Pepper Market September 29 - Vietnam reduces pepper imports from Brazil

 

Pepper Market September 29

Posted onSeptember 29, 2024by VPA

September 29

Although it increased again on the weekend, overall over the past week, pepper prices still decreased by about 1,000 - 3,500 VND. Statistics also show that Vietnam's pepper imports from Brazil have dropped sharply to the lowest level in many months.

Vietnam reduces pepper  imports   from Brazil

In a recent report, Nedspice said that Brazil’s main harvest has begun in the states of Para and Espírito Santo. Exports in July and August were down more than 20% year-on-year, as the May-June harvest in Espírito Santo was severely affected by harsh weather conditions at the start of the year.

According to data from the Brazilian State Center for Foreign Trade Statistics (Comex Stat), Brazil exported 45,699 tons of pepper in the first eight months of the year, worth $183.4 million. Although the volume decreased by 10.4%, the value increased by 19.3% compared to the same period in 2023.

Brazil's main pepper export markets in the first 8 months of the year include: Vietnam, UAE, Pakistan, India, Senegal...

Notably, exports to Vietnam - Brazil's largest pepper consumer market - in August fell sharply to the lowest level in many months, reaching only 243 tons, down 48.5% compared to the previous month and down 76.3% compared to the same period last year.

In the first eight months of the year, Vietnam imported 6,625 tons of pepper from Brazil worth US$23.5 million, down 30.2% in volume and 16.4% in value compared to the same period last year. Vietnam's market share in Brazil's total pepper exports also decreased from 18.6% to 14.5% after the first eight months of the year.

Vietnam's pepper import price from Brazil in the first 8 months of the year increased by 19.7%, reaching an average of 3,548 USD/ton. However, this is the lowest price among the top 16 pepper importing countries from Brazil, respectively 300 USD to more than 600 USD/ton lower than other markets.

In the first 8 months of the year, Brazil's pepper exports to some other markets also decreased, such as Senegal down 11.8%, Morocco down 15.6%, Egypt down 44.4%, the Netherlands down 30.9%...

In contrast, exports to the UAE increased by 7% during the same period, reaching 5,123 tons and accounting for 11.2% of the market share; Pakistan: 5,055 tons, up 46.2% and accounting for 11.1%; India: 4,944 tons, up 31.9% and accounting for 10.8%; especially exports to the US increased by 10.5 times and reached 2,102 tons...

According to VietnamBiz.vn

Lament of a pimento farmer - Jamaica

Reports are that pimento production has been trending downwards for a number of years.

Letters

September 26, 2024

Lament of a pimento farmer

Dear Editor,

A recent report in the media mentioned the decline in the production of pimento in Jamaica.

This has not come as a surprise to me, as I am one of those pimento growers who have ceased reaping pimento and no longer plant the trees. This is because the low price which the Jamaica Agricultural Commodities Regulatory Authority (JACRA), loosely referred to as the Pimento Board, pays for dry pimento.

Up to last year JACRA was offering farmers $450.00 per pound for dried pimento. This price is not economical and is, at best, oppressive to pimento growers. These growers have to pay someone to “break” the pimento, that is, clip the branches of pimento from the tree and thereafter pay others to pick the pimento, that is to separate the berries from the branches and the leaves.

After this, the process of drying the pimento is usually done on a flat concrete surface called a barbecue, and after all of this the pimento is bagged for sale — only to be offered $450.00 per pound.

I checked the price for which Jamaican wholegrain/ungrounded pimento allspice is being sold in London and I note that it is being sold for £1.99 per 70-gram pack. Seventy (70) gram is 2½ ounces. So my math is telling me that the pimento from Jamaica is being sold in England for around $3,500.00 per pound.

The question that the JACRA needs to answer is: Who is reaping the value added between $450.00 per pound and $3,500.00 per pound?

Floyd Green, minister of agriculture, needs to get a hold of JACRA and satisfy himself that the entity is acting in the best interest of Jamaica and, in particular, pimento farmers. The minister needs to accept that if JACRA continues to pay such a low price for pimento more and more farmers will cease growing and reaping pimento.

