Vietnam's pepper exports surpass $1bn in January-September
Vietnam's pepper exports surpass $1bn in January-September
Vietnam's pepper exports saw a remarkable surge over the first nine months of this year, surpassing US$1 billion in revenue and reaching a high of $6,239 per metric ton.
Many Vietnamese pepper products are exported to the European market by an exporting enterprise in Ho Chi Minh City. Photo: Thao Thuong / Tuoi Tre |
According to the General Department of Vietnam Customs, pepper export prices fetched an impressive $6,239 per metric ton in September, their highest level in several years.
Overall, Vietnam exported over 200,000 metric tons of pepper from January through September, generating more than $1 billion in turnover.
This marks a 47-percent increase in value compared to the same time frame in 2023, driven by a high selling price of around $4,950 per metric ton.
By comparison, pepper exports in 2023 generated only $912 million, with an average price of $3,420 per metric ton.
Pepper is typically graded by density
In late September, the International Pepper Community reported that 500g/l Vietnamese black pepper was priced at $6,800 per metric ton, while 550g/l Vietnamese black pepper fetched $7,100 per metric ton. White pepper prices surpassed $10,000 per metric ton.
On the domestic front, pepper prices fluctuated between approximately VND148,000 ($5.99) and VND149,000 ($6.03) per kilogram in October.
In the Central Highlands, pepper cost VND148,500 ($6.02) per kilogram in Dak Lak Povince, VND149,000 per kilogram in Dak Nong Province, VND148,000 per kilogram in Gia Lai.
Prices in southern Binh Phuoc Province sat at around VND148,000 per kilogram.
Phan Minh Thong, chairman of Phuc Sinh JSC., a leading Vietnamese spice exporter, attributed the high export price of Vietnamese pepper to limited supply.
His company exports to over 100 markets worldwide and holds an eight-percent share of the global pepper export market.
Notably, they dominate the freeze-dried pepper and green pepper sauce segments with about 40 percent of the global market share.
“Farmers have been happy this year because selling prices rose sharply from approximately VND87,000 [$3.53] per kilogram at the beginning of the year to their current level of around VND150,000 [$6.08] per kilogram," said Thong.
"However, export companies are finding it difficult to source enough domestic pepper to meet demand and have had to import significant quantities from Brazil and Indonesia."
According to Thong, many farmers are holding onto their pepper crops, hoping that prices will continue to rise.
But expectations for a reduced output in 2025 because of prolonged drought conditions are creating concerns about a potential shortage in the pepper supply.
According to a report by Nedspice, a global food ingredients company, Vietnam's processed pepper exports have climbed over 50 percent year on year, marking the first significant price hike in years.
After a decade-long absence from the 'billion-dollar export club,' this year marks Vietnamese pepper’s return to the 'elite' group.
The last time Vietnamese pepper exports topped $1 billion was in 2014, when exporters reported $1.2 billion in revenue.
In 2015, pepper prices hit an all-time high of VND230 million ($9,323) per metric ton.
Following a drastic price drop in 2016 caused by oversupply from increased planting areas, export values fluctuated between $700 million and $800 million over the next several years.
The Vietnam Pepper and Spice Association projects that Vietnam's pepper production will hit 170,000 metric tons in 2024, a fall of about 10 percent from last year, while global production is expected to reach approximately 465,000 metric tons against a consumption demand forecast at 529,000 metric tons.
