Signs of instability hidden behind market stability

Industry and Trade Newspaper

17/10/2024

The domestic pepper market is experiencing complicated developments, with trading prices increasing slightly on October 16, 10, but still containing many unstable factors. It is forecasted that prices tomorrow, October 2024, 17, will likely continue to maintain a stable price, but it is still necessary to closely monitor the latest market developments.

Pepper prices today (October 16, 10) in key regions recorded a slight increase compared to yesterday. Specifically, pepper prices Dak Lak purchased at 144.000 VND/kg, Chu Se pepper price (Gia Lai) purchased at 143.500 VND/kg, an increase of 500 VND/kg compared to yesterday. Pepper price Dak Nong Today's price is recorded at 144.000 VND/kg, unchanged from yesterday.

In the Southeast region, pepper prices today (October 16, 10) also recorded fluctuations compared to yesterday. Specifically, in Ba Ria - Vung Tau, it is currently at 2024 VND/kg, an increase of 144.000 VND/kg. At Binh Phuoc Pepper price today is at 144.000 VND/kg, up 500 VND/kg.

However, pepper prices world Today, there are signs of a slight decrease. Update on world pepper prices from the International Pepper Community (IPC), at the end of the most recent trading session, IPC listed the price of Indonesian Lampung black pepper at 6.744 USD/ton, and the price of Muntok white pepper at 9.233 USD/ton.

The price of Brazilian ASTA 570 black pepper was at USD 6.750/ton. The price of Malaysian ASTA black pepper remained stable at USD 8.700/ton; the price of this country's ASTA white pepper reached USD 11.200/ton.

Today, the price of Vietnamese black pepper lost up to 300 USD/ton, trading at 6.500 USD/ton for 500 g/l; 550 g/l at 6.800 USD/ton; white pepper price at 9.850 USD/ton.

Pepper price forecast October 17, 10: Signs of instability hidden behind market stability.

The gap between domestic pepper prices and world pepper prices has been creating certain pressures on the Vietnamese pepper market. Although Vietnam's pepper exports remained positive in the first 9 months of 2024, with a total export turnover of 991 million USD, the decrease in pepper prices in the world market may affect domestic pepper prices in the coming time.

In addition, pepper output in 2024 is expected to be lower than last year, as many farmers cut down pepper trees to plant more profitable crops such as durian and coffee. Pepper output in 2024 is estimated to reach only about 170.000 tons, down 10% compared to last year. This is also the lowest level in the past 5 years.

It is expected that Vietnam's 2025 pepper harvest will be almost entirely in February 2, with some regions extending to March and April, 2025-3 months later than previous years due to the impact of prolonged drought. This will increasingly limit Vietnam's pepper supply, putting further pressure on domestic pepper prices.

In addition, climate change is also a factor that directly affects pepper production. El Nino and La Nina have been negatively affecting farmers' cultivation and maintenance of pepper gardens, reducing pepper yield and quality.

Based on the above analysis, it is forecasted that pepper prices tomorrow, October 17, 10, will likely continue to maintain a stable price, fluctuating between 2024 - 143.000 VND/kg. However, the pepper market still contains many unstable factors.

Investors and farmers need to closely monitor the latest market developments, including: world pepper prices, domestic pepper output, consumption demand and the impacts of climate change. In addition, investors also need to pay attention to policy information related to the pepper industry, because this is also an important factor affecting prices.

*Information for reference only.

Sources: https://congthuong.vn/du-bao-gia-tieu-ngay-17102024-dau-hieu-bat-on-an-sau-su-on-dinh-cua-thi-truong-352907.html

 

 

Pepper Market October 16, 2024

 

Pepper Market October 16, 2024: Price increased slightly

Posted onOctober 16, 2024by VPA

October 16

Pepper prices today (October 16) fluctuated at 144,500 - 145,000 VND/kg, a slight increase of 500 VND/kg in the Southeast and Gia Lai regions. Pepper demand from the US market increased, Vietnam continued to be the leading supplier.

In the world market

According to an update from the International Pepper Association (IPC), at the end of the most recent trading session, the price of Indonesian Lampung black pepper was still listed at 6,744 USD/ton.

Elsewhere, Kuching Malaysia black pepper prices remained at $8,700/ton, while Brazilian ASTA 570 black pepper reached $6,750/ton. Vietnam’s  export  prices of 500g/l and 550g/l black pepper  fluctuated at $6,500 – $6,800/ton.

Update pepper information

According to data from the United States International Trade Commission (USITC), pepper  imports   into the United States in August reached 7,372 tons, down 28% from the previous month but up 25% from the same period last year. Thus, pepper imports into the United States have grown for 8 consecutive months compared to the same period last year.

