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| Pepper price today September 2, 2023, fear of bad weather impact, more than 62% of Vietnam's pepper imports come from this country. (Source: ElmarSpices) |
Pepper prices today in the domestic market remained stable in some key localities, trading from 69,000 - 72,500 VND/kg.
Specifically, pepper price today in Gia Lai is at 69,000 VND/kg.
Pepper prices today in Dong Nai province (70,000 VND/kg); Dak Nong, Dak Lak (70,500 VND/kg); Binh Phuoc (72,000 VND/kg) and Ba Ria - Vung Tau are at the highest level of 72,500 VND/kg.
Through assessment and review of data compared to previous forecasts, the Vietnam Pepper and Spice Association (VPSA) said that Vietnam's pepper output in 2023 is estimated at about 190,000 tons, an increase of 3.8% compared to 2022.
The floods that occurred in July in the Central Highlands, especially in Dak Nong province, more or less affected pepper gardens if the pepper gardens were not drained to avoid flooding. It is necessary to monitor the situation of pepper gardens after the floods.
However, that is not as worrying as the El Nino phenomenon that will occur at the end of the year and last until early next year, which will lead to drought, lack of rain and possibly reduce Vietnam's pepper output next year.
According to VPSA's preliminary statistics, Vietnam imported 2,198 tons of pepper in July, down 14.9% compared to the previous month.
From the beginning of the year to the end of July, Vietnam imported 17,281 tons of pepper of all kinds (of which black pepper reached 16,225 tons and white pepper reached 1,056 tons), compared to the same period last year, down 32.9%, equivalent to 8,469 tons.
Brazil is the largest pepper supplier to Vietnam, accounting for 62.6% of total volume with 10,824 tons, up 50.8% over the same period last year.
Meanwhile, imports from Indonesia decreased by 74.2% and from Cambodia by 51.7%. Olam, Tran Chau and Nedspice were the three main importers, reaching 7,136 tons, 2,789 tons and 1,548 tons, respectively.
According to Brazil's Coreimex, FOB prices this week ranged from $3,350 to $3,500 per ton. For the second consecutive year, Vietnam has become the largest importer of Brazilian black pepper, surpassing traditional markets such as the US and Germany. Previously, the US had been the largest importer of Brazilian black pepper since the beginning of this century.
In this country, for the past 10 years, a new and very dynamic production area has developed in the south of Bahia and Espirito Santo states. This area has contributed to Brazil's exports from 30 to 40 thousand tons per year (2000 to 2015), increasing to 91,000 tons in 2021.
Harvest has begun in Espirito Santo state and production is expected to be lower than last year, due to the impact of heavy rains from October last year until February this year.
From the beginning of 2023 to July 26, 2023, there were 57 warnings from Europe related to spice products including: Pepper, chili, cinnamon, turmeric, ginger. Pepper is the product with the highest warning with 25 cases, of which Brazil accounts for 17 cases.
Recently, Brazilian pepper has gradually appeared in the Middle East and Africa with lower prices than Vietnam due to advantages in transportation costs and geographical location. Meanwhile, partly due to farmers' and businesses' custom, they sell the harvest after harvest instead of storing much, willing to sacrifice a part of the profit.
In addition, Brazil can increase production rapidly, has many young pepper gardens. This makes Brazilian pepper competitive and has developed strongly in recent years.
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