VIETNAM - Pepper market April 22, 2024: Pepper price forecast this week is optimistic

 

Pepper price today April 22 is in the range of 96,500 - 98,000 VND/kg. This year's dry season is extremely hot and has prolonged drought, causing many crops such as pepper to lose productivity and decline. This is one of the main reasons why prices have increased recently.

In Dak Lak province,  today's pepper  purchase price is 98,000 VND/kg.

In Dak Nong province, today's pepper purchase price is 97,000 VND/kg.

In Gia Lai province, today's pepper price is at 97,000 VND/kg, an increase of 2,500 VND/kg.

Meanwhile in Dong Nai, today's pepper price is at 96,500 VND/kg.

In Ba Ria - Vung Tau province, pepper price today is at 98,000 VND/kg.

In Binh Phuoc province, today's pepper price is purchased at 98,000 VND/kg.

Pepper prices today remained stable in localities compared to the same time yesterday. Summarizing last week, domestic pepper prices increased by 7,500 - 8,500 VND/kg. Compared to the beginning of the month, pepper prices increased by an average of 3,000 - 4,000 VND/kg.

From the second half of April 2024, the amount of pepper reserves purchased at low prices in February 2024 has almost run out, causing importers to increase purchases again. Along with that, the Muslim month of Ramadan ends, the Indonesian market returns, making transactions more exciting.

According to experts, this year's dry season is extremely hot and prolonged, causing many crops such as coffee, pepper, cashew, etc. to lose productivity and decline. This is one of the main reasons why the prices of Vietnamese agricultural products have increased recently.

According to information in the press, Mr. Ho Van Giao, a pepper farmer in Hamlet 5, Lam San Commune (Cam My District, Dong Nai Province), said that since September last year, the weather has begun to enter the dry season. The peak heat wave begins in February 2024, much earlier than every year. Now returning to Lam San, it is very difficult to find a lush pepper garden, especially in Hamlet 5, where the drought is worse than other areas.

Currently, irrigation water sources for pepper farmers in Lam San and many surrounding areas are very stressful because they depend on drilled wells. In the dry season, this water source is seriously reduced. The long-term solution is to preserve underground water sources. If you want to preserve groundwater, you must preserve soil, because soil and water go hand in hand.

Lam San is a typical example, like many other key pepper growing areas in the Central Highlands, facing a shortage of irrigation water. Some localities recorded a sharp increase in traders purchasing dead pepper roots to use as oriental medicine.

In the above situation, according to experts, this week the market will still maintain its upward momentum, possibly reaching 100,000 VND/kg. The selling force will be high when pepper prices reach their peak. In the medium term, the growth potential of Vietnamese pepper is still very large. Because Brazil and Indonesia have almost no additional supply until August.

According to KTĐT.vn

VIETNAM - Pepper prices skyrocketed

Pepper price is currently reaching 98,000 VND/kg, an increase of about 9,000 VND/kg compared to last week and is likely to exceed 100,000 VND/kg this week.

Currently, pepper harvesting is in progress   in many localities in the Southeast and Central Highlands. The increase in pepper prices during this period is surprising because normally when the harvest is in full swing, prices decrease.

 

 

 The lowest  pepper price is 97,000 VND/kg in Dong Nai ,  Dak Nong  and  Gia Lai . In  Binh Phuoc , Ba Ria-Vung Tau,  Dak Lak ,  the price is up to 98,000 VND/kg. Compared to the same period last year, pepper prices are currently about 33,000 VND/kg higher.

Pepper prices increased sharply  due to limited supply due to prolonged heat, affecting the current harvest output. Besides, pepper is often intercropped in  coffee gardens  , so these two items are closely related in price. Normally, people will sell coffee when the price is high to prepare money to store pepper. This year, coffee prices have only increased but not decreased and are currently more than 20,000 VND/kg higher than pepper prices. Therefore, many people continue to hold on to pepper and refuse to sell it with the expectation that the price will increase sharply in the near future like coffee. This causes the supply of pepper on the market to be low.

According to the General Department of Customs, in March,  pepper exports  reached nearly 26,000 tons, worth 117 million USD; decreased 27.5% in volume but increased nearly 5% in value. The average export price of pepper in March reached 4,305 USD/ton, up 44.5% over the same period in 2023.

In the first 3 months of 2024, Vietnam's pepper exports reached 57,000 tons, worth 236 million USD; Reduced by 25% in volume but increased by 1% in value. The average export price of pepper reached 4,153 USD/ton, up 35.5% over the same period in 2023.

According to experts, recently  the prices of durian  and  coffee have increased higher  than the price of pepper, causing the area and output of these products to decrease and prices to increase. Besides, factors such as harsh weather,  political instability  in many places affecting goods transportation, exchange rate fluctuations... also have a strong impact on pepper prices. With the current trend, pepper prices are likely to increase because they have to compete in economic efficiency with strong competitors such as durian and coffee.

