Vietnam's export price of pepper has increased by more than $1,500 per ton in the past eight months.

The average export price of Vietnamese pepper in the first eight months of 2024 was $4,800 per ton, an increase of 46.7% (reaching $1,527 per ton) compared to the same period last year.

With reduced supply and increased demand from China, domestic pepper prices have rebounded.

Drought in Espírito Santo (Brazil), which supplies more than half of Brazil's black pepper, has significantly impacted the country's pepper harvest and the global market in general. The black pepper crop in the northern part of the state suffered half its yield due to high summer temperatures, a situation that continued into the fall and winter.

In Vietnam, due to prolonged drought in April and May in key pepper-growing regions, the 2025 pepper harvest will be delayed. It is predicted that almost all of the 2025 pepper harvest will be completed in February, with some areas extending into March and April, 1 to 2 months later than in previous years due to the prolonged drought.

In the Vietnamese domestic market, black pepper prices continued to fall by 2.3-3.7% in August, reaching 144,000-146,000 VND/kg. However, the market has shown a positive recovery, increasing by 3-3.8% (equivalent to 5,000 VND/kg) in the first 20 days of September, reaching 149,000-151,000 VND/kg.

Supply is limited, while demand is high. Chinese market Increased demand from the Middle East in early September was a major factor driving up domestic pepper prices in Vietnam. In particular, demand from China returned with large orders of 3,000-4,000 tons.

Data released by the General Department of Customs shows that, pepper exports Vietnam's exports in August reached 19,420 tons, worth $116.7 billion, a decrease of 10.9% in volume and 10.1% in value compared to the previous month, and a decrease of 3.1% in volume but an increase of 56% in value compared to the same period last year.

In the first eight months of the year, pepper exports reached 182,930 tons, worth nearly $878 million, a decrease of 2.7% in volume but still a strong increase of 41.8%. (Illustrative image)

In the first eight months of the year, pepper exports reached 182,930 tons, worth nearly $878 million, a decrease of 2.7% in volume but a strong increase of 41.8% in value compared to the same period last year thanks to higher prices.

The average export price of Vietnamese pepper in the first eight months of the year was $4,800 per ton, an increase of 46.7% ($1,527 per ton) compared to the same period last year. In August alone, the average price reached $6,011 per ton, an increase of 0.9% compared to the previous month and a 61.1% increase compared to the same period last year.

In the structure of pepper exports during the first eight months of the year, whole black pepper continued to account for the largest share, reaching 73.8%, with 135,620 tons. This was followed by ground black pepper at 25,699 tons, accounting for 14%; whole white pepper at 7.7% with 14,975 tons; ground white pepper at 3.8%; and finally, pickled pepper, raw pepper, green pepper, pink pepper, etc., at 0.7%.

Vietnam's main pepper export markets in August and the first eight months of the year included the US, Germany, UAE, India, China, and others.

In particular, pepper exports to the US market reached a record 8,570 tons in August, worth $52.7 million, a sharp increase of 45.1% in volume and 52.4% in value compared to the previous month, and a significant increase of 90.6% in volume and 2.9 times in value compared to the same period last year.

Overall, in the first eight months of the year, the US led in consuming Vietnamese pepper with a volume of 51,802 tons, worth $258.3 million, an increase of 53.5% in volume and 90.9% in value compared to the same period in 2023. This market share in Vietnam's total pepper exports also increased to 28.3% from 18% in the same period last year.

Pepper exports to major markets also increased sharply in the first eight months of the year, including: Germany with 12,133 tons, up 97.5%; UAE: 11,779 tons, up 30.5%; India: 9,012 tons, up 11.8%...

In addition to the aforementioned markets, pepper exports to the Netherlands, South Korea, Pakistan, Russia, Egypt, the UK, Thailand, and other countries also saw strong double-digit growth.

Among the major markets, only China recorded a decline. Specifically, according to data from the Vietnam Pepper and Spice Association (VPSA), Vietnam's pepper exports to the Chinese market in the first eight months of this year reached only 8,388 tons, worth $23.5 million, a sharp decrease of 84.4% in volume and 80.2% in value compared to the same period last year.

Pepper exports by businesses have all increased sharply by two to three digits.

According to a report by Phuoc Thinh Import-Export Joint Stock Company (PTEXIM) in early September, demand from the Chinese and Middle Eastern markets was the main factor driving growth. pepper prices Domestic demand in Vietnam has increased. In particular, demand from China has returned with large orders of 3,000-4,000 tons.

"It appears that China's inventories have decreased significantly after a prolonged period of reduced purchases, leading to large-scale purchases to compensate for the raw material shortage as global pepper production is expected to continue to decline over the next few years," the PTEXIM report stated.

The domestic Chinese pepper market also saw a rapid increase, rising from 47 yuan/kg to 51 yuan/kg in just two days, representing an 8.5% increase in a very short period. In addition, strong demand from the Middle Eastern market, after selling off its stock of cheap imported pepper earlier this year, further fueled the market's dynamism.

Amidst rising pepper prices and favorable market conditions, Vietnam's pepper exports are likely to exceed $1 billion this year. However, pepper exports from now until the end of the year may be lower than in previous years because exports in the past eight months have already surpassed the 170,000-ton target of the 2024 crop.

According to the Vietnam Pepper and Spice Association (VPSA), the carryover inventory from the 2023 crop, combined with imports in 2024, totaling approximately 40,000-45,000 tons (including informal imports), indicates that export supplies from August to the end of the year will be lower than in previous years, and this will continue until March 2025 when the 2025 crop is expected to be harvested.

In the first eight months of the year, most major pepper exports saw strong double- and triple-digit growth compared to the same period last year. For example, Olam Vietnam achieved 18,185 tons, up 50.6%; Phuc Sinh: 16,522 tons, up 61.7%; Nedspice Vietnam: 13,953 tons, up 14.1%; Haprosimex JSC: 13,808 tons, up 77%; and Tran Chau: 11,426 tons, down 6.5%…

In addition, several businesses experienced a surge in export growth, such as Simexco Dak Lak (up 215.1%), Sinh Loc Phat (up 124.2%), Hanfimex Vietnam (up 94.2%), Intimex Group (up 85.6%), and Lien Thanh (up 60.3%).

Statistics from VPSA also show that businesses under VPSA exported 159,792 tons of pepper in the first eight months of the year, a 35.6% increase compared to the same period last year and accounting for 87% of the country's total pepper exports. Meanwhile, businesses outside VPSA only exported 23,964 tons, a decrease of 65.7% and accounting for only 13% of the total.

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