This kind of “black gold” is none other than black pepper. According to the Import-Export Department, Ministry of Industry and Trade, in January 2024, Vietnam’s black pepper exports reached a production volume of 20 thousand tons and a value of 79 million USD. This result represents a 60.2% increase in volume and an 83.9% increase in value compared to January 2023. Furthermore, the average export price of black pepper from Vietnam in the first month of 2024 is estimated to be 3,953 USD/ton, an increase of 14.8% compared to January 2023.
According to data from the General Department of Customs, in 2023, Vietnam exported a total of 264,094 tons of pepper, including 236,148 tons of black pepper and 27,946 tons of white pepper. The total export value of pepper in 2023 reached 906.5 million USD, a decrease of 8% compared to 2022. The reason for this decline is the decrease in average export prices, which were around 420 USD/ton for black pepper and 635 USD/ton for white pepper.
In 2023, Vietnam exported pepper to more than 100 countries and territories around the world. The top export markets include China, the United States, India…
Among these markets, China is the largest importer of Vietnamese pepper. According to data from the Chinese Customs, the country imported approximately 9.18 thousand tons of pepper with a total value of 39.75 million USD in 2023, representing a 4.5% increase in volume and a 6.1% decrease in value compared to 2022. In fact, China’s annual demand for pepper is around 65 – 70 thousand tons.
Vietnam is the second largest source of pepper for China. Illustrative image
According to Chinese Customs, in 2023, China imported pepper from 25 countries and territories around the world. Among them, Indonesia is the largest supplier to China, with a production volume of over 4 thousand tons and a value of 17.63 million USD, representing an 11.5% decrease in volume and a 19.5% decrease in value compared to 2022.
Currently, Vietnam is the second largest supplier of pepper to China (after Indonesia). Specifically, in 2023, Vietnam’s total pepper exports to China reached about 3.36 thousand tons, with a value of 13.23 million USD, an 18% increase in volume and a 1% increase in value compared to 2022.
According to the Import-Export Department, Ministry of Industry and Trade, China’s pepper import demand is forecasted to increase in 2024 compared to 2023. This is an opportunity for pepper exporters worldwide. Pepper is mainly used as a spice and in the food industry. Furthermore, it is a popular and widely used product in China.
According to the Ministry of Agriculture and Rural Development, the pepper cultivation area in Vietnam reached 115 thousand hectares in 2023, a decrease of 5 thousand hectares compared to 2022. Currently, nearly 20 provinces have a pepper cultivation area of over 100 hectares in Vietnam. Among them, the two regions with the fastest-growing pepper cultivation area are Southeast and Central Highlands. The pepper harvest for 2024 has started in some districts of Dak Nong province, but the volume is still limited.
What challenges does Vietnamese pepper face in 2024?
Vietnamese pepper exports in 2024 are expected to face many challenges. Illustrative image
According to the General Department of Customs, Vietnam is currently the world’s leading producer of pepper, accounting for about 40% of global supply. However, the pepper production in 2024 is forecasted to continue to decrease to 180 thousand – 200 thousand tons.
According to the Vietnam Pepper Association (VPSA), the prolonged heavy rains in recent times in the Central Highlands and southern provinces of Vietnam have brought many difficulties and challenges to pepper growers.
VPSA representatives believe that in addition to the challenges from 2023 regarding freight rates and excess supply, the pepper industry will also face many difficulties in 2024. This is also the year with the lowest inventory turnover in the past 5 years.
With low inventory and forecasted lower imports (due to other countries also restricting excess supply), Vietnam’s pepper exports in 2024 may reach a low level.
However, according to the International Pepper Community (IPC), global pepper production in 2024 is expected to decrease by 1.1%, equivalent to a decrease of 6,000 tons. The reason is unfavorable weather conditions due to the impact of El Nino on pepper productivity and harvest. In addition, the global pepper price is also expected to increase in the first quarter of 2024 due to continued production decreases in major producing countries. This will also have an impact on Vietnam’s pepper export prices.
According to Eating Well, consuming pepper in moderation brings many health benefits. This type of spice helps the body absorb antioxidants better, reduce inflammation, and enhance brain health.
References: Mard, Moit, Customs, VSPA, IPC