According to Thanhnien.vn

Pepper market reports BY Nhuan Ho

 

 

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Coffee and Pepper Prices, let's move up together

Pepper market reports

In March – Because in February, customers bought large quantities that is enough for March, This year Ramadan came too early, so demand in March decreased a bit from 96k/kg to 91 k/kg. Along with support for the increased USD exchange rate So the export price offered decreases - Customers were waiting to buy at a lower price in Mar

At the end of April 15, Ramadan ends and Qingming Festival in China ends. Purchased Stock pepper at low price in February is almost used up. Demand in the entire market is gradually increasing, China is buying white pepper, the Middle East is buying, and Europe is buying.

Special There is a big event in the US taking place from April 16-18, the ASTA Conference is at Tucson, Arizona, with the presence of many large importers and exporters in the world such as: Mccormick, Elite, Griffith , Terrova, FUCHS, BG, OLAM, NEDSPICE, HARIS SPICE….. along with many exporters present at the Asta conference such as PS, Pearl, Haprosimex, DK, Synthite, Plant lipid….. according to knowledgeable people at conference, more than 10,000 tons of pepper were bought and sold here during these 3 days.

Combined with the demand of other markets, EU, Asia, Middle East, Africa, China, this will be a pretty good push for the upcoming bull market.

Another very important factor, currently Brazil and Indonesia have almost no crop, until August. Prices of Brazil and Indonesia are currently higher than Vietnam, importing goods to Vietnam is almost impossible. Brazilian price for asta 570 gl is 4450 usd/mt cnf Ho Chi Minh, Indonesia Lasta is 4700 usd.mt cnf Ho Chi Minh

The El Nino phenomenon globally is very serious, the 2024 crop in these countries is expected to lose about 25-35% of output stock pepper. Causes the need for 2024 inventory to increase greatly, as is happening with Coffee

The weather in Vietnam's raw material areas is very negative, prolonged hot weather, and many pepper trees die. According to information, traders buy dead pepper roots (to make traditional Chinese medicine). The output of dead pepper roots has increased by 100% compared to every year. Thus, the amount of inventory for the 2025 crop will decrease sharply

In addition, coffee prices have increased continuously and very strongly in the past week, which will be a factor to guide pepper Price towards 120,000 VND/kg in May-June.

Coffee farmers are currently very rich, and those involved, are buying huge stocks pepper in the hope of good profits for 2024.

BY Nhuan Ho

 

https://www.facebook.com/nhuanho1985 

 

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VIETNAM PEPPER UPDATE 2

 Update pepper information

In a recent document sent to the Government, the Vietnam Pepper and Spice Association (VPSA) said that Vietnam is still ranked top 1 in the world in pepper production and export. However, in the context of competition and favorable market fluctuations for other crops such as coffee and durian, the area and output of Vietnamese pepper are decreasing.

The association said this year's pepper output is expected to decrease by 10% to about 170 thousand tons compared to last year, the lowest level in the last 5 years.

This agency is concerned that the level of competition from rival countries will become increasingly fierce, especially Brazil. Accordingly, this country has had a breakthrough in the last 5 years from 80 thousand tons in 2018 and is now expected to reach 100 thousand tons in 2024. This country's exports reach 80 thousand tons in 2023.

“Therefore, all efforts and support need to be focused on pepper to ensure stable area and output. Vietnam continues to take the initiative, playing a role in regulating world market prices as it currently does. today,” VPSA said.

In addition, VPSA hopes that state agencies will support and mobilize foreign partners to consider expanding investment activities in Vietnam.

The association said that the global corporation McCormick (USA) currently invests in many countries such as India, China and some European countries. This is also the largest importer of US spices. In 2023, the US will import 54 thousand tons of Vietnamese pepper, accounting for 20.5% of exports to markets. Of which McCormick imported 3.5 thousand tons.

However, this business has not expanded its investment in Vietnam even though it is the partner importing the most pepper. This company is currently just stopping being a partner and choosing a number of large companies to supply pepper for export to the US market.

According to VietnamBiz.vn
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FDI enterprises are the leading pepper exporters in Vietnam

 

According to VPSA data, VPSA enterprises accounted for nearly 90% of Vietnam's total pepper exports in the first quarter with a volume of 50,918 tons, an increase of 16.8% over the same period. In contrast, businesses outside VPSA only exported 5,794 tons, a sharp decrease of 82.5% and accounting for 10.2%.

Two foreign-invested enterprises, Olam Vietnam and Nedspice Vietnam, ranked first and second respectively in the ranking of Vietnam's largest pepper exporters.

In the first quarter, Olam Vietnam's pepper exports increased sharply by 50.4% to 5,792 tons. Similarly, Nedspice Vietnam also increased by 24.5%, reaching 5,245 tons.

