According to statistics from the Vietnam Pepper and Spice Association (VPSA), in the first 6 months of 2024, as of the end of June 2024, Vietnam has exported 142,586 tons of pepper of all kinds, a decrease of 6.8%. in volume but an increase of 30.5% in value.

Of which, the volume of black pepper exported reached 125,959 tons, white pepper reached 16,627 tons. Total export turnover reached USD 634.2 million, black pepper reached USD 539.9 million, white pepper reached USD 94.3 million.

In the first 6 months of 2024, the US is Vietnam's largest pepper export market with a volume of 37,435 tons, an increase of 44.6% over the same period last year, accounting for 26.3% of the market share. Followed by markets such as Germany with 9,526 tons, an increase of 106.7%; UAE: 8,388 tons, an increase of 15.2%; India: 8,173 tons, an increase of 45.7%, China: 7,453 tons, a decrease of 85.2% and Netherlands: 6,019 tons, an increase of 52.1%.

Top white pepper export markets: Germany: 2,454 tons, the U.S.: 2,044 tons, Netherlands: 1,779 tons, Thailand: 1,732 tons and China: 1,567 tons.

Along with that, Vietnam imported 18,002 tons of pepper of all kinds, of which black pepper reached 16,357 tons, white pepper reached 1,645 tons, total import value reached USD 69.6 million, an increase of 18.9% over the same period last year. The three main pepper supply countries to Vietnam include: Brazil with 7,241 tons, a decrease of 22.3%; Cambodia with 6,212 tons, an increase of 34.5%; Indonesia with 2,991 tons, an increase of 67.3%, etc.

The continuous increase in pepper prices is the reason why although export value has increased, quantity has decreased. Currently, the average export price of Vietnamese pepper has increased by USD 1,000/ton compared to the same period in 2023. Specifically, the price of black pepper reached more than USD 4,300/ton, white pepper reached nearly USD 6,000/ton.

The main reason for the sharp increase in pepper prices is that global pepper production has decreased significantly due to the El Nino phenomenon and the decline in farming area, and the volume of inventory from last year transferred to this year in Vietnam (the largest pepper exporting country) is almost negligible while demand in major markets such as Europe, the US and China is decreasing.

According to VPSA's assessment, Vietnam's pepper output in 2024 is estimated to decrease by 10% compared to 2023, to only about 170,000 tons. This is the lowest level in the past 5 years.

The Import-Export Department (Ministry of Industry and Trade) forecasts that rising domestic pepper prices will push up export pepper prices and it is expected that the pepper industry will earn billions of dollars in export revenue this year.

Kylie Nguyen