Pepper exports hit 7-year high of over $1B

The surge was fueled by steady global demand and tight supply, which has kept export prices elevated, the Vietnam Pepper and Spice Association (VPSA) said.

In August alone, Vietnam shipped 21,464 tons of pepper worth $139.8 million, up 2.6% in volume and 1.7% in value from July.

Compared with the same month last year, export volume rose 10.6% while earnings jumped 19.5%.

From January to August, the country exported 166,510 tons of pepper, including 142,627 tons of black pepper and 23,883 tons of white pepper. Volume fell 9.4% year-on-year but was offset by higher prices.

The average export price reached $6,666 per ton for black pepper and $8,732 per ton for white pepper, up 41.5% and 38%, respectively, from a year earlier.

The U.S. remained the largest buyer despite a 31% drop in shipments, importing 35,697 tons and accounting for 21.4% of pepper export value in the period.

Exports to China jumped 58% year-on-year to 13,282 tons while sales to the UAE and India rose 9.7% and 13.7%, respectively.

On the other hand, Vietnam imported 34,524 tons of pepper worth $215.3 million during the same period, up 61.7% in volume and 143.5% in value from a year ago. Brazil remained its largest supplier with more than 17,500 tons, followed by Cambodia and Indonesia.

In the domestic market, pepper prices have been on the rise since late last month. Farm-gate prices climbed from VND142,000-143,000 (US$5.4) per kilogram on Aug. 20 to VND154,000-155,000 by early September before stabilizing at around VND152,000-153,000.

VPSA said the rise was driven by dwindling on-farm stocks at the end of the harvest season and strong demand from exporters.

Industry experts expect limited supply to keep prices high in the near term, especially as Vietnamese firms plan to cut back on importing raw pepper for processing and export to the U.S. due to its reciprocal tariffs of up to 40% on transshipped goods.