In the first 11 months of 2020, pepper exports were estimated at 263,000 tons, worth 596 million USD, down 1.7% in volume and 11.5% in value over the same period in 2019.
Pepper export turnover fell sharply due to low selling price
The average export price of pepper in November 2020 is estimated at $2,543/ton, up 3.6% compared to October 2020 and up 8.1% compared to November 2019. In the first 11 months of 2020, the average export price of pepper was estimated at US$2,268/ton, down 10% over the same period in 2019.
Looking back at pepper export activities in 2020, Mr. Nguyen Tan Hien, Vice Chairman of Vietnam Pepper Association (VPA), General Director of Tran Chau Import Export Trading Service Joint Stock Company said that 2020 is a year. There are too many difficulties for Vietnam’s pepper industry, in which there are 4 main factors that have had a strong impact on pepper exports.
First, At the end of May, the price of pepper increased sharply, making businesses unable to buy in time for long-distance sales orders, so they suffered a lot of losses. Of course, when the price of pepper goes up, there will be some pepper exporters who make a profit, but most businesses encounter when the price increases suddenly, sometimes when the price increases, they have to suffer.
Monday, Due to the Covid-19 pandemic, many ports of countries such as India, Pakistan, Dubai … blocked, causing a large backlog of goods and delayed payment, including Nepal with an import ban. Pepper has caused great damage to exporters.
Tuesday, Since July, the freight rate has increased by 3 to 4 times, causing losses for pepper exporters, not only for the pepper industry but also for most export industries if C&F sales are sold. suffered heavy losses due to the increase in freight rates.
4th, The exchange rate between VND and USD is hardly supportive for exports because VND seems to be getting stronger against USD, so exporters have to suffer.
“With the perception that pepper exports this year will be difficult, many companies accept a decrease in export volume and Tran Chau Company is also in that trend. Due to this situation, we do not dare to sell far, and the company’s export volume of pepper this year is expected to decrease by more than 20%. However, there are some units that still increase the export volume of this problem, depending on the assessment of each unit, which has different handling.
In the first 11 months of the year, Vietnam’s pepper exports only decreased by 1.7% in volume but decreased by 11.7% in value, because the export price of pepper in the first months of 2020 was very low. Currently, the export price of pepper ranges from 2,800 USD to more than 2,900 USD/ton, but this price cannot be sold by Vietnamese enterprises because most of them have signed to sell far away at low prices of about 1,900 USD to 2,000 USD/ton. This is the lowest selling price compared to previous years, so the total export turnover in 11 months has decreased a lot, “said Mr. Hien.
Positive signal for the new export year
Before entering the new pepper crop, there are many signals that the pepper market in 2021 will be more prosperous than in 2020, such as the fact that pepper prices in the market are in an uptrend, most pepper businesses know and be careful before deciding to sell far.
The main markets of pepper exports are Europe, the US and China, followed by India, Nepal, Pakistan and Dubai.
Currently, most pepper import markets buy in small quantities, especially the US and European markets are very heavily affected by the Covid-19 epidemic, so they do not buy much, but in fact, countries still use average pepper. Usually, their inventory may be high, so they should reduce their purchases.
However, the Chinese market recently bought very strongly, making the domestic pepper price sometimes push up to about 59,000 – 60,000 VND/kg.
In addition, there are many signs that in 2021, the main market China imports a lot of pepper from Vietnam, the European and American markets are still normal, in 2020 the import speed of these two markets. slower because Covid-19 progressed too seriously.
The Indian market is heavily affected by the Covid-19 epidemic, so it is buying very little because India is also an importer of pepper to re-export to Europe, but due to the impact of the Covid-19 epidemic, the European market should India’s output in the first few months of India is stagnating a lot, recently, almost India has not bought pepper from Vietnam, and the Nepal market has been completely banned. This is a large market, so it also affects Vietnam’s pepper exports.
At the end of December 2020, Dak Nong province will soon harvest a new pepper crop, and will harvest it in full force at the end of January 2021. Currently, Dak Nong is the leading province in the country with the largest pepper area with more than 30,000 hectares, accounting for about 25% of the total area of the country, by February 2021 Dak Lak and other provinces will start new service input.
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