Why has the US shifted its purchase of pepper from Vietnam to India and China?

Published 2021년 7월 26일

Tridge summary

The article highlights the challenges faced by Vietnam's pepper export business due to the ministry's stipulation of pepper as a medicinal herb, leading to increased logistics costs and difficulties for exporters. Despite these challenges, Vietnam's pepper exports experienced a significant increase in June 2021, reaching 33,150 tons, worth 118.7 million USD, an increase of 18.6% in volume and 23.8% in value compared to May 2021. However, the domestic price of pepper has decreased due to high freight rates and the impact of the 4th Covid-19 wave. There is also a shift in pepper supply structure to suppliers from other countries due to higher logistics fees from Vietnam. The US and EU have shifted to importing pepper from Brazil due to lower shipping costs. Despite these challenges, the world's demand for pepper is increasing while the supply is decreasing, leading to an expected increase in pepper prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to Mr. Nguyen Nam Hai, the fact that the Ministry of Health stipulates pepper on the list of medicinal herbs, Customs applies the control of "golden flow" to limit risks, causing many difficulties for businesses, especially in the context of the epidemic. Covid-19, pepper exporters are buckling the burden of excessively high logistics costs. "For more than 20 years, Vietnam exports pepper to other countries normally, about 250,000 tons a year, importing countries use Vietnam's pepper as a spice, food processing, not medicine" - Mr. Hai said. Mr. Hai added that, right after the business's proposal, the Vietnam Pepper Association made a written petition to the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Ministry of Health, and the General Department of Customs to remove difficulties for farmers. enterprise. According to the Import-Export Department (Ministry of Industry and Trade), due to the impact of the 4th Covid-19 wave, the ...

Source: Danviet