Pepper price today September 19, 2023, export outlook, Vietnamese pepper has competitive advantage in the EU

Pepper prices today in the domestic market remained stable in some key localities, trading from 70,000 - 72,500 VND/kg.

Pepper price today September 19, 2023, export outlook, Vietnamese pepper has competitive advantage in the EU. (Source: Getty)

Pepper prices today in the domestic market remained stable in some key localities, trading from 70,000 - 72,500 VND/kg.

Specifically, pepper price today in Gia Lai is at 70,000 VND/kg.

Pepper prices today in Dong Nai province (70,500 VND/kg); Dak Nong, Dak Lak (71,000 VND/kg); Binh Phuoc (72,000 VND/kg) and Ba Ria - Vung Tau are at the highest level of 72,500 VND/kg.

According to experts, although the long-term outlook for pepper prices is very bright. However, it is still a tug-of-war between buyers and sellers. This week, the results of the Fed's meeting on interest rates will affect pepper prices in other countries.

According to the assessment of the Vietnam Pepper and Spice Association (VPSA), the pepper crop in Vietnam in 2023 is relatively positive, with an estimated harvest output of about 190,000 tons, an increase of 3.8% compared to 2022. Meanwhile, according to the International Pepper Community (IPC), harvest output from other producing countries such as Brazil, Indonesia and India are all forecast to decrease compared to 2022.

Notably, immediately after opening, China increased its import of Vietnamese pepper and became the main export market for Vietnamese pepper. The amount of pepper that Vietnam exported to China in the first 8 months of this year reached 53,792 tons, 5.5 times higher than the same period last year, and accounted for 28.7% of the market share.

Not only did the Chinese market increase purchases, but Vietnam's pepper exports to several markets such as India, the United Arab Emirates (UAE), Egypt, Pakistan, etc. also recorded triple-digit growth.

However, Vietnam's pepper exports in the coming time are forecast to remain low, as domestic supply is no longer abundant, and demand from the US, European Union (EU) and Chinese markets has not yet fully recovered.

Currently, the amount of pepper for the 2023 crop is not much left for people and businesses. From now until the end of the year, pepper for export will mainly come from inventory from previous years, according to representatives of export enterprises.

Currently, the inventory of European and American import customers is still at a safe level, so they take advantage of this to negotiate prices for orders delivered in the first and second quarters of 2024.

In the context of the Chinese market not yet improving, the actions of European and American customers have caused the market to be "drowned". After being disappointed in Indonesia, pepper importers around the world will look forward to Vietnam harvesting the new pepper crop. However, the output is not assessed positively.

Due to the impact of the Covid-19 pandemic in 2020-2021, in 2022, Vietnam's pepper export turnover to the EU decreased but the market share reached 17.1%, only slightly down compared to 18.2% in 2021.

It can be said that compared to Brazil, Vietnam still maintains an immediate advantage, but in the long term, it needs to continue to improve quality and exploit different market segments, because the EU continuously updates and strengthens the application of sanitary and quarantine measures, green growth criteria and sustainable development for imported agricultural products.

Therefore, in addition to competitive advantages in price, Vietnamese enterprises need to aim to compete by satisfying strict requirements and criteria from the EU to maintain their position and at the same time participate more deeply in other markets.

It is noted that the world pepper market has fluctuated in opposite directions recently.

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