Pepper - Reasons for market decline in the Southeast region

 

 

Reasons for market decline in the Southeast region

Pepper price today, October 15, 10, in key areas fluctuated slightly compared to yesterday and traded around 2024 - 143.000 VND/kg, the highest purchase price at Dak Lak , and Dak Nong is 144.000 VND/kg.

Accordingly, Dak Lak pepper price was purchased at 144.000 VND/kg, stable compared to yesterday. Chu Se pepper price (Gia Lai) purchased at 143.000 VND/kg VND/kg price; Dak Nong pepper price today recorded at 144.000 VND/kg, unchanged compared to yesterday.

In the Southeast region, pepper prices today (October 15, 10) mainly recorded fluctuations compared to yesterday. Specifically, in Ba Ria - Vung Tau, it is currently at 2024 VND/kg, down 143.500 VND/kg. At Binh Phuoc Pepper price today is at 143.500 VND/kg, down 500 VND/kg.

Thus, pepper price today October 15, 10 remains stable in the Central Highlands region, the lowest level in Binh Phuoc and Chu Se provinces (Gia Lai) at 2024 VND/kg and the Southeast region has a slight decrease.

Pepper price world Today:

Update on world pepper prices from the International Pepper Association (IPC), at the end of the most recent trading session, IPC listed the price of Indonesian Lampung black pepper at 6.744 USD/ton, up 0,18%, and the price of Muntok white pepper at 9.233 USD/ton, up 2,5%.

The price of Brazilian ASTA 570 black pepper at 6.750 USD/ton remained unchanged compared to yesterday. The price of Malaysian ASTA black pepper at 8.700 USD/ton decreased by 1,15%; the price of this country's ASTA white pepper reached 11.200 USD/ton.

The price of Vietnamese black pepper is at 6.800 USD/ton for 500 g/l; 550 g/l is at 6.800 USD/ton; the price of white pepper remains at 9.850 USD/ton...

The pepper market is experiencing gloomy days as pepper prices in the Southeast region continue to fall, causing much concern for pepper growers. Although it cannot be confirmed that this is a long-term trend, the reasons behind this price drop have revealed the challenges that the pepper industry is facing.

The strengthening of the US dollar is one of the main reasons for the decline in pepper prices. A stronger US dollar means that import costs for importing countries like Vietnam will increase, leading to a decrease in demand. Pepper, a major export of Vietnam, is no exception to this effect. Consumers in import markets will consider choosing cheaper alternatives, causing a decrease in demand for pepper.

In addition, the money flow is gradually shifting from pepper to coffee, which is also a factor worth noting. The coffee harvest season in Vietnam has begun, attracting capital and attention from investors. This leads to a decrease in capital for the pepper market, negatively affecting prices.

Meanwhile, demand from major import markets, especially China, has yet to show signs of strong growth. Although China is Vietnam’s largest pepper consumer market, its purchasing power remains quite weak, directly affecting pepper prices.

In fact, data from the Vietnam Pepper Association shows that pepper exports to China fell 84,1% in the first nine months of the year. Although China’s pepper imports increased in the first eight months of the year, they mainly came from Indonesia, a country with more competitive prices than Vietnam.

Fierce competition from other pepper producing countries, especially Indonesia, is one of the major challenges for the Vietnamese pepper industry. Indonesia, with its advantages of lower production costs and increasingly improved product quality, is dominating Vietnam's pepper export market share, making it difficult for Vietnamese exporters to maintain the market.

In addition to the above factors, the unstable global economic situation also contributes to the reduction in global demand for pepper. Inflation and economic recession are taking place in many countries, causing consumers to cut back on spending on non-essential items, including pepper.

Although pepper prices may continue to decline in the short term, in the long term, the market may be supported by the expected reduction in pepper output in 2025 due to weather impacts, leading to a reduction in supply and possibly pushing prices up.

