Source: congthuong.vn
A sharp decrease in both quantity and value
The Import and Export Department (Ministry of Industry and Trade) quoted statistics from the General Department of Customs as saying that in September 2022, Vietnam’s pepper exports decreased for the third consecutive month, reaching 13.86 thousand tons, worth 13.86 thousand tons, worth 56.83 million USD, down 25.8% in volume and 25.3% in value compared to August 2022, down 9.1% in volume and 7.7% in value compared to September 2021. price.
In the first 9 months of 2022, Vietnam’s pepper exports reached 174.53 thousand tons, worth $ 770.44 million, down 18% in volume, but up 7.1% in value over the same period last year. 2021.
In September 2022, the average export price of Vietnam’s pepper reached $4,099/ton, up 0.7% compared to August 2022 and 1.5% higher than September 2021. In general, in the first nine months of 2022, the average export price of Vietnam’s pepper reached US$4,414/ton, up 30.7% over the same period in 2021.
In September 2022 compared to September 2021, Vietnam’s pepper exports to most of the main markets decreased, except for the United States and Russia. In the first 9 months of 2022 compared to the same period in 2021, pepper exports to the US, United Arab Emirates, Germany, and the UK decreased, but exports to India, the Netherlands, South Korea, Philippines, Russia, Thailand increased.
Currently, the domestic price of black pepper has dropped sharply, down to nearly 60,000 VND/kg, in the context of declining exports and the market showing signs of discharge to recover capital for the production of new crops. Price of white pepper at 109,000 VND/kg, down 3,000 VND/kg compared to the end of September 2022 and lower than 120,000 VND/kg in the same period in 2021.
Pepper exports are forecasted to still face many difficulties in the context that world pepper prices continue to be under downward pressure due to reduced demand in many countries, especially demand from China and the high pegged USD. export countries.
According to the Import and Export Department, currently the amount of pepper in stock in Vietnam is estimated at 80,000 – 100,000 tons, a relatively high volume. Chinese traders and major pepper exporters in Vietnam are in a waiting state. At the moment, Vietnam’s pepper price depends on the Chinese market when European and US importers have signed contracts until the end of this year.
Support from FTAs
According to the Vietnam Pepper Association (VPA), Vietnam’s pepper supply in 2022 is estimated at 280,000 – 290,000 tons (including output of 175,000 tons; imports of 40,000 tons and 80,000 tons of inventory from 2021).
According to the Ministry of Agriculture and Rural Development, Vietnam’s pepper area in 2020 will reach 130,838 hectares, mainly in 6 provinces: Dak Nong, Dak Lak, Gia Lai, Dong Nai, Ba Ria – Vung Tau and Binh Phuoc. However, this area may decrease in 2021 and 2022. It is estimated that Vietnam’s pepper production in 2022 will reach 175,000 tons, down 10% compared to 2021. Vietnam’s pepper output ranks No. 1 in the world and accounts for 35%. compared to global.
The Vietnam Pepper Association said that the pepper industry is currently facing many difficulties and challenges. For example, Vietnam’s pepper is losing market share because the Brazilian and Indonesian markets offer more competitive prices. These markets have cheaper freight rates than Vietnam, so export prices are always offered at lower prices.
Notably, currently a number of pepper exporters to Egypt and Pakistan are facing difficulties in payment. The goods have arrived but have been “suspended” for a few months, do not know when to be paid. Businesses are being charged for storing containers at the yard.
In the context of pepper exports facing many difficulties, Ms. Hoang Thi Lien – President of the Vietnam Pepper Association said that new-generation free trade agreements (FTAs) bring many benefits to Vietnam, but To make good use of FTAs in the face of volatile world economic environment is still a difficult problem for businesses. Therefore, the role of overseas deals is very important in providing market information to businesses so that businesses can avoid risks and disputes with partners, especially in the context of Vietnam’s GDP. South is heavily dependent on exports. In particular, when problems arise, the deal side also tries to coordinate with other parties, especially businesses, to assist in solving them.
According to experts, the picture of the pepper export market is not completely dark. The size of the global black pepper market is estimated to be worth $3,159 million in 2021 and it is forecasted, the market will re-size to $4,184.2 million by 2028 at a compound annual growth rate (CAGR) ) is 4.1% in the period 2022 – 2028.
The black pepper market is directly influenced by the growing processed food industry. Increased consumption of bakery products, confectionery, ready-to-eat and fried foods in developed economies is driving the spice market. At the same time, the recent trend of using natural flavor enhancers has also fueled the growth of the global black pepper market. The growth of this item in the coming time opens up more opportunities for Vietnam’s pepper exports.
