Pepper exports rise in volume, fall in value
In this article (5)
While Vietnam’s pepper export volumes soared by 16.6% to 267,000 tons in 2023, the value dropped by 6% to US$912 million, according to the Vietnam Customs.
The average export price of Vietnamese pepper, which constitutes 60% of global supply, dropped by 19.4% from the previous year, to US$3,420 per ton.
Black pepper made up 71.2% of Vietnam’s exports, and white pepper comprised the remainder.
The U.S. remained the top purchaser of Vietnamese pepper, accounting for 23.5% of the total export value, followed by China 14.1%, India 5.4% and Germany 4.3%.
The U.S. decreased its pepper imports from India in favor of Vietnamese pepper, which is recognized for its favorable pricing and improving quality.
The Vietnam Pepper and Spice Association notes that Vietnamese pepper holds a competitive edge over other pepper-exporting nations such as Indonesia and India, bolstered by the European Union-Vietnam Free Trade Agreement, which has slashed the import tax on ground and crushed pepper to the EU to zero.
It is forecast Vietnam’s pepper export slow down because domestic supply is no longer abundant. The pepper inventory in 2024 will be at its lowest in many years.
This year’s pepper crop is projected to decrease by 10-15% to around 165,000 tons due to smaller cultivation areas and unfavorable weather conditions.
Questions & Answers
Q.What was the main reason for the significant drop in the average export price of Vietnamese pepper in 2023?
What was the main reason for the significant drop in the average export price of Vietnamese pepper in 2023?
The article states that the average export price dropped by 19.4% in 2023. While it doesn't explicitly state the *reason* for this drop, it does highlight a 16.6% increase in export volumes, which can lead to lower prices due to higher supply.
Q.How has the European Union-Vietnam Free Trade Agreement specifically benefited Vietnamese pepper exports?
How has the European Union-Vietnam Free Trade Agreement specifically benefited Vietnamese pepper exports?
The Free Trade Agreement has reduced the import tax on ground and crushed pepper to the EU to zero. This measure helps to strengthen Vietnam's competitive position against other pepper-exporting countries.
Q.Which countries are the largest purchasers of Vietnamese pepper by export value?
Which countries are the largest purchasers of Vietnamese pepper by export value?
The United States is the top purchaser, making up 23.5% of the total export value. China follows with 14.1%, while India accounts for 5.4% and Germany for 4.3%.
Q.What is the forecast for Vietnam's pepper supply and export volume in the upcoming year?
What is the forecast for Vietnam's pepper supply and export volume in the upcoming year?
Domestic supply is expected to be less abundant, leading to a projected slowdown in exports. The 2024 pepper crop is anticipated to decrease by 10-15% to about 165,000 tons due to smaller cultivation areas and adverse weather.
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