Pepper exports increased by 2.7%

The Import-Export Department (Ministry of Industry and Trade) quoted data from the General Department of Customs as saying that Vietnam's pepper exports in 2022 are estimated to reach 226 thousand tons, worth US$963 million, down 13.3% in volume. up 2.7% in value compared to 2021. The average export price of Vietnam's pepper in 2022 is estimated at $4,257/ton, up 18.5% compared to 2021.

Pepper exports in 2022 reach 963 million USD

In the domestic market, in 2022, domestic pepper prices fluctuate in a decreasing trend. After recording at a high level in the first quarter of 2022 (from VND 82,500 - VND 85,000/kg in February 2022), the volatile price dropped to the lowest level of the year in the fourth quarter of 2022.

On December 24, 2022, the price of black pepper dropped sharply from 2,500 - 3,500 VND/kg compared to November 30, 2022, to the lowest level of 60,000 VND/kg in Dong Nai province; the highest level of 63,000 VND/kg in Ba Ria - Vung Tau province. The price of white pepper was at 93,000 VND/kg, down 12,000 VND/kg compared to the end of November 2022 and much lower than the price of 119,000 VND/kg in the same period in 2021.

In 2022, Vietnam's pepper industry will face many difficulties due to high inflation and reduced consumption demand. Therefore, Vietnam's pepper exports to many key markets such as the US, EU and China decreased. ' Global pepper demand decreased due to high inflation and China's 'Zezo Covid ' policy. However, the pepper price in 2022 is higher than in 2021, leading to an increase in the value of imports from many markets", the Import-Export Department said.

Sharing the same opinion on this issue, Ms. Hoang Thi Lien - President of the Vietnam Pepper Association (VPA) - said that in 2022, the world context will have many fluctuations in terms of geopolitical factors, financial policy. The main currencies of the countries change continuously, the inflation situation increases, etc. have greatly affected the world's consumption demand. This has affected Vietnam's pepper exports. However, the pepper industry still achieved positive results.

'It is estimated that for the whole year, Vietnam's pepper exports will reach nearly 230,000 tons (decreased by 13-14% in output). However, thanks to the recovery in prices, pepper export turnover for the whole year is expected to increase slightly by 2%, reaching nearly 970 million USD, higher than the figure of 950 million USD in 2021 ,' Ms. Hoang Thi Lien shared. .

Still facing difficulties in the short term

According to the Import-Export Department, in 2023, Vietnam's pepper exports will continue to face difficulties in the context of world prices under pressure due to abundant supply while low demand. Pepper demand will drop sharply in the first quarter of 2023 with a very difficult winter in the EU region, due to the energy crisis.

' Currently, the EU is facing an energy crisis , causing high inflation and economic decline. It is forecasted that in the short term, pepper imports of the German, British and French markets will remain low. In the long term, the demand for pepper in the European market will increase again when the problems of energy and inflation are resolved, which will have a positive impact on Vietnam's pepper industry ', the Import-Export Department said. said.

As for the Chinese market , it is forecasted that in 2023, the market's demand for pepper imports has not been able to break through strongly, although China has eased the "Zero Covid" policy. It is expected that until the beginning of the second quarter of 2023, the purchasing power of the Chinese market can increase again.

Currently, the pepper harvest season in 2023 in Vietnam has begun in some localities. After the Lunar New Year, the main harvest season will begin and last until the end of April. It is expected that the pepper output of the 2023 crop will increase by about 5% compared to 2022, reaching 180,000 - 185,000 tons.

This time coincides with the new crop of Vietnam being brought to the market. Therefore, the Import-Export Department recommends that Vietnam's pepper industry needs to increase its standardization ability according to international standards, especially in aspects such as chemical residues, economic and sustainable production criteria. economic, social and environmental. In addition, it is necessary to promote deep processing and create new products to increase competitiveness in the world market.

On the other hand, the Vietnam - EU Free Trade Agreement (EVFTA); Vietnam - United Kingdom (UKVFTA) will help Vietnam's pepper industry create a more competitive advantage over countries without agreements. To exploit this great potential market well, Vietnam's pepper industry needs to build and develop production areas, complying with good agricultural practices and international standards; strengthen control, minimize the use of pesticides in pepper production, in order to create pepper products that meet the requirements of the European market.

The Vietnamese spice industry in general and the pepper industry in particular have stabilized and are entering the world value chain. In addition, Vietnam's pepper industry is also highly appreciated for its processing capacity with the proportion of processed goods currently accounting for about 30% of total export turnover,' Ms. With the achievements in 2022, Vietnam's spice industry will still maintain the pace of processing, production and export.

Besides, the import tax on crushed or ground pepper exported to the EU has been reduced from 4% to 0%... Compared with other countries with the same export advantages as Vietnam, Indonesia, Malaysia, and India have not signed a free trade agreement with Europe.

Therefore, Ms. Hoang Thi Lien recommended that the EVFTA Agreement is an advantage that businesses need to take time to invest and learn to be able to make the most of the commitments in the agreement. "This is the legal framework for Vietnam to go deeper into the EU market and expand to other markets such as Eastern Europe, Poland, Russia...' , said Ms. Hoang Thi Lien.