Vietnamese Pepper: market update
Although India’s Malabar region is undoubtedly king when it comes to the best black pepper, the largest exporter in the world for black peppercorns is Vietnam. Vietnam accounts for over 30% of all pepper exports as per our last checking. As a result, changes in the Vietnamese Pepper market affect the entire world.
Vietnam Pepper crop harvested in first quarter of 2015: Bad weather, heavy rain at pepper flower pollination and pests and diseases were common during the rainy season (Sept, Oct/2014) in most pepper regions. This led to Vietnamese raising the pepper areas to avoid rain / pests, so productivity and output both suffered. Pepper harvest has now started in the eastern parts of Vietnam and will end in late April.
On 23-24/Dec/2014, Vietnam Pepper Association coordinated with the specialized offices of local government to sightsee and survey some key pepper growing areas of Dong Nai and Ba Ria Vung Tau province, the results showed that yields of crop 2015 there decrease 30% compared to 2014. It’s no wonder that we’ve seen Pepper on an insane rise in the last few months! Some trades done at over 50% of their price the previous year.
2014 was as turbulent year, but success with Vietnam’s export volume, which is up around 20% since 2013. Most of the pepper was sold rapidly in the first half of the year. After the first 6 months, as stocks went low, prices started rocketing up while pepper farmers held onto their peppers.
Now that the new crop is coming in, and because of the imminent Chinese New Year (farmers want to clear off all their debts and expenses before the New Year) Vietnam prices have fallen. Orders may have the advantage of better prices this time. After holiday, Vietnam farmers actually will repeat the previous lesson, holding cargo and regulating sales to get the best price.
Looking to another outlook, Indian pepper harvest is nearly coming to the end, so prices will start to rise once farmers have a clear idea of crop size and demand.
Our Market Price for Black Pepper now:
50G (1.8 OZ) HKD 36
200G (7.1 OZ) HKD 100
500G (17.6 OZ) HKD 208
1KG+ enquire for wholesale
1MT+ Refer to our parent company for export quantities