The Global pepper exporters have claimed that the international pepper market seems to be picking up with prices rising up, thanks to Vietnam’s high scoring exports during the first quarter of this year.
Vietnam which shipped out 45,000 tonnes of pepper to score an all time high record is projected to export a minimum of 25,000 tonnes of per month during the months of April and May 2016. It is also expected to ship out 90,000 tonnes at the end of May 2016. The report further claimed that such figures account for export by sea only excluding cross boarder trade to China and therefore there is a need for the adjustment of the official figures from 5,000 to 7,000 tonnes.
Interestingly, despite a total crop harvest of about 150,000 to 160,000 tonnes this year, Vietnam farmers are avoiding depleting their fast selling stock before eight to nine months by holding back raw materials. Meanwhile, another major exporter of pepper India has pushed up pepper prices in the market by US$10,000 per tonnes locally due to strong concerns of drought resulting in new crops only coming out at the end of this year. Other drought affected countries such as Indonesia and Malaysia will have their new crops available this coming (June/July/August) summer.
Meanwhile, Exporters in Brazil and South America will only return to the market in October as they are currently finishing their last sells while upcoming exporters Colombia are slowly improving but have a long way to influence the market.
Source: MITC 20th May, 2016