The value of pepper exported to the US market accounts for 23.5% of Vietnam’s total pepper export value.
Vietnam also holds the position of the largest source of pepper to the US market. According to the General Department of Customs, last year, Vietnam exported 267,000 tons of pepper, an increase of 16.6% in volume. Estimated value is 912 million USD.
According to the Vietnam Pepper and Spice Association (VPSA), Vietnamese pepper has an advantage over some countries such as Indonesia, Malaysia, India, Sri Lanka, Cambodia… thanks to advantages from EVFTA. Currently, the import tax on ground or crushed pepper exported to the EU is reduced from 4% to 0%.
In addition, the US has reduced imports of pepper from India while Vietnamese products have good prices and increasingly high quality, so they are favored by this country. Vietnam’s pepper industry is also highly appreciated for its processing capacity with the rate of processed goods accounting for about 30% of total export turnover.
It is forecast that pepper exports will remain at a low level, because domestic supply is no longer abundant. This will push up the price of this item. Last year’s pepper inventory transferred to this year will be the lowest in many years.
Surveys in pepper growing areas of Vietnam show that the growing area is gradually shrinking. Some places are affected by weather, so harvest output is reduced.
Currently, black pepper is purchased by traders at a price of 95,000 VND per kg; Ripe, dried red pepper costs up to 130,000 VND per kg. Compared to the same period last year, pepper prices this time increased by about 30%. This is the highest price in the past 3 years.
Source: vtv.vn