The price of pepper is always interested in by many agricultural businesses. The reason is, Pepper is the most popular spice in the world. With the current situation, pepper prices in Vietnam and Sri Lanka are having some changes.
Pepper exports in Vietnam accelerate
Reduce quantity, increase value
In the first two months of the year, Vietnam’s pepper exports experienced mixed growth as output decreased by 11.2%; but increased by 43.8% in value over the same period last year. The reason is, the export price of Vietnamese pepper increased by 61.9% over the same period last year, reaching 4,681 USD/ton. The Import-Export Department (Ministry of Industry and Trade) forecasts that world pepper prices will continue to increase. It is because of reduced output and high transportation costs.
Currently, Vietnam has started to enter the main pepper harvest. In some places in Dak Nong province, the harvest is almost done, so the supply is quite abundant.
In the domestic market, the price of black pepper also increased sharply, from 500 to 1,500 VND/kg compared to the same period last month. The price of white pepper was at 121,000 VND/kg, 1,000 VND/kg lower than the beginning of February 2022 However, it is increased sharply compared to the price of 72,000 VND/kg in the same period in 2021.
According to President of the Vietnam Pepper Association, after peaking at 290,000 tons in the 2019 crop, Vietnam’s pepper output gradually decreased in the next seasons. In the 2022 crop, due to unfavorable weather, pepper production is expected to continue to decrease. Meanwhile, the global demand for pepper increased by 3% compared to last year, not only in Vietnam, the output of some pepper growing countries is decreasing, which creates a special advantage for export. pepper export. The proof is that the export price of Vietnam’s pepper in the first months of this year increased sharply.
Vietnam takes advantage of breakthrough
The leader of the Vietnam Pepper Association also said: Over the past decade, beating other growing countries such as Brazil, Indonesia, and India, Vietnam has become the world’s leading pepper exporter, accounting for 60% of the global pepper export market share. Favorable weather, soil, and competitive labor prices have helped Vietnam’s pepper exports to be competitively priced.
Besides, the quality of Vietnamese pepper has been greatly improved to meet all market segments. To achieve these remarkable achievements, Vietnamese stakeholders have joined hands to GMP, IPM to deliver good products to the market. Vietnam currently has more than 30 enterprises investing and applying high-tech standards in processing. They are producing with a production capacity of 120,000 tons/year.
Joining the delegation organized by the Trade Promotion Department (Ministry of Industry and Trade); Sybil Agri Vietnam Co., Ltd. has signed a contract to export 10 tons of pepper and is continuing to negotiate a supply contract. whole year pepper with the quantity up to 500 tons in the market of the United Arab Emirates.
Right from the beginning of the year, Vietnam’s pepper exports have prospered. The Vietnam Pepper Association used to be optimistic that pepper exports would rebound from the first quarter of 2022; because it was estimated that the world’s purchasing demand would range from 130,000 to 160,000 tons this year. Moreover, the quality of pepper is improving and the Vietnam Pepper Association is supporting businesses to promote deep processing.
Vietnam entered the pepper harvest season. Price of Pepper is on a downward trend.
The 2022 pepper crop in the provinces is entering the full autumn season, which is expected to end at the end of March and early April. Currently, the price has decreased slightly due to the cooling of pepper prices on the world market.
According to some gardeners, the selling price of pepper in the garden is currently only from 78,000 – 80,000 VND/kg; down about 5,000 VND/kg compared to the beginning of the crop. However, the current selling price is still much higher than last year’s harvest.
Although pepper prices have improved, the sharp increase in input prices has eroded the profits of growers. Specifically, the daily labor cost fluctuates at a high level, from 220,000 to 250,000 VND/day; or from 3,000 to 4,000 VND/kg of fresh pepper. Labor costs are high but it is still difficult to find people, making farmers worried. At current prices, farmers can only profit by using family labor.
Vietnam’s pepper has increased sharply in area and output in previous years. That led to the bottom of the surplus crisis in April 2020 with a price of only about 35,000 VND/kg.
According to VPA, after prices return to stability, farmers continue to maintain and take good care of their existing pepper gardens. Farmers are also self-aware of the trend of changing farming toward clean and sustainable. This is a bright spot for the quality of Vietnamese pepper in the future. However, some small-scale livestock farmers have not invested in fertilizers and chemical drugs to stimulate productivity.
Price of pepper in Sri Lanka face many difficulties and solutions
Sri Lanka is one of the major exporters of pepper in the world. However, in recent times, the quantity of pepper in Sri Lanka has changed. That change was because of concerns like high production and labor costs. In addition, there are shipping costs. As a result, pepper prices have doubled since the start of the Covid-19 pandemic.
Then, to meet the increased demand, countries such as Vietnam, Malaysia, Indonesia and Brazil increased their production output to 650,000 tons, resulting in prices falling to $3 and $3.50 in the global market.
Meanwhile, during this period, the Sri Lankan pepper industry faced a severe decline due to unexpected weather conditions that resulted in a significant reduction in total pepper production, leading to an increase in Sri Lankan pepper prices due to factors affecting affect supply, thus affecting the pricing mechanism.
According to official statistics released by Minh-Ngoc Nguyen – a researcher on Southeast Asia – the total output of pepper produced in Vietnam in 2021 exceeded 280,000 tons, showing a significant increase compared to just over 270,000 tons in 2020.
People of Sri Lanka currently grow pepper on 30,000 hectares of the country’s land; especially in the lower and middle regions with cooler climates. It includes Matale, Kandy, Kurunegala, Monaragala, Kegalle, and Ratnapura.
Regarding the Ministry of Agriculture of Sri Lanka, the Ministry has also proposed many options to improve the production situation. The Ministry of Agriculture has made proposals such as expanding pepper growing areas, developing programs to increase the yield of the commodity. The ministry is aiming to increase production to 1,500 kg/ha.
To this end, the Department of Agriculture is encouraging farmers to implement a series of farmer incentive programs, aimed at improving their crop productivity.
Where to buy Pepper?
At Vihaba, we supply pepper from organic farms in Vietnam. We have tested quality and carefully packed our pepper to customers. Vihaba is a reliable address for you to choose to import. Here are some pictures of Vihaba’s pepper:
Contact Vihaba for detailed product information and the best deals for Vietnamese agriculture products.
Contact information:
Email: export@vihaba.vn
Whatsapp number: +84 338 328 403
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