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Pepper is one of Vietnam’s main agricultural products, known as a billion-dollar treasure when it earns billions of dollars. Notably, our country is currently leading in exports in the world, accounting for 60% of the market share. Vietnamese pepper and spices are currently exported to more than 120 countries and territories, occupying many important markets.
Besides domestic supply, imported cashew nuts are an important support for our country to strengthen this export position. According to statistics from the Vietnam Pepper Association (VPA), Vietnam’s pepper imports in September reached 2,430 tons with a value of more than 13.6 million USD, a sharp increase of 63% in volume compared to the previous month.
Thus, by the end of September, Vietnam had imported 23,778 tons of pepper of all kinds, total import turnover reached 102 million USD, an increase of 15.8% over the same period last year. In terms of types, black pepper reached 20,890 tons and white pepper reached 2,888 tons.
In terms of markets, Brazil, Cambodia and Indonesia are the three main pepper suppliers to Vietnam. For Brazil, imported output from this market reached 8,512 tons, down 32% over the same period last year.
Cambodia is the second largest supplier with 6,651 tons, a sharp increase of 95% over the same period. Notably, pepper from Indonesia witnessed a strong growth of 134% with 6,317 tons, and is also the third largest supplier to Vietnam.
According to VPA’s assessment, Vietnam’s pepper output in 2024 is estimated to decrease by 10% compared to 2023, to only about 170,000 tons – the lowest level in the past 5 years.
The pepper growing area is also increasingly shrinking as farmers change crops while the supply of pepper on the global market is nearly 100,000 tons short of demand. According to the Vietnam Pepper and Spice Association, the amount of pepper in the population is almost gone, remaining only in agents and warehouses of businesses.
The impact of El Nino climate change at the beginning of the year has continuously impacted the production and maintenance of pepper gardens of farmers. Next is the La Nina phenomenon that affects the psychology of farmers, especially at the present time durian and coffee prices are high so they are not attractive enough to massively replant pepper.
The Import-Export Department (Ministry of Industry and Trade) forecasts that world pepper prices will remain high in the short term due to limited supply. Brazil and Indonesia are in the harvest season, while world demand is not increasing strongly, along with China not buying much, leading to only a slight increase in prices.
On the export side, from the beginning of the year to the end of September 2024, Vietnam has exported 203,000 tons of pepper, worth more than 1 billion USD, down 1.5% in volume but up 46.9% in value. value compared to the same period last year. It is forecast that at the end of the year, with favorable export prices, the pepper industry will bring in 1.3 billion USD in 2024.
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