Vietnamese enterprises ranked in the next positions include Tran Chau and Phuc Sinh, with volumes decreasing by 27.5% and 4.7% respectively...

Some businesses said that in addition to the burden of increased raw material costs, pepper export businesses are also greatly affected by high transportation costs due to escalating tensions in the Red Sea region, especially on the route to the EU. – where 20% of Vietnam's pepper is consumed.

Pepper market April 1, 2024: Market goes sideways, highest 95,000 VND/kg

 

Currently, farmers in key pepper growing areas in the Central Highlands and Southeast are entering the end of the 2024 harvest season.

Commenting on the export market, Ms. Hoang Thi Lien, President of VPSA, said that thanks to stable supply and guaranteed quality, Vietnamese pepper has advantages when penetrating markets. In particular, pepper exports to the Chinese market are expected to grow well this year. This country's annual pepper import demand is expected to be about 65-70 thousand tons. While in the first 2 months of this year, the amount of Vietnamese pepper exported to China only reached 816 tons.

According to preliminary statistics of the Vietnam Pepper and Spice Association (VPSA), in the first 16 days of March 2024, Vietnam exported 12,368 tons of pepper, including 10,518 tons of black pepper and 1,850 tons of white pepper. about 53 million USD. The main export enterprises include: Lien Thanh: 1,276 tons, Olam Vietnam: 1,139 tons, Nedspice Vietnam: 957 tons, Phuc Sinh: 900 tons, Haprosimex JSC: 824 tons.

In February 2024, Vietnam's average export price of pepper reached 4,050 USD/ton, an increase of 1.2% compared to January 2024 and a sharp increase of 34.7% compared to February 2023. In the first 2 months of 2024, the average export price of Vietnam's pepper reached 4,022 USD/ton, an increase of 28.1% over the same period in 2023.

In the opposite direction, pepper imports in the first 16 days of March 2024 reached 1,943 tons, total import turnover reached 7.2 million USD. Vietnam imports mainly from Cambodia, accounting for 43.2%, reaching 840 tons, and from Brazil, accounting for 42.4%, reaching 824 tons. Main import enterprises include: Olam Vietnam: 880 tons, Pearl Group: 306 tons.

Pepper prices cooled down due to the lack of Chinese purchasing power

 
After increasing by more than 30% in the three months from December 2023 to February this year, black pepper prices in the domestic market have leveled off and are showing signs of cooling down.

As of the trading session on April 10, black pepper prices in the Central Highlands and Southeast regions fluctuated between 90,000 - 91,000 VND/kg, down 2,000 - 6,000 VND/kg (corresponding to 2 - 6%) compared to end of last month.

Pepper prices decreased in the context of additional supply from the 2023-2024 harvest. Meanwhile, pepper  exports   decreased significantly compared to the same period last year due to the lack of Chinese buying demand.

Preliminary statistics from the Vietnam Pepper and Spice Association (VPSA) show that Vietnam's pepper exports in March reached 25,579 tons, down 28.8% in volume over the same period last year. 2023.

Accumulated to the end of the first quarter, Vietnam exported 56,712 tons of pepper of all kinds, with a turnover of 235.6 million USD, down 26.1% in volume (equivalent to 20,015 tons) and down 0.1% in value. turnover compared to the same period last year.

In particular, exports to China - Vietnam's largest pepper consumption market last year decreased by 95.8%, reaching only 1,083 tons compared to 25,919 tons in the same period. This number is even lower than the 2,138 tons achieved in the first quarter of 2022, when China was closed due to the COVID-19 pandemic.
This result makes China fall to 14th place in Vietnam's pepper export market in the first quarter, accounting for 1.9% market share compared to 33.8% in the same period.

This is contrary to many previous forecasts that China's demand will increase after the Lunar New Year and push pepper prices higher.

In addition to China, pepper exports to the African market also decreased by 23.1%, of which Egypt decreased by 9.7% to 1,389 tons and Senegal decreased by 38.0% to 588 tons.

However, the positive point is that  import  demand  of some other key markets is rebounding after a decline last year.

For example, the US market, Vietnam's number one pepper export market in the first quarter of the year reached 15,185 tons, an increase of 27.9% over the same period and accounting for 26.8% of the market share.

In addition, exports to India reached 3,793 tons, an increase of 19.6%; Korea reached 2,164 tons, a sharp increase of 179.9%.

Exports to Europe also increased sharply by 24.7% over the same period in 2023 and accounted for 26.3% of the market share, of which the largest export to Germany increased by 113.8% to 3,701 tons; The Netherlands increased by 76.9% to 2,598 tons; exports also increased in Russia (25.1%); France (8%); Spain (32.3%), Italy (203.6%)…

The average export price of black pepper in the first quarter reached 3,966 USD/ton, white pepper reached 5,552 USD/ton, an increase of 562 USD/ton and 593 USD/ton respectively compared to the same period in 2023.