Cambodian Pepper trade hit by global downturn

Van Socheata  20 July 2023 

In the first half of 2023, Cambodian pepper exports, encompassing all varieties, hit about 4,300 tonnes. This reflects a drop of over 31 per cent compared to the same period last year, according to the Ministry of Agriculture, Forestry and Fisheries.

Ministry spokeswoman Im Rachna attributes the decline to the global economic downturn which has led to a drop in orders for all goods, pepper included.

Market uncertainty, climate change impacting crop yields and quality, and unauthorised exports through Vietnamese and Thai corridors are other contributing factors, she added.

Mak Ny, president of the Cambodian Pepper and Spices Federation (CPSF), noted on July 18 that the decline is linked to the falling market price of pepper despite a normal level of pepper production. This has resulted in some farmers suspending sales and drying the pepper, awaiting a rise in price before selling.

“The challenge isn’t new. The price of pepper dropped post-harvest. As a result, some farmers dried it, anticipating a price increase,” he said.

He added that weather-related challenges have led some farmers to abandon their crops, which could trigger a decline in pepper production this year and the next.

New markets are crucial for Cambodian pepper as it would lure more investors to grow and export pepper to countries beyond Vietnam, he emphasised.

“In ASEAN, Vietnam is a major buyer of Cambodian pepper. However, despite various regional and bilateral free trade agreements, tariff barriers and phytosanitary issues persist,” added Mak Ny.

Nguon Lay, president of the Kampot Pepper Promotion Association, observed that although there’s no official data on pepper exports, he assesses that Kampot pepper exports haven’t fluctuated in the first half, mirroring last year’s trends.

Despite the global crisis, demand for Kampot pepper remains steady, particularly from European buyers.

“Kampot pepper has not encountered significant issues. We have contracts with purchasing companies and export approximately 70 to 80 tonnes annually. The weather did not diminish the quality of the pepper as our farmers are prepared, particularly in managing water supplies in response to climate change,” he said.

However, the high maintenance costs associated with growing Kampot pepper have forced some farmers out of business, reducing the association’s membership from 460 to just over 350 households.

Cambodia exports pepper to a wide range of countries, and pepper is grown in 18 provinces across the nation, including Mondulkiri, Ratanakkiri, Tbong Khmum and Kampot.

https://www.phnompenhpost.com/national/pepper-trade-hit-global-downturn-h1-ministry

Vietnam Pepper mkt update 1st May 2023 – Week 17

 

 

Last week, pepper price continued to increase impressively with an increase of 4.5%. Thus, pepper price in the past 2 weeks has increased by 7.5% from 66,500vnd - 71,500vnd.

The main reason is that Vietnam continues to export large quantities in April (forecast 30,000 tons), bringing the total export volume in 4 months to approximately 107,000 tons. Up to 25-30,000 tons over the same period in 2022.

With crop output forecasted at just over 200,000 tons, while exporting up to 107,000 tons within 4 months, We can see selling pressure from farmers, agents will not be much when there are 8-9 months until the new 2024 harvest.
Despite the relatively gloomy demand from different markets such as the US/ EU/ AFRICA/ ASIA, farmers, dealers and many analysts forecast and expect that pepper prices will have impressive growth momentum in the coming years.

Although the price of pepper has increased in recent years, profits are still not really atractive to farmers  when costs have seriously increased during the past time such as fertilizer costs, harvesting workers, etc.

Therefore, the harvested area of pepper has continuously decreased in the past 3 years and is expected to continue  to decrease when farmers rarely replant pepper but actively develop other fruit trees such as durian, avocado, jackfruit... etc.

Wheather
After the harvest, the weather in Vietnam becomes hot, especially in the key pepper regions of the country such as Daklak, Daknong, Dong Nai, Ba Ria Vung Tau... El nino phenomenon is forecasted to make pepper gardens affected.

A brief sight of the alternate market suppliers

INDIA
Pepper prices in India unchanged in the past week.

SRI LANKA
Pepper prices remained stable.

INDONESIA
The price of Lampung black pepper in Indonesia is almost unchanged. New crop starting to harvest.

BRAZIL
Pepper prices last week tended to increase. Very few raw material are offered for sale in the market.

MALAYSIA
Malaysia's Kuching ASTA black pepper price remained stable.