In the long or not-too-long run Jamaica will have to import pimento.

The minister should take a serious look not only at the pimento industry but generally at the operations of JACRA, given its monopoly over the export of a number of agricultural produce and see whether they are acting in the best interest of Jamaica.

 

Linton P Gordon

lpgordon@cwjamaica.com

 

Pepper Market September 25, 2024: Price continues to decrease

Posted onSeptember 25, 2024by VPA

September 25

Pepper price today, September 25, continued to decrease by 2,000-3,000 VND compared to yesterday, averaging at 149,000-150,000 VND/kg.

In the domestic market

In the world market

According to an update from the International Pepper Community (IPC), at the end of the most recent trading session, world black pepper prices fluctuated between suppliers.

In Indonesia, Lampung black pepper price increased slightly by 3 USD/ton, to 6,920 USD/ton.

In contrast, Brazilian black ASTA 570 fell 2.2% ($150/ton) from the previous day to just $6,750/ton. This is also the lowest price on the market today.

 Vietnam’s  export  prices of 500g/l and 550g/l black pepper remained stable at US$6,800 – 7,100/ton. Similarly, Kuching Malaysia black pepper was traded at the highest level of US$8,800/ton.

Type name	World black pepper price list
	September 24 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	6,920	+0.04
Brazilian Black Pepper ASTA 570	6,750	-2.22
Kuching Black Pepper (Malaysia) ASTA	8,800	0
Vietnamese black pepper (500 g/l)	6,800	0
Vietnamese black pepper (500 g/l)	7,100	0

At the same time of survey, the price of Indonesian Muntok white pepper increased slightly by 3 USD/ton, to 9,400 USD/ton.

Meanwhile, the price of Malaysian ASTA white pepper and Vietnamese white pepper remained unchanged at 11,200 and 10,150 USD/ton.

Type name	World white pepper price list
	September 24 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	9,400	+0.03
ASTA Malaysian White Pepper	11,200	0
Vietnam white pepper	10,150	0

 The Import-Export  Department  (Ministry of Industry and Trade) forecasts that world pepper prices will remain high in the short term due to limited supply. Brazil and Indonesia are in the harvest season, while world demand is not increasing strongly, along with China not buying much, leading to only a slight increase in prices.

In the long term, pepper export prices will remain supported due to the expected decrease in Vietnam's pepper output in the 2025 crop. Vietnam's pepper crop in 2025 is expected to be harvested almost entirely in February, with some regions extending to March and April, 1-2 months later than previous years, due to the impact of prolonged drought, making pepper supply increasingly difficult.

At the same time, the Import-Export Department forecasts that the Vietnamese pepper industry will benefit from high export prices due to limited supply. According to the Vietnam Pepper and Spice Association (VPSA), the amount of pepper in the population is almost gone, only remaining in agents and warehouses of enterprises.

The inventory from the 2023 crop carried over, plus the import volume in 2024, is about 40,000 - 45,000 tons (including informal imports), showing that the export source until the end of the year will be lower than every year and until March 2025 when the 2025 crop is expected to be harvested.

Figures from the General Department of Customs show that in the first 8 months of the year, Vietnam's pepper exports reached 182.93 thousand tons, worth 877.98 million USD, down 2.7% in volume, but up 42.8% in value over the same period in 2023 thanks to high prices.

According to VietnamBiz.vn

Pepper market update 23rd Sept 2024 – Week 38.

 

• Last week, the pepper price experienced fluctuations with both increases and decreases; however, by the end of the week, the price remained unchanged at 157,000 VND.

 

• Demand has been quite sluggish in all major importing countries such as the USA, China, and the EU…

China has entered the market with orders for white pepper due to various reports indicating that Hainan Island has been severely affected by Typhoon Yagi. This has led to a reduction in the production of white pepper in China. It is forecasted that the supply of white pepper in China will struggle to meet demand in the fourth quarter and for the upcoming traditional Luna New Year holiday.

 

The market over the past month has been quite subdued, with buyers showing little interest in pepper products and being very slow in their purchasing. At the same time, suppliers (farmer/collectors/dealers) have been very cautious in offering raw material. Currently, many domestic dealers and producers are not actively selling but are prioritizing the retention of their inventory, and they are not feeling any pressure as prices adjust downward. This also clearly reflects the significant reduction in the inventory levels held by farmers and intermediary dealers compared to previous years.

 

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

 

 

https://drive.google.com/file/d/13RjppE83oVp1YqC2K2WoGWZUWDFVtYxp/view?usp=sharing

 

 

 

 

Pepper Market September 23, 2024

 

Pepper Market September 23, 2024: Prices increased at the beginning of the week

Posted onSeptember 23, 2024by VPA

23
Sep

Pepper price today, September 23, is around 152,000 - 153,000 VND/kg, an increase of 1,000 - 1,500 VND compared to last weekend.

Last week, domestic pepper prices increased by an average of VND2,000-3,000/kg, except for Binh Phuoc. Thus, pepper prices in Binh Phuoc province have fluctuated the least in the past half month. Provinces in the Central Highlands region are fluctuating strongly due to pressure from speculative capital flows.

After a series of declines at the beginning of last week, domestic pepper prices recovered slightly in the last two sessions of the week. The Fed's interest rate cut last week was assessed to have had a negligible impact on domestic pepper prices, while the decline in the USD helped pepper prices in other countries increase well.

According to experts, the reason is that the market is quite quiet due to low supply. After exporting all the pepper harvested in the last crop, the market depends on the amount of pepper stored and imported, which is already quite small.

In the first 15 days of September 2024, Vietnam exported 6,917 tons of pepper, with a total export turnover of 42.3 million USD. Meanwhile, in the first 15 days of August 2024, Vietnam exported 10,082 tons of pepper, with a total export turnover of 58.8 million USD. Compared to the previous month, pepper exports are decreasing sharply, equivalent to 30%.

However, experts still maintain their opinion that domestic pepper prices may exceed 160,000 VND/kg before the harvest season in Vietnam.

One of the main reasons for the recent increase is the limited supply worldwide. Looking at the long term in the next 3-5 years, the amount of pepper produced cannot meet the world's consumption demand. Regarding pepper prices this week, experts say it is unlikely to have a breakthrough, but there are positive signs when the market is on the rise over the last 2 days of last week.

According to KTĐT.v

Pepper Market on September 20, 2024

 

Pepper Market on September 20, 2024: Trading price at 151,000 VND/kg

Posted onSeptember 20, 2024by VPA

September 20

Pepper price today September 20 is around 150,000 - 151,000 VND/kg.

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,589 USD/ton; the price of Brazilian black pepper ASTA 570 at 7,000 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,800 USD/ton.

Muntok white pepper price is 9,154 USD/ton; Malaysian ASTA white pepper price is at 10,900 USD/ton.

Vietnam black pepper price is traded at 6,800 USD/ton for 500 g/l; 550 g/l at 7,100 USD/ton; white pepper price at 10,150 USD/ton.

According to the Vietnam Industry and Trade Information Center (VITIC), in Indonesia, some major production areas have completed harvesting. Producers have sold a large amount of products. Pepper prices in Indonesia are increasing rapidly by 200-300 USD/ton and most exporters are limiting their offers.

Since the beginning of 2024, Indonesia's pepper exports have increased sharply, in contrast to the decline of leading producing countries such as Brazil or Vietnam.

Data shows that by the end of July 2024, Indonesia's pepper exports reached 22,829 tons, worth more than 111 million USD, up sharply by 55.6% in volume and 59.6% in value over the same period last year. Indonesia's average pepper export price in the first 7 months of the year was 4,869 USD/ton, up 2.5% over the same period. This is a fairly modest price increase compared to other leading producing countries and the general level of the international market in recent times.

Currently (18-21/11/2024), the International Pepper Community is holding its 52nd Annual General Meeting, and the International Spice Exhibition (52nd IPC ASM ISE) in Sri Lanka.

Themed “Regenerative Pepper Cultivation: Beyond Sustainability”, the 52nd IPC ASM ISE aims to promote the rejuvenation and regeneration of pepper gardens in producing countries, thereby ensuring the path to prosperity of the global pepper industry. The 52nd Annual General Meeting of the International Pepper Community is expected to attract the largest gathering of the spice industry to Sri Lanka.

According to KTĐT.

 

Warning of new fraud tricks in international trade

Posted onSeptember 19, 2024by VPA

September 19

The Vietnam Trade Office in Pakistan warns Vietnamese businesses about new fraud tricks in international trade. 

As the Trade Office reported in the previous issue, by impersonating a business, the scammer tricked a Vietnamese business into transferring money to buy raw materials for export processing and tricked a Pakistani business into exporting low-quality raw materials to Vietnam, leading to the Vietnamese business having its money stolen and the Pakistani business unable to sell the poor-quality goods in Vietnam and also unable to retrieve the goods due to disputes. The cost of storing goods at the port, the shipping line's fines and the cost of plugging in the refrigerated container are increasing day by day. The Trade Office has proposed that the two businesses negotiate an agreement to minimize losses. Either the Vietnamese business deposits a sum of money so that the Pakistani business agrees to deliver the goods or the Pakistani business deposits a sum of money so that the Vietnamese business agrees to re-export the goods. But such a proposal is no different from asking the Vietnamese business to pay a second time for the unusable goods or asking the Pakistani business to buy back its own goods.

The case is continuing to develop in the direction that related banks in Vietnam and Pakistan are at risk of becoming victims. The scammer used many professional techniques to cause confusion and errors for both Vietnamese and Pakistani banks. Thanks to that, the scammer overcame the security barriers of the bank to open accounts and receive and successfully withdraw money from the bank. To open a fake business account at a Pakistani bank, the scammer established a self-employed business (PROPRIETORSHIP COMPANY) to circumvent Pakistani law on business names that can be the same as any business. And to make sure to fool the bank, the scammer also removed a hyphen from the business name. In order to withdraw money from the account without having to present the delivery documents and necessary documents according to the strict regulations of Pakistani law on international payments and control against money laundering and terrorist financing, the scammer instructed Vietnamese businesses to include in the Vietnamese bank's money transfer notice the two words: "ADVANCE PAYMENT" (advance payment).

According to Pakistani law and international payment practices, exporting enterprises do not need to and cannot present delivery documents when withdrawing prepayment in the form of a deposit to implement the delivery of goods. However, based on other contents of the remittance notice of the Vietnamese bank and other regulations on international payment management of Vietnam and Pakistan, both the Vietnamese bank and the Pakistani bank are at risk of being held responsible for mistakes and errors. The Vietnamese bank did not check the export contract and the export payment invoice, which clearly stated the amount transferred abroad as: "BALANCE PAYMENT/REMAINING BALANCE" (final settlement), so it mistakenly included the two words: "ADVANCE PAYMENT" (advance payment) in the remittance notice, creating a loophole for the fraudster to withdraw money from the Pakistani bank. The Bank of Pakistan has failed to fully perform its responsibility of customer due diligence and payment monitoring as per the international payment regulations (URC 522, URBPO 750) and KYC-CDD (KNOW YOUR CUSTOMER-CUSTOMER DUE DIGILANCE) regulations of the State Bank of Pakistan.

For the Trade Office, it is regrettable that the Vietnam Trade Office in Pakistan lost to the scammer even though it had detected the subject and the scam, promptly warned and recommended to terminate the relationship with the scammer, but the Vietnamese enterprise did not consider the warning information and did not implement the Trade Office's recommendations. The warning for the Trade Office is that this scam is dangerous because local enterprises are also deceived. Therefore, if the Trade Office goes to the partner's headquarters and the bank to verify when receiving a request for support in verifying the partner of the Vietnamese enterprise, the risk of the Trade Office itself being deceived is very high because all the partner's information is true. The Vietnam Trade Office in Pakistan promptly detected this new subject and scam thanks to a bit of luck: Just before that, the scammer had used this same scam to deceive the Vietnamese enterprise, but the Pakistani partner was not deceived and cooperated with the Trade Office to expose the scammer.

 Source: Vietnam Trade Office in Pakistan