Monday, July 01, 2024

Vietnam Peppermarket update 1st July 2024 – Week 26.

 

We would like to send you a quick highlight

 

Last week, after continuously decreasing for 2 weeks, the pepper price quickly rebounded with a price increase of around 4% recorded. The amount of pepper offered on the market is not profuse.

 

Although the market is facing many obstacles such as:

 

•        Shipping costs continue to rise rapidly and are forecasted to remain high until 2025.

 

•        Rising raw material prices alongside longer-than-usual shipping voyages have affected the cash flow of most producers and exporters. Liquidity in the domestic market is often very low at many times.

 

However, there are still signals indicating that the market will develop sustainably in the coming time, especially in the fourth quarter of 2024 and the first quarter of 2025.

 

Let’s take a look at some export data for the past 9 months of the last 3 years and the forecast scenario for 9 months of 2024.

 

 

Year

Exported QuantityThird Quarter (Metric ton)

Exported Quantity First 9 months (Metric ton)

 

 

 

2021

46.072

156.202

2022

51.668

177.221

2023

51.399

204.385

2024

49.713

195.713

 

Please Note; third quarter 2024 and first 9 months 2024 is projection number.

 

Please see the REPORT FILE & FULL QUOTATION LIST by click to download.

 

https://drive.google.com/file/d/13CNOZeTWUucDRQrQrZSimeQs8C42wAw7/view?usp=sharing

 

 






Pepper price information

 

Pepper price information

Pepper prices today, March 31, pepper prices in the Central Highlands and the South suddenly plummeted by 1,000 - 1,500 VND in the first trading session of the week, bringing the price of this agricultural product to a record low.

In recent times, price information on the website of the International Pepper Association (IPC) about Vietnamese pepper prices has differed greatly from the information provided by VSPA, and at times there were errors. To avoid psychological fluctuations that lead to making decisions that cause economic damage, we recommend that farmers, agents, export companies, and foreign customers refer to other sources to ensure more objectivity and reliability when deciding to buy/sell. VPSA will try to update information about countries and export prices of Vietnamese Pepper in the most accurate and timely manner.

According to forecasts, in 6 months, Vietnam's export is estimated at about 28 thousand tons, equivalent to about 135 USD. Thus, there are still 7-8 months left until the new harvest (expected after the Lunar New Year from February 2025) while the amount of goods left by people, agents and businesses is not as much as VPSA reports. previously stated.

VPSA

Wednesday, June 26, 2024

Pepper market June 26, 2024

 

Indonesian and Brazilian pepper increased, Vietnam went against the world

pepper

Pepper price today June 26 is in the range of 144,000 - 146,000 VND/kg. The International Pepper Community listed an increase in pepper prices in Indonesia and Brazil, while continuing to decrease sharply in Vietnam. Earlier this week, the domestic market had a second shock.

Earlier this week, the domestic market had a sharp decline for the second time since the beginning of the month. Along with that, export pepper prices were adjusted to decrease continuously, causing the domestic market to be affected.

On June 12, domestic pepper prices reached a record level after many years of low levels, reaching 180,000 VND/kg. Immediately after that, the selling force at the peak pulled the price down to 20,000 VND/kg.

The market struggled within the threshold of 160,000 VND/kg for nearly 10 days then dropped sharply by 15,000 VND/kg.

Experts say that in reality, when the price reaches 180,000 VND/kg, buyers almost stand aside. Therefore, adjusting prices down is reasonable now. However, what is the floor price for this reduction, and how many more reductions are there?

Some dealers have faced shortages when they sold out and were unable to buy back when the market increased rapidly. Some agents holding farmers' goods are now back to "squeezing" prices.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 7,112 USD/ton, an increase of 0.31%; Brazilian black pepper price ASTA 570 is at 7,500 USD/ton, up 300 USD/ton; Kuching (Malaysia) ASTA black pepper price is 7,500 USD/ton.

Muntok white pepper price was 9,056 USD/ton, up 0.32%; Malaysian ASTA white pepper price is at 8,800 USD/ton.

