Pepper exports to the
Chinese market in the first 10 months of 2024 decreased by 84% and are
forecast to increase sharply again in early 2025.
There is a shift in the market and types of pepper exported,
According to preliminary statistics of
the Vietnam Pepper and Spice Association, in the month of October 2024,
Vietnam exported 18.493 tons of pepper of all kinds with a total export
turnover of 120,2 million USD. The average export price of black pepper
in the month reached 6.284 USD/ton, down 28 USD, and white pepper
reached 8.029 USD/ton, up 191 USD. The United States remained the
largest export market in October, accounting for 10%, reaching 27,7
tons, down 5.128% compared to September. Next were the markets: Hong
Kong reached 8,5 tons, UAE reached 9 tons, Netherlands reached 1.784
tons and Germany reached 1.382 tons.
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| In the first 10 months of 2024, pepper exports will earn 1,1 billion USD. |
By
the end of October 2024, Vietnam had exported 219.387 tons of pepper of
all kinds, of which black pepper reached 193.892 tons and white pepper
reached 25.495 tons. Total export turnover reached more than 1,1 billion
USD, of which black pepper reached 881,6 million USD and white pepper
reached 162,6 million USD. Compared to the same period last year, the
export volume decreased by 1,9% (black pepper decreased by 3,3%, white
pepper increased by 10,8%), but the export turnover increased by 48,0%.
The average export price of black pepper in 10 months reached 4.971
USD/ton, an increase of 1.528 USD and white pepper reached 6.626
USD/ton, an increase of 1.671 USD compared to the same period in 2023.
Olam Vietnam is the largest exporter in
the first 10 months of 2024, reaching 23.160 tons, accounting for 10,6%
and increasing by 51,1% over the same period. Next are enterprises such
as Phuc Sinh reaching 20.118 tons, accounting for 9,2%, increasing by
58,2%; Nedspice Vietnam reaching 17.014 tons, accounting for 7,8%,
increasing by 10%; Haprosimex JSC reaching 16.002 tons, accounting for
7,3%, increasing by 77,5% and Tran Chau reaching 14.031 tons, accounting
for 6,4% and decreasing by 0,8%...
The United States is the largest export
market for Vietnamese pepper, accounting for 28,5%, reaching 62.553
tons, up 46,8% over the same period last year. Next are the markets: UAE
reaching 14.540 tons, accounting for 6,6%, up 45,0%; Germany reaching
13.737 tons, accounting for 6,3%, up 77,2%; India reaching 9.428 tons,
accounting for 4,3%, down 10,5% and the Netherlands reaching 9.295 tons,
accounting for 4,2%, up 41,2% over the same period. China is the 6th
largest export market of Vietnam reaching 9.252 tons, but compared to
the same period, the export volume decreased by 84%.
Quarter III/2024, pepper price on the market world
remained high, especially in August and September. The reason is said
to be limited supply and increased import demand from markets. Entering
the month of October 2024, pepper prices decreased due to sell-offs due
to liquidity needs. In addition, the world pepper supply was
supplemented from Brazil and Indonesia, while low demand from China
affected pepper prices on the world market. Although it decreased
sharply compared to the end of the month of September 2024, pepper
prices in October 2024 still remained high.
In the third quarter of 2024, Vietnam's
pepper exports will shift significantly. If in the second quarter of
2024 and the third quarter of 2023, Asia was Vietnam's largest pepper
exporting region, then in the third quarter of 2024, there will be a
shift to the Americas.
Accordingly, the proportion of Vietnam's
pepper exports to the Americas increased from 27,63% of total turnover
in the third quarter of 2023 to 39,23% in the third quarter of 2024. In
contrast, the proportion of Vietnam's pepper exports to the Asian region
decreased from 41,76% in the third quarter of 2023 to 28,66% in the
third quarter of 2024 (mainly due to reduced exports to the Chinese
market). In the first 9 months of 2024, Vietnam's pepper exports to most
continents increased sharply (thanks to increased prices) compared to
the same period last year, except for Oceania.
In the third quarter of 2024, the
structure of exported pepper types has shifted compared to the third
quarter of 2023. Accordingly, Vietnam increased the export of ground
black pepper and ground white pepper, the proportion increased from
14,89% and 5,06% in the third quarter of 2023 to 16,91% and 4,47% in the
third quarter of 2024. This shows that Vietnam's pepper industry has
shifted to exporting processed pepper, instead of focusing on exporting
raw pepper as before.
Regarding the EU market, on November 4,
2024, the European Commission published Implementing Regulation (EU)
2024/2794 amending Implementing Regulation (EU) 2021/1378 concerning the
recognition of certain bodies/entities performing organic control and
certification in third countries for organic products imported into the
EU pursuant to Article 46 of Regulation (EU) 2018/848 of the European
Parliament and of the Council. This Regulation amends Annex II of
Implementing Regulation (EU) 2021/1378 to list certain bodies/entities
recognized by the EU to perform organic control and certification
services for groups of products imported into the EU.
“In accordance with
the new EU organic regulation EC 2018/848, in order to ensure
transparency and meet higher requirements for organic assessment, the
list of certification bodies that can carry out organic assessment
according to the new regulation has been updated”, Vietnam Pepper and Spice Association said.
Three new certification bodies have been
added to the list, bringing the total number of entities that can
conduct new EU organic assessments in Vietnam to 12. These organizations
have been granted the authority and capacity to conduct organic
assessments according to the new EU standards in Vietnam.
The current CB list includes
organizations that can assess according to the EC 2018/848 organic
standard in Vietnam. Each CB is capable of assessing different
categories depending on its competence and scope of licensing. The
categories are clearly shown in the table, helping organic producers and
exporters to choose the certification organization that suits their
specific needs.
Expanding this list not only helps meet
the growing demand for organic certification in Vietnam but also
contributes to ensuring the quality and reputation of organic products
exported to the EU market.
Pepper export activities are forecasted to be unfavorable in the short term.
In the short term, world pepper prices
are forecast to fluctuate in a downward trend. However, the downward
trend will not last long due to limited supply and increased import
demand due to seasonal factors.
In major import markets, demand
increased in the United States, the EU and Asia, but remained sluggish
in the Middle East and China. Inventory levels have fallen
significantly, causing farmers and dealers to limit sales. Brazil is
currently the world's second largest producer and exporter of black
pepper, accounting for 17-18% of global supply.
However, Brazil’s pepper exports for the
2024 crop are expected to decline for the third consecutive year due to
low production. Meanwhile, Vietnam’s new 3 pepper crop is expected to
be delayed by one month, which will have a positive impact on world
pepper prices.
The Import-Export Department forecasts
that Vietnam's pepper export activities will not be favorable in the
last months of this year due to low domestic supply and low demand from
China.
It is expected that in early 2025,
Vietnam's pepper exports will be favorable thanks to the expected sharp
increase in demand from the Chinese market. Meanwhile, after Indonesia's
most recent harvest, until the month of February 2025, the world's
pepper supply has not been significantly supplemented. This is
considered a favorable factor when Vietnam enters the new harvest in
2025.
Sources: https://congthuong.vn/xuat-khau-ho-tieu-sang-thi-truong-trung-quoc-du-bao-se-tang-manh-vao-dau-nam-2025-357913.html
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