Vietnam is the largest pepper exporter to the United States.
According to the International Trade Center (ITC), pepper exports from major producing countries in the world have had contrasting patterns. In the first half of 2024, the world’s two leading exporters, Vietnam and Brazil, decreased by 6.8% and 6.0%, respectively. In the same direction, Malaysia’s exports also decreased by 8.1%, while Indonesia and India’s exports increased by 48.3% and 34.1%.
| Vietnam is currently the largest buyer of pepper from Brazil. |
Compared to the same period in 2023, in the first 6 months of 2024, the average FOB price of black pepper and white pepper in most major producing countries increased sharply, except for India. Specifically, the average FOB price of black pepper increased by 27% and the average FOB price of white pepper increased by 14% compared to the same period last year. The strongest increase was recorded in Brazilian black pepper, followed by Vietnam and Indonesia.
Global pepper trade from the beginning of the year to date has recorded a decrease of more than 20% compared to the same period in 2023. The largest decrease came from the Chinese market, down 85%, mainly due to this country reducing imports from Vietnam.
The United States is the world’s largest pepper consumer market, of which Vietnam is the largest exporter to the United States accounting for 75.8%, followed by India accounting for 8.5%, Indonesia accounting for 8.4% and Brazil accounting for 4.0%.
Brazilian pepper export price to Vietnam increased by 19%
In Brazil, the harvest ended in the states of Espírito Santo and Bahia with yields 10% lower than last year due to the effects of the El Nino drought at the beginning of the year.
Brazil is continuing to harvest in the Espirito Santos region and in November in the Para region, it is estimated that the country will harvest about 60 thousand more tons. Climate change (La Nina) will affect the production of Brazilian pepper in the coming months.
According to some farmers in the Espirito Santos region, the harvest in 2024 may be 25-30% lower due to the hot weather causing most of the first batch of cotton to fall off and the fruit set ratio of the second and third batches of cotton to be quite low, so it is expected to only reach about 70% compared to last year. Overall, the country’s harvest in 2024 may decrease by 20-25% compared to 2023.
In the first 6 months of 2024, Brazilian pepper exports reached 37,181 tons, with a turnover of 141.7 million USD, down 6.0% in volume but up 21.4% in value over the same period last year.
Brazil’s main export markets include: Vietnam with 5,910 tons, accounting for 15.9%, down 21.5% over the same period. Next are the markets reaching India: 3,892 tons, accounting for 10.5%, up 47.2%; Pakistan with 3,703 tons, accounting for 10.0%, up 63.3%; Senegal with 3,659 tons, accounting for 9.8%, down 19.6% and Morocco with 3,565 tons, accounting for 9.6%, down 9.5%…
Exports to Egypt, the Netherlands, and Mexico decreased while exports to the UAE and Germany increased, especially exports to the United States increased by 701.1% to 1,402 tons, but compared to the same period in 2022, reaching 3,002 tons, the export volume decreased by 53.3%.
The average export price of Brazilian pepper in the first 6 months of the year reached 3,810 USD/ton, up 29.3% over the same period last year, of which the export price in June increased by 31.1% compared to January 2024. Notably, the average export price of Brazilian pepper to Vietnam reached 3,488 USD/ton, up 19.0% over the same period in 2023 and this is the lowest price among the top 15 importing countries, such as lower than UAE: 4.0%; India: 7.8%; Netherlands: 8.8%; United States: 9.2% and Germany: 17.5%.
In Vietnam, Ms. Hoang Thi Lien – President of the Vietnam Pepper and Spice Association – said that Vietnam’s pepper exports in the first 6 months of 2024 reached 142.5 thousand tons compared to the 2024 harvest output of about 170 thousand tons, the remaining output is estimated at about 28 thousand tons.
The domestic pepper market price in early August is still around the 147,000 – 150,000 VND/kg mark, although many comments on domestic and global supply shortages are still being made. Currently, both sellers and buyers are waiting for the latest market movements as Indonesia is expected to harvest its pepper crop in August.
Some experts continue to comment that signs of supply shortage compared to demand will continue to be recorded and reflected in the market in the coming time until the crop is out of season. Currently, Brazil has 3 sterilized pepper factories and is building 2 more factories and will be completed in 2025. In the future, Brazilian pepper will compete better with Vietnam, so the imported supply will be less, so Vietnamese businesses need to be proactive in raw material sources.
According to Congthuong.vn
