Vietnam’s pepper output is decreasing as people switch to growing other crops and is affected by the weather. Meanwhile, Brazilian output is trending up. This is putting pressure on Vietnam’s number 1 position in the world pepper market.
The world’s number 1 position of Vietnamese pepper is being threatened by Brazil
In a recent document sent to the Government, the Vietnam Pepper and Spice Association (VPSA) said that Vietnam is still ranked top 1 in the world in pepper production and export. However, in the context of competition and favorable market fluctuations for other crops such as coffee and durian, the area and output of Vietnamese pepper are decreasing. The association said this year’s pepper output expected to decrease by 10% to about 170 thousand tons compared to last year, the lowest level in the last 5 years.
This agency is concerned that the level of competition from rival countries will become increasingly fierce, especially Brazil. Accordingly, this country has had a breakthrough in the last 5 years from 80 thousand tons in 2018 and is now expected to reach 100 thousand tons in 2024. This country’s exports reach 80 thousand tons in 2023.
“Therefore, all efforts and support need to be focused on pepper to ensure stable area and output. Vietnam continues to take the initiative, playing a role in regulating world market prices as it currently does. today,” VPSA said.
In addition, VPSA hopes that state agencies will support and mobilize foreign partