lower bulk density, higher moisture content and the presence of mold, contributing to the decline in domestic pepper prices.

The Kerala chapter of the Indian Pepper and Spices Manufacturers Association has urged the government to curb imports, as this is severely affecting the interests of domestic farmers.

The association also alleged that loopholes in import policies are allowing imported pepper, meant for re-export, to enter the domestic market.

Mr. Shamji also added that the Directorate General of Foreign Trade (DGFT) allowing the retention of imported pepper for six months before re-export is a major shortcoming in the import -export  policy  for a sensitive commodity like pepper, according to  Thehindubusinessline .

According to VietnamBiz.vn