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Tuesday- 15:50, 18/04/2023

Exports of Vietnamese pepper will increase in the second quarter of 2023

(VAN) Vietnam's pepper exports increased considerably in the first quarter with a surge from the Chinese market. This figure is expected to be much higher in the second quarter.

According to the Vietnam Pepper Association, Vietnam exported over 76 thousand tons of pepper in the first quarter of 2023, reaching an export value of USD 233 million. Compared to the first quarter of 2022, the export volume increased by 43.4% but export turnover decreased by 6%, due to the sharp drop in export prices as well as the general decline in the global pepper market. Moreover, the average export price of Vietnam's pepper in the first quarter was 34.3% lower compared to the same period in 2022.

Farmers harvesting pepper at Thien Nong farm, Binh Phuoc. Photo: Son Trang.

Farmers harvesting pepper at Thien Nong farm, Binh Phuoc. Photo: Son Trang.

One thing to note is that Vietnam's pepper exports to China increased considerably during the first quarter. The amount of pepper exported to China in the first thre months of 2023 reached 26,000 tons, up by 12 times over the same period last year and surpassed the total amount of 20 thousand tons in the entirety of 2022.

This sudden surge in pepper exports to China was the result of Chinese traders making purchases to compensate for the shortage caused by 3 years of strict Covid-19 quarantine. The increase in Chinese consumers' demand has helped keep Vietnam's pepper prices relatively stable in recent years. In contrast to the Chinese market, pepper exports to many markets including the United States, Germany, the Netherlands, the United Kingdom, and India decreased in the first quarter of 2023. The economic turmoil has limied these nations' ability to purchase a variety of commodities, including pepper.

In addition to the Chinese market, Vietnam's pepper exports to several other markets also reported a strong growth in the first quarter such as Iran with an increase of 461%; Turkey with an increase of 331.3%; Egypt with an increase of 218.4%; Senegal with an increase of 148.8%, etc.

According to the Import and Export Department under the Ministry of Industry and Trade, markets including China, Papua New Guinea, Turkey and ASEAN countries will continue to see an increase in pepper imports, whereas the US and the EU saw little demand for pepper imports in the second quarter of 2023. As a result, Vietnam's pepper exports will pick up in the second quarter.

Adverse weather has negatively affected pepper production in many key growing areas. Photo: Son Trang.

Adverse weather has negatively affected pepper production in many key growing areas. Photo: Son Trang.

In the first half of April, Vietnamese pepper prices remained stable at 64,000 to 65,000 VND per kilogram. Many pepper farmers expect this year's pepper output to continue its declining trend because the number of pepper growing areas in Vietnam is shrinking as more farms convert to alternative crops.

On the other hand, unfavorable weather conditions have negatively affected productivity in several key pepper growing areas. For instance, many pepper farms in Loc Ninh district, Binh Phuoc province reported a significant drop in yield as a result of the prolonged cold weather during the pepper flowering time. Ms. Nguyen Thi Thuy, a farmer in Loc Hiep commune, shared that with 4 hectares of pepper growing area, her family could collect between 5 and 6 tons of dried pepper every year. However, her family only managed to harvest 2.5 tons. Similarly, Mr. Ly Thanh Tung, a farmer in Loc Thuan commune, could only harvest 1.2 tons of fresh pepper per hectare, which is half of his regular yield last year.

Mr. Le Khac Phu, Chairman of Loc Ninh District Farmers' Association, said that Loc Ninh district and its surrounding districts in Binh Phuoc province reported lower productivity in the 2023 pepper season, with a fall of up to half from 2022.

In face of the continuing decline in pepper production, farmers and pepper purchasing agents in the Southeast and Central Highlands are holding onto their pepper after harvest and waiting for the price to increase. Farmers only sell the minimum amount of pepper to make enough money and support their family's needs.

According to the Import-Export Department, Vietnam mainly exported black pepper in the first two months of 2023. Accordingly, black pepper accounted for 81.2% of the total volume and 74.3% of the total export turnover. The export growth of black pepper is contributing greatly to the growth of the enite pepper industry. Furthermore, exports of ground white pepper also increased by double digits. These figures show that the pepper industry has focused on diversifying its export products, including processed products. However, the export volume and value of processed pepper is still relatively low compared to the overall pepper export. Consequently, the pepper industry needs to pay more attention to the processing and export of deeply processed pepper products.

Authors: Son Trang - Hong Thuy

Translated by Nguyen Hai Long

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