Vietnam exported 267,000 tonnes of pepper worth US$912 million last year, representing an increase of 16.6% in volume, but a decrease of 6.0% in value compared to figures from 2022, according to details given by the Ministry of Industry and Trade.

The average pepper export price dropped by 19.4% to reach US$3,420 per tonne compared to 2022. Last year witnessed the Vietnamese pepper industry encounter numerous difficulties due to low consumption demand, economic recession, high inflation, and prolonged geopolitical tensions.

During the course of the 11-month period, the country’s pepper export turnover to Europe, the Americas, and Africa decreased by 22%, 22.2%, and 9.7%, respectively compared to the same period from 2022.

Meanwhile, exports to Asia and Oceania increased by 11.4% and 157.3%, respectively against the same period from last year.

By the end of 2023, export prices at pepper production countries around the world had witnessed numerous fluctuations, witnessing a downward trend in Indonesia but a sharp rise in Brazil and Vietnam.

In terms of the domestic market, the price of black pepper skyrocketed as speculators stepped up the purchase of pepper amid a limited supply source.

However, the growth momentum in pepper prices is forecast to slow due to businesses purchasing goods in moderation for processing.

The global pepper prices this year are therefore anticipated to become higher than those seen 2023. In addition, amid the world economy facing numerous risks, pepper output from Vietnam, Brazil, India, and Indonesia are all predicted to reduce.

Moving forward, the Vietnam Pepper Association forecasts that global pepper output in the 2023 to 2024 crop year will decrease due to a fall in output from pepper producers.

Accordingly, Vietnamese pepper output this year is estimated to fall between 10% and 15%, while the output of India, Indonesia, and Brazil is anticipated to drop by 20%, 30%, and 15%, respectively.

Pepper exports this year are projected to enjoy favorable conditions in terms of quantity and price as a result of reduced output.

VOV