Vietnam, Brazil, and Indonesia are key players in pepper exporting countries which occupied 71,2% of the total pepper export value in 2019. Traders should notice several factors including prices, competitive advantages, and support policies for better pepper trading activities.
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Overview situation of world pepper exporting countries
Most experts share the same expectation that the export price of pepper will continue to increase because of the supply and demand returning to equilibrium. There may even be a shortage if the production situation is not favorable.
- In 2020, the amount of pepper exported increased by 2% over the previous year, reaching 460,000 tons. Around 60% of the world’s pepper exports were produced in Vietnam.
- In 2021, Vietnam continues to lead in global pepper exports, but the volume decreases by 8.5% compared to 2020. Similarly, the export volume of Indonesia decreased by 32.2% after 11 months. In contrast, pepper exports from Brazil and India achieved positive growth.
| Countries | Export (Tons) | Compared to 2020 (%) |
| Vietnam | 260.989 | -8.5% |
| Brazil | 92.065 | 2.6% |
| Indonesia | 35.057 | -32.2% |
| India | 20.549 | 29.0% |
(Source: ITC and General Department of Customs)
Pepper exporting countries: Key players in the industry
According to OEC, the top 3 leading countries in exporting pepper include Vietnam, Brazil, and Indonesia.
| Countries | Export value (M) |
| Vietnam | $577M |
| Brazil | $184M |
| Indonesia | $142M |
The top 3 leading pepper exporting countries in 2019
(Source: OCE)
Vietnam
The General Department of Customs reported that in 2021, Vietnam exported 260,989 tons of pepper worth $937.9 million USD. Although it witnessed a decrease for the first time in 6 years of 8.5% in export volume, Vietnam remains in the top position in pepper exporting countries with an increase of 42% in pepper export turnover. Vietnam currently leads the globe in pepper exports, supplying around 60% of worldwide consumption demand in Brazil, Indonesia, and the United States…
Vietnam’s pepper exports in the period 2012-2021
After four years of hardship, Vietnam’s pepper industry is predicted to rebound significantly in 2021. People did not pay attention to growth in past years because the price of pepper was too cheap, causing many pepper areas to get dangerously ill. As a result, pepper prices have risen dramatically. Vietnam pepper exports average price reached $3,736p per tonne, which is the highest price since 2018. Despite the fact that it is pepper harvest time, pepper prices of Vietnam – one of the pepper exporting countries – have grown 40-44% from the beginning of the year, from 51,000-53,000 VND/kg in mid-February to 76,000-79,500 VND/kg on March 19.
Vietnam pepper export price in 2021
Vietnam pepper export has proven its reputation in the international market due to several factors:
- Price: Commercial operations between Vietnam and the EU have been boosted thanks to the government’s assistance in signing EVFTA. The black pepper export tariff has been decreased by 99%, resulting in a significant decrease in the black pepper export price, giving the country a price edge over other pepper exporting countries.
Price
- The stable pepper quantity: The enormous agricultural area in Vietnam has resulted in rising pepper production over time. From 51.300 ha in 2010 to 140.200 ha in 2019, the growing acres have been steadily increasing. The total area under commercial cultivation peaked in 2017 at 152.000 ha. With such a huge growing region among pepper exporting countries, the quantity of pepper remains consistent over time.
The stable pepper quantity
- High-quality final products: Because of the fertile basalt soil and the high quality of the harvest due to the intercropping of pepper and coffee, the pepper from Vietnam – one of the pepper exporting countries – is large, firm, hot, and aromatic. Pepper is also sun-dried to a moisture level of 13% without going through any chemical processes. Furthermore, producers carefully remove low-quality seeds to ensure that pepper is acceptable for export and meets all international standards.
High-quality final products
Vietnam’s position as the leading competitor in pepper exporting countries has been linked to competitive advantages such as crop area, geographical location, price, and quality.
Brazil
According to the Ministry of Industry, Foreign Trade and Services (MDIC), thanks to increased sales in the fourth quarter, Brazil’s pepper exports for the entire year of 2021 reached a new high of 92.1 thousand tons, earning 306.3 million USD, up 2.6% in volume and 65.3% in value over the previous year. Pepper from Brazil is distributed in 111 countries across the world. Germany retained its top spot as the greatest consumer of Brazilian pepper, accounting for over 15% of the total with 13,552 tons, up 2% from 2020.
Brazil’s pepper exports in the period 2012-2021
- Currently, Europe is Brazil’s top pepper exporting country, however, the presence of Salmonella bacteria on pepper is one of the issues limiting Brazil’s shipments to Europe. Black pepper shipments from Brazil – one of the pepper exporting countries – to the EU will be required to include a certificate and analytical findings demonstrating the absence of salmonella germs by 2022.
Salmonella bacteria on pepper
- In Brazil, the price of pepper exports has fluctuated during the last three years. In 2018, 2019, and 2020, the average pepper export price was 2,835 USD/MT, 2,148 USD/MT, and 2,082 USD/MT, respectively. This could be originated from the pepper exporting countries’ supply of pepper currently exceeding the global demand. In 2021, Brazil’s pepper export price skyrocketed 61.1 % compared to 2020, reaching the highest level in four years at 3,327 USD/ton (FOB).