According to KTĐT.vn

Need to avoid speculative thinking: In the coffee and pepper supply chain

 

 

The pepper and coffee markets have just experienced a sharp increase in prices. Accordingly, coffee prices hit a record of nearly 120,000 VND/kg. And pepper exceeded 100,000 VND/kg after a long period of crisis, sometimes just over 30,000 VND/kg in 2021.

Shortage of supply while high demand is the main reason why prices of these two products increased sharply. With pepper and coffee trees, after a long period of price crisis, people have cut down quite a lot to switch to other types of trees. In addition, bad weather has also affected output.

However, behind that are stories of the industry with speculation, people lacking motivation to return to pepper or stories of sustainable development.

To better understand the story of this industry, we had a conversation with Mr. Le Duc Huy, General Director of Simexco Daklak - top 3 coffee exporting enterprises and top 6 pepper exporting enterprises in the country.

Mr. Le Duc Huy, General Director of Simexco Daklak  (Photo: NVCC).

 

 

Reporter: In recent times, pepper prices have increased due to lack of supply because people previously cut down many of these trees. In your opinion, is the fact that the price of pepper has exceeded 100,000 VND/kg enough to attract people to return to this crop?

Mr. Le Duc Huy:  Pepper prices have increased in recent times because demand exceeds supply. In the long term, the demand for spices will increase while Vietnamese pepper has reached the point of aging and the current price level still cannot stimulate people to grow more. However, it is difficult to determine at what price people can return to pepper trees because it depends on the prices of other rival trees such as durian, passion fruit, coffee...

Even when the price of pepper reaches 100,000 VND/kg, it is still not enough to attract people to grow it again because compared to the profits from other crops, especially durian, the income from pepper is still much lower.

When compared to coffee, the profit from pepper is still lower because coffee farming is easier. Pepper plants are climbing plants and are extremely vulnerable. The yield per tree of coffee is also much higher than that of pepper.

In addition, people have just experienced a pepper price crisis that has lasted for many years, sometimes the price dropped to more than 30,000 VND/kg, so they do not have enough confidence to replant at this time.

Therefore, inventory in the next 3-5 years will continue to decrease. In the long term, pepper prices are unlikely to decrease further.

Reporter: The current trend is that markets are tightening requirements on maximum pesticide residues (MRL), especially the EU, which is a counter-punch to the Vietnamese pepper industry, making output even more difficult. heart recovery?

Mr. Le Duc Huy:  As I mentioned, pepper plants are very vulnerable, so the use of fertilizers and pesticides is difficult to avoid. But this is also something to worry about when the increasing standards of export markets are also a barrier.

Looking at the more positive aspect, this is a future trend, farmers will be forced to follow the path of "clean" farming, minimizing the use of chemical fertilizers, creating a good environment and landscape. .

We ourselves also pursued the path of sustainable farming more than a decade ago, along with intercropping many types of plants. Therefore, linked households have also weathered the price storm without having to cut down pepper trees. The current trend for small gardens is sustainable and multi-crop planting.

As a result, the output product has very low pesticide residue and is sold at a good price.

 

Reporter: The increase in pepper and coffee prices is good news for farmers, but for export businesses, it is a big obstacle when they cannot buy goods to deliver to customers because of lack of supply. How to solve the problem of balancing the interests of all parties, meaning that both farmers and businesses are "happy" and the market is healthier?

Mr. Le Duc Huy:  Exactly. The sharp increase in prices recently has caused many businesses difficulties and so do we, because the supply of both pepper and coffee is decreasing. But the difference between businesses is how to respond to this situation.

Recently, the Government and associations positioned Vietnam to become the world's kitchen. We have become a country that produces consumer goods, packaged goods, and jars for consumers to use; instead of raw export like before.

Therefore, when focusing on the processing story, we can import raw materials from other countries to make consumer goods, when domestic supply is not enough to meet the demand.

But it is important that market participants (including farmers) need to reduce speculative thinking. For producers, they need to supply products to the market and only keep a portion. Avoid situations where producers borrow to speculate and hoard goods. This is against market rules.

With intermediary businesses, they should do well their role as connectors and circulators, avoiding profiteering speculation: When people need money, they can buy at good prices, and when export businesses need goods, they can supply them. full.

Some foreign companies in Vietnam such as Olam and Nedspice are doing very well as connectors. They healthy the market. And export businesses need to do a good job of harmonizing the interests of all parties, not forcing prices on anyone.

