Pepper price today November 28, 2023, the market is quiet, supply cannot meet demand but the price still cannot increase, why?

Pepper price today, November 28, 2023 in the domestic market remained stable in some key localities, trading from 69,000 - 72,000 VND/kg.

Pepper price today November 28, 2023, the market is quiet, supply cannot meet demand but the price still cannot increase, why? (Source: Incredibleman)

Pepper price today, November 28, 2023 in the domestic market remained stable in some key localities, trading from 69,000 - 72,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 69,500 VND/kg.

Pepper prices today in Dong Nai province (69,000 VND/kg); Dak Nong, Dak Lak (70,500 VND/kg); Ba Ria - Vung Tau (71,500 VND/kg) and Binh Phuoc (72,000 VND/kg).

Global production continues to lag demand, leading to a decline in national inventories, according to a November 2023 report by spice company Nedspice.

Global pepper production is estimated to have declined by 8%, mainly due to reduced acreage in Vietnam, India, and Indonesia. Slow demand coupled with high interest rates have led to a gradual decline in prices in recent months, although global production has fallen below demand.

Nedspice said that the current coffee harvest in Vietnam is very expensive, prompting speculators to liquidate their pepper stocks. The need for cash in the coffee business has created short-term selling pressure on pepper.

Global inventories are falling as the surplus from 2018-2020 is gradually depleted. In the long term, farmers are likely to start planting pepper again when prices reach levels above the break-even point for new planting. However, it will take 2-3 years for the newly planted area to start generating profits.

According to statistics, Vietnam's pepper exports in October increased mainly due to the recovery in demand from major markets including the US and the European Union (EU).

Of which, pepper exports to the US market in October reached 5,183 tons, up 20% over the same period last year and accounting for 26.7% of our country's total pepper exports.

In addition, pepper exports to Germany increased 2.5 times to 960 tons; to the Netherlands increased 65.6%; to South Korea increased 2.6 times; to the UK increased 37.5%; and especially to India increased by 591.5%.

Pepper exports to China in October reached only 1,738 tons, down 21.9% over the same period.

China's import volume in recent months has been on a downward trend after having purchased enough goods in the first two quarters of the year.

However, in the first 10 months of the year, China is still Vietnam's largest pepper export market with a volume of 57,723 tons, accounting for 25.6% of the market share and an increase of 265.3% over the same period in 2022.

The Vietnam Pepper and Spices Association (VPSA) expects that in 2023, Vietnam's pepper exports to China will reach about 60,000 tons out of the country's total imports of 65,000 - 70,000 thousand tons.

Meanwhile, pepper exports to many other major markets recorded a decline in the first 10 months of this year. For the US market, although it has increased again in recent months, in the first 10 months, pepper exports to the second largest market only reached 43,255 tons, down 11% and accounting for 19.2% of the market share.

The European region accounts for 19% of the export market share and decreased by 4.8% compared to the same period, of which Germany decreased by 8.6% to 7,868 tons, the Netherlands decreased by 15.1% to 6,662 tons, Russia decreased by 7.1%, and the UK decreased by 9.8%.

The two markets of Türkiye and France recorded strong export increases of 76% and 14.8%, reaching 3,901 tons and 3,147 tons, respectively. Exports to Africa increased by 9.9%, of which Egypt increased by 38.1%, reaching 3,840 tons, and Senegal increased by 25.2%, reaching 1,880 tons.

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