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PINHEAD
PINHEAD< 1MM SUPER CLEANED  $1.003 
PINHEAD 1.5MM • 2MM CLEANED $1. 227 
PINHEAD 2MM - 2.5MM CLEANED $1.446 
PINHEAD SUPERIOR QUALITY $1.666 

WHOLE PEPPER
VBP 500 G/L FAQ $3.236 
VBP 550 G/L FAQ $3.485 
VBP 500 G/L Double Spiral Cleaned $3.532 
VBP 550 Gil Double Spiral Cleaned $3.595 
VBP 570 G/L Double ASTA $3.658 
White PEPPER 630 G/LASTA $5.006 

STEAM STERlllZED PEPPER
PINHEAD
Steam Sterilized Pinhead < 1MM $1.453 
Steam Sterilized Pinhead 1.5MM - 2MM $1.677 
Steam Sterilized Pinhead Super Quality $2.116 

LIGHT BERRIES PEPPER
Steam Sterilized Black Pepper 250 G/L   $3.429 
Steam Sterilized Black Pepper 350 G/L   $3.523 

STEAM STERILIZED PEPPER
Steam Sterilized Pepper S00G/L   $3.753 
Steam Sterilized Pepper 550G/L    $3.881 
Steam Sterilized Pepper 570G/L   $3.945 
Steam Sterilized White Pepper 630G/L  $5.371 

STEAM STERILIZED PEPPER - EU COMPLIANCE
Steam Sterilized Pepper S00G/L   $3.933 
Steam Sterilized Pepper 550G/L   $4.061 
Steam Sterilized Pepper 570G/L   $4.125 
Steam Sterilized White Pepper 630G/L $5.551 

#2023 pepper crop,#black pepper #pepper price,#April pepper price,#vietnam pepper price

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JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS !

Vietnam Pepper market Monthly Report March 2023

APRIL 17 2023

MARCH 2023 PEPPER EXPORTS

According to preliminary statistics of VPA, in March 2023, Vietnam exported 35,913 tons of pepper, 32,912 tons of black pepper, 3,001 tons of white pepper. Total export turnover reached 107.2 million USD, black pepper reached 93.6 million USD, white pepper reached 13.6 million USD, compared to the previous month, the export volume increased by 27.5%. The average export price of black pepper in March was U$ 3,454;Ton white pepper was U$ 4,841/ton, compared to previous month the price of black pepper increasedby 5,5% and the white pepper decrease by 15,9&

Exports to China in March reached 15,710 tons, this is the highest export volume ever in a month, breaking the highest export record of April 2020 at 11,953 tons, compared to February export volume to China increased by 85.2%. March also recorded an increase in exports to traditional markets such as the United States, Germany, the Netherlands, India, Egypt, France, Russia, Canada, and Spain,  Saudi Arabia and Turkey increased. The United Kingdom decreased compared to February 2023.

EXPORTING PEPPER FROM JAN TO MAR 2023

Progressively from January 1 to the end of March 2023, Vietnam exported 76,727 tons, of which black pepper reached 70,222 tons, white pepper reached 6,505 tons. 

Total export turnover reached 235.9 million USO, black pepper reached 205.4 million USO, white pepper reached 30.5 million USO. 

Compared to the same period last year, the export volume increased by 40.5% or 22,112 tons, however, the export turnover decreased by 7.3% or 18.5 million USO.

Exports in the first 3 months to China reached 25,919 tons compared to 2,138 tons in the same period, a sudden increase in exports can be understood as China buying to make up for the shortage of goods after 3 years of closure because of Covid-19. In contrast to the Chinese market, exports to the United States, Germany, the Netherlands, the United Kingdom, and India decreased. 

The reason may be due to the economic crisis, so the markets limit purchases. Some other markets recorded an increase in exports such as Iran up 461%; Turkey increased by 331.3%; Egypt by 218.4%; Senegal increased by 148.8%... 

The leading import markets of white pepper: Germany, the United States, China, the Netherlands

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#2023 pepper crop,#black pepper #pepper price,#April pepper price,#vietnam pepper price

=========================

JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS !

Vietnam Pepper market update April 3rd 2023 – Week 13 - Prices

We would like to send you a quick highlight spices market update 3rd April 2023 – Week 13.

Last week, the pepper market was quite stable and the trading volume on the market was not much. Now that the crop has been harvested, farmers/dealers continue to stock up and do not offer to sell when the pepper price is adjusted down. 

Importers have increased their purchases with faraway orders in the third and fourth quarters of 2023 but manufacturers and exporters are very cautious and offer little to sell long-distance orders as many experts forecast an upward trend in next time. 

