CHINA INCREASED BUYING TO HELP PEPPER PRICES RECOVER
12 June 2023
According to preliminary statistics of the Vietnam Pepper Association (VPA), in May 2023, Vietnam exported 28,759 tons of pepper of all kinds.
Although there has been a recovery in return, the export price of pepper is still significantly lower than the same period in 2022 while the market is still waiting for the price to drop thanks to the supply of the new crop from Indonesia and Brazil.
According to preliminary statistics of the Vietnam Pepper Association (VPA), in May 2023, Vietnam exported 28,759 tons of pepper of all kinds, of which black pepper reached 25,850 tons, white pepper reached 2,909 tons. Total export turnover reached 89.6 million USD, black pepper reached 76.8 million USD, white pepper reached 12.8 million USD, compared to the previous month, the export volume increased by 9.4%, the turnover increased by 7.5%.
Accumulated to the end of May 2023, Vietnam exported 131,777 tons of pepper of all kinds, of which black pepper reached 119,832 tons, white pepper reached 11,945 tons. Total export turnover reached 408.9 million USD, black pepper reached 354.1 million USD, white pepper reached 54.7 million USD. Compared to the same period last year, the export volume increased by 30%, equivalent to 30,438 tons, however, the export turnover decreased by 12.7%, equivalent to a decrease of 59.5 million USD.
Exports to Asia continued to be a bright spot, reaching 78,907 tons, up 77.2% and accounting for nearly 60% of Vietnam’s pepper export market share. In which, China is the main export market with 46,169 tons, accounting for 35% and increasing by 1,669% over the same period in 2022.
Contrary to the prosperity in the Chinese market, exports to Saudi Arabia recorded a decrease of 25.3%, reaching only 6,230 tons; India fell 40.7%, at 4,989 tonnes. Pepper exports to the Americas also decreased by 13.1%, of which exports to the US decreased by 15.5%, reaching 21,093 tons; the euro area decreased by 9.4.
Africa alone recorded an increase of 38.9%, of which Egypt reached 2,179 tons, up 140%; Senegal reached 1,523 tons, up 104.4% over the same period in 2022. The leading white pepper import markets of Vietnam include: China: 1,803 tons, the United States: 1,610 tons, Germany: 1,432 tons, the Netherlands : 1,034 tons.
In May, the average export price for black pepper reached US$3,540/ton, white pepper reached US$5,024/ton, increasing by US$85 and US$154 respectively compared to April 2023, corresponding to an increase of 2.5%. and 3.2%. However, compared to the same period last year, export prices still fell 17% for black pepper and 16% for white pepper.
In the domestic market, pepper prices also increased sharply to 73,000 VND/kg for black pepper and 106,000 VND/kg for white pepper, up 9% and 6% respectively compared to April 2023.
According to VPA, prices increased in the Vietnamese market due to the rush of orders from the Chinese market. Meanwhile, with the psychology of waiting for more new crops from Indonesia and Brazil, it will help lower prices, so there has not been an exciting transaction from the EU and US markets. In addition, the fact that the inventory from previous years also helped buyers from the EU and the US linger in the market in the past 5 months. The market is having a tug-of-war between buyers and sellers.
Faced with this situation, VPA recommends that businesses should consider and be sober, carefully assess their financial ability when signing contracts in large quantities, for long distance delivery, at low prices due to the low prices in other countries; and when the rising price does not buy enough to deliver far, there is risk and loss as happened in the 2022 crop, affecting business reputation.
The VPA also noted that China will have stricter controls to meet compliance requirements for quality standards and traceability regulations, even for goods exchanged by border residents. Therefore, businesses need to prepare early to meet the necessary requirements in the near future.
Source: congthuong.vn