Everyone has their own responsibilities. But I must admit that it is very difficult to do this. The market has many businesses participating in the supply chain. Each business has a different mindset and strategy and they always believe they are right.

 

 

Reporter: Talking about the story of harmonizing interests, up to now, farmers have been considered "low-ranked" in the supply chain. However, the negotiating power of pepper and coffee farmers has gradually increased in the last two years. What do you think about this?

Mr. Le Duc Huy:  This is very clear in the market and this trend will continue to increase because agricultural land is increasingly shrinking but the population is increasing, leading to increased demand for pepper and coffee. It is inevitable that landowners will increasingly have an advantage in the supply chain. This is a very clear rule. But if you want an even better supply chain, the model of linking farmers into cooperatives is still the most optimal and more effective.

If done individually, each person makes a different style, different fertilizers, different medicines in small quantities. If they link together, they can synchronize the use of fertilizers and pesticides and buy agricultural materials in large quantities and at cheaper prices.

Even if done well, cooperatives can become exporters. At that time, the role of intermediary businesses will weaken if they do not do well and do not create any added value in the chain.

The current trend is that manufacturers are getting closer to the final consumer thanks to the development of logistics systems and online sales platforms. It is normal for businesses that only worry about buying and selling to be eliminated.

 

Reporter: So what do intermediary businesses like Simexco need to do to avoid being eliminated?

Mr. Le Duc Huy:  We have done many things to create added value and play a good role as a bridge over the past decades. We link a system of 40,000 farmer households to form groups to synchronize and better manage product quality by instructing them on sustainable farming and deep processing.

From those products, we introduce them to consumers, especially foreign markets. At the same time, he is also the person who stands out to commit to quality for distributors.

We are happy if producers can talk to consumers. Because then, producers know what the consumer market needs and what their requirements are so they can proactively adjust, instead of being forced like before.

Reporter: Thank you for your sharing.

According to VietnamBiz.v

 

Tuesday, June 25, 2024

Pepper market on June 25, 2024

 

Pepper market on June 25, 2024: Trading around 145,000-146,000 VND/kg

Pepper price today June 25 is in the range of 145,000 - 146,000 VND/kg. This year, with little inventory, most farmers kept their goods. The sharp decline earlier this week may have had speculative elements. Agents kept farmers' goods, now turning to pressurize prices.

This year, with small inventories, most farmers kept their goods, in a context where there was no financial pressure like in previous years. The sharp decline earlier this week may have had speculative elements from market participants. Agents kept farmers' goods, now turning to pressurize prices.

In addition, domestic pepper prices have decreased because the world market is plummeting. In 2 recent consecutive trading sessions, Vietnam's export pepper prices dropped sharply. Ahead of the Muslim holiday Eid al-Adha, the market surged as buying increased. Right after the holiday, the trading market returned to normal, causing prices to fall sharply.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 7,090 USD/ton, down 9.62%; Brazilian black pepper price ASTA 570 was at 7,200 USD/ton, down 4.17% USD/ton; Kuching (Malaysia) ASTA black pepper price is 7,500 USD/ton.

Muntok white pepper price was 9,027 USD/ton, down 7.36%; Malaysian ASTA white pepper price is at 8,800 USD/ton.

In the first session of the week, both world and domestic pepper prices adjusted sharply down after a period of moving sideways at the end of last week.

The International Pepper Community commented that last week showed mixed reactions when Muslims around the world celebrated Eid al-Adha.

Accordingly, in the South Asia region, India's domestic and international pepper prices have continued to increase over the past 5 weeks. After 5 weeks of recording increases, Sri Lankan domestic pepper prices decreased last week.

In Southeast Asia, although the Indonesian Rupiah decreased by 1% against the USD (16,415 IDR/USD), both domestic and export pepper prices in this country continued to increase since last week.

Malaysian domestic pepper prices continued to increase in the past 2 weeks. Furthermore, the export price of pepper in this country also recorded an increase. Only Vietnam's domestic black pepper price recorded a decrease last week. Other types are stable.

After 3 weeks of recording an increase, Brazilian black pepper prices recorded a decrease last week. Prices of Chinese white pepper and Cambodian black pepper are both stable and unchanged.