According to preliminary statistics, Vietnam's pepper exports in March are forecast to reach over 36,000 tons In which China imported  over 14,000  tons 

This  broughtn Vietnam's total pepper export volume in 3 months to over 76,000 tons, up 40% compared to the first 3 months of 2022 (54,615 tons) and increased 23% compared to the first 3 months of 2021 (61,584 tons)

 According to the update from the International Pepper Association (IPC) on March 30 (local time), the world pepper price compared to March 29 is as follows:

INDIA

The price of pepper is almost unchanged

INDONESIA

Lampung black pepper (Indonesia): at 3,643 US/ton, up 0.22%.

Muntok white pepper: at $6,141/ton, up 0.21%.

BRAZIL

Pepper prices increased slightly due to strong demand from different markets. The Brazilian real currency is getting stronger against US which makes pepper more expensive when converted to US

MALAYSIA

Kuching black pepper (Malaysia) ASTA: at $4,900/ton, unchanged 

Malaysian white pepper ASTA: at $7,300/ton, unchanged

PEPPER PRICE INDICATION FOB HCMC 

REGULAR PEPPER

PINHEAD 1.5MM • 2MM CLEANED $1. 227

PINHEAD 2MM - 2.5MM CLEANED $1.446

PINHEAD SUPERIOR QUALITY $1.666

VBP 550 G/L FAQ $3.246

VBP 500 G/L Double Spiral Cleaned $3.319

VBP 550 Gil Double Spiral Cleaned $3.378

VBP 570 G/L Double ASTA $3.438

VBP 5MM Jumbo Size $3.540

White PEPPER 630 G/L DW $4.874

White PEPPER 630 G/LASTA $4.918

STEAM STERILIZED PINHEAD PEPPER

Steam Sterilized Pinhead < 1MM $1.453

Steam Sterilized Pinhead Super Quality $2.116

STEAM STERILIZED LIGHT BERRIES PEPPER

Steam Sterilized Black Pepper 250 G/L $3.218

Steam Sterilized Black Pepper 300 G/L $3.265

Steam Sterilized Black Pepper 350 G/L $3.312

STEAM STERILIZED PEPPER - EU COMPLIANCE

Steam Sterilized Pepper 500G/L $3.715

Steam Sterilized Pepper 550G/L $3.835

Steam Sterilized Pepper 570G/L $3.895

Steam Sterilized Pepper SMM $3.972

 Steam Sterilized White Pepper 630G/L $5.459

Vietnam Pepper market update 27th March 2023 – Week 12 and Prices

 We would like to send you a quick highlight spices market update 27th March 2023 – Week 12.

Last week, pepper price decreased slightly by 0.8% when demand was quite slow from different markets such as China / EU / USA / AFRICA…

The market last week pepper prices were less volatile when demand was quiet in the largest market, China.

Other markets such as the US / EU / ASIA ... have been interested in more orders for delivery in full year shipment 2023 than before. However, export manufacturers in Vietnam are very cautious and almost only offer spot orders.

|

 Indication price PEPPER,  based on NET FOB HCM as follows

PINHEAD < 1MM SUPER CLEANED $1.146

PINHEAD 1.5MM - 2MM CLEANED $1.446 

PINHEAD 2MM - 2.5MM CLEANED $1.754 

PINHEAD SUPERIOR QUALITY $2.106 

BPEPPER 500 G/L FAQ $3.039

BPEPPER 550 G/L FAQ $3.246 

BPEPPER 500 G/L Double Spiral Cleaned $3.319 

BPEPPER 550 G/L Double Spiral Cleaned $3.378 

BPEPPER 570 G/L Double ASTA $3.438 

BPEPPER 5MM Jumbo Size $3.540 

White PEPPER 630 G/L DW $4.918 

White PEPPER 630 G/LASTA $4.962 

Pepper price in 2023 - UP or DOWN ?

The question of the moment is the Price
All the people involved in spice trading  or even need to know what is this year trend for Pepper.
We just got a report from one of biggest world spice trade players whose point of view may bring some answers.

Market will remain at pricing level for raw material between 62,000-67,000 VND/kg from Q1-Q2 and will slowly move upward into 75,000-80,000 VND/kg by Q3-Q4.

We suspect prices we are seeing this year will be the lowest. Next four (4) years cycle might lean into an upward trend from the current levels.

