2021 witnessed a recovery in Vietnam black pepper price. Traders should acknowledge the current situation, future predictions about Vietnam black pepper price, and related factors.
- 1 Vietnam black pepper price: The market’s overall situation
- 2 The price of Vietnam black pepper price
- 3 The future prediction of Vietnam black pepper price
- 4 Factors that affect Vietnam black pepper price
- 5 Vietnam black pepper price: Companies provide black pepper at a reasonable price
Vietnam black pepper price: The market’s overall situation
The year 2021 is remembered as one of the most prosperous in the history of pepper in Vietnam, with a turnover of 43.8% after only 11 months. In 2022, the Vietnamese pepper sector is predicted to increase positively:
Black pepper production
According to IPC statistics, overall black pepper output will reach 162,000 MT in 2021. Attributed to the influence of the COVID – 19 pandemic and severe weather in rising regions such as Dak Lak and Dak Nong, this figure has decreased by 25% since 2020. As a result, many homes are hesitant to care for black pepper from Vietnam.
Black pepper export
With 205,200 MT of total black pepper export value in 2021, Vietnam black pepper is expected to take the lead, accounting for 55.7% of global total black pepper export. Due to the effect of rising logistics expenses as a result of the social-economic situation, Vietnam black pepper price increase, making the export volume drop in comparison to 2020 (255,645 MT) and 2019 (258,303 MT).
Despite being influenced by external factors, black pepper export and import have been on the rise, and analysts expect that trend will continue in the future.
Importing countries of Vietnam black pepper
Although Vietnam black pepper prices are on the growing momentum, different countries still import the product from Vietnam. The top countries that import pepper from Vietnam were: the U.S, China, UAE, India, Germany, Pakistan, Holland,…
- U.S: The demand for this spice in the United States is on the rise, thanks to its use in cuisines and cosmetics. The United States also increased pepper imports from India, Indonesia, China, and South Africa, albeit at a far lesser volume than Vietnam.
- China: The cheap price of Vietnam peppers prompted imports in 2020, with the average pepper price rising from 2.3756 USD/kg to 3.6469 USD/kg. Due to China’s Zero COVID policy, which created barriers to Vietnam’s agricultural export activities along the land border, the proportion of pepper sent to China fell.
- UAE: The UAE is one of Vietnam’s 10 largest importers globally and its biggest trade partner in the Middle East and Africa.
The price of Vietnam black pepper price
As of the end of 2021, domestic black pepper prices range between 79,500 to 82,000 VND/kg, a considerable decrease from the peak of 90,000 VND at the end of October and the expected level of 100,000 VND/kg. Nevertheless, 2021 will remain a profitable year for the Vietnamese pepper supply market, as a four-year phase of price decreases will come to an end, and a new price rising cycle will begin in the pepper industry.
After four years of difficulty, Vietnam’s pepper sector made a significant comeback in 2021.
- The price increased from 2,800 USD/kg at the beginning of the year and reached its peak at 4,492 USD/kg at the end of 2021.
- Because the Vietnam black pepper price was too cheap in past years, people did not pay attention to healthcare, causing many pepper regions to be sick and die, Vietnam black pepper prices rose significantly. Others switch to other crops because the output is insufficient. Furthermore, severe weather limits pepper crops in Vietnam.
Notably, 2021 witness a recovery of Vietnam’s black pepper price in both domestic and international markets.
In Vietnam, the highest pepper production of the year is expected to take place between February and May. Following the Lunar New Year, some pepper-growing regions in Vietnam began harvesting early. Vietnam black pepper prices are also beginning to rise once more.
The future prediction of Vietnam black pepper price
Domestic and export of Vietnam black pepper prices are expected to improve in 2022, owing to increased market demand and a gradual tightening of world supply, particularly in Vietnam, due to people’s reduced investment in pepper crops during the low price era and the consequences of climate change.
According to pepper industry specialists, the Vietnam black price of pepper is unlikely to return to the high levels seen during the golden age, but a price of 100,000 VND/kg can be obtained, and the pepper sector will soon reclaim its status as a billion-dollar exporter.
Factors that affect Vietnam black pepper price
As a leading exporter of black pepper, Vietnam has several advantages which affect the price and promote black pepper trading activities:
- Supply volume: The impact of the irregular environment has led the harvesting season to be postponed, resulting in a decrease in black pepper output volume. Moreover, during the Covid-19 outbreak, transportation restrictions hampered the delivery of black pepper to consumers. Vietnam black pepper prices fluctuated, as a result, posing a problem for traders.
- Demand: The price of Vietnamese pepper exports has lately risen due to a demand surplus versus supply volume. The Vietnam black pepper price has grown significantly in 8/2021 due to the ease of social distancing orders in numerous EU nations, as well as increased demand during special holidays such as Christmas and New Year.
- Government Policies: The United States accounts for 20 – 25% of annual export volume and has maintained purchasing power in the past. Furthermore, in the context of free trade agreements aimed at expanding the purchasing power of this market, the EU is a critical market and a target market for most businesses. Exports of Vietnam black pepper to the European Union, on the other hand, encounter major obstacles due to strict food safety requirements. This has a considerable effect on Vietnamese black pepper exports to this market. In addition, Vietnam has signed a number of trade agreements with other countries across the world (EVFTA), laying the foundation for the country’s pepper export markets to grow. Vietnam black pepper price will be less expensive to ship to certain regions than it will be to others that do not sign the agreement.
Vietnam black pepper price: Companies provide black pepper at a reasonable price
Several Vietnam companies that provide black pepper with a reasonable price for traders:
As a Singapore-based agricultural company, Sybil Argil operates in 2 countries: Vietnam and Singapore. Sybil Agri also operates a large-scale cooperative partnership program between the firm and farmers, with the goal of becoming one of the top corporations in agricultural product export.
The K-Agriculture firm is well-known for its high-quality products and long-term partnerships with European Union countries. Each year, the company exports to over 80 countries, and other advantages like reasonable costs, skilled customer service, and a choice of payment alternatives help to build the K-Agriculture Factory brand. The product portfolio of K-Agriculture includes pepper, rice,… which is provided at a reasonable price.
- Email: firstname.lastname@example.org
- Website: https://k-agriculture.com/
- Whatsapp: +84855 555 837
In Vietnam, Hanfimex is a leading manufacturer and exporter of foods and spices such as cashew, pepper, cinnamon, coffee, and coconut, among others. Hanifimex is considered one of the leading agricultural exporting enterprises, with over 17 years of expertise and a distinguished client network. Hanfimex is trusted by the Ministry of Industry and Trade and has a prestigious customer network. Reasonable price with high-quality products is a competitive advantage that Hanfimex provides.