Name the 10 largest pepper export markets of Vietnam

Pepper inventory is not much

The Import-Export Department ( Ministry of Industry and Trade ) cited statistics from the General Department of Customs, saying that in August 2023, Vietnam exported approximately 20,140 tons of pepper, worth 75.34 million USD, up 32% in volume and 32.4% in value compared to July 2023, compared to August 2022, up 9.0% in volume and 0.2% in value.

Pepper exports in 2023 are forecast to increase by 3% to 5% in volume.

In the first 8 months of 2023, Vietnam exported over 188 thousand tons of pepper, worth 615.5 million USD, up 17% in volume, but down 13.8% in value compared to the same period last year.

In August 2023, the average export price of Vietnam's pepper reached 3,741 USD/ton, up 0.3% compared to July 2023, but still down 8.1% compared to August 2022. In the first 8 months of 2023, the average export price of Vietnam's pepper reached 3,273 USD/ton, down 26.3% over the same period in 2022.

Vietnam's 10 largest pepper export markets in the first 8 months of 2023 (Source: General Department of Customs)

Vietnam's 10 largest pepper export markets include: the United States, the United Arab Emirates; India; Germany; the Netherlands; the Philippines; Thailand; Russia; the UK; and South Korea.

In August 2023, Vietnam's pepper exports to many markets increased by 2 to 3 digits compared to the same period last year, including: United Arab Emirates, India, Netherlands, Philippines, South Korea...

On the contrary, pepper exports to the US, Thailand, Russia and UK markets decreased. In the first 8 months of 2023, pepper exports to most major markets decreased sharply compared to the same period last year, except for the Philippines.

According to the Vietnam Pepper Association, the actual pepper inventory among the people is not much, most of it is only in the hands of agents and some speculators. Meanwhile, some processing enterprises have enough goods to process at the end of the year, so there is no real need to buy at this time.

Price developments of black pepper in the domestic market in 2022 - 2023 Source: Vietnam Pepper Association

Recorded on September 23, 2023, the domestic pepper price is in the range of 70,000 - 72,500 VND/kg. Of which, Gia Lai is the locality with the lowest purchase price at 70,000 VND/kg. Slightly higher is Dong Nai with a price of 70,500 VND/kg. The two provinces of Dak Lak and Dak Nong have the same purchase price of 71,000 VND/kg. Similarly, in Binh Phuoc and Ba Ria - Vung Tau, it is stable at 72,000 VND/kg and 72,500 VND/kg, respectively.

According to an update from the International Pepper Association (IPC) on September 22 (local time), the price of Lampung black pepper (Indonesia) was at 4,309 USD/ton, up 0.09%; Brazilian black pepper ASTA 570 was at 2,950 USD/ton; Kuching black pepper (Malaysia) ASTA was at 4,900 USD/ton.

It is forecasted that in 2023, pepper exports will increase by 3 - 5% in volume.

According to the International Pepper Community (IPC), the output from producing countries such as Brazil, Indonesia and India is forecast to decrease compared to 2022. However, the difficult world economy , inflation remains high, and people tighten spending are the reasons why major economies such as the United States and the EU reduce pepper imports.

World pepper prices are forecast to continue to fall in the short term despite published data showing lower harvest output from producing countries.

In the Vietnamese market, pepper exports are forecast to remain low due to the lack of abundant domestic supply and the lack of demand in the US and EU markets.

Currently, the amount of pepper exported from Vietnam has run out. In the last months of this year, businesses will export from imported goods and previous inventory.

It is estimated that the total inventory and imports will reach about 80,000 tons, while domestic consumption is about 10,000 tons and inventory carried over to next year is about 30,000 tons, leaving about 50,000 tons for export in the last months of this year.

Developments in average export price of Vietnam's pepper over the months of 2021 - 2023 (Unit: USD/ton) Source: Calculation from data of the General Department of Customs

Speaking to reporters of the Industry and Trade Newspaper, Ms. Hoang Thi Lien - President of the Vietnam Pepper Association - said that by the end of August 2023, Vietnam's pepper exports reached about 188 thousand tons. With 4 months left until the end of 2023, at this year's pace, we believe that pepper exports in 2023 will increase by 3 - 5% in output compared to 2022 (reaching 232 thousand tons), and thus, pepper export output will fall to 240 thousand tons to 250 thousand tons. To achieve this figure, great efforts from businesses in the industry and positive signals from the market are needed.

“ The market always has demand, there are times when trading is active, but there are also times when trading is quieter. But we expect export turnover to increase by 3-5% in output compared to the same period last year,” Ms. Lien shared, adding that when talking about agricultural exports, it is often referred to in terms of output.

This is one of the important factors to be able to record the development or contraction of an industry, as well as the efforts of businesses and farmers to cooperate in the entire supply chain. After output will be the criteria of the market. With the movement of supply and demand factors will decide the market and price issues.

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