Competition in the pepper market is inevitable, requiring pepper growers to proactively adapt and improve their competitiveness. Applying science and technology, improving product quality, diversifying consumption markets, closely monitoring the market, and updating information on prices and consumption demand are important factors for pepper growers to succeed in the context of unpredictable market fluctuations.

Sources: https://congthuong.vn/gia-tieu-hom-nay-15102024-nguyen-nhan-thi-truong-di-xuong-tai-khu-vuc-dong-nam-bo-352429.html

 

 

 

 

 

Pepper Market October 14, 2024: China increases pepper imports from Indonesia, reduces purchases from Vietnam

Posted onOctober 14, 2024by VPA

Posted onOctober 14, 2024by VPA

October 14

Pepper prices today are stable at around 143,000 - 145,500 VND/kg. China has increased its pepper imports from Indonesia by 53.2% in the first 8 months of the year, while imports from Vietnam have decreased sharply.

In the domestic market

See more:  Pepper price today October 13

Pepper price  today, the first day of the week, is stable at 143,000 - 145,500 VND/kg.

Accordingly, traders in Gia Lai continue to buy pepper at the lowest price of 143,000 VND/kg.

Higher at 144,000 VND/kg include Dak Lak, Dak Nong and Binh Phuoc.

The highest current pepper trading price is 145,500 VND/kg, recorded in the two provinces of Ba Ria - Vung Tau and Dong Nai.

In the world market

According to an update from the International Pepper Community (IPC), in the most recent trading session,  the price of   Indonesian Lampung black pepper was listed at 6,732 USD/ton.

Similarly, the price of Kuching black pepper from Malaysia remained stable at USD 8,700/ton, while Brazilian black pepper ASTA 570 reached USD 6,750/ton.

In Vietnam, the  export  price  of 500 g/l and 550 g/l black pepper fluctuates at 6,500 - 6,800 USD/ton.

At the same time of survey, the price of Indonesian Muntok white pepper was offered at 9,002 USD/ton. Meanwhile, the price of Vietnamese and Malaysian white pepper stood at 9,850 USD/ton and 11,200 USD/ton.

Update pepper information

According to data from the China Customs Administration, the country's pepper  imports   in August reached 890 tons, worth 5.8 million USD, down 54.7% in volume and 36.8% in value compared to the previous month, but up 23.7% in volume and 80.9% in value compared to the same period last year.

In the first 8 months of the year, China imported 7,484 tons of pepper, worth 36.1 million USD, up 21.9% in volume and 41% in value over the same period in 2023.

The two main pepper supply markets for China in the first 8 months of the year were still Indonesia and Vietnam.

Of which, imports from Indonesia reached the highest with 4,399 tons, a sharp increase of 53.2% over the same period and accounting for 58.8% of the total pepper imported into China.

Next, imports from Vietnam reached 2,329 tons, up 7.2% and accounting for 31.1% of the market's import capacity.

In total, Indonesia and Vietnam account for 90% of China's pepper import market share.

However, the data from the Chinese Customs Administration mainly covers the amount of pepper imported through official channels. According to the latest data from the Vietnam Pepper and Spice Association, the amount of pepper exported from Vietnam to China in the first 9 months of the year (including official and unofficial channels) reached 8,905 tons, a sharp decrease of 84.1% compared to the same period last year.

In the first eight months of this year, China's pepper import price averaged $4,825 per ton, up 15.7% over the same period last year. Of which, the average import price from Indonesia increased by 10.9% to $4,611 per ton; while the import price from Vietnam increased by 24.1% to $4,708 per ton.

Prices from Indonesia are more competitive, which may be one of the main reasons why the amount of pepper exported from this country to China has increased sharply in recent times.

According to VietnamBiz.vn

 

 

 

 

 

 

 

 

Pepper market update 14th Oct 2024 – Week 41

 

- Pepper prices continued to decrease last week from 152,000 VND to 149,000 VND, a decrease of 2%.

