Deep processing is a sustainable path for the pepper industry

Vietnam is currently the world’s largest pepper export market, accounting for about 55% of total pepper exports worldwide last year. In 2022, export turnover reached 970.6 million USD with 228,000 tons, a slight increase of 3% in value and a decrease of 12% in volume compared to the same period in 2021. This is the year with the highest export turnover of pepper since from 2018.

However, along with fluctuations in the world, the decline in demand in the main markets in the past year has had a significant impact on the goal of increasing Vietnam’s pepper export turnover. After 5 years, the pepper industry still has not been able to achieve an export turnover of 1 billion USD.

To learn more about the development of the pepper industry in recent years, Mekong ASEAN had a conversation with Ms. Hoang Thi Lien – President of Vietnam Pepper Association.

Mekong ASEAN: How do you assess Vietnam’s pepper exports in 2022? In your opinion, what are the highlights in the export picture of Vietnam’s pepper industry in 2022?

Ms. Hoang Thi Lien: Vietnam is still the world’s largest producer and exporter of pepper in the past two decades. However, 2022 is considered a difficult year for the pepper industry due to the influence of global economic inflation as well as the “Zero Covid” policy from China.

In the first months of 2022, Vietnam’s pepper exports remained stable with good prices, especially in the traditional markets of the US and Europe. However, from June onwards, the export volume decreased due to the impact of the world economic crisis, the world’s geopolitical factors fluctuated, affecting the export growth target. of the whole industry.

It can be said that in 2022, when the consequences of the Covid pandemic have not completely ended, the world economy will continue to suffer other uncertainties, affecting the entire world economy in which. including the pepper industry.

The above factors have gradually affected the world pepper, the domestic price adjusted from nearly 90,000 VND/kg in the first months of the year to about 63,000 VND/kg in mid-December 2022.

Mekong ASEAN: In order for the pepper industry to develop sustainably in the future, in your opinion, what factors should be contributed??

President Hoang Thi Lien: With the current processing capacity of 140,000 tons/year, Vietnam continues to be able to further increase the proportion of processed exports compared to the current rate of only 30% of processed goods.

The shift from exporting raw materials to exporting processed products is the policy of the Party, State and Government for agricultural products. The increase in deep processing will help diversify products, increase quality and value, participate more deeply in the value chain to continue affirming the prestige and national brand of Vietnam’s pepper industry in the market. international.

Currently, many import markets such as the US and EU require increasingly high quality standards, especially in terms of pesticide residue levels.

On the other hand, in order for the industry to develop more in the future, besides the requirement to increase the export rate of processed pepper, enterprises need to promote production linkages with cooperatives and farmers to create sources of raw materials are stable, sustainable and meet the requirements of pesticide residue levels of the markets. At the same time, it is necessary to actively participate in trade promotion programs to expand market development such as participating in international fairs and exhibitions.

For the Government, ministries, branches and related agencies, it is necessary to strengthen the organization of trade promotion programs to support industries and businesses. The Vietnam Trade Office in other countries continues to update information and policies on changes of host countries to promptly inform businesses.

On the part of farmers, it is necessary to change production thinking towards sustainable development, not chasing output but improving the quality of harvested products; join cooperatives and cooperative groups to link production with enterprises.

Mekong ASEAN: After 5 years, the pepper industry has not yet regained the export milestone of 1 billion USD. In your opinion, what needs to be done to achieve this export result?

President Hoang Thi Lien: In order to continue to consolidate and increase export value, enterprises need to make efforts to strengthen domestic production to meet the quality requirements of the market, and continue to expand and develop the market. The increased requirements in both quantity and quality of exports depend a lot on finding new customers and expanding markets.

It can be said that trade promotion activities always play a very important role in helping exporters find and expand markets. Maintaining a presence and being active at international events and industry events will be a useful channel for exporters to promote their image.

At the national scale, maintaining and promoting the image of the pepper industry at major food events in the world in a methodical and professional manner will contribute to positioning the image and value of Vietnam’s pepper well. more in the long run.

In addition to the initiative of businesses, the support of ministries and sectors plays a necessary role to accompany at trade promotion events and develop national brands.

There should be preferential mechanisms for enterprises to associate production to develop raw material areas, policies to support the synchronous development of the commodity industry such as planning, research and development of varieties, statistical work…

From the above factors, it is possible to bring Vietnam’s pepper industry back to the billion-dollar export mark, contributing to the achievement of the goal of developing green agriculture.

Mekong ASEAN: According to her, What is the prospect of pepper industry development in 2023?

Ms. Hoang Thi Lien: In 2022, the falling pepper price has affected the lives of farmers, many pepper gardens are abandoned. The impact of climate change, the cost of input materials such as fertilizers, drugs, and rising labor costs make the production of farmers and businesses more difficult.

However, in 2022, Vietnam’s pepper export value is still equivalent to 2021. This shows the great efforts and determination of the whole Vietnamese pepper industry to maintain its position as an exporter. largest pepper in the world.

Entering 2023, it is forecasted that pepper exports will continue to face difficulties because inflation and the global economic crisis have not ended, especially in the Americas and Europe, and the Russia-Ukraine conflict has not yet ended. calm down.

However, the fact that the Chinese market with great consumption power has temporarily reopened, the consumption of the large market with a global population has reached 8 billion, accumulated inventories in importing countries from previous years have not been much to help consolidate the supporting factor for market recovery in 2023.

Mekong ASEAN: Thank you for sharing your thoughts!

According to Mekongasean.vn