Pepper prices increased sharply, reaching a peak of nearly 90,000 VND/kg

The pepper growing area in Vietnam in 2023 will decrease by 5,000 hectares compared to 2022. This year's pepper harvest is forecast to decrease by about 10.5%, causing pepper prices on the market to increase sharply.

Pepper prices increased sharply, reaching a peak of nearly 90,000 VND/kg

According to data from the Ministry of Agriculture and Rural Development, the pepper growing area in Vietnam in 2023 will reach about 115,000 hectares, down 5,000 hectares compared to 2022. Pepper output in 2023 will reach 190,000 tons, up 3.8% over the year. 2022. However, due to the large decrease in area, pepper output in 2024 is forecast to decrease.

Currently, the 2024 pepper harvest has begun in some districts of Dak Nong province, but the harvest is quite scattered and not much. Due to the effects of climate change, the 2024 harvest will be slower than 2023. Vietnam's pepper output in 2024 is expected to only reach 170,000 tons, down 10.5% compared to 2023.

It is expected that pepper output in 2024 will decrease by about 10.5% compared to 2023. This information has caused pepper prices to continuously increase recently. Illustration photo: IT

According to the Vietnam Pepper and Spice Association, pepper prices in the domestic market have been on an upward trend since before the Lunar New Year until now, mainly due to limited supply, while businesses still have demand. Buy to ensure export progress.

On February 20, 2024, the price of black pepper increased simultaneously by 1,000 VND/kg compared to the previous day. Specifically, pepper price in Chu Se (Gia Lai) reached 86,000 VND/kg. Pepper price in Chau Duc district (Ba Ria - Vung Tau) reached 88,000 VND/kg; In the two provinces of Dak Lak and Dak Nong, pepper prices increased to 88,500 VND/kg.

Pepper price today is highest in Binh Phuoc province, reaching 89,000 VND/kg. Meanwhile, the price of white pepper ranges from 111,000 to 115,000 VND/kg, depending on the locality and is much higher than the price of 92,000 VND/kg in the same period in 2023.

The Import-Export Department (Ministry of Industry and Trade) forecasts that global pepper prices will fluctuate in an upward trend in the first quarter of 2024 due to continued decline in output in main producing countries. Adverse weather conditions caused by the El Nino phenomenon are affecting pepper productivity and harvest.

A global pepper production shortfall is expected in 2024 due to climate change and there has not been much new planting area in major producing countries in recent years. In particular, the weather is "very dry" in Brazil, and prolonged heavy rains in the Central Highlands and southern provinces of Vietnam will have an impact on reducing pepper production in the near future.

According to estimates by the Ministry of Industry and Trade, Vietnam's pepper exports in January 2024 reached 20,000 tons, worth 79 million USD, down 1.4% in volume, but up 1.9% in value compared to the month. December 2023; Compared to January 2023, it increased by 60.2% in volume and 83.9% in value.

The Vietnam Pepper and Spice Association said that the average export price of Vietnam's pepper in January 2024 is estimated to reach 3,953 USD/ton, an increase of 3.4% compared to December 2023 and an increase of 14,000 USD/ton. 8% compared to January 2023.

Regarding export structure and types: In 2023, Vietnam mainly exports black pepper, accounting for 69.51% of total output and 70.67% of the country's total pepper export turnover in the year. 2023. Therefore, black pepper export growth has had a positive impact on the entire "black gold" industry.

The leading export enterprises in January 2024 include: Nedspice Vietnam: 2,147 tons, Olam Vietnam: 1,819 tons, Pearl: 1,295 tons and Phuc Sinh: 1,078 tons.

The United States continued to be the main export market of Vietnamese pepper in January, reaching 4,774 tons, accounting for 27.2% of the market share, however compared to December 2023, it decreased by 23.1%. India is the second largest export market, reaching 1,367 tons, accounting for 7.8% and increasing by 35.2%. Exports to China decreased by 54.8% to 466 tons.

According to preliminary statistics from the General Department of Customs, in 2023, black pepper exports will reach 184.81 thousand tons, worth 643.46 million USD, an increase of 14.4% in volume and an increase of 1.0%. in value compared to 2022.

In 2023, Vietnam exports black pepper to more than 100 countries and territories around the world. Among them, Vietnam's traditional export markets for black pepper include: China, the United States, India, the United Arab Emirates, the Philippines...

According to danviet.vn

VPA

Indian cardamom exporters bet big on Gulfood 2024 to gain Ramadan business

February 20, 2024 at 05:53 PM. | Kochi

Current $5 difference with Guatemala likely to attract more buyers

BY V SAJEEV KUMAR

The commencement of Gulfood 2024 in Dubai has revived Indian cardamom exporters’ hopes to gain a competitive edge vis-à-vis Guatemalan produce in the Gulf markets for the ensuing Ramadan fasting season, which begins from March.

