On January 25, 2024 in Ho Chi Minh City, the Vietnam Pepper and Spice Association (VPSA) organized a conference to summarize the year 2023 and implement the Association’s charter and tasks for 2024. Attending the conference were representatives Representative of the Import-Export Department – Ministry of Industry and Trade, representative of the Department of Non-Governmental Organizations – Ministry of Home Affairs, along with representatives of a number of Departments of Agriculture of Binh Phuoc and Dong Nai provinces and nearly 100 delegates representing businesses and cooperatives … Association members attend the Conference.
Ms. Nguyen Thi Tuyet Mai – Senior Specialist – Department of Non-Governmental Organizations, on behalf of the Ministry of Home Affairs, announced the decision to change the name of the Association
Speaking at the Conference, Mr. Vu Van Hai – Vice Chairman of the Association said that according to the International Pepper Association (IPC), global pepper production in 2023 will reach 539 thousand tons, down 4.3% compared to with 2022. The decline will mainly come from Brazil, India and Indonesia. At this time, world pepper is entering the main harvest taking place in the largest producing countries, including Vietnam, India, and the South of Brazil. IPC forecasts that global pepper production in 2024 will continue to decrease by 1.1%, equivalent to 6,000 tons. However, the actual decline could be even higher. Because in IPC’s forecast, in 2024, Brazil and India will increase production, while Vietnam will decrease. VPSA said that due to the effects of climate change, this year’s harvest is later than last year. Expected Vietnamese pepper output in 2024 is estimated to reach 170 thousand tons, down 10.5% compared to 2023. According to the General Department of Customs, Vietnam’s pepper exports in 2023 will reach 264,094 tons, worth 905 million USD, increased 13.5% in volume, but decreased 8% in value. It is forecasted that pepper exports in 2024 will be favorable, prices will increase due to reduced output, inventories are currently at the lowest level in recent years…
Mr. Vu Van Hai – Vice Chairman of VPSA reported on the situation of the pepper and spice industry in 2023
Mr. Nguyen Tan Hien – Vice Chairman of VPSA reported on the export situation of businesses in 2023
Ms. Tran Nhu Trang – Representative of Sippo Vietnam presented the opportunities and challenges of Vietnamese businesses according to the Association’s survey
The average export price of black pepper in 2023 reaches 3,585 USD/ton, down 420 USD/ton compared to 2022; White pepper reached 5,091 USD/ton, down 635 USD/ton. Asia is Vietnam’s largest pepper export market in 2023, accounting for 52.7% market share. Of which, China is the leader, accounting for 22.8% of the export market share, reaching 60,135 tons, an increase of 174% compared to 2022. Next is the Indian market: 12,812 tons, accounting for 4.9% and an increase of 4 ,2%; UAE: 12,132 tons, accounting for 4.6%, down 24.7%; Philippines: 8,021 tons, accounting for 3.0%, an increase of 27.5%. The Americas region ranked second in terms of export market share, accounting for 22.8% and exports increased by 0.3%, of which the US is the second largest export market of Vietnamese pepper reaching 54,271 tons, accounting for 20.5%. down 0.8% compared to last year. Exports to European markets accounted for 19.5%, down 1.4% compared to last year. Exports to Africa increased by 7.8%.
Meanwhile, according to Mr. Nguyen Tan Hien, Vice Chairman of VPSA, in November and December 2023, drought occurred in Brazil at a severe level, affecting many pepper growing areas, especially Areas will harvest from March to June 2024. Therefore, pepper production in Brazil is likely to decrease this year. Therefore, global pepper production this year will be at the lowest level in the last 5 years. Vietnamese pepper prices are expected to be better after the Lunar New Year, when Chinese traders increase purchasing power in the market, especially at the beginning of the second quarter of every year. In addition, other markets will also have to start buying again even though the economy is still in crisis. This may cause inventory at the end of the year to continue to decrease. Although pepper prices are forecast to increase, pepper crops in the Central Highlands and Southeast provinces are under great competitive pressure from a number of other crops, especially durian. In recent times, many pepper gardens have been cut down by farmers to be replaced with this fruit tree.
Mr. Le Anh Son – Director of Binh Minh Cooperative presented the difficulties and challenges in linking pepper production
Mr. Le Qui Hoa Binh – Head of Control Union certification department presented the requirements and regulations of the EU and US import markets
Mr. Le Van Thiet – Deputy Director of the Plant Protection Department reported on the Department’s regulations in recent times
According to Ms. Hoang Thi Lien, President of VPSA, it is inevitable that farmers will switch from pepper to durian, when profits from durian are currently much higher than from pepper. However, farmers should only replace pepper with durian or other crops in areas where the soil has degraded or has so many pests that replanting is impossible. Pepper gardens that are still good need to be retained because this is a sustainable crop that brings long-term economic efficiency.
Commenting on Vietnam’s pepper industry, VPSA said that in addition to the challenge of shrinking acreage due to competition with a number of other crops, the pepper industry also faces a series of new requirements from importing countries. , requiring both associations, businesses and farmers to prepare and respond appropriately.
Global pepper output in the 2024 crop is also estimated to decrease when forecasts from producing countries all decrease. However, according to VPSA, this decrease is still lower than the decrease in global consumption demand, so it is forecast that pepper prices will be difficult to increase continuously in the long term.
Specifically, except for China, it is forecast that the upcoming consumption demand of countries around the world may decline due to the impact of the economic crisis resulting from geopolitical conflicts in some regions. At the same time, the impact of the Israel-Hamas war will also affect oil prices, which will further cause the world economic situation to fall into recession, with purchasing power likely to decrease in the near future.
In particular, exports of many types of agricultural products will have to comply with EU regulations on anti-deforestation and not causing harm to forests, initially applicable to 6 commodity industries: coffee, soybeans, wood, cattle, ca rubber, rubber, and in the near future it may be applied to pepper.
Last year, due to the world economic recession, high inflation, prolonged geopolitical tensions, and strong fluctuations in the global financial market, this has caused difficulties for lake trade. pepper.
Therefore, VPSA recommends that businesses in the pepper industry need to prepare in advance for this regulation. The upcoming EU requires the origin of the growing area from longitude and latitude, women’s and children’s rights, and accountability of buyers in Europe.
VPSA said that Vietnam imports a lot from Brazil. If considered from the retrieval time of December 2020, Brazil’s pepper area still reached the threshold of deforestation and forest damage. VPSA needs to prepare documents to support businesses in declaring appropriately when required.
Regarding emissions reduction, Vietnam commits to cutting 30% in 2030 and reaching Net Zero by 2050. Therefore, the pepper industry needs to prepare in advance, including arranging factory and garden operations in the chain. sustainable to both ensure compliance and meet the requirements and regulations that the Government is in the process of developing as well as help bring more income to people if the product is certified.
Awarding new Membership certificates to new businesses joining the Association
According to VPSA, currently the sustainable development of pepper and coffee is in conflict with the sustainable development of durian because durian’s growing area code requires specialized cultivation, while many households in the Central Highlands are intercropping. Many types of plants: pepper, durian, coffee…
To be granted a durian growing area code for export to China, many households have been destroying pepper trees and switching to monoculture durian trees. Faced with this situation, VPSA requested the Ministry of Agriculture and Rural Development to have appropriate solutions to ensure sustainability for Vietnamese pepper.
Synthetic VPSA
