Vietnam monthly pepper report- March 2022
Farmers are stockpiling and waiting for the price to increase due to the sharp rise of input cost which surpass the return of selling pepper now.
This year’s pepper yield is expected to lower by 10-15%, which caused even greater stockpiling among both farmers and dealer.
Logistics remains unstable due to the Russia-Ukraine conflict. China’s Zero-covid policy also negatively affect the global transportation.
Inventory
Pepper buyers are not in a hurry to buy in because they are waiting for a more abundant supply when the harvest is complete and the prices are stable. Meanwhile, farmers have the psychology of stockpiling goods and wait for the price to increase at the end of the harvest, making the sale volume not much. These tendencies lead to most of pepper is still stored in farmers and strong-economy dealers in first quarter of the year.
Export
As in latest report from Vietnam Pepper Association, in March 2022, Vietnam has exported nearly 23,939 tons pepper of all kinds. Compared to February, export volume increased by 63.3%.
Statistics of VPA show that in March 2022, Vietnam export volume includes 19,648 tons of black pepper (up 58.64% Month over month (MoM)) and 4,140 tons of white pepper (up 88% MoM) while others take up to 151 tons. Total export turnover reached over 113 million USD (up 71% MoM), black pepper reached 87.65 million USD, white pepper reached 25.15 million USD, the rest accounts for 0.33 million USD. Compared to the same period of 2021, accumulated export volume of 2022 decreased by 11.3% while the export value increased by 41%.
In the latest update, the US continues to be the largest pepper import market of Vietnam, reaching 5,460 tons (up 74% MoM), accounting for 22.8% of total Vietnam export volume; followed by India and United Arab (previously were Singapore and United Arab).
Logistics
As prediction from experts, global supply chain situation has faced risk from oil shortage caused by Ukraine- Russia conflict, thus affect Logistics cost and the price of pepper in 2022. Also, the Zero-covid policy of China has caused more disruption to global transportation.
For Vietnam domestic market, exporters in the south are facing with new challenge when it comes to new announcement from Ho Chi Minh City that the City will raise its sea port charge.
Logistics
As prediction from experts, global supply chain situation has faced risk from oil shortage caused by Ukraine- Russia conflict, thus affect Logistics cost and the price of pepper in 2022. Also, the Zero-covid policy of China has caused more disruption to global transportation.
For Vietnam domestic market, exporters in the south are facing with new challenge when it comes to new announcement from Ho Chi Minh City that the City will raise its sea port charge.
Sustainable
The 2022 pepper harvest in Simexco material areas is entering the final stage, which is expected to end at the end of April, about half a month earlier than the previous year’s crop. It is predicted that this year’s pepper production will decrease by 10-15% compared to last year’s crop. Farmers expect a higher selling price of pepper to cover input costs due to high prices of gasoline, oil, and fertilizer.
Other
This year 2022, ASTA hold an annual meeting at Miami, Florida on 10-12th of April. Simexco is proudly to join. This time, Ms Le Vu Thuy Dung (Simexco Deputy Director of Trading) was chosen to be a representative of Simexco at the event to spread message to clients: “Simexco – a strategic supplier of Vietnamese coffee and pepper for the global supply chain”