 - The market continues to be quiet due to low demand in most key markets such as the US/China and EU/Middle East. Tensions in the Middle East are still ongoing, limiting import demand.

From January 1 to September 30, 2024, Vietnam exported 200,894 tons of pepper, of which black pepper reached 177,953 tons and white pepper reached 22,941 tons. Total export turnover reached 991.0 million USD, black pepper reached 781.9 million USD, white pepper reached 142.1 million USD. Compared to the same period in 2023, export volume decreased by 1.7% but export turnover increased by 46.1%. The average export price of black pepper in the first 9 months reached 4,852 USD/ton, white pepper reached 6,461 USD/ton, up 40.9% for black pepper and 30.4% for white pepper compared to the same period last year.

 

 

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

 

https://ptexim.com.vn/reports/report-of-the-pepper-market-and-other-spices-in-september-2024/

 

 

 

 

 

EU regulations relating to the import of agricultural and food products into the EU

Posted onOctober 9, 2024by VPA

09
Oct

The European Union (EU) currently consists of 27 member states with a population of about 450 million people. According to a World Bank report, the EU's GDP in 2021 reached 17 trillion USD, accounting for nearly 18% of the total global GDP, with GDP per capita reaching over 38,000 USD.

The EU is the world's third largest consumer market for agricultural, forestry and fishery products. Every year, the EU imports about 300 billion USD of agricultural products (Main agricultural products are 190 billion USD, seafood is 50 billion USD, wood and wood products are 59 billion USD (ITC, 2021). The EU forecasts that in 2024, the EU's agricultural export turnover will be about 345.14 billion USD, an increase of about 7.16%; the EU's agricultural import turnover will be about 323.4 billion USD, an increase of 6.44%. The import turnover of agricultural products from Vietnam to the EU is about 1.9% of the total import turnover of the EU, ranking 11th in the list of countries exporting agricultural products to the EU. The EU is one of the 4 largest agricultural export markets of Vietnam after the United States, China and ASEAN. The EU is a region with a large level of food consumption spending, the EU spends 1,000 billion Euros annually on food and beverages, accounting for 21.4% of total household spending. household (11.8% of expenditure on food, 6.8% on catering services, 1.6% on alcoholic beverages, and 1.2% on non-alcoholic beverages) (Eurostat, 2020).

For the EU, all Member States comply with the principle of “one entity – common Community”, according to the legal system, rights and obligations of the EU related to the treaties and international agreements that the EU participates in. EU member states establish a common customs union, a common market, free circulation of goods, apply a common trade policy, a common agricultural and fisheries policy.

The EU's legal system on food safety and animal and plant quarantine is complete, comprehensive and transparent, and is regularly amended and supplemented to ensure and protect human, animal, plant and environmental health. Regarding general food safety management, the EU takes an integrated approach to food safety covering all areas of the food and feed chain. Agricultural products and food commodities from third countries outside the EU accessing the market, the EU applies food safety management measures to different groups of products of animal and plant origin. For the group of products of plant origin, the EU applies an open and post-audit approach, different from the measures of other major agricultural and food import partners. For animal-origin products including both terrestrial and aquatic animals, there is a strict approach according to 3 criteria of countries, product groups and enterprises approved by the EU, along with national control programs implemented in parallel or some types, diseases, harmful microorganisms on both terrestrial and aquatic animals, control of toxic residues, antibiotics in animal products and programs to control microorganisms, heavy metal toxins for aquatic products, monitoring plans, epidemics for livestock, poultry... to be allowed to access the EU market.

