Monday, July 08, 2024

Pepper market update 8th July 2024 – Week 27 – Monthly report.

 


Vietnam

•        Last week, the price of pepper was rapid fluctuations, with prices fluctuating by $100-200 within a day. However, after the decrease, the price of pepper quickly recovered within a few hours. By the end of the week, the price of pepper decreased from 160,000 VND to 159,000 VND, equivalent to 0,6% down.

•        Demand has been relatively slow in the entire market as many countries have started holidays.


Brazil

•        There have been clearer information in the second largest pepper supplier in the world, Brazil. Many experts in Brazil assess that the 2024 season is severely affected by prolonged drought. Brazil’s production is expected to be the lowest in many years, with a decrease in the harvest of the 2024 season by 20-40% compared to 2023.

•        If the forecasts of experts regarding Brazil are accurate, we can expect the pepper market to become more active from September onwards.

 

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

 

https://drive.google.com/file/d/13CjGCpDlG2Rz0E1exlWfGHGr_64LSTNG/view?usp=sharing



Pepper market on July 8, 2024

 

Pepper market on July 8, 2024: Price fluctuates at 151,000 VND/kg

The problem is that the heart has not yet been resolved so that they can accept permission from Vietnam

Pepper price today July 8 is in the range of 150,000 - 151,000 VND/kg. Last week it lost up to 6,000 VND/kg, but pepper is having a series of 2 consecutive days of increases. Signs of supply shortage continue to be the driving force for pepper prices to increase this week, expected to regain the 160,000 VND/kg mark.

In Dak Lak province, today's pepper purchase price is 151,000 VND/kg.

In Dak Nong province, today's pepper price was purchased at 151,000 VND/kg.

In Gia Lai province, today's pepper price is 150,000 VND/kg.

Meanwhile in Dong Nai, today's pepper price is at 150,000 VND/kg.

In Ba Ria - Vung Tau province, pepper price today is at 150,000 VND/kg.

In Binh Phuoc province, today's pepper price is purchased at 150,000 VND/kg.

Pepper prices at the beginning of this morning remained stable in localities compared to the same time yesterday. Summarizing last week, pepper prices decreased by an average of 3,000 - 6,000 VND/kg.

Vietnam Pepper and Spice Association informed that in the first 6 months of the year, Vietnam imported 18,002 tons of pepper of all kinds, of which black pepper reached 16,357 tons, white pepper reached 1,645 tons. Total import turnover reached 69.6 million USD.

Compared to the same period last year, imports increased by 18.9%. The 3 main countries supplying pepper to Vietnam include: Brazil: 7,241 tons, down 22.3%; Cambodia: 6,212 tons, up 34.5%; Indonesia: 2,991 tons, up 67.3%.

In the context of reduced domestic supply, domestic businesses have had to increase import of pepper from other countries. In the past, Brazilian pepper was always considered reasonably priced, and many countries sought to import it. However, this year with the general increase in the market, Brazilian pepper prices also increased quite rapidly. In this country, the pepper harvest is also forecast to be unfavorable.

In addition, increased transportation costs due to political instability in the world make it difficult to import pepper from Brazil. Faced with the above situation, it is understandable that pepper imports from Southeast Asian countries Indonesia and Cambodia increased sharply.

Commenting on the market, experts said that last week it lost up to 6,000 VND/kg, but pepper is having a series of 2 consecutive days of increases during the weekend.

The Vietnam Pepper and Spice Association quoted experts as saying that signs of supply shortage compared to demand will continue to be recorded in the near future until the end of the season. This continues to be the driving force for pepper prices to increase this week, expected to regain the mark of 160,000 VND/kg.

According to KTĐT.vn

Tuesday, July 02, 2024

Market information for Vietnamese and Brazilian pepper

 

Market information for Vietnamese and Brazilian pepper

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.

Data show that by the end of June 2024, Vietnam has exported an estimated 140 thousand tons, with a turnover of 550 million USD, down 8.2% in volume but up 32.2% in value over the same period. 2023. 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 received. previously determined.

Brazil, by the end of May, had exported 31,846 tons, down 8% over the same period. It is expected that the next harvest will be in August in the Espirito Santos region and in November in the Para region. It is estimated that the whole country will collect about 60 thousand more tons.

According to some farmers in the Espirito Santos region, the harvest in 2024 may be 25-30% lower due to the heat causing most of the first cotton to fall and the ratio of fruit set to buds of the second and second cotton blooms. Phase 3 is quite low so it is expected to only reach about 70% compared to last year. Overall, the whole country in 2024 may decrease by 20-25% compared to 2023.

Some experts believe that signs of supply shortage compared to demand will continue to be recognized and reflected by the market in the coming time until the end of the season.

VPSA

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