The head of the Ministry of Agriculture and Rural Development added that the Ministry recently called businesses to link with farmers to deep processing pepper products with 10 different items, including pepper oil.
About the problem of redundancy crisis pepper In recent years, in response to the question of the National Assembly deputies, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said Vietnam's pepper production accounted for 60% of the total pepper output worldwide.
“To develop the advantage of pepper, we only produce to a certain extent. The plan is only 50,000 ha, while the actual area is 3 times the planned area of 150,000 ha. Therefore, inefficient areas need to be transferred to other trees, ”the minister said.
The head of the Ministry of Agriculture and Rural Development also added that the Ministry recently called businesses to link with farmers to deep processing pepper products with 10 different items, including pepper oil.
“We need to do what the market needs. Now that sales are important, organizing production is not the best, ”the minister said.
According to information from the Ministry of Industry and Trade, as of September Vietnam about 100,000 hectares of pepper for harvest with an average yield of 24.7 quintals / ha, equivalent to an output of about 247,000 tons.
However, while pepper prices remain very low, production costs tend to increase, at least 10% compared to 2017.
This is also the reason that in the first 8 months of 2019, Vietnam, though exporting pepper reached 224,000 thousand tons, up 27.9% over the same period, but turnover decreased slightly by 2.1% and reached only 571 million USD. , due to 23.4% reduction in export prices.
Ministry of Industry and Trade said that for pepper, the market opening negotiations on tariffs and rules of origin have been well implemented in the past.
Therefore, the Ministry of Industry and Trade said that in order to make good use of the above opportunities, businesses need to actively seek information about the Agreements in order to firmly grasp commitments between Vietnam and partner markets, especially especially information on tariff preferences, quality requirements, and rules of origin.
In addition, in fact, the price of pepper will depend on the type of seed as well as the quality of the seed (if the same type), so to improve the price for pepper, the core measure lies in cultivation and post-harvest stages.
Therefore, the pepper industry needs to innovate its growth model in the near future, focusing on quality right from the raw material stage to create high quality products and participating in high value-added markets to improve value and economic efficiency.
