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| Pepper price today August 4, 2023, China's import momentum decreased, Vietnamese pepper industry does not 'rest on its laurels'. (Source: AdobeStock) |
Pepper prices today in the domestic market continued to increase in some key localities, trading from 69,500 - 72,500 VND/kg.
Specifically, today's pepper price in Gia Lai is the lowest in the market at 69,500 VND/kg.
Pepper prices today in Dong Nai province (70,000 VND/kg); Dak Nong, Dak Lak (70,500 VND/kg); Binh Phuoc (71,500 VND/kg) and Ba Ria - Vung Tau are at the highest level of 72,500 VND/kg.
In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Vietnamese black pepper at 3,500 USD/ton for 500 g/l, 3,600 USD/ton for 550 g/l; the price of white pepper at 5,100 USD/ton.
According to the Vietnam Pepper and Spices Association (VPSA), Vietnam's 2023 pepper harvest has ended with an estimated output of nearly 200,000 tons, up 9.3% compared to 2022.
In the first 6 months of 2023, Vietnam exported 152,700 tons of pepper to the international market, earning 483.2 million USD.
China and the US are currently the second largest export markets for Vietnamese pepper, accounting for 35% and 16% of total pepper exports in the first 5 months of the year, respectively. Of which, China purchased 46,169 tons of pepper, an increase of 1,668.9% over the same period in 2022.
After 3 years of restricting trade transactions due to Covid-19, in 2023, China began to increase pepper and spice imports from Vietnam, causing pepper exports to this market to increase dramatically.
Preliminary statistics from VPSA show that China has risen from the second position to become the main export market of Vietnamese pepper in February 2023, with output reaching 4,712 tons, an increase of 219.5% compared to January 2023.
In March 2023, pepper export output to China reached 15,710 tons, an increase of 85.2% compared to February, accounting for 43.74% of the country's total export output.
According to VPSA, this is the highest pepper export volume ever in a month, breaking the highest export record of April 2020 at 11,953 tons.
Although China has purchased a large amount of pepper from Vietnam since the beginning of the year, up to this point, the continuous purchases show that they have almost bought enough reserves.
In addition, the EU's decision not to import agricultural products grown on deforested land has had a negative impact on pepper prices. It is expected that pepper exports will face certain difficulties in the final months of the year. VPSA recommends that businesses carefully consider and assess their financial capacity when signing large-volume, long-distance contracts at low prices, and avoid being careless due to the mentality of waiting for orders from the market.
In the world market, in Brazil, it is noted that although it is in the middle of the harvest season, traders are having difficulty in purchasing. Sellers have stopped offering for sale for half a month now. Pepper prices in Brazil have increased by 10% in the past 2 weeks.
Many sources predict that Brazil's crop will be 15-20% smaller than the 2022 crop. This has caused farmers/dealers to increase their stockpiling and offer less to the market.
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