The price of pepper exports has fluctuated during the last three years
- The advantage of one of the pepper exporting countries – Brazil stems from the long history of pepper production and suitable soil condition: lowland, rain, and weather, Brazil dominates the black pepper market. With its reputation, the international market always acknowledges Brazil pepper as a top choice for pepper trading.
Suitable soil condition
Indonesia
According to data from the IPC, Indonesian pepper exports plummeted to their bottom level in more than 5 years in the first 11 months of 2021, achieving only 35,057 tons, a severe decrease of 32.3% over the same time. In the long-term period from 2009 to 2019, the export value of Indonesia – one of the pepper exporting countries – fluctuated over the years. Indonesia is famous for the production of white pepper mills, which accounted for nearly half of the global market. White pepper accounts for around a third of all pepper produced in Indonesia.
Indonesia’s pepper exports in the period 2009-2019
Vietnam – one of the pepper exporting countries – accounts for 22.1% of Indonesia’s pepper exports, followed by the United States (14.1%) and China (13.9%). The amount of Vietnam pepper exported to the three markets indicated above declined dramatically by 59%, 50.9%, and 11.1%, respectively, when compared to the same period in 2020.
Exporting pepper to Vietnam, USA, China
In line with the pepper exporting countries’ trend, the price of Indonesian pepper has risen in the last three years. The increasing trend began in September 2020 with a low of 2525 USD/MT and quickly accelerated to 5415 USD/MT in August 2021. This statistic was 108% greater than the same period of 2020 and 72% higher than the same period of 2019.
The price of Indonesian pepper has risen in the last three years
Indonesia’s pepper production, export value, and productivity decreased to focus on supplying the domestic market.
Factors affecting exporting activities of pepper exporting countries
Traders should acknowledge the following factors, which affect the pepper exporting prices.
Demand and supply volume
- Demand: The price of pepper has recently risen as a result of a demand surplus in comparison to supply quantity. The pepper export price has grown dramatically in 8/2021, due to the ease of social distancing orders in various EU nations, as well as increased demand during important holidays such as Christmas and New Year.
Demand
- Supply: Due to the obvious influence of the irregular climate in the world’s top pepper export country, Brazil, which causes the harvesting season to be postponed, the pepper production volume has decreased. Furthermore, during the Covid-19 epidemic, transportation restrictions stalled the delivery of pepper to consumers. As a result, pepper prices surged, creating difficulties for traders.
| 2017 | 2018 | 2019 | 2020 | 2021 | |
| Vietnam | 200,000 | 230,000 | 260,000 | 240,000 | 180,000 |
| Indonesia | 70,000 | 73,000 | 78,000 | 77,000 | 79,000 |
| Brazil | 65,000 | 72,000 | 80,000 | 95,000 | 90,000 |
Production of pepper (MT)
Government policies
The government of pepper exporting countries’ support plays a critical role in the pepper industry. Agreements to eliminate tariffs, such as SAFTA, EVFTA, and others assist the pepper exporting activities by lowering prices and promoting the pepper industry to develop.
Government policies
Shipment
Because goods transportation among pepper exporting countries is blocked, logistical expenses will rise, leading to a fall in pepper export volume. Container congestion at ports may result in a shortage of pepper and a reduction in domestic purchasing. Similarly, the present “super-economic” cycle forces the United States and other countries to pump money into the market, raising fuel and petrol prices. As a consequence, the freight cost pushes the pepper export prices.
Shipment
The gap between world supply and demand for pepper has been gradually narrowing in recent years. In addition, high input costs such as labor, fertilizer, gasoline, transportation charges, etc. are expected to continue to push pepper prices up in 2022.
Pepper exporting countries: Top 3 world’s pepper suppliers
Here are 3 pepper suppliers that gained their reputation through developing history:
Arco Associados
Arco Associado is a Brazilian firm created in 2008. It is situated in Vitória. It is an exporter with over ten years of experience supplying and exporting agricultural goods to a range of worldwide markets, including rice and black pepper, white pepper, black pepper powder, etc. Arco Associados’ main pepper export markets are the European Union, Germany, the United Arab Emirates, and Pakistan.
Arco Associados
K-Agriculture
K-Agriculture is one of Vietnam’s reliable black pepper manufacturers. With a 25-year track record of supplying agricultural products to the international market, K-Agriculture has established itself as a reliable supplier to major importers in Asia and Europe. The company’s reputation among pepper exporting countries has been established through high-quality products at competitive costs. Many certificates, such as HACCP, ISO 9000, and FSSC 22000, have already been obtained by the company.
K-Agriculture
Contact information:
- Email: info@k-agriculture.com
- Website: https://k-agriculture.com/
- Whatsapp: +84855555837
PT Agri Spice
Pt. Agri spice (Indonesia) has been one of Indonesia’s major spice producers and exporters for the past two decades. It specializes in ensuring superior agricultural commodities such as vanilla, nutmeg, black pepper, white pepper, black pepper powder, and cinnamon to North America, Europe, Asia, Australia, and other pepper exporting countries.
PT Agri Spice
Conclusion
If you want to understand more about the pepper industry and wholesale pepper on a global scale, please visit our website: k-agriculture.com or contact us by Whatsapp: +84855 555 837
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