Pepper price hit a 10% increase in pricing since the beginning of this year. 
Lowest level was seen at 59,000 VND during January month and had crossed over the highs of 69-70,000 VND marked during February month.

Overall, we see indications suggesting bulls having a strong advantage over bears

------------------------

The Bearish Indicators

• Higher interest rates means higher storage cost which tampers buying power.

• Brazil crop news will probably be a decisive moment. If crop is big, it will supply Vietnam and rest of the world.

• Economic situation worldwide is not satisfactory which may reduce imports.

• Various countries encountering devaluation of their currencies and shortage of dollars causing a eduction in imports. 

--------------------------

The Bullish Indicators

• Vietnam had already finished harvesting 80% of its yield and still no hint of selling pressure from farmers’ side.

• The new crop arrival in the warehouses were very limited during the peak arrival season.

• Chinese is actively buying and will remain active until June 2023.

• The first two (2) months of the year, Vietnam have already exported about 42,000 tons. March export is expected to reach about 30,000 tons. By first half of 2023, big volume will be exported, and emaining quantity will be in strong hands.

• Exporters are not keen to offer forward positions.

• Exporters feel that the levels we are seeing now will be the lowest; therefore, not to go short will be an advantage.

• Farmers are holding their pepper goods due to the advantage of coffee and other fruits high prices income.

• Both stock market and real estate property are not doing well, causing most buyers to invest in commodities.

• Buyers’ coverage beyond June is limited; demand recovery is to be expected during Q3 and Q4.

• Pepper plantation areas is decreasing annually while proper caring for pepper vines is neglected.

• Farming input cost significantly increased which translates to higher production cost.

• Climate change is also worsening the vulnerability of farmers.

• Considering the small pricing differences between Brazil and of Vietnam, companies based in Hochiminh will probably focus on Vietnamese Pepper especially now that Sundried material is not easily available until August month.

• Early reports indicating Indonesian next crop will be small.

----------------------------

Pepper Talk: Bullish Bearish Analysis by Royal Golden © Royal Golden 2023. All Rights Reserved.

Vietnam Pepper market update 20th March 2023 – Week 11

  

Last week, the global financial market received bad news such as the bankruptcy of 3 major banks in the world & bad news from Credit Suisse. However, the pepper market was almost unaffected by this information and continued to increase in price last week with an increase of 2.2%.

Demand continues to increase from the Chinese market and improvement from major markets from the US and EU have made the market more active.
Much information shows that it is likely that in March, Vietnam will export at least 30,000 tons, bringing the total export volume to at least 70,000 tons within the first 3 months. (The above export data does not include statistical data through unofficial trade, corresponding to 10 - 15,000 tons. If so, the export volume will be increased to approximately 85,000 tons). This is an impressive number when the 2023 crop is forecasted to only reach approximately 180,000-200,000 tons.

 

Vietnam Pepper market update 13th March 2023 – Week 10.

- Pepper price has had an impressive increase in 2023 with an increase from 61,000vnd from January 1, 2023 to 67.000vnd until March 12, 2023, corresponding to an increase of 10% in recent times.

- The rising demand from the Chinese market after 3 years is also a major reason for the sharp increase in pepper prices in the first quarter this year

Pepper Exports in February 2023

According to preliminary statistics of VPA, in February 2023 Vietnam exported 28,161 ton, of which 25959 black pepper.

China rose to become the main destination in Feb with 8,485 tons, up 392% compared to January and accounting for 30% of export mkt share. USA came second with 3,790 tons, up 14,6%

Considering Jan to February 2023 Vietnam exported 40,814 tons, an increase of 10,138 tons or 33% compared to the same period of 2022.

PREVIOUSLY
Vietnam Spices Market Update February 2023

March 9, 2023

Vietnam harvest is currently underway, with all the provinces harvesting. Harvest is meeting expectations and is better than last year. Cambodia harvests are picking up as well. Brazilian growers are expected to start harvest in March. Prices in Vietnam increased from the pre-season lows, despite lower demand from EU & US buyers. 

After the Lunar New Year holidays, Chinese buying led to stocks holding at farmer and collector levels. This has caused prices to increase. Pepper prices in Brazil have gone up as well. About 40% of the harvested pepper in Vietnam has been traded, with an expected 70% of the crop yet to be harvested. There can be some pressure on prices as more pepper is harvested. 

Vietnam Pepper exports hit 129 million USD in first two months

Vietnam exported over 41,000 tonnes of pepper worth 129 million USD in the first two months of this year, up 35% in volume, but down 7.4% in value over the same period from 2022, according to the Import-Export Department under the Ministry of Industry and Trade.

