From the beginning of the year until now, pepper exports
recorded a sharp decline in almost all markets, but there were positive
signs in the EU. According to the latest information from the
Department of Agricultural Product Processing and Market Development, in
the first 8 months of 2019, the estimated export volume of pepper was
220,000 tons (561 million USD), up 27.4% in volume but decreasing 3.8%
in value over the same period in 2018. Notably, the average export price
of pepper in the period reached 2,556 USD / ton, down 24.5% over the
same period in 2018.
The Import and Export Department (Ministry of Industry and Trade)
said pepper prices were falling due to increasing global supply.
However, in Vietnam, the quality of pepper is affected by excessive use
of chemicals and pesticides, so the price is lower than that in other
countries.
In the past 2 years, many countries such as Brazil, India, and
Indonesia have become competitors to Vietnam in terms of output and
quality. In particular, Brazilian pepper is better quality with 80% of
the world market selling organic standards.
While the price of pepper is still very low, the cost of producing
pepper tends to increase. Vietnam's pepper production cost in 2018
increased by at least 10% compared to 2017. The selling price of pepper
decreased by over 30%, causing huge difficulties for pepper growers.
The Agro Processing and Market Development Department said in the
first 8 months of 2019 pepper exports to Germany increased: in the first
7 months, reached 8,000 tons, equivalent to USD 23.4 million, up 53.3%
in volume and 14.4% in value over the same period in 2018. Germany
increased imports of pepper to serve the growing pepper processing
industry in this country.
The successful signing of the Vietnam-EU Free Trade Agreement (EVFTA)
will be a good opportunity for Vietnam's pepper industry. As part of
the agreement, EU countries commit to eliminating tariffs on pepper
products (HS code 09.04) right after it comes into effect. Opportunities
for Vietnamese export will increase due to the agreement.
Typically, Metalaxyl chemical residues were found on pepper imported
into the European market. Previously, the maximum permitted amount of
Metalaxyl chemicals on pepper imported into the EU was 0.1 ppm, but the
European Commission (EC) has requested to adjust this level to 0.05 ppm.
By 2018, only 46% of Vietnam's pepper has met the export standards.
Besides, Vietnam still faces the risk of origin of imported pepper
products from third markets. Vietnam imports pepper from other producing
countries, accounting for about 10% of Vietnam's total pepper exports,
mainly for processing.
In the domestic market, prices of pepper fluctuated in August.
Compared to the previous month, prices of pepper in Dak Lak, Dak Nong,
Gia Lai and Ba Ria Vung Tau decreased by VND 500 / kg to VND 43,500 -
45,500 / kg. Pepper prices in Dong Nai decreased by VND 1,000 / kg to
VND 43,000 / kg.
From https://www.freshplaza.com/article/9148608/pepper-prices-falling-due-to-increasing-global-supply/
Agroberichten Buitenland
Tel: +31 (0)70 379 8911
Email:
agroberichtenbuitenland@minlnv.nl
www.agroberichtenbuitenland.nl
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