August Pepper Market Report

Vietnam’s pepper industry has experienced a significant surge in export earnings, increasing by 40.8% year-on-year to reach 764.2 million USD in the first seven months of this year, according to the Vietnam Pepper and Spice Association (VPSA). This remarkable growth has occurred despite a slight 2.2% decline in export volume. The rise in global pepper prices has been a key driver of this increase, with the US leading as Vietnam’s top pepper importer, purchasing 43,349 tonnes, which marks a 48.4% increase from the previous year and accounts for 26.4% of the market share.

In July alone, Vietnam exported 21,771 tonnes of pepper, earning 129.9 million USD, a 43.7% increase in volume and a 128.9% increase in value compared to the same period last year. This includes 19,371 tonnes of black pepper and 2,400 tonnes of white pepper. The total export volume from January to July reached 164,357 tonnes, comprising 145,330 tonnes of black pepper and 19,027 tonnes of white pepper.

To sustain this positive momentum, VPSA Chairwoman Hoang Thi Lien emphasized the need to stabilize pepper cultivation areas while enhancing product quality and diversifying high-value processed products. She also recommended that farmers adopt international standards concerning chemical residues, cultivation practices, pest control, and preservation methods suited to regional climatic conditions. Developing new pepper varieties with higher yields, better quality, and disease resistance is crucial.

On the global stage, the International Pepper Community (IPC) reported mixed market reactions. For instance, while Indian and Sri Lankan pepper prices remained stable, Indonesia saw an increase in its domestic and international pepper prices, driven by a 1% appreciation of the Indonesian Rupiah against the US dollar. Meanwhile, Malaysia experienced a 3% increase in the Ringgit’s value, contributing to higher pepper prices as the country entered its harvest season. In contrast, Vietnam’s domestic and export pepper prices saw a decline, and Brazil’s black pepper prices also fell, while pepper prices in Cambodia and China remained stable.

As of August 17th, the domestic pepper price in Vietnam ranged from 139,000 to 140,000 VND/kg, showing an increase of 2,000 to 2,500 VND/kg from the previous day. The latest trade data also indicated that Vietnam’s black pepper prices were at 5,800 USD/ton for 500 g/l type and 6,200 USD/ton for 550 g/l type, while white pepper was priced at 8,500 USD/ton.

Looking ahead, the global pepper market is expected to reach 1 billion USD this year, with Vietnamese exporter Phuc Sinh maintaining an 8% share of the global market. The company’s export volume has grown by 40%, with average export prices doubling compared to the same period last year. In Vietnam, domestic pepper prices have risen to 140,000 VND/kg, a 1.75-fold increase from earlier this year, reaching up to 158,000 VND/kg at their peak, driven by the scarcity of supply.

As the market evolves, leveraging digital technology for production management, traceability, and market access will be essential. Additionally, promoting cooperatives and production groups will help strengthen the supply chain and benefit exporters, ensuring that Vietnam remains a key player in the global pepper industry.

#ProsiThangLong #Prosi #GlobalTrade #VietnamSpices #VietnamNuts #Pepper #Cashew #Cinnamon #Coconut #StarAnise #VietnamExporter

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