Pepper imports from the US, one of the world’s largest consumer markets, are increasing again after a decline last year. Among them, Vietnam is the largest supplier with a market share of 79% of the market capacity.
Tieu Viet holds 79% market share in the US
Data from the General Department of Customs shows that the US is market export Vietnam’s number one pepper in the quarter I with mass reached 15.272 ton, worth 28.6 million USD, increase almost 30% in quantity and 38.3% in value compared to the same period last year. This market’s share of Vietnam’s total pepper exports has increased from 15.4% to nearly 27%.%.
According to data from the US International Trade Commission (USITC), import import US pepper in the first 2 months of the year reached 14,152 tons, worth 66 million USD, an increase of 19.3% in volume and 13.8% in value compared to the same period last year.
Source: Hoang Hiep compiled data from USITC
In particular, in the first 2 months of the year with block quantity reaching 11,107 tons, worth more than 51 million USD, up 19.7% in volume and 16% in value over the same period. With this result, Vietnam accounts for 79% of the total amount of pepper imported into the US and far exceeds other suppliers.
Next is India with 1,039 ton, increased slightly by 2.5% and accounted for 7% market share; Indonesia reached 909 tons, an increase of 181% and accounting for 6%; Brazil reached 694 tons, up 10.9% and accounting for 5%…
Pepper price Vietnam’s average export to the US reached 4,599 USD/ton, higher than 4,529 USD/ton of Indonesia and 4,304 USD/ton of Brazil, but lower than 4,988 USD/ton of India.
Source: Hoang Hiep compiled data from USITC
Before that, 2023 import lake pepper of America already decreased by 21.2% down to only 69,052 tons, lowest level in 9 years. The Import-Export Department (Ministry of Industry and Trade) said that The above decrease is due to the impact of the weak economy, inflationary high, causing people to tighten their spending.
Inflation in the US in March was still stronger than expected, which could delay the Fed’s policy adjustment plan. However, interest rates are expected to decrease this year.
In the recently released World Economic Outlook report, the International Monetary Fund (IMF) raised the US growth forecast for 2024 to 2.7% compared to 2.1% in the forecast released last month. 1, due to stronger-than-expected employment and consumer spending.
Higher US economic growth is expected to boost the country’s consumption and import of pepper in the near future. Especially when inventories in the US are at a low level after 2 consecutive years of reduced imports.
According to the Vietnam Pepper and Spice Association (VPSA), gRecently, under the promotion of ASTA, the US FDA has continuously announced a number of established MRLs for spices, most of which are active ingredients detected with high frequency in Hoh pepper.
LIVE Positive aspect, this contributes to helping the export enterprise more clearly define the regulations of Americaproducer lake Vietnamese pepper can offer more suitable farming methods to meet this market.
VPSA said will continue to work with ASTA to coordinate proposals for additional MRLs to be established for active ingredients that appear widely on the market. HOh pepper and other spices coming soon.
Demand from the US market increased again, while output decreased in Vietnam and other producing countries, pushing pepper prices higher in the first months of the year. Domestically, as of the trading session on April 19, black pepper prices fluctuated between 92,000 – 95,000 VND/kg, an increase of 13 – 16% compared to the end of last year.
It is necessary to promote American businesses to invest in Vietnam’s spice industry
In a recent document sent to the Government, VPSA said currently Vietnam still ranks top 1 in the world in pepper production and export. However, in a context of competition and changeOhng market favorable market for other cropsUh cah phHey vah Durian should acreage and pepper output Vietnamese South is decreasing.
In addition, VPSA wants state agencies to support lobbying foreign partners to consider expanding investment activities in Vietnam.
The association said that McCormick Global Group (USA) currently invests in many countries such as India, China and some European countries. This is also the largest importer of spices in the US. However, this business has not expanded its investment in Vietnam even though it is the partner importing the most pepper.
In addition, there are also a number of other large corporations with technology, capital, and investment in the spice processing industry such as Fuch of Germany, BC Foods and Symríse of the US, AB World Foods of the UK, and Paulig Group of Finland. need to pay attention and consider expanding investment in Vietnam.
Currently, the entire Vietnamese spice industry has 14 factories with deep processing technology.
VPSA believes that the State needs to consider supporting businesses to invest in processing technology through preferential loans that prioritize investment in science and technology, or partial subsidies (30-50%). investment costs (like India and Sri Lanka) in the form of R&D investment to gradually form the Vietnamese spice value chain in the world spice industry.
Currently, Vietnam ranks third in the world as a spice supplier and processor after India and China, but mainly exports products with low processed content.
According to VietnamBiz.vn
