Facing double difficulties, pepper market is gloomy
The international pepper market is predicted to face difficulties due to the double impact from oversupply pressure and the Covid-19 pandemic.
Black pepper export price in the first quarter fell more than 18% compared to the same period last year. Photo: Internet
In the first four months, according to Ministry of Agriculture and Rural Development, Vietnam ‘s black pepper exported 117,000 tons worth US$249 billion, increasing by 8.3% in quantity but decreasing by 12% invalue compared to the same period of 2019.
The five largest export markets of Vietnam in the first three months were the United States, India, Myanmar, Pakistan and Germany with a 39.2% share.
The average export price of Vietnamese pepper in the three months reached US$2.185/ton, increasing by 18.2% compared to the same period last year.
Black pepper price delivered at the Port of Brazil and Malaysia were stable, while India’s price fell. Opposite to Vietnam and Indonesia price increased.
Particularly, pepper price at Brazil port is still US$2,000/ton, at Kuching (Malaysia) it wasUS$3.685/ton. While the pepper price at Kochi port decreased from US$4.484/ton to US$4.387/ton.
At Ho Chi Minh City, the average pepper price increased from US$1.995/ton to US$2.145/ton and pepper price at Lampung port (Indonesia) increased from US$1.813/ton to US$1.995/ton. India’s pepper price is in a low range because production in 2020 washigher thanks to advantageous weather at Kerala – one of main area’s for planting pepper inIndia.
The supply of pepper continues to be supplemented when Vietnam is in the harvest season and has harvested over 50%. In 2020, Vietnam's pepper supply is expected to reach about 350,000 tons of pepper, in which about 90,000 tons will be transferred from inventory in 2019.
In addition, pepper demand in many markets is still weak due to the impact of social distancing and temporary food service business to prevent Covid-19, especially in the US and EU – the two largest markets for pepper consumption in the world.
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