Illustrative photo (Source: VNA) The Vietnam Pepper Association (VPA) reported that pepper wassold at 90,000 VND (3.98 USD) per kg last year on the domestic market, almost doublingthe previous year’s 48,000 VND, after a constant reduction over the last fewyears.
The average export price of Vietnam’s pepper in December 2021 reached 4,703 USDper tonne, a sharp increase of almost 70 percent on the year 2020.
The average export price for the whole year reached 3,593 USD pertonne, up 55.2 percent compared to 2020.
Therefore, Vietnam’s pepper export turnover in 2021 rose by 42 percentcompared to 2020 to 938 million USD, although the export decreased by 8.5 percentin volume to 261,000 tonnes.
The association forecasts that Vietnam’s pepper exports will rebound from thefirst quarter of 2022 with an estimated world purchasing demand of130,000-160,000 tonnes, while the country’s total annual output is only about150,000 tonnes.
Moreover, the quality of local pepper is improving and the VPA is supportinglocal enterprises to promote the processing of pepper and branding.
According to the Ministry of Industry and Trade’s Import-Export Department,this year the pepper export price is estimated to continue at a highlevel. The domestic pepper industry continues to develop traditionalimporting markets such as the US, EU, and the United Arab Emirates.
The US is the largest pepper importer of Vietnam, and the recovery of theeconomy will lead to an increase in pepper demand. Meanwhile, Vietnam’spepper has a competitive advantage compared to products of othercountries such as Indonesia, India and China.
The export price is forecast to maintain a high level this yearbecause there might be a shortage if the conditions forproduction are not favourable.
Vietnamese producers are likely to face a shortage in raw pepper for processingand export in 2022 due to global undersupply, according to a representativefrom the International Pepper Community (IPC).
Demand is bouncing back sharply around the world as restaurants and diningservices are allowed to reopen.
Meanwhile, global output fell well short of the demand because, except forBrazil which is now in the middle of the harvest season, supplydried up for other major producers such as Indonesia and India.
The VPA is considering importing pepper from neighbouring countries to ensuresufficient supply for domestic processing, according to VPA Chairman Nguyen HaiNam. Last year, Vietnam’s pepper imports from Cambodia soared 111 percentcompared to 2020.
Pepper output in Cambodian provinces bordering Vietnam can reach 30,000 tonnesper year. Even though the number only accounts for one-tenth of Vietnam’soutput, it can help ease the shortage.
To maintain the high export price of pepper in the next few years, many expertsin the pepper industry believe that controlling the increase in supply is oneof the key factors.
Farmers need to change toward clean and safe production and improve productquality. Brand building is also needed because Vietnam's pepper hasnot been known in many markets although Vietnam is one of the largestexporters in the world.
According to Nguyen Qui Duong, deputy director of the PlantProtection Department, Vietnam’s pepper industry now needs to switchfrom focusing on quantity to an increase in quality. It must reformthe production system to have better quality pepper, helping farmers have asustainable income.
According to Hai, the pepper industry must promote sustainable organicpepper growing areas, applying GlobalGAP and VietGAP standards in pepperproduction and processing.
At the same time, the enterprises must diversify processed pepper products withhigh quality, such as pepper oil, white pepper, red pepper, powdered pepper,seasoning products from pepper and organic pepper, to directly export to theglobal retail system.
Hoang Phuoc Binh, Chairman of the Chu Se Pepper Association, said tosustainably develop the pepper industry, the Government and concernedministries and agencies must provide accurate, timely updates on areasgrowing the spice in Vietnam and the globe, and other informationregarding processing, distribution and consumption.
In 2021, the structure of export pepper products had a significant change.Local enterprises reduced exports of raw pepper while increasing pre-processedor processed products, according to the VPA.
Vietnamese pepper products have continued a leading position in the globalpepper industry with the export volume accounting for 60 percent of globalconsumer demand./.
VNA