Monday, March 06, 2023 

Hanoi (VNA) – Vietnam exported over 41,000 tonnes of pepper worth 129 million USD in the first two months of this year, up 35% in volume, but down 7.4% in value over the same period from 2022, according to the Import-Export Department under the Ministry of Industry and Trade.

The average export price of the Vietnamese spice in February 2023 was 3,059 USD per tonne, a downturn of 11.1% compared to the previous month and 32.8% year-on-year.

During the reviewed period, its average export price stood at 3,177 USD per tonne, a fall of 31.4% compared to last year's corresponding period.

In terms of the domestic market, prices of both black and white pepper in February increased sharply due to growing demand from the Chinese market.

The price of black pepper rose by between 8,000 VND per kg to 8,500 VND per kg (0.34- 0.36 USD), an increase of 13.9% to 15.3%, compared to January to reach between 64,000 VND and 65,500 VND per kg.

Meanwhile, white pepper rose 98,000 VND per kg, an increase of 6,000 VND per kg compared to the end of January, but still lower than the 121,000 VND per kg seen in the same period from last year.

The ministry has said the global pepper market is forecast to recover due to increasing demand from importers./.

VNA Monday, March 06, 2023 09:33  https://link.gov.vn/XurxYbPX

VIETNAM PEPPER MARKET UPDATE 4th MAY 2021 – WEEK 18

PEPPER;

 

The market opened for the 18th week with the price trend going sideways, the disease situation is still quite serious in many different countries, causing anxiety for the whole market. However, there still sees good demand from different markets such as EU / ASIA / USA and even the Middle East. Consumption demand from China in April was generally low due to the tightening of the disease control border. The border between Cambodia and Vietnam is still closed, so it is forecasted that the pepper from Cambodia will not be transferred to Vietnam / Thailand / China as usual.

 

Currently, the raw material from farmers / collectors has a very fast delivery speed. That's why domestic agents and exporter / manufacturers continue to lack local liquidity. Many processors / exporters facing cash flow issue so domestic market temporary slow last 2 weeks.

 

Ramadan Festival & China national holiday will be finished next few more days, so it is likely that demand will be coming more strongly in the next couple weeks.

 

Ocean Freight kept at high cost and space of container continued tight especially to the USA and Canada.

 

Forecast Vietnam currency is firm / steady against the USD until the end of the second quarter.

 

 

CHECK LAST PRICE INDICATIONS FOR VIETNAM PEPPER, CASSIA, TURMERIC, STARANISE..

https://offers-peppertrade.blogspot.com/2021/05/pepper-cassia-star-anise-turmeric.html

 

VIETNAM PEPPER MARKET UPDATE 26th APRIL 2021 – WEEK 17

 

 

 

PEPPER

 

According to customs data, exports in the first half of April 2021 reached 15,304 tons of pepper, with a turnover of $ 47.90 million, bringing pepper exports in the first 3.5 months of 2021 to 76,296. tons, turnover of USD 227.94 million, decreased by 21.98% in volume but increased by 7.32% in value over the same period last year.

 

The average export price in the period reached 3,130 USD / ton, up 6.07% compared with the average export price in March 2021. We forecast total quantity export in April will reach 34.000Mts at least and first 4 months 2021 Vietnam will export around 95.000 tons (first 4 months 2020 was 116.764 tons).

 

The pandemic Covid-19 outbreak in many countries of the world is causing the consumption of pepper to drop sharply, forcing the price to drop sharply last 2 weeks.

 

In the fact, the export situation is quite bleak, mainly handling old orders delivered in May. Meanwhile, although the harvest is over, there is no sell pressure from farmer as usual. 

 

In general, Vietnam has completed the 2021 pepper crop. Last week, the weather was favorable for plants to grow in the 2022 crop. Due to the slow demand from other markets such as China, the Middle East, and Europe. Along with that, the disease situation is still very complicated in the two pepper exporting countries as India and Brazil, besides farmers household also need to cover labor and fertilizer costs then this week farmers offer more raw material. The price has fluctuating daily last week with a range of 50 - 100 $ / MT. However, almost immediately the market recovered very quickly because farmers / collectors immediately not offer in bulk when market correction.

 

Let look back at the past 4 months and make a more assessment of Vietnam's crop situation in 2021. We would like to send you the data scenarios that are likely to happened during this year to have a more comprehensive view of the price trend in the coming time.