According to KTĐT.v

Monday, June 24, 2024

Vietnamese pepper accounts for 61.5% of the market share in the EU

 

Vietnamese pepper accounts for 61.5% of the market share in the EU

According to data from the European Statistics Agency (Eurostat), Vietnam continued to be the largest pepper supplier to the European Union (EU) in the first 4 months of the year with a volume of 11,359 tons, an increase of 25.1%. compared to the same period last year and accounted for 61.5% of the region's total imports of this product.

Pepper imports   in the EU are showing signs of recovery in the first months of 2024 after a decline last year.

Eurostat data shows that the EU imported 18,474 tons of pepper from foreign markets in the first 4 months of the year, worth 83.7 million EUR, an increase of 22.9% in volume and 27% in value compared to the same period last year. period 2023.

In April alone, the amount of pepper imported into the EU reached its highest level since the beginning of 2023 until now, with 5,440 tons, up 22.7% over the previous month and up nearly 40% over the same period. This is also the fourth consecutive month that EU pepper imports increased compared to the same period last year.

Source: Hoang Hiep compiled from Eurostat data

Regarding the supply market, the EU imported a total of 11,359 tons of pepper from Vietnam in the first 4 months of the year with a value of more than 48.5 million EUR, an increase of 25.1% in volume and 32.1% in value compared to with the same period last year. With this result, Vietnam continues to be a pepper supplier to the EU with a market share of 61.5% of the region's total import volume of this product.

EU pepper imports from other markets also increased sharply over the same period last year such as: Brazil reached 3,443 tons, an increase of 25.3%; Indonesia reached 1,384 tons, an increase of 32.2%; India reached 952 tons, an increase of 9.9%.

The EU's average imported pepper price   from Vietnam reached 4,273 EUR/ton, from Brazil it was 3,665 EUR/ton, Indonesia 5,509 EUR/ton, and India alone reached 6,646 USD/ton.

 In addition to competitive prices, Vietnamese pepper  export  businesses have an advantage over some exporting countries such as India, Malaysia, Indonesia,... thanks to the EVFTA Agreement, which helps reduce import taxes on ground or crushed pepper. EU reduced from 4% to 0%.

Source: Hoang Hiep compiled from Eurostat data

In the first 4 months of the year, the top pepper importing countries in the EU included Germany with 5,829 tons, accounting for 31.6% of the market share; Netherlands 4,588 tons, accounting for 24.8%; France 2,827 tons, accounting for 15.3%... The three countries mentioned above account for 71.7% of the EU's total pepper imports from the world.

Besides domestic consumption, importers also re-export a significant portion of pepper to other countries in the region.

Last year, due to the impact of economic recession,  inflation   and high interest rates, EU pepper imports from foreign markets only reached 50,264 tons, worth 217.4 million EUR, a decrease of 20.4% in terms of value. quantity and decrease 30.4% in value compared to 2022.

According to the Center for Promotion of Imports from Developing Countries (CBI), Europe does not produce pepper, so the region's consumption mainly depends on imported supplies.

This agency also said that up to 95% of pepper imported into the EU is consumed in countries in the region and only 5% of that is re-exported to countries outside Europe.

Black pepper consumption in Europe is expected to grow steadily in the near future, with an expected increase of about 0.5% in 2023 and 1.8% in 2024.

CBI forecasts that pepper imports from European countries will grow by 1-2% each year. The European market offers a price advantage over Asian markets for high quality and sustainably produced black pepper.

Meanwhile, the Ministry of Industry and Trade, citing sources from the Vietnam Pepper and Spice Association (VPSA), said that the EU is a potential market for Vietnamese pepper exports. However, to take advantage of these opportunities, the pepper industry must move towards sustainable production, because more and more European consumers are demanding certifications that ensure products are sustainable.

Recently, the EU market's requirements and regulations on non-tariff barriers continue to increase and become increasingly strict. This market also continuously has warnings about pesticide residues as well as increasing the frequency of control and tightening MRLs regulations for food in general, including Vietnamese spices.

Currently, the EU has issued more than 500 criteria on MRL and continues to have more and more new criteria issued. The criteria issued later are becoming more and more difficult and strict. At the same time, the area of ​​active ingredients allowed to remain regulated is also wider.