Therefore, total pepper imports into the US in the first 8 months of the year reached 63,294 tons, worth 306.9 million USD, up 37% in volume and 44.8% in value over the same period last year.

Regarding the supply market, Vietnam continued to be the largest pepper supplier to the US in the first 8 months of the year, accounting for 78% of the market's import capacity with a volume of 49,277 tons, worth more than 235.2 million USD, up 35.4% in volume and 46.8% in value over the same period last year. With this result, the US is also the largest customer of the Vietnamese pepper industry.

Meanwhile, the US also increased pepper imports from other suppliers such as: India reached 4,916 tons, up 24.4% and accounted for 7.8% of the market share; Indonesia reached 4,698 tons, up 111.7% and accounted for 7.4%; Brazil reached 2,385 tons, up 63.9% and accounted for 3.8%...

In the first 8 months of this year, the average imported pepper price into the US reached 4,849 USD/ton, up 5.7% over the same period last year.

Of which, the imported pepper price from Vietnam increased by 8.4% to an average of 4,774 USD/ton; from India increased by 3.4%, reaching 5,043 USD/ton; while the import price from Indonesia and Brazil decreased by 17% and 6%, to 5,117 USD/ton and 4,175 USD/ton.

According to VietnamBiz.vn

 

 

 

 

Pepper - Downward pressure remains

The domestic pepper market is going through unstable days with pepper prices continuously decreasing. Accordingly, today's market on October 15, 10, pepper prices in key areas such as Dak Lak, Gia Lai, Binh Phuoc traded around 143.000 - 144.000 VND/kg, with the highest price in Dak Lak and Dak Nong is 144.000 VND/kg. This price decrease makes pepper growers worried and raises many questions about the prospect of pepper prices in the coming time.

To further analyze the domestic pepper market developments and forecast pepper prices tomorrow, October 16, 10, we need to consider some key influencing factors.

Pepper market world is under competitive pressure from Indonesia and Brazil. According to an update from the International Pepper Community (IPC), at the end of the most recent trading session, the price of Indonesian Lampung black pepper reached 6.744 USD/ton, up slightly by 0,18%, the price of Muntok white pepper reached 9.233 USD/ton, up 2,5%. However, the price of Brazilian ASTA 570 black pepper and Malaysian ASTA black pepper tended to decrease. The slight increase in Lampung black pepper price may be a positive signal, but not enough to create momentum for the Vietnamese pepper market. Because the price of Brazilian ASTA black pepper is at a competitive level with the price of Vietnamese pepper, while the slight decrease in the price of Malaysian ASTA black pepper also makes the market more unstable.

Pepper exports to China are also showing signs of decline. Statistics from the Chinese Customs Administration show that in August 8, the country's pepper imports reached 2024 tons, worth 890 million USD, down 5,8% in volume and 54,7% in value compared to the previous month. Although China's pepper imports in the first 36,8 months of the year increased by 8% in volume and 21,9% in value compared to the same period in 41, imports from Vietnam decreased significantly, reaching only 2023 tons, up 2.329% over the same period. The cause of this decline may come from many factors, including price competition from Indonesia. Indonesia is in the harvest season, making the supply abundant and prices more competitive. The decline in demand in the Chinese market is also a factor worth noting.

Vietnam's pepper exports are also facing difficulties with a sharp decline. According to the latest data from the Vietnam Pepper and Spice Association, Vietnam's pepper exports to China in the first 9 months of the year (including official and unofficial channels) reached 8.905 tons, down sharply by 84,1% compared to the same period last year. This sharp decline shows the weakening of the Chinese pepper market for Vietnamese pepper. In addition to price competition from Indonesia, the trend of shifting to other sources of supply also affects Vietnam's pepper exports.

Based on current market information, it is predicted that pepper prices tomorrow, October 16, 10, will continue to decrease slightly. The downward pressure from the world market will continue to affect domestic pepper prices. Pepper exports to China have not shown signs of recovery, while pepper import prices from Indonesia are more competitive. Domestic consumption demand shows no signs of growth.

However, it should be noted that pepper prices can change based on many other factors, so it is necessary to monitor closely and make appropriate decisions.

With current difficulties, pepper growers need to be flexible in production and business activities, while seeking solutions to improve productivity and product value, contributing to maintaining and developing the Vietnamese pepper industry.

*Information for reference only.

Sources: https://congthuong.vn/du-bao-gia-tieu-ngay-16102024-ap-luc-giam-gia-van-hien-huu-352587.html

 

 

 

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