SPICES MARKET UPDATE 25TH JAN 2021 – WEEK 4

 

 

PEPPER

 

According to Customs data, pepper exports in the first half of January 2021 
reached 7,241 tons, with a turnover of 20.62 million USD, down 23.75% in 
volume and 10.03% in value compared with the same period last year. 
The average export price reached 2,847 USD/ton, up 2.89% compared with 
the average export price in the last month of 2020.

The pepper crop has started to be harvested in Dak Song district of Dak Nong 
province in the past 2 weeks, however, it is quite slow due to unfavorable 
weather with strong winds and cloudy weather. 
Daknong province is the earliest and most important area for pepper crop size 
in Vietnam. 
In addition, the demand for buying from importing countries such as the USA, 
Europe and Asian countries has made pepper prices go up 7% from VND 51,000
to VND 54,500 last week. 

Due to low prices and high labor costs, most farmers pick only once for pepper 
plantation instead of 2 or 3 times as before. 
In addition, the large demand of light berries for extra oil has motivated farmers 
in the Central Highlands provinces to harvest green pepper to supply essential 
oil pepper. 
This factor also impacted the price in the past 2 weeks.

Vietnam will start the long Lunar New Year holiday from February 10th 
to February 16th, 
manufacturers and exporters actively buy raw materials to prepare for the orders 
for February shipment. Prices trend to be firm in the short term.

Cost freight likely will be easier during the second half February/March when 
the Vietnam government has many different strict measures with shipping lines.