On August 8, in Ho Chi Minh City, the Vietnam Pepper Association (VPA) organized a preliminary review of the situation of the pepper and spice industry in the first 6 months of 2023 in combination with organizing a workshop to evaluate the EVFTA – Mechanism Agreement. Conference and Challenges for the sustainable development of Vietnam’s pepper and spice industry.
According to VPA, by the end of June 2023, Vietnam exported 152,986 tons of pepper of all kinds, of which black pepper reached 138,377 tons, white pepper reached 14,609 tons. Total export turnover reached 485.9 million USD, black pepper reached 417.9 million USD, white pepper reached 68.0 million USD. Compared to the same period last year, export volume increased by 21.8% but export turnover decreased by 14.6%. The reason is that export prices in the first 6 months of the year decreased, only 3,484 USD/ton for black pepper, down 879 USD/ton; 5,011 USD/ton of white pepper, down 1,070 USD/ton compared to the same period last year.
Regarding the market, while demand in the US and Europe is still weak, in the first 6 months of 2023, China purchased 50,369 tons of pepper, an increase of 798% (nearly 8 times) compared to the same period last year. With a sudden increase in import volume, China has risen to the number 1 position, from number 5 in the same period last year. The reason is that China has reduced purchases in the 2 years 2021-2022 so it will increase after reopening.
The second largest market is the US, importing 25,894 tons, down 14% over the same period; followed by the United Arab Emirates (UEA), India, and Germany with import volume down 30-40% over the same period last year.
Currently, the amount of Chinese goods purchased may be enough for domestic use in the short term, so pepper prices are unlikely to increase again in the short term. However, pepper supply is in short supply due to crop failure, and demand at the end of the year will be a positive factor for pepper prices.
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