Global pepper production ends a decade of continuous growth

October 6, 2021 Market news

Global pepper production in the past 10 years increased by 72%, from 234,418 tons in 2000 to 561,500 tons in 2020. However, after a strong increase in previous years, the production growth rate in 2020 was only 1%, equivalent to 4,748 tons higher than in 2019. Vietnam currently contributes 43% of global pepper production.

Information from Thehindubusinessline indicates that at an international spice seminar organized by the Indian Spice Board, Ms. Hoang Thi Lien, Executive Director of the International Pepper Community (IPC), delivered a presentation on the topic "Global Production and Trade Scenario – Black Pepper".

The average pepper yield in producing countries during the 2010 – 2020 period showed significant fluctuations, indicating a strong increase in 2011 and 2012, then a decrease in the following two years, and a rebound in 2017 and 2018, with increases of 20% and 19% respectively.

During the 11-year period (2010 – 2020), Cambodia's pepper yield reached its highest in 2012 (3,740 kg/ha). In 2020, the average pepper yield in producing countries was 1,594 kg/ha, 30% or 365 kg/ha higher than in 2010.

Also in the 2010-20 period, the average annual increase in pepper exports from exporting countries was 6%, with the strongest increase in 2017 at 19%.

In 2020, Vietnam's market share in total global pepper exports was 59%, with 285,292 tons, followed by Brazil with 18% (89,756 tons) and Indonesia with 11% (51,718 tons). India exported 15,924 tons of pepper this year.

Regarding imports, Ms. Lien stated that the key pepper import markets during the 2014 – 2020 period were Vietnam, India, and China. Accordingly, in the first 7 months of 2020, China imported 42,997 tons of pepper, and Vietnam imported 39,846 tons. Throughout 2020, India imported 24,805 tons.

As of July 2020, China accounted for 16% of the global pepper import market share, becoming the second-largest pepper import market in the world after the US (the US accounted for 28% of total global pepper imports).

The pepper imports of the 8 largest pepper-consuming countries in the world in 2020 totaled 15,503 tons.

Vietnam's pepper production decreases, prices show signs of increase

Vietnam is currently harvesting a new pepper crop, with an estimated output of 180,000 tons, the lowest in the past 5 years, nearly 30% lower than the previous crop, with Gia Lai province alone, which is considered the capital of Vietnamese pepper, estimated to see a production drop of up to 60%. This is also a common trend among many major pepper-growing countries globally.

According to the electronic newspaper Dân Việt, in December 2020, the Vietnam Pepper Association (VPA) conducted a wide-ranging survey on the production situation of the 2020/2021 pepper crop in key pepper-growing provinces: Dong Nai, Ba Ria – Vung Tau, Binh Phuoc, Dak Nong, Dak Lak, and Gia Lai. The survey results showed that the 2020/2021 pepper crop production could significantly decrease in many localities. In Gia Lai, the districts of Chu Se, Dak Doa, and Mang Yang all recorded a sharp decline in harvested area by about 50% compared to the peak period in 2017.

Vietnam's annual pepper production reaches about 170,000 – 200,000 tons, with exports accounting for nearly 95%, and domestic consumption about 5%.

According to preliminary data from the General Department of Vietnam Customs, pepper exports of all types in January 2021 reached 16,896 tons, a decrease of 3,846 tons (18.54%) compared to the previous month, but compared to a year earlier, it increased by 2,130 tons (14.43%). The export turnover value of pepper in the month reached 48.72 million USD, a decrease of 8.67 million USD, or 15.11% compared to the previous month; but also increased by 12.73 million USD, or 35.38% compared to the same period last year. The average export price of pepper in January 2021 reached 2,884 USD/ton, an increase of 4.23% compared to the average export price of December 2020.

In 2020, the member units of the Vietnam Pepper Association exported a total of 182,908 tons of black pepper, accounting for 95.30% of the total black pepper export volume of the country. Additionally, businesses also exported 23,931 tons of white pepper, accounting for 93.65% of the total white pepper export volume of the country.

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