According to the Ministry of Industry and Trade, in September 2022, the export price of pepper in the market changed unevenly. While the export price of black and white pepper in Indonesia recorded an increase, Malaysia remained stable, while in Vietnam and Brazil decreased simultaneously.
At the port of Ho Chi Minh City, on September 19, 2022, the export price of black pepper 500g/l and 550g/l both decreased by 200 USD/ton compared to 30/8/2022 (reaching 3,350 USD/ton, respectively. and 3,600 USD/ton). Export price of white pepper decreased by US$100/ton from August 30, 2022, to US$5,300/ton.
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Price movements of Vietnam’s black pepper and white pepper exports since the beginning of the year 2022 to present (Unit: USD/ton). Photo: Ministry of Industry and Trade |
It is forecasted that in the short term, the world pepper price will continue to decrease due to the strong increase of the USD. The fact that the US Federal Reserve (Fed) raised interest rates to limit inflation pushed the dollar back into the US. This left many countries with a shortage of USD and forced foreign currency restrictions on imports of non-essential goods, including pepper.
The markets experiencing the above situation also include the major export markets of Vietnam’s pepper such as Egypt, Pakistan…
In addition, many central banks around the world simultaneously raised interest rates on basic currencies. This could further exacerbate the global economic downturn. Weak consumption demand is considered a limiting factor to the recovery of pepper prices in the following months, especially in the US and Europe – which are the two largest pepper consuming markets in the world.
In Internal Market, in September 2022, domestic pepper prices fell sharply due to difficulties in output. On September 19, the price of black pepper in the domestic market decreased from 1,000 to 2,500 VND/kg compared to August 29, to 64,500 – 67,500 VND/kg.
The price of white pepper decreased by 2,000 VND/kg compared to the end of August 2022, reaching 103,000 VND/kg, this level was also recorded lower than the same period in 2021 (the same period in 2021 reached 119,000 VND/kg).
Vietnam’s domestic pepper price decreased in the context that Brazil was entering the pepper harvest, the export offering price was more competitive than that of Vietnam, about 200-300 USD/ton.
It is forecasted that domestic pepper prices will fluctuate in a downtrend in the context of low global demand.
About export situationAccording to the General Department of Customs, in the first eight months of the year, Vietnam exported 160,891 tons, reaching $714 million, down 18.6% in volume and up 8.7% in value over the same period in 2021.
In August 2022, the average export price of Vietnam’s pepper reached US$4,070/ton, up 8% over the same period in 2021. In the first eight months of the year, the export price of pepper reached US$4,441/ton. , up 33.5%.
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Evolution of the average export price of pepper over the months in the period 2020 – 2022 (Unit: USD/ton). Photo: Ministry of Industry and Trade |
In the first 8 months of 2022 compared to the same period in 2021, pepper exports to some main markets decreased such as the US, UAE, Germany, UK, and Russia. In contrast, pepper exports to the Netherlands, Korea, and Thailand grew at double-digit rates.