According to VietnamBiz.

Sunday, June 23, 2024

Vietnam - Demand for pepper in the US market increased sharply

 

Demand for pepper in the US market increased sharply

Sanitation prices today, May 26: prices of "conventional sanctums" are limited, prices have not yet appeared in the picture 3
The amount of US pepper imports increased by 24.5% over the same period last year. Of which, Vietnam is the main supplier, accounting for 76% of the market share.

According to the Vietnam Pepper and Spice Association (VPSA), in the first 5 months of the year, Vietnam  exported   a total of 114,424 tons of pepper of all kinds with a turnover of 493.1 million USD, down 13.2%. In terms of volume, however, export turnover increased by 20.6% over the same period last year.

In particular, the US surpassed China to return to the leading position in Vietnam's largest pepper export market with a volume of 30,466 tons, accounting for 26.6% of the market share and an increase of 44.4% over the same period. period.

According to data from the US International Trade Commission (USITC),  the country's demand for pepper  imports  is increasing strongly again after two consecutive years of decline due to the impact of  inflation   and rising interest rates.

By the end of April this year, the US imported 27,872 tons of pepper from the world worth 130.53 million USD, up 24.5% in volume and 24.2% in value compared to the same period last year. .

In April alone, the amount of imported pepper was 8,007 tons, up 39% over the previous month and up 32.8% over the same period in 2023.

 Source: Hoang Hiep compiled data from USITC 

Notably, Vietnam continued to be the largest pepper supplier to the US in the first 4 months of the year, accounting for 76% of the market share with a volume of 21,259 tons, worth more than 97.3 million USD, an increase of 19.2% in terms of sales. quantity and increased 21.5% in value compared to the same period last year.

In addition, the US also increased pepper imports from other markets such as: India reaching 2,258 tons, an increase of 20.8%; Indonesia reached 2,233 tons, an increase of 133.6%; Brazil reached 1,106 tons, an increase of 59.2%.

 Vietnam's average export price of pepper  to the US in the first 4 months of the year reached 4,576 USD/ton, up 1.9% over the same period last year. At the same time, it is higher than Brazil's price of 4,017 USD/ton, but lower than 4,933 USD/ton of Indonesia and 5,000 USD/ton of India.

Vietnamese pepper holds a large market share in the US thanks to its good price and increasingly high quality, making it popular in this market. Vietnam's pepper industry is also highly appreciated for its processing capacity with the rate of processed goods accounting for about 30% of total export turnover.

In terms of consumption demand, the US is currently the world's largest pepper importer. In the past 3 years, the US has spent 320 - 440 million USD/year to import this spice, equivalent to 19 - 20% of global pepper trade.

 Source: Hoang Hiep compiled data from USITC 

In recent times, the global pepper supply has decreased while demand has increased from the US and some other major markets, pushing the price of this commodity to its highest level in the past 8 years.

In Vietnam's domestic market, as of June 21, black pepper prices were traded at 156,000 - 160,000 VND/kg, nearly doubling compared to the beginning of the year and 2.2 times higher than the same period last year.

However, this price has decreased by about 20,000 VND/kg compared to the peak of 180,000 VND/kg reached on June 11.

The Import-Export Department (Ministry of Industry and Trade) forecasts that pepper prices will continue to increase in the near future, but the growth rate will slow down. There is currently a shortage of pepper supply while demand has recovered strongly from major markets such as Europe, the US and China. This year's pepper output from Vietnam and many major producing countries is forecast to decline, due to the impact of the El Nino phenomenon and the decline in cultivated area.

According to the Vietnam Pepper and Spice Association, the prolonged drought weather phenomenon has led to a 10% decrease in Vietnam's pepper output this year to about 170,000 tons compared to last year, the lowest level in 5 years. via.

Meanwhile, just through the first 5 months of the year, Vietnam has exported over 114,000 tons, equivalent to 67% of output. This shows that the supply for export is not much left.

“Although pepper prices are forecast to continue to increase in the near future, the management agency recommends not massively expanding planting areas but focusing on investing and taking care of intensive farming to grow pepper. sustainable and stable development,” said the Import-Export Department.