W14 Black Pepper Update: Vietnam's Exports Surge Amidst Global Market Dynamics and Regional Challenges

Published 2024년 4월 12일

In W14 in the black pepper landscape, prices in major producing countries like Indonesia, Malaysia, and Brazil remained steady, and Vietnam maintained unchanged export prices. However, despite stability, the global pepper market showed mixed reactions, with certain Vietnamese regions experiencing upward trends. Vietnam's pepper exports surged in Mar-24, reflecting significant growth in volume and turnover, though exports declined compared to 2023. Limited supply is poised to drive Vietnamese pepper prices upward, fueled by rising export volumes and strong demand, particularly from the US. Meanwhile, the prolonged dry spell in Kodagu, India, poses a severe threat to black pepper crops, necessitating timely interventions to mitigate damage and sustain crop production amid water scarcity.

Black Pepper Price Movements in Indonesia, Malaysia, Brazil, and Vietnam

On April 6, 2024, the black pepper market saw slight increases in Indonesia, with Lampung black pepper rising to USD 4,463 per metric ton (mt). Meanwhile, prices remained stable in Malaysia and Brazil, with Kuching ASTA black pepper at USD 4,900/mt and ASTA 570 black pepper in Brazil at USD 4,500/mt. In Vietnam, export prices for black pepper grades 500 and 550 grams per liter held steady at USD 4,200 and 4,300/mt, respectively. Domestically, the Vietnamese pepper market remained unchanged, with prices in various provinces such as Đắk Lắk, Đắk Nông, Gia Lai, Đồng Nai, Bà Rịa–Vũng Tàu, and Bình Phước maintaining stability.

Stability in Vietnam's Black Pepper Market Amid Global Fluctuations

Vietnam's black pepper market witnessed domestic and international stability on April 7, 2024. Domestically, pepper prices in various provinces of Vietnam remained unchanged, with the highest threshold reaching 3.76 per kilogram (VND 94,000/kg). Throughout W14, the domestic market saw mixed reactions, with some provinces experiencing slight increases while others faced marginal declines.

Internationally, prices in major producing countries like Indonesia, Malaysia, and Brazil remained steady, with Lampung black pepper in Indonesia priced at USD 4,463/mt, Kuching black pepper in Malaysia at USD 4,900/mt, and Brazilian black pepper ASTA 570 at USD 4,375/mt. Despite the stability, the global pepper market showed signs of mixed reactions, with Indian and Indonesian black pepper prices trending upwards while markets stood still elsewhere. Vietnam's pepper exports in Mar-24 saw significant growth compared to the previous month, with both black and white pepper exports increasing in volume and turnover. However, compared to the same period in 2023, pepper exports experienced a decline, although export prices saw a notable increase, with black pepper averaging USD 4,136/mt and white pepper averaging USD 5,710/mt in Mar-24.

Rising Prices and Surging Exports Signal Optimism for the 2024 Vietnamese Pepper Market

Vietnamese pepper prices are poised to rise further due to limited supply, while export volumes have seen notable growth. Pepper exports surged, with preliminary data showing 12.36 thousand mt worth USD 53 million exported in the first 16 days of March. Export prices for pepper have risen significantly, attributed to low inventories and strong United States (US) demand. Farmers are delaying sales in anticipation of higher prices, indicating optimism for the pepper market in 2024.

Dry Spell Threatens Black Pepper Crops in Kodagu, India

The prolonged dry spell in Kodagu, India, poses a serious threat to black pepper crops, with no rainfall since Jan-24 exacerbating the situation. The Indian Institute of Spices Research (IISR) emphasized the need for timely interventions to mitigate damage, such as nutrient supplementation and irrigation during critical growth phases. Lack of soil moisture during flowering can significantly reduce yields. However, water scarcity and restrictions on irrigation pose challenges for growers. The IISR recommends various water conservation and management practices, including basin irrigation, mulching, and harvesting rainwater to sustain crop production amid limited water availability.