Mr. Le Viet Anh - Chief of Office of the Vietnam Pepper and Spice Association (VPSA) said that from January 1 to September 30, 2023, Vietnam exported 204,385 tons of pepper of all kinds, in Black pepper reached 183,475 tons, white pepper reached 20,910 tons.

Pepper inventory in 2023 transferred to 2024 will be the lowest in recent years.

Total export turnover reached 678.1 million USD, black pepper reached 578.2 million USD, white pepper reached 99.9 million USD. The group of enterprises in the export VPSA accounts for 63.6%.

Compared to the same period in 2022, export volume increased by 15.3%, equivalent to 27,164 tons, however export turnover decreased by 13.4%, equivalent to a decrease of 104.5 million USD.

The average export price of black pepper in the first 9 months of 2023 reached 3,539 USD/ton, white pepper reached 5,068 USD/ton, down 15.3% for black pepper and 14.2% for white pepper respectively over the same period. 2022.

The leading enterprises exporting pepper include: Nedspice reaching 13,541 tons, an increase of 1%; Olam Vietnam reached 13,408 tons, down 37.3%; Pearl reached 13,250 tons, down 37.1% and Phuc Sinh reached 11,607 tons, down 1.1%; Haprosimex JSC reached 8,411 tons, down 24.3%...

The main white pepper exporting enterprises include: Nedspice Vietnam, Olam Vietnam, Pearl Group, Lien Thanh and Phuc Sinh. Main white pepper consuming markets: United States, China, Germany, Netherlands, Thailand...

In the opposite direction, by the end of September 2023, Vietnam imported 20,541 tons of pepper of all kinds, of which black pepper reached 19,232 tons, white pepper reached 1,309 tons, compared to the same period last year, the import volume decreased by 30%. .7% equivalent to 9,084 tons. Brazil, Cambodia and Indonesia are the three main supply countries for Vietnam reaching 12,517 tons, 3,403 tons and 2,697 tons.

Of which, imports from Brazil increased by 62.2%, from Cambodia decreased by 73.0% and from Indonesia decreased by 48%. The main importing enterprises include: Olam reaching 7,659 tons, down 11.8% and accounting for 37.3% of the import market share; Pearl reached 3,541 tons, up 3.4%; Nedspice reached 1,589 tons, an increase of 65.5%; Vietnam's KSS reached 1,331 tons, down 30.1% and Son Ha reached 1,198 tons, down 10.8%...

The domestic pepper market in the third quarter of 2023 did not have many mutations when pepper prices decreased slightly in July, increased again in August and September but decreased again in mid-October. Currently, the price is standing on average. at 70,000 VND/kg, compared to the same period last year, the average domestic purchasing price in 9 months decreased by 10%.

Vietnam has exported all of its harvest in 2023, part of the export is taken from imports as well as inventory from the previous year. It is expected that in the last 3 months of the year, Vietnam will export about 45,000 tons, bringing the total export volume for the whole year 2023 to an estimated 250,000 tons. Pepper inventory in 2023 transferred to 2024 will be the lowest in recent years.

According to Mr. Le Viet Anh, the 2024 pepper crop will start in 2 months in the Dak Nong area, which is considered the most important area for Vietnamese pepper today.

The flood situation in July is estimated to affect the upcoming pepper harvest, combined with the forecast that the El Nino phenomenon will occur at the end of the year, which could lead to Vietnam's pepper output. 2024 will decrease compared to 2023.

According to the general assessment of businesses, the 2024 pepper crop will decrease by about 10 - 15%, with an estimated harvest of 160,000 - 165,000 tons.

Global pepper output in the 2024 crop is estimated to decrease when output is forecast to decrease from producing countries. However, this decrease is still lower than the decrease in global consumption demand, so pepper prices are forecast. It will be difficult to increase continuously in the long term.

Except for China, it is forecast that the upcoming consumption demand of countries around the world may decline due to the impact of the economic crisis resulting from the conflict in Eastern Europe. At the same time, the impact of the war in Israel will also affect oil prices, which will further cause the world economic situation to fall into recession, with purchasing power likely to decrease in the near future.

Ms. Hoang Thi Lien - President of the Vietnam Pepper and Spice Association - commented that although market conditions are difficult, in which the EU and US markets are quieter than the Chinese market , but In the first 9 months of the year, the industry has achieved good export performance, increasing in quantity, but decreasing in value compared to last year.

It is forecast that pepper exports in the next 3 months will depend on the amount of inventory carried over from previous years.

Ms. Hoang Thi Lien commented that the context of economic recession, the Russia-Ukraine conflict , and the Israel-Palestine conflict affect the global market, including oil prices and the world trade situation in general.

Many countries are in a state of foreign currency scarcity. Vietnam is dependent on the export market, so it has witnessed a decline in commodity industries in general, and the spice group is no exception.

In addition, macro management policies, purchasing power, and consumption power of major markets, including the US and EU, which are key markets of Vietnam, will likely be difficult to recover in the short term.