11 January, 2022
Export price of pepper in the year 2022 is forecasted to continue to hold high
Export price of pepper in the year 2022 is forecasted to continue to hold high
According to information from the Import-Export Department (Ministry of Industry and Trade), in year 2021, Vietnam's pepper exports are estimated at 261 thousand tons, value 938 million dollars, reduction 8,5% in quantity, but increase 42% in value over the year 2020. For the whole year 2021, The average export price of Vietnam's pepper is estimated at 3.593 USD/ton, increase 55,2% over the same period in the year 2020.
Good news for pepper growers
Whereby, in year 2021 past, Vietnam's pepper exports have a shift in market structure. Proportion of exports to US markets, ME, United Arab Emirates, Pakistan rose, while the proportion of exports to the Chinese market, ASEAN down.
Especially, in 11 may 2021, Vietnam's pepper exports to many markets increased in both volume and value, including: USA, United Arab Emirates, Virtue, Pakistan, Netherlands, Korea, Brother. Remarkable, The amount of pepper exported to the Dutch market increased to 52,7%, reach 3,17 thousand tons.
Besides that, Many markets increase to buy white pepper from our country like Thailand, China, India, Spain. Bring the total export output of white pepper 11 may 2021 reach 21,2 thousand tons, value 106,23 million dollars, increase 2,3% in quantity and increase 58,7% in value over the same period of the year 2020.
Export of pepper in the year 2021 estimated 938 million dollars
Statistics from the China Customs Administration say, pepper import turnover of this country in the month 10/2021 reach 4,79 million dollars, reduction 1,3% compared with month 10/2020. Although China reduced pepper purchases from Indonesia and Malaysia decreased, but increased buying from Vietnam, Brazil and India.
Are known, in 10 may 2021, Chinese chi 14,54 million USD to buy pepper from Vietnam, increase 15% over the same period in the year 2020. Vietnam's pepper market share in China's total imports increased from 25,85% in 10 may 2020, up 31,76% in 10 may 2021.
Good news for the pepper industry, That is, in recent years, the structure of exported pepper has changed quite a lot.
Businesses have reduced exports of raw pepper, instead, promote the sale of pre-processed or intensively processed varieties; promoting the export of products to serve the cosmetic industry…
Step into the year 2022 this, Import-Export Department forecasts, Export pepper prices will continue to stay high. The pepper industry continues to exploit traditional export markets such as the United States, ME, United Arab Emirates.
United States, Vietnam's largest pepper export market, With the economic situation showing signs of recovery, the demand for pepper will increase.
While, Vietnam's pepper has created a fairly solid foothold in the US market. The competitive advantage of Vietnam's pepper products compared to other export markets is quite large.
Constantly improving quality, keep the brand, market expansion
Comment on the shifting structure of Vietnamese pepper, The Import-Export Department believes that, year 2021, Vietnam's pepper has a strong shift in the structure of export products. Citing statistics of the General Department of Customs, in the first half of the year 2021, exports of black pepper and white pepper decreased in volume, but increased sharply in value, while exports of ground black pepper and ground white pepper increased sharply in both volume and value over the same period last year 2020.
Changing mindsets, grow pepper organically, Actively looking for output for products has helped Vietnam's pepper conquer domestic and foreign markets with higher prices..
However, This agency also forecast, Vietnam's pepper exports will face difficulties in the last months of the year. Pepper exports to main markets tend to slow down or decrease sharply. Presently, The amount of pepper left in the population is not much, while the export business is not much “salty” due to the "galloping" increase in shipping costs and strict disease prevention measures in many localities.
“Vietnam's pepper exports in 1-2 Next month will have many restrictions due to the impact of the COVID-19 epidemic, while congestion at southern seaports and high shipping rates will be obstacles to pepper exports.. Pepper prices are also considered unlikely to increase sharply due to improved supply when Indonesia, Malaysia and Brazil enter the harvest of the month 8 and September”, Representative of the Import-Export Department commented.
Therefore, to have a competitive advantage in the world market of spices and flavorings, After Vietnam got the disease under control, Localities and businesses need to have a plan to restore production, application of advanced technologies for processing, develop a variety of products, take advantage of incentives from new-generation free trade agreements that Vietnam has recently joined to boost exports.
The Ministry of Agriculture and Rural Development inspects pepper cultivation in Dak Nong province.
On the side of Vietnam Trade Offices abroad, Mr. Bui Trung Thuong, Vietnamese Trade Counselor in India said:, India's spice production is about 3 million tons per year. Spices are also a billion-dollar export product of this country. India also imports many spices, including pepper. India imports pepper from Vietnam about 25-30 million USD / year.
Therefore, for seasoning, Vietnamese flavorings successfully exported to India, Mr. Bui Trung Thuong recommended, businesses that need to apply science and technology or research and develop products, for example a variety of seasoning ingredients mixed into 1 spices with characteristic flavor. At the same time, Businesses also need to learn the flavors of other countries to make products that meet the tastes of this market, create competition with similar products of other countries…
In charge of the Vietnam Trade Office in Saudi Arabia, please pay more attention to businesses, main packing material for herbs, spices and seasonings in Saudi Arabia should be glass, flexible packaging, paper and paperboard, hard plastic and others. Packing boxes come in different varieties such as vials, chai, the bag, package, tub, box, bags and tubes.
For European market, Mr. Pham Van Hien, Director of LTP Import Export B.V Netherlands Company shared, for Vietnamese spices to penetrate the European market, Businesses need to carefully study this block market. If companies do not have a market research room, they can participate in fairs like Anuga of Germany to promote their products., Refer to the information on the association's website, European professions.
Source: Xuan Hien – Journal of Organic Agriculture
