Pepper Exports to China Drop by Over 80%

In the first seven months of the year, Vietnam’s pepper exports to China reached over 8,000 tons, a decrease of 84.6% compared to the same period last year.

The pepper export market is trending downwards.

According to the Vietnam Pepper and Spice Association (VPSA), China, once the second largest market for Vietnamese pepper, has now fallen to fifth place, behind the US, Germany, India, and the UAE.

Exports of this agricultural product from China up to the end of July decreased by nearly 85% compared to the same period last year, to over 8,000 tons. Meanwhile, the US imported 43,349 tons of this spice, an increase of more than 48% compared to the same period. Germany also imported 10,941 tons, and the UAE imported 10,897 tons of Vietnamese pepper.

Reasons for the decrease in pepper exports to China

According to businesses, China’s reduced purchases are due to its domestic pepper prices being lower than imported prices. In addition, the world’s second-largest economy grew slower than expected in the first half of this year, leading to decreased consumer spending and sufficient existing inventories.

Despite reduced purchases from China, Vietnam’s total pepper exports still reached 164,357 tons in the first seven months of the year. This figure is approximately 2.2% lower than the same period last year.

Exports of this commodity reached over $764 million by the end of July, an increase of nearly 41% thanks to rising pepper prices. Each ton of Vietnamese black pepper exported averaged $4,568 and white pepper $6,195, representing increases of 32.7% and 25% respectively compared to last year.

However, global consumption of this commodity has slowed down, causing domestic pepper prices to fall. Each kilogram of pepper has dropped by about 25% in the past month, to 135,000-137,000 VND per kilogram. Meanwhile, on the world market, the price of this agricultural product remains at 6,000-7,000 USD per ton for black pepper and around 8,800 USD for white pepper.

According to VPSA’s forecast, demand for this agricultural product from the Chinese market is unlikely to improve in the second half of the year. Vietnam’s pepper industry accounts for 40% of global production and 60% of the global market share. VPSA estimates the global pepper market to be worth approximately US$5.4 billion and forecasts an average growth of 20% between 2024 and 2032.

Source: VnExpress Newspaper