Pepper exports in October reached 19 thousand tons, worth 48 million USD, up 4% in volume and 4.9% in value compared to the last month, compared with October 2019, up 11.9% in volume and 17.1% increase in value. In the first 10 months of 2020, pepper exports reached 239 thousand tons, worth 537 million USD, down 4.6% in volume and 15.2% in value over the same period in 2019.
Average pepper export price in October was estimated at 2,526 USD/ton, up 0.9% compared to September and 4.6% to October 2019.
Export of ground pepper has also achieved impressive quantity and continuous growth over the years, exports of ground black pepper increased by 37.5% in volume and 26.6% in value compared with the same period in 2019 reached 24.3 thousand tons, value 68.14 million USD. Ground black pepper to most major markets increased, including USA, UK, Netherlands, Japan, Australia, Thailand, Sweden, China, and Korea.
Many countries relax social distancing especially with the main import markets such as the USA, China, and India. After 4 months of moderate buying (July to October), we have foreseen China becoming more aggressive to stockpile during November. Otherwise, the Vietnam - EU Free Trade Agreement has opened up so we hope for many other opportunities for Vietnam's pepper in the coming time.
After being affected by many storms and tropical depressions, the weather in the key pepper areas of Vietnam was much better when the rainfall decreased significantly, the weather was generally quite favorable. However, the pepper market still steadily increased in price at week 45 as demand continued to increase in almost all markets ASIA/AFRICA/USA (except the EU) and especially increased strongly from China.
Due to the heavy rains, this
year's crop in Vietnam is expected to be harvested at least 1
month later than previous years. The earliest harvest area in
Daknong province almost only begins harvesting in January (Year
2017/2018/2019 harvested a little in early December).
The pepper prices were low last year, so the pepper string was
uneven and sparse due to the lack of fertilizer and farmer care.
This may cause the quantity of light berries to drop sharply in
the 2021 crop (light berries and light berries to extra oil). In
addition, pepper prices may stabilize and increase in 2021 that
encourage farmers to have the psychology of storing, not
harvesting early, and not picking green pepper corn like
2018/2019 to sell. The shortage of light berries pepper in the
first quarter of 2021 is the possibility to make pepper pricing
in the main season not come down as expected. Last 2 years,
light berries prices have sometimes gone up 100 – 200$ within 1
– 2 days that make pepper raw material also moved up.
In addition, the harvest is likely to be slower next crop 2021, the demand for white pepper in all markets is very high while the raw materials harvested at the beginning of the 2021 season cannot be used for white pepper production due to low density. This is also a significant factor affecting prices in the coming time.
Other information; Several inquiries not only from overseas but also in local traders for next year shipment 2021 with the price is the similar prompt shipment for large quantities.
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