Pepper demand will drop sharply in the first quarter of 2023 with a very difficult winter in the EU region, due to the energy crisis. This time coincides with the new crop of Vietnam being brought to the market.
At the end of 2022, the world pepper price will decrease by about 5% as European countries and the US enter the Christmas and New Year holidays in 2023. Meanwhile, the pepper harvest season in Dak Nong province (Vietnam) has begun, which is expected to have a significant source of goods before the Lunar New Year. This will increase pressure on world pepper prices.
Accordingly, in Brazil, on December 23, the export price of black pepper decreased by $125/ton compared to November 29, down to $2,500/ton.
At Lampung ASTA port of Indonesia, on December 23, the export price of black pepper decreased by $188/ton compared to 29/11, to $3,589/ton.
The Agency of Foreign Trade forecasts that in 2023, world pepper prices will continue to be under downward pressure due to low consumption demand and abundant supply. Currently, the pepper harvest for the 2023 crop in Vietnam has begun in some localities. After the Lunar New Year, the main harvest season will begin and last until the end of April. It is expected that the pepper output of the 2023 crop will increase by about 5% compared to 2022, reaching 180,000 - 185,000 tons.
The agency also believes that in 2023, Vietnam's pepper exports will continue to face difficulties in the context of world prices under pressure due to low consumption demand. Pepper demand will drop sharply in the first quarter of 2023 with a very difficult winter in the EU region, due to the energy crisis. This time coincides with the new crop of Vietnam being brought to the market.
In 2022, Vietnam's pepper industry will face many difficulties due to high inflation and reduced consumption demand. Therefore, Vietnam's pepper exports to many key markets such as the US, EU, and China decreased.
According to estimates, Vietnam's pepper exports in 2022 will reach 226 thousand tons, worth $963 million, down 13.3% in volume, but up 2.7% in value compared to 2021.
In 2023, Vietnam's pepper industry needs to increase its ability to conform to international standards, especially on aspects such as chemical residues, and economic, social, and environmentally sustainable production criteria. In addition, it is necessary to promote deep processing and create new products to increase competitiveness in the world market.
Read more: Agricultural Products Industry Report