Despite 6 consecutive years, Vietnam's pepper industry dominates the world market and is one of the leading exporters of this item, but profits and exports, especially brand products to still not commensurate with the true potential.
Farmers in Cu Kuin district, Dak Lak harvest pepper
Quantity increased, price decreased
Mr. Do Ha Nam – President of Vietnam Pepper Association (VPA) – said: In the first quarter of 2013, enterprises (enterprises) have exported 38,374 tons, up 23.5% over the same period, reaching record ever. However, domestic pepper price from the end of March has decreased by VND 5,000-10,000 / kg. Specifically: The average export price of black pepper was about 6,266 USD / ton (down 92 USD / ton compared to 2012), white pepper: 8,869 USD / ton (down 436 USD / ton). Export price of domestic enterprises is getting lower and lower. In 2012, Vietnam's black pepper price was 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 9,999 USD / ton, only lower than the world price of 89 USD / ton.
According to Mr. Do Ha Nam, the reason for the price reduction is due to psychological factors, many farmers harvest to sell there. In addition, businesses also increased the volume of pepper exports … so the market price fluctuated. “Enterprises need to consider analyzing market supply and demand to choose the best time to sell, not focus on sales to reduce prices.” – Mr. Do Ha Nam recommends.
In addition, the cause of declining export prices is also due to poor quality control. Many export contracts do not meet the importer's requirements for moisture, impurities and food safety issues.
No brand positioning
VPA said that although Vietnam pepper holds 50% of the world market share of pepper, present in more than 150 countries, it is still not known by many world consumers. In fact, up to 95% of pepper output is exported as a new product through preliminary processing and through three main partners, India, China and the United States, so when selling to the world market, Vietnam pepper. all bear the foreign manufacturers name.
Mr. Nam said that there are 3 directions that the pepper industry needs to pay attention to locate the brand and enhance the value when exporting: first, the value difference between black pepper and white pepper is up to 70%, so it is advisable to focus the production rate of black pepper to white pepper to improve profit. Monday, businesses need to increase production of ASTA pepper (according to US standards). Currently, there are 10 ASTA pepper factories in the country (including 5 foreign enterprises) so the percentage of Vietnamese ASTA pepper exported to Europe and America is not much (15%). Tuesday, businesses need to boost exports of pepper. Domestic businesses currently do not have a market for pepper, knowing that it 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 of each family and each household to grow pepper, from which the basis of the overall planning. to produce clear certified goods. The ministry should soon have a process of growing pepper and putting pepper into VietGap program.
Of the 6 key pepper areas of Binh Phuoc, Dong Nai, Ba Ria – Vung Tau, Dak Nong, Dak Lak and Gia Lai, only one brand of Chu Se pepper (Gia Lai) has been developed for many years. businesses producing – trading and pepper growers always suffer losses compared to other countries.
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