Though shippers are anticipating stiff competition from Guatemala, the lower price for Indian cardamom in the current season has raised their hopes. It was because of higher prices, the Indian cardamom had lost its business last year and the current price difference of $5 per tonne with Guatemalan crop is expected to fetch good sales this time, exporters said adding that the domestic price is ruling in the range between ₹1,450-1,500 per kg.

However, the worsening Red Sea crisis is creating a hurdle for exporters in sending the cargo to all the Gulf countries other than Dubai leading to transit delays for almost two weeks and higher cost due to diversion of ships. The emerging situation has resulted in delays in realising funds from abroad, thereby affecting the cash flow in the domestic market as well, a cardamom exporter in Vandanmedu in Idukki said.

Buyers face dilemma

M Dhanavandan, the Bodinayakanur based cardamom exporter who is in Dubai for Gulfood 2024, told businessline that many buyers found Indian prices to be favourable this time, generating interest in purchasing the crop from this region.

However, buyers faced a dilemma for making their purchases. With new crop arrivals and existing stocks of Guatemalan bought at lower prices during times when Indian crop prices were higher, decision-making became more complex. The approaching Ramadan sales also added another layer of complexity to the equation, he said.

The unpredictability of Indian cardamom prices further compounded buyers’ concerns. The question of whether prices would increase in the near future or remain stable at current levels, and whether it was prudent to book cargo now or wait for potential price drops during the onset of new arrivals, loomed large, he added.

Unstable domestic market

According to PC Punnoose, General Manager, KCPMC Ltd, the domestic market is unstable because of a lower demand and subdued export buying since January. The early Ramadan this time has facilitated buyers in the Gulf nations to cover their requirements and the market is expecting a positive trend only when the export buying starts.

Likewise, the upcountry markets in many North Indian cities are slow and the farmers’ strike in Haryana has further worsened the situation, leading to a disruption in truck movement.

Cardamom production is at the fag end of the season and the next crop is expected to start by June depending on the arrival of south-west monsoon, he said.

Indian cardamom exporters bet big on Gulfood 2024 to gain Ramadan business  - The Hindu BusinessLine

Quick highlight Pepper market update 19th February 2024 – Week 6 & 7.

 

Last 2 weeks, the price of black pepper increased from 84,000 VND to 87,000 VND, equivalent to a 3.6% increase.

There is a significant demand from various markets such as the US, EU, Asia, and Africa for immediate delivery orders in the first quarter of 2024.

The largest market, China, continues to not participate in purchasing for the new 2024 crop.

Vietnam has started a long Tet holiday and will resume work on February 15, 2024. Farmers/ collectors start to work again on February 19th, 2024

Pepper market on February 16, 2024: Continues to increase in some key provinces

Domestic pepper prices

According to the survey,  pepper prices  in the domestic market fluctuated between 81,500 - 85,000 VND/kg after being adjusted to increase in some localities.

Records show that Dong Nai province has the lowest price of 81,500 VND/kg and Gia Lai province has a slightly higher price of 82,000 VND/kg.

Next is Ba Ria - Vung Tau province with a price of 84,000 VND/kg.

In Dak Lak and Dak Nong provinces, pepper is purchased at a general price of 84,500 VND/kg - an increase of 500 VND/kg.

Similarly,  today's pepper price  in Binh Phuoc province also increased by 500 VND/kg to 85,000 VND/kg.

World pepper prices

According to an update from the International Pepper Association (IPC) on February 15 (local time), the price of Lampung black pepper (Indonesia)  decreased by 0.13%  compared to February 14.

At the same time, prices of Brazilian black pepper ASTA 570 and Kuching (Malaysia) ASTA black pepper remained stable.

According to  peppertrade , the Vietnamese market in the week of June 2024 is considered quiet when most people are busy preparing for the Tet holiday.

At the same time, Muntok pepper prices remained firm due to reduced production and limited raw material supply with strong domestic consumption offsetting weak overseas demand, the market is now tilted towards Brazil.

However, news of crop failure and local currency fluctuations have caused raw material prices to skyrocket from 16 reals/kg previously to 17 reals/kg currently, so although demand is high, supply is very limited. limit.

Overall, most traders are still choosing to wait after Tet in anticipation that Vietnam's incoming crop could bring some relief.

However, when the push comes and the peak does not create enough selling pressure, the current price trend can escalate significantly from current levels.

According to VietnamBiz.vn

Pepper Market Report Week 6 – 2024

 Pepper Talk

VN market is seen quiet opening this week as most of them are busy preparing for the TET holiday. Offers are very limited refusing to bet for forward positions due to an anticipation that China’s demand will further increase after TET.