Section	Scenario 1	Scenario 2	Scenario 3
Carryover (2019 – 2020)	50	40	40
Crop 2021	230	200	170
Total Import 2021	30	30	30
Exported in first 4 months	94,5	94,5	94,5
Domestic consumption	10	10	10
Lost weight in process white pepper	10	10	10
Quantity available next 8 months	195,5	155,5	125,5
Possibility	50% ?	50% ?	0%

 

 

Please note;

 

- The data of inventories of the year before 2019 / 2020 passed through is now in stock of farmers / exporters, processor / agents with very low selling pressure (frozen stock).

 

- Every year, inventories (carryover) are usually kept at origin about 10-15% of the total exported volume.

 

According to the above hypothetical scenarios, the third scenario is unreasonable, although this is the number of many people have given up on the market in order to distort the market and not correct source. The scenario easier will be under 1 & 2. Regardless of any scenarios, pepper production in 2021 is not expected to be as abundant as in previous years and supply pressure took place in February and March as you can see (prices increased by 45% within more than 1 month).

 

 

 

 

CHECK LAST PRICE INDICATIONS FOR VIETNAM PEPPER, CASSIA, TURMERIC, STARANISE...
https://offers-peppertrade.blogspot.com/2021/04/vietnam-price-indication-for-pepper.html

VIETNAM SPICES MARKET UPDATE 15th MARCH 2021 – WEEK 11

 
PEPPER;

 

In February, Vietnam exported 13,428 tonnes of pepper, with the export value reaching 38.92 million USD. Compared to the previous month, the export volume decreased by 20.5%, the turnover decreased by 20.1%. Accumulated in the first 2 months of 2021, Vietnam exported 30,291 tons, worth 87.56 million USD. Although pepper prices have increased rapidly, the export quantity and export turnover of this commodity has decreased sharply by 21.4% (quantity) and 25.3% (export turnover) in the same period last year. 

Last week, pepper prices continued to rise sharply with an increase of 20% in just 7 days. Especially, there was a day when the market increased and decreased with an amplitude of 12%. (On March 8 - March 9, after a hot increase of 12%, it decreased to 12% in just 24 hours, then continued to increase strongly again.).  

Within 1 month (from February 17, 2021, to March 14, 2021), the price of pepper has increased by 40%.

Please refer to the following chart;

The market rose so hotly that manufacturers/exporters had to come and meet together from Friday last week to analyze the main reasons that have strongly impacted the market during the past time. The main cause as well as we have sent it briefly to you in the last week.

 

"Re-quoted - market update week 10th as below"

 

Despite being in the harvest season, raw material prices continue to rise steadily due to the following main reasons;

 

- Many farmers are at a loss even at this price due to having a poor crop, almost all consider storing pepper. Farmers and domestic agents prefer to sell other agricultural products like Coffee to cover temporary costs and store as much as they can. From their perspective, pepper is the most attractive to invest in compared to other agricultural products. Some rich farmers even buying from others to stock continue.

- Pepper's price is at an attractive level has stimulated many exporters/domestic agents to buy stocks. Especially, there are large enterprises with FDI capital actively participating and pushing the market up sharply in the last time. Pepper harvesting fully swings in all areas in Vietnam however it is not easy to buy in bulk.

- China and Domestic speculators buying very aggressively after Lunar New Year. Demand coming from Middle East/India for March/April shipment. USA customers are more interesting to cover full-year shipments but processors/exporters hesitate to offer further shipments.

 - Several exporters are big short and have been buying raw material in secret in order to ensure shipment on time to the buyers.

 

 Regarding price's flowchart from 2010 - 2020, we can see that pepper prices of 2021 go against most of the previous years when increased rapidly in peak season (quite similar with price fluctuations in 2011 - 10 years ago). Prices increased continuously which surprised all producers, exporters and importers. Currently at this price level, some farmers have become profitable, last week quite a lot of farmers in the Central Highlands provinces actively hired many workers to harvest quickly and sell to domestic agents when the raw material prices reached their expectation.

 

With the large amplitude increase and decrease and dependence on speculation (farmers / domestic agents / China/traders), we think that the market is at a rather high-risk level. Therefore all the relative parties (producer/exporter/buyer) should be careful when entering the market. (Although in the medium and long term, we think it is still uptrend)

SEE TODAY´S PRICES FROM VIETNAM:
https://offers-peppertrade.blogspot.com/2021/03/