Although for 6 consecutive years, Vietnam’s pepper industry dominates the world market and is one of the leading exporters of this item, but profits and export turnover, especially product brands, come to the world market. is not yet commensurate with its real potential.
Farmers in Cu Kuin district, Dak Lak harvest pepper
Quantity goes up, price goes down
Mr. Do Ha Nam – Chairman of the Vietnam Pepper Association (VPA) – said: In the first quarter of 2013, enterprises exported 38,374 tons, up 23.5% over the same period, reaching the level record so far. However, the domestic pepper price from the end of March until now has decreased by 5,000- 10,000 VND/kg. Specifically: The average export price of black pepper is about 6,266 USD/ton (down 92 USD/ton compared to 2012), white pepper: 8,869 USD/ton (down 436 USD/ton). Export pepper prices of domestic enterprises are getting lower and lower. In 2012, the black pepper price in Vietnam was about 295 USD/ton lower than the world price. In the first 3 months of 2013, this gap was 389 USD/ton. Vietnam white pepper in 2012 sold an average of 9,299 USD/ton, only 89 USD/ton lower than the world price, last time only sold for 8,742-8,874 USD/ton, lower from 450-500 USD/ton.
According to Mr. Do Ha Nam, the reason the price of pepper fell is due to psychological factors, many farmers harvest to sell there. Besides, enterprises also increased the amount of pepper for export … so the market price moved in a downward direction. “Enterprises need to consider analysis of market supply and demand to choose the best time to sell, not to focus on selling to lower prices.” – Mr. Do Ha Nam recommended.
In addition, the cause of the decline in export prices is also due to the lack of strict management of the quality of pepper. Many export contracts do not meet the requirements of the importer for moisture, impurities and issues related to food safety and hygiene.
The brand has not been located yet
VPA said that although Vietnamese pepper accounts for 50% of the world pepper market share, present in over 150 countries, it is still not known to many world consumers. In fact, up to 95% of pepper output is exported in the form of newly-processed products and through 3 main partners, India, China and the US, so when sold to the world market, Vietnamese pepper are all named after foreign manufacturers.
Mr. Nam said that there are 3 directions that the pepper industry needs to pay attention to to position the brand and improve the value when exporting: The firstthe difference in value between black pepper and white pepper is up to 70%, so it is advisable to focus on shifting the production rate of black pepper to white pepper to improve profits. Monday, enterprises need to increase production of ASTA pepper (according to US standards). Currently, there are 10 factories producing ASTA pepper in the country (including 5 foreign enterprises), so the percentage of Vietnamese ASTA pepper exported to Europe and America is not much (15%). TuesdayEnterprises need to promote the export of powdered pepper products. Currently, domestic enterprises do not have a powdered pepper market, although they know that this pepper can be supplied to all supermarkets in the world.
In addition, the Ministry of Agriculture and Rural Development needs to develop a map of the planned areas and each locality must have instructions from each family and each pepper growing household, thereby serving as a basis for the overall planning. to produce clearly certified goods. The ministry should soon have a process of pepper cultivation and put pepper plants in the VietGap program.
In 6 key pepper regions, namely Binh Phuoc, Dong Nai, Ba Ria – Vung Tau, Dak Nong, Dak Lak, Gia Lai, there is only one brand of Chu Se pepper (Gia Lai), so for many years, Production and business enterprises and pepper growers always suffer losses compared to other countries.
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