Muntok remains firm due to declining production and limited raw supply with its strong local consumption that makes up with its weak overseas demand. 

Everyone now is leaning towards Brazil. Unfortunately, news of its bad crop situation and fluctuating local currency have prompted raw prices to jumped up from earlier 16 BRL/ kg to now at 17 BRL/kg. Hence, though demand is high, offers are very limited. 

Overall, most are still found on a sideline opting to wait after TET in anticipation that Vietnam’s crop arrival could bring some relief. However, when push comes to shoves, and peak arrival fails to give enough pressure to sell, direction with current prices could then therefore escalate significantly beyond current levels.  

For your pepper requirements, please get in touch with our sale's team.

Royal Golden Trading, Dubai

Vietnam Pepper market update 29th January 2024 – Week 4.

 

 

Last week, the price of black pepper quite rapid fluctuations throughout the day. By the end of the fourth week, the price almost unchanged.

The high demand from the EU and USA markets for immediate delivery orders has contributed to a relatively stable growth in the market recently.

Vietnam will begin a long holiday period from February 8th to February 14th (most will have a holiday from February 8th to February 18th). Therefore, during this time, the market is expected to have fewer transactions.

Agents and exporters will be cautious during the holiday period as they are concerned about rapid market changes if China enters the market.

Vietnam - Pepper market January 27, 2024: Southeast region increases, US market buys strongly again

Pepper price today January 27 is in the range of 79,500 - 82,500 VND/kg. After 2 days of decline, the domestic pepper market increased slightly again. Pepper prices will increase from the end of 2023 because there is not much inventory left, and the US market suddenly has strong consumption in the last 3 months of 2023.

In Dak Lak and Dak Nong provinces, today's pepper price was purchased at 82,500 VND/kg.

In Gia Lai province, today's pepper price is 80,000 VND/kg.

Meanwhile in Dong Nai, pepper price today is at 79,500 VND/kg, an increase of 500 VND/kg.

In Ba Ria - Vung Tau province, pepper price today is at 81,500 VND/kg, an increase of 1,000 VND/kg.

In Binh Phuoc province, today's pepper price was purchased at 82,000 VND/kg, an increase of 500 VND/kg.

Pepper prices today increased by 500 - 1,000 VND/kg in the Southeast, remaining stable in the remaining localities compared to the same time yesterday. After 2 days of decline, the domestic pepper market increased slightly again.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 3,863 USD/ton, down 0.39%; Brazilian black pepper price ASTA 570 is at 3,850 USD/ton; Kuching (Malaysia) ASTA black pepper price remained at 4,900 USD/ton.

Muntok white pepper price was 6,091 USD/ton, down 0.39%; Malaysian ASTA white pepper price is still at 7,300 USD/ton.

Vietnam black pepper price is trading at 3,900 USD/ton with 500 g/l type, 550 g/l type at 4,000 USD/ton; White pepper price is at 5,700 USD/ton.

IPC said that both domestic and international Indian and Indonesian pepper prices tend to decrease this week.

IPC forecasts that global pepper production in 2024 will continue to decrease by 1.1%, equivalent to 6,000 tons. Brazil and India are forecast to increase production this year, while decreasing in Vietnam. Other producing countries can maintain pepper output with negligible changes.

According to the Ministry of Agriculture and Rural Development, Vietnam's pepper area in 2023 will reach 115 thousand hectares, down 5 thousand hectares compared to 2022. Vietnam pepper output in 2023 according to the assessment of the Pepper and Plant Association Vietnam position reaches 190 thousand tons, an increase of 3.8% compared to 2022.

The 2024 pepper harvest has also begun in some districts of Dak Nong province, however the harvest is mainly scattered in some districts and not much. Due to the effects of climate change, this year's harvest is later than last year. Vietnam's pepper output in 2024 is expected to reach 170 thousand tons, down 10.5% compared to 2023.

The Vietnam Pepper and Spice Association in its latest report stated that the average domestic price in early 2023 reached 57,000 VND/kg and stood at the lowest level since March 2021. The price increased at the end of the first quarter and did not change much until November 2023. Entering December, the price continuously increased, sometimes reaching 86,000 VND/kg, causing the average price for the whole month to reach 81,000 VND/kg, an increase 42% compared to the beginning of the year.

The reason for the increase in prices at the end of the year is that there is not much inventory left. The US market suddenly had strong consumption in the last 3 months of the year, especially December 2023 when the import volume reached over 6,200 tons (the highest import month). These may be orders delivered by businesses before the end of the year, so purchases are required.

According to KTĐT.vn