According to Economy and Consumption
According to the Department of Agro-Processing and Market Development, the volume of pepper exported in July 2020 is estimated at 20,000 tons with a value of $ 49 million, bringing the pepper export volume and value in the first 7 months of 2020 to 187. thousand tons and 405 million USD, down 6.5% in volume and 20.6% in value over the same period in 2019.
The average export price of pepper in the first 6 months of 2020 will reach $ 2,134 / ton, down 16.4% over the same period in 2019.
In the first half of 2020, pepper exports to most major markets decreased in both volume and value due to the double impact of the pandemic. COVID-19 and oversupply.
Among the 5 largest pepper export markets of Vietnam, including America, India, Germany, Pakistan and the Netherlands with 37.9% market share, only market America export volume increased.
Specifically, in the first 6 months of 2020, Vietnam’s pepper will be exported America reached 28.7 thousand tons, equivalent to 71.4 million USD, up 3.7% in volume but down 7.5% in value over the same period in 2019.
Vietnam continues to be the largest source of pepper for the country America, currently accounting for 67% of total pepper imports of this market. Vietnam’s market share increased by about 3% over the same period in 20191.
According to the Vietnam Pepper Association, In the second quarter, the Chinese market started to operate again and increased the import of pepper, mainly from Vietnam.
Meanwhile, trade activities in other major consumer markets such as the US and the EU became even quieter before the outbreak of COVID-19.
The government of Nepal has imposed a ban on the import of a number of commodities, including pepper, to tighten foreign currency management.
This sudden decision caused many pepper exports from other countries to be cleared of customs and stuck in Nepal and India, including 58 shipments from Vietnam.
The EU regulation to lower the MRLs of Chlopyrifos and Chlopyrifos-methyl to 0.01 mmg / kg has been approved, will be announced in August 2020 and come into effect in November 2020, 1 month later than the previous announcement due to the effects of Covid-19 translation.
On the world market, during the month 7, the price of pepper delivered at the port tended to increase in India and Malaysia, while the pepper price in Brazil and Vietnam remained stable and the price of Indonesia decreased.
Specifically, as of 27 /7, prices of pepper delivered at ports of India and Malaysia increased 0.8% and 3.7% respectively compared to the beginning of the month. The high demand for pepper during the festive season has pushed up pepper prices in India.
In the domestic market, pepper prices in the month 7 decrease compared to the previous month. Specifically, pepper prices in Ba Ria Vung Tau decreased by 1,000 VND / kg down to 49,000 VND / kg.
Pepper prices in Dak Lak and Dak Nong decreased by 500 VND / kg down to 48,000 VND / kg. Pepper prices in Dong Nai decreased by 1,000 VND / kg down to 46,000 VND / kg.
Agro-Processing and Market Development Department forecasts a short-term decline in pepper prices as global pepper trade is being affected by epidemic COVID-19.
In the coming months, purchasing power is forecasted to decline from Europe and the US market before the 2nd wave of COVID-19 in these markets.
In addition, natural disaster in China, one of the major pepper import markets of Vietnam, will affect the demand for pepper imports of this country in the short term.
The Department of Agricultural Product Processing and Market Development recommends that exporting enterprises choose measures to enforce and pay contracts in order to minimize risks and limit international trade.