Vietnam is one of four Asian countries that signed a Free Trade Agreement with the EU. The EU-Vietnam Free Trade Agreement (EVFTA) took effect from August 1, 2020, bringing many opportunities and contributing to promoting the growth of agricultural, forestry and fishery exports. However, in reality, it also poses many challenges for Vietnam's agricultural and forestry exports when tariffs are reduced but still facing difficulties related to technical barrier regulations (SPS, TBT, traceability, protection of origin names, geographical indications and new contents such as labor, information transparency, social responsibility, environment, sustainable development ...) in the EU market is increasingly increasing and being implemented more deeply. The trend of EU consumers is increasingly demanding of imported agricultural and forestry products in terms of food safety; environmental friendliness, carbon emission reduction, energy labeling, animal welfare; and demonstrate social responsibility and even accept some novel products from outside to access the EU market.

This report summarizes regulations related to animal and plant quarantine, food safety, labeling, packaging design, requirements related to procedures, registration, customs clearance procedures, etc. to help businesses, industry associations, and managers refer to. EU regulations are constantly updated, supplemented, and amended over time. The trend of amending and promulgating regulations related to food safety and animal and plant quarantine is increasingly strict and the level of control and strictness is increasing. Therefore, import-export enterprises need to refer to updated regulations and import partners in member countries to serve production, business, and import-export activities with the EU.

Wish your business success in the EU

See details here .

Source: Vietnam Trade Office in Belgium and EU

 

 

 

 

 

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Pepper Market October 10, 2024

 

Pepper Market October 10, 2024: Price drops again

Posted onOctober 10, 2024by VPA

October 10

Pepper price today, October 10, is around 146,000 - 147,000 VND/kg, down slightly 500-1,000 VND compared to yesterday.

Pepper prices increased by 1,500 - 2,000 VND/kg in provinces with high prices such as Dak Lak - Dak Nong - Ba Ria, remaining stable in other localities compared to the same time yesterday. After 2 consecutive days of decline in the domestic market, pepper prices have recovered and widened the gap between localities.

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,706 USD/ton; the price of Brazilian black pepper ASTA 570 at 6,750 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,900 USD/ton.

Muntok white pepper price is 8,966 USD/ton; Malaysian ASTA white pepper price is at 11,400 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.

Vietnam Pepper and Spice Association informed that in September 2024, Vietnam imported 2,430 tons of pepper, of which black pepper reached 2,233 tons, white pepper reached 197 tons, total import turnover reached 13.6 million USD.

Compared to August, import volume increased by 63%. Olam, Phuc Sinh and Tran Chau are the three main importers. Indonesia is the largest pepper supplier to Vietnam, reaching 1,787 tons, up 460.2% compared to the previous month.

As of September 30, 2024, Vietnam imported 23,778 tons of pepper of all kinds, of which black pepper reached 20,890 tons and white pepper reached 2,888 tons, with a total import turnover of 102.0 million USD.

Compared to the same period in 2023, import volume increased by 15.8%. The main importing enterprises include: Olam Vietnam, Pearl Group, KSS Vietnam, Phuc Sinh and Lien Thanh, of which Olam holds the largest market share of 35.7%, reaching 8,498 tons, up 11.0%.

Brazil, Cambodia and Indonesia are the three main pepper suppliers to Vietnam, accounting for 90.3%, reaching 8,512 tons, 6,651 tons and 6,317 tons respectively, of which imports from Brazil decreased by 32%. Of which, imports from Cambodia increased by 95.4% and Indonesia increased by 134.2%.

According to KTĐT.vn

 

 

 

 

 

Pepper exports to China decreased by more than 84%

Tuoi Tre Newspaper

10/10/2024

Pepper prices are at a good level compared to previous years – Photo: N.TRI

According to information from the Vietnam Pepper and Spice Association (VPSA), in the first 9 months of 2024 (cumulative from January 1 to September 1), Vietnam exported 30 tons of pepper of all kinds, of which black pepper reached 9 tons and white pepper 200.894 tons.

Total export turnover reached 991,0 million USD, black pepper reached 781,9 million USD, white pepper reached 142,1 million USD. Compared to the same period in 2023, export volume decreased by 1,7%, but gold increased by 46,1%.

