a

Lorem ipsum dolor sit amet, consecteturadip iscing elit, sed do eiusmod tempor incididunt ut labore et dolore sit.

Vietnam pepper monthly round-up December 2021

60%of the world’s pepper consumption demand is now supplied by Vietnam, making it the top leader in pepper exportation among others countries such as Brazil, Indonesia… The quality of pepper is increasingly improved, the structure of export categories has gradually shifted to pepper with high processing content instead of raw product only.

Inventory

Compare to previous crop, both local production and import quantity in 2021 decreased. Until the end of the year, Vietnam pepper inventory was almost out of stock.

In the 1st quarter of 2022, current inventory is not expected to meet demand when the world markets recover from Covid

Export

As in latest report from Vietnam Pepper Association, in December 2021, Vietnam has exported nearly 15,170 tons. Compared to November, export volume decreased around 12%.

Preliminary statistics of VPA show that in 2021, Vietnam export 263,692 tons of pepper of all kinds, including 231,676 tons of black pepper and 32,016 tons of white pepper. Total export turnover reached 948.7 million USD, black pepper reached 792.1 million USD, white pepper reached 156.6 million USD. Compared to 2020, export volume decreased by 8.1% but turnover increased by 43.6%.

In the latest update, the US continues to be the largest pepper import market of Vietnam, reaching 55,602 tons, up 9.6%; followed by the Chinese market, reaching 37,746 tons, down 27.3%.

Logistics

Global supply chain will continue to face the risk of port congestion and container shortage until next year, 2022.

Logistics costs have increased sharply in most markets, especially Europe and the US. In the US market alone, the shipping price has increased by more than 500%. In the short term, transport prices cannot return to pre-pandemic levels.

Higher fee for transportation, together with shortage on supplying source are expected to raise the price of pepper in 2022.

Sustainable

Via the survey and data collection, farmers of the old generation have dominated on most pepper farms. It is estimated 70% of farmers are in middle age while the age below 35 just accounts for 3.2%. The aging farmer tendency has become one of the most challenges in adapting to technology.

Farmers expect the pepper price will increase over 100.000 VND to compensate for input costs, therefore enable them to reinvest the farms.  There are some death poles happens in farms , so they have to replant it with new pepper or with fruit plants as avocado or macadamia to raise their income, still no farmers intend to switch to other in upcoming crops.

The crop is going to start after the Tet holiday (Mid February) and as forecast from expert, the upcoming crop will witness a slump in amount of pepper production, as farmers are focusing more on the quality, instead of quantity like before.

Beside the attribution to raise the efficiency for farming, Simexco also co-operate with clients to excecute meaningful social projects. The project of raising awareness on the roles and responsibilities of women so they can recognize their value and step out of household chores to take more social roles are receiving positive feedback from many farmers and their family members.

Other

Covid situation in Vietnam is raising, 1,731,257 cases in total till end of December 2021.

The total number of doses of vaccine injected was 150.935.915, of which the first dose was 77.555.511, the second dose was 68.435.813, and the third dose was 4.944.591 (nearly 50% of the population).

The total number of deaths from COVID-19 in Vietnam so far is 34.531, accounting for 1.8% of the total number of infections.

Disclaimer

This publication has been prepared by Simexco Daklak Ltd., for information purposes only and are not intended (and should not be considered) to be legal advice on any subject matter. Simexco Daklak Ltd., does not give any representation or warranty, whether express or implied, as to the accuracy, completeness, currency or fitness for any purpose or use of any information in this publication or as to whether this publication reflects the current legislative or regulatory position or any other relevant developments. Simexco Daklak Ltd., assumes no responsibility to update this publicationbased on events after publication of the information contained therein.

Readers are responsible for assessing the relevance and accuracy of the content of the information in this publication. Simexco Daklak Ltd., will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information therein.

Information in this publication should not be considered as advice, or as a recommendation or solicitation to purchase or otherwise deal in securities, investments or any other products. Such information has been prepared for institutional clients, is not directed at retail customers and does not take into account particular investment objectives, risk appetites, financial situations or needs. Recipients of the document should make their own trading or investment decisions based upon their own financial objectives and financial resources.

For further informationconcerning the contents and usage of this publication pls contact:trade@simexcodl.com.vn

SIMEXCO TEAM.

Post a Comment