Buyers and sellers in the wholesale pepper sector should be aware of four factors that contribute to a stable wholesale pepper trade.
Pepper stable sources are primarily determined by total pepper production. The harvest season – which varies by country – is when pepper trees produce high quality and quantity products.
2017 | 2018 | 2019 | ||||
Production
(MT) |
Price
(USD/KG) |
Production
(MT) |
Price
(USD/KG) |
Production
(MT) |
Price (USD/KG) | |
Vietnam | 200,000 | 5.2378 | 230,000 | 3.2905 | 260,000 | 2.4826 |
Indonesia | 70,000 | 5.6332 | 73,000 | 3.3001 | 78,000 | 2.841 |
Brazil | 65,000 | 4.9067 | 72,000 | 2.8357 | 80,000 | 2.1485 |
If demand is excessively great in comparison to supply, prices will rise suddenly at a certain point in time. As previously stated, a similar situation occurred in August of 2021, resulting in pepper prices in Vietnam, Indonesia, and Brazil being 43-45 percent higher than they were at the start of the year and 62-83 percent higher than the same period the previous year.
Government policies are inextricably linked to a successful wholesale pepper business. For example, businesses benefit from the government’s cooperation in signing the EVFTA because the tariff is abolished to the tune of 99 percent. This caused wholesale pepper prices to drop when traded, resulting in the growth of the pepper industry. Viet Nam has become one of the world’s major pepper exporters as a result of the EVFTA Agreement.
Especially in the Covid – 19 epidemic, cargo payment is critical in selecting whether or not to purchase agricultural items like pepper.
In short, a variety of external factors influence the wholesale pepper price. Importers should be aware of government policies as well as the features of each country’s supply and shipment in order to negotiate a fair price.