Situation of Vietnam Pepper and the world in the second quarter of 2022

The situation of world pepper

The 2022 harvest has ended in Vietnam pepper, Cambodia, and India while Malaysia, Indonesia, and Brazil are still in the harvesting phase. In general, the peak of the global pepper harvest has passed and selling pressure is not great.

According to IPC, the total global supply in 2022 is estimated at 535 thousand tons, down nearly 3% compared to 2021 and the decrease mainly comes from Vietnam and India.

The unusually lower global demand, especially a decline in purchasing power from the Chinese market. One of the world’s biggest buyers has pushed world pepper prices to a six-month low. Compared to the first quarter of 2022, the average FOB price of black and white pepper in the second quarter of 2022 of the producing countries decreased simultaneously, excluding Malaysia. The reduction is about 2% for black pepper and 3% for white pepper. However, compared to the same period in 2021, FOB prices of black and white pepper increased by 22% and 21% respectively.

vietnam pepper

Pepper imports from some main importing markets recorded an increase in the first half of 2022. Specifically, the US pepper import volume. It increased by 5.5% in the first 4 months of 2022 compared to the same period last year. Similarly, in the first quarter of 2022, the EU recorded a 7% increase in pepper imports and reached 24,981 tons.

vietnam pepper

The situation of Vietnam Pepper

According to the Ministry of Agriculture and Rural Development. Vietnam’s pepper area in 2020 will reach 130,838 hectares but this area may decrease in 2021 and 2022. Estimated Vietnam’s pepper output in 2022 will reach 175,000 tons, down 10% compared to to 2021.

The reason is that many pepper gardens in focal provinces are infected with pests and diseases. And die due to incorrect cultivation methods, and fertilizer application. And an overdose of drugs that stimulates productivity growth, and lowers pepper prices in the 2019-2020 period. Therefore, people do not take care, leading to the pepper garden being exhausted and wiped out, and the cost of input materials increases (fertilizers, drugs, labor, petrol…) while the pepper price has not reached the expected level. However, diseases on pepper are still common, affecting pepper productivity, and climate change are still unpredictable.

vietnam pepper

Progressively from the beginning of the year to June 30, 2022, Vietnam exported 125,553 tons, 106,705 tons of black pepper, and 18,848 tons of white pepper. Total export turnover reached 568.8 million USD, black pepper reached 456.4 million USD, and white pepper reached 112.4 million USD. Compared to the same period last year, the export volume decreased by 19.1% or 29,621 tons, however, the export turnover increased by 13.5% or 67.6 million USD over the same period in 2021.


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