Pepper prices in Vietnam’s market increased sharply because the COVID-19 pandemic situation of the country was basically under control, and companies boosted purchasing. Besides, the amount of goods in the population is almost out of stock. If the price increase continues and when it reaches 90,000-95,000 VND/kg, it is possible that the inventory from 2-3 years ago will be sold to the market.
In early October 2021, the price of black pepper in the domestic market increased sharply compared to the end of September 2021. On October 8, 2021, the price of black pepper in production areas increased from 3.1 to 5.1% compared to September 30, 2021, to 80,500 - 84,000 VND/kg. The price of white pepper was at 123,000 VND/kg, an increase of 3,000 VND/kg, equivalent to an increase of 2.5% compared to the end of September 2021 and sharply increased compared to 67,500 VND/kg in the same period in 2020.
The demand for pepper from major markets such as the EU, the US, and the Middle East is assessed to be increasing in 2021 after being affected by the COVID-19 in 2020. Besides, production costs have risen, and prices of production materials such as fertilizer increased rapidly at above 100%, leading to many challenges for pepper farmers in caring for the plants. That creates an opportunity for pepper prices to continue to rise in the last months of 2021 and the beginning of 2022.
According to preliminary statistics, Vietnam's pepper export in October 2021 is estimated at 15 thousand tons, with a turnover of 64 million USD, down 2.2% in volume but up 3.5% in turnover compared to September 2021; down 30.6% in volume but up 19.2% in turnover compared to October 2020. In general, in the first ten months of 2021, Vietnam's pepper exports are estimated at 228,000 tons, with a turnover of 783 million USD, down 5.7% in volume but up 44.2% in turnover over the same period in 2020.
According to statistics from the General Department of Customs, Vietnam's pepper exports in September 2021 reached 12.2 thousand tons, with a turnover of 50.6 million USD, down 11.5% in volume but up 43.6% in value compared to September 2020. In the first nine months of 2021, Vietnam's pepper exports reached 152.34 thousand tons, with a turnover of 549.8 million USD, up 3.5% in volume and 56.2% in turnover over the same period last year.
The average export price of Vietnam's pepper in September 2021 reached 4,166.1 USD per ton, up 62.2% compared to September 2020. Generally, for the first nine months of 2021, the average export price of pepper reached USD 3,609.4/ton, up 50.9% over the same period in 2020.
In the first nine months of 2021, Vietnam exported the most pepper to the US market, accounting for 30.6% of the total volume, with the export volume reaching 46.7 thousand tons, turnover of 169.6 million USD, up 9.7 % in volume and 59.7% in turnover over the same period in 2020.
In general, pepper exports to many markets increased in the first nine months of 2021, exports to some markets increased. For example, exports to the UAE increased by 37% in volume and 115.9% in turnover; Pakistan - 12.6% in volume and 81.5% in turnover; Netherlands - 20.5% in volume and 56.9% in turnover.
(First nine months of 2021)
Source: The Ministry of Industry and Trade
