SUPPLY EXCEEDS DEMAND, PEPPER PRICE IS FORECAST TO CONTINUE STRUGGLING

The Department of Import and Export predicts that pepper exports will continue to face difficulties due to a larger supply than demand and fierce competition in the world market.

The Import and Export Department (Ministry of International Trade and Industry) said that in August 2019, the price of black pepper decreased in compare with July 2019. On 28 August 2019, the price of black pepper fell from 1.1-1.2% compared to July 31, 2019, the popular price was 42,500 – 45,000 VND / kg. White pepper prices were stable at 69,000 VND / kg compared to the end of July 2019, but lower than 83,000 VND / kg in the same period in 2018.

It is estimated that pepper exports in August 2019 reached 24 thousand tons, valued at US $ 60 million, increased 1.9% in volume and 0.04% in value compared to July 2019 but witnessed a value decrease of 7.5%, lower than the figures of this time last year. In the first 8 months of 2019, pepper exports reached 224 thousand tons, worth US $ 571 million, increased 27.9% in volume, but decreased 2.1% in value compared to the first 8 months of 2018.

The Department of Import and Export predicts that pepper exports will continue to face difficulties due to a larger supply than demand and fierce competition in the world market.

In the world market, in August 2019, the price of black and white pepper in the world market fluctuated heterogeneously.

According to the International Pepper Association (IPC), the world demand for pepper is about 510,000 tons / year and the average increase of 2-3% annually, while production increased by 8-10%. World pepper production in 2018 will reach 557,000 tons and is expected to reach 602,000 tons in 2019. It is forecast that by 2050, world pepper production will increase to 1 million tons and consumer demand will increase, but not that much with respect to supply. Therefore, it will be hard for pepper prices to recover strongly due to excessive supply.

Source: CafeF