The reason for the sharp increase in export value is that the average export price of black pepper in the first 9 months reached 4.852 USD/ton, white pepper 6.461 USD/ton; increased by 40,9% and 30,4% respectively compared to the same period last year.

According to VPSA, Asia is still the largest export region of Vietnamese pepper, accounting for 37,8%, reaching 75.859 tons. 

However, the above level decreased by 33,7% compared to 2023, mainly from the Chinese market.

Specifically, some leading export markets in Asia such as UAE: 13.159 tons, up 41,1%; India: 9.284 tons, up 0,5%; South Korea: 5.710 tons, up 59,0%; Pakistan: 4.992 tons, up 55,8%... China alone reached 8.905 tons, down 84,1%.

Exports to the Americas reached 62.634 tons, up 49,6%, of which the United States was the largest export market with 57.289 tons, accounting for 28,5% of the market share and up 53,1% over the previous year.

Exports to European markets also recorded a sharp increase of 33,6% to 50.769 tons. Germany led the way with 12.777 tons, up 87,1%; the Netherlands: 8.065 tons, up 35,4%... The African region accounted for 5,8% of the market share, reaching 11.632 tons.

According to businesses, with 2024 exports still 3 months away, the pepper industry will certainly join the "billion dollar club", possibly even reaching 1,3 - 1,4 billion USD if pepper prices increase well (the whole year of 2023 will reach more than 912 million USD).

According to records, the domestic pepper price (dry black type) is currently commonly 152.000 - 158.000 VND/kg depending on the type (including zem), slightly down compared to more than a week ago, but more than double the same period in 2023.

Exchange with Tuoi Tre Online On October 10, a representative of VPSA said that after reaching the mark of more than 10 VND/kg in previous months, pepper prices have turned down and stayed around 200.000 - 150.000 VND/kg recently, mainly due to the impact of export activities, supply and demand, especially when many countries enter the harvest season.

“Pepper prices are still much better than in previous years, and many farmers have made high profits. However, short-term price increases and decreases may occur because this commodity is affected by many factors.”

According to many businesses, Vietnam accounts for nearly 50% of the global pepper supply. With the crop season lasting from February to April, prices may fluctuate at this time, but are forecast to remain good because the basic supply is still insufficient to meet demand.

Sources: https://tuoitre.vn/luong-ho-tieu-xuat-di-trung-quoc-giam-hon-84-20241010111033395.htm

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According to the Vietnam Pepper and Spices Association, by the end of September 9, Vietnam exported 2024 tons of pepper, including 200.894 tons of black pepper and 177.953 tons of white pepper. The total export value of pepper reached 22.941 million USD, of which black pepper accounted for 991 million USD and white pepper was 781,9 million USD.

Data from VPSA shows that pepper export value is lower than the General Department of Customs' report at the beginning of the month, causing the total turnover to not reach 1 billion USD after 9 months.

Although there is a slight difference between the two reports, both indicate that pepper exports are still slow and the Chinese market has yet to recover.

World pepper prices today

Updated world pepper prices from the International Pepper Association (IPC), at the end of the most recent trading session, IPC listed the price of Lampung black pepper from Indonesia at 6.702 USD/ton (up 0,06%), the price of white pepper Muntok reached 8.966 USD/ton (up 0,05%).

The price of Brazilian ASTA 570 black pepper was at USD 6.750/ton (down 1,46%). The price of Malaysian ASTA black pepper remained stable at USD 8.800/ton (down 1,12%); the price of this country's ASTA white pepper reached USD 11.200/ton (down 1,75%).

Vietnamese black pepper prices today are stable at a high level, trading at 6.800 USD/ton for 500 g/l; 550 g/l at 7.100 USD/ton; white pepper prices at 10.150 USD/ton.

Sources: https://baodaknong.vn/gia-tieu-hom-nay-10-10-2024-quay-dau-tang-manh-231307.html