In October 2022, the whole country exported 17,861 tons of pepper, bringing in USD 67.5 million; where: the export of black pepper reached 16,248 tons with a value of USD 58.6 million; White pepper exports reached 1,613 tons with a value of US$8.9 million. Compared to September 2022, export volume increased by 26.8%, turnover by 17.2%.

EXPORTS GROW STRONG AFTER 3 MONTHS OF CONTINUOUS DECLINE

After 3 consecutive months of declining exports in volume and value, pepper exports rose sharply in October. Previously, pepper exports reached only 13.86 thousand tons worth US$56.83 million in September 2022, down 25.8% in volume and 25.3% in value from August 2022. compared to September 2021, a decrease of 9.1% in volume and 7.7% in value.

The leading exporters in October 2022 are still the companies Olam: 2,313 tons, Pearl: 1,362 tons, Phuc Sinh: 1,277 tons… Top exporters to China include: Minh Quang Ls: 1,113 tons, Hong Phuc Lang Son: 959 tons, import-export logistics: 577 tons.

In the 10 months of 2022, the whole country exported 192,391 tons of pepper and brought in US$837.9 million. The average export price of Vietnamese pepper reached US$4,414/ton, up 30.7% from the same period in 2021. It is estimated that pepper exports for the whole year will reach 220,000 tons and US$962 million.

The pepper industry has yet to regain that milestone after five years of falling below the $1 billion mark. Previously, in 2021, Vietnam exported 263,692 tons of pepper with a turnover of USD 948.7 million.

Domestic pepper prices remained stable in the range of VND 58,000-61,500/kg from Nov. 15 to Nov. 21. Regarding the world pepper price, Lampung black pepper (Indonesia) was $3,515/ton last week, according to an update from the International Pepper Association (IPC); Brazilian black pepper ASTA 570 at $2,575/ton; Kuching Black Pepper (Malaysia) ASTA at $5,100/ton, unchanged.

According to the Vietnam Pepper Association, pepper exports showed a recovery as of October 2022, but not as expected. The overall market continued to decline as demand was impacted by China’s ‘zero Covid’ policy.

In addition, the Russia-Ukraine conflict led to high inflation in many countries and the devaluation of the currencies of the importing countries against the US dollar. In addition to the above factors, Vietnamese pepper is losing market share because the Brazilian and Indonesian markets offer more competitive prices.

BY MID-2023 THE MARKET WILL BE DIFFERENT

Over the past decade, Vietnamese pepper industry has seen ups and downs, when it peaked at almost 230,000 VND/kg, and at other times the price fell to 34,000 VND/kg. The price of pepper is currently 60,000 VND/kg.

Ms. Hoang Thi Lien, President of Vietnam Pepper Association, said: Pepper exports are forecast to continue to face many difficulties as global pepper prices continue to fall due to reduced demand in many countries, especially demand from China and China Standing downside The highly pegged USD is holding back exports from other countries.

“Chinese traders and major pepper exporters in Vietnam are on hold. At the moment, the Vietnamese pepper price depends on the Chinese market as European and European importers, and the US signed the contract by the end of this year,” Lien said.

It is noteworthy that a number of pepper exporters to Egypt and Pakistan are currently facing payment difficulties. The goods have arrived but have been “suspended” for a few months, do not know when to pay. Storage of containers in the yard is charged to companies.

“All forecasts indicate that pepper demand will fall sharply in the first quarter of 2023 with a particularly difficult winter in the European region due to the upcoming energy crisis. This period coincides with a new crop of Vietnamese crops in the market, signaling that the picture is not very exciting,” Ms. Lien said.

Related to pepper exports facing many difficulties, Ms. Lien said that new-generation Free Trade Agreements (FTAs) bring Vietnam many benefits, but FTAs ​​are good to use given the global economic environment, the world is still a difficult problem for businesses.

Therefore, the role of foreign trade is very important in providing companies with market information, so that companies can avoid risks and disputes with partners.

According to Ms. Lien, close cooperation between exporters, processors and producers is always necessary to ensure the value of the pepper industry and sustainable development. Farmers need to be the focus and farmers need to improve their farming knowledge.

In addition, there is a need to work with pepper industry companies, in particular, companies need to be encouraged to work closely with or associate with cooperatives and farmers.

However, according to the International Pepper Association, the picture of the pepper trading market is not entirely bleak. The global black pepper market size is estimated at US$3,159 million in 2021 and is forecast to grow to US$4,184.2 million by 2028 at a compound annual growth rate (CAGR) of 4.1% in the period 2022 – 2028.

The black pepper market is directly impacted by the growing processed food industry. Increasing consumption of baked goods, confectionery, ready-to-eat and fried foods in developed economies is driving the spice market. At the same time, the recent trend of using natural flavor enhancers has also fueled the growth of the global black pepper market.

At the recently held Vietnam International Pepper Industry Conference in 2022, Mr. Vu Ba Phu – Director of Trade Promotion Department (Ministry of Industry and Commerce) said that besides the traditional markets, the pepper industry needs to promote export to not yet big markets of the Vietnamese spice industry like that Middle East and Africa is a positive direction.

According to Phu, the pepper industry still has a lot to do so that Vietnam’s pepper products can sustainably assert themselves on the world market.

The first, Increasing the ability to comply with international standards, particularly in relation to aspects such as chemical residues, economic, social and environmentally sustainable production criteria.

Monday, Apply production management, on-demand and customer connection technologies to leverage these systems for marketing activities.

Tuesday, Strategic realignment Image building Strategic increase of presence in key markets, development of specific strategies and measurement of specific performance in the development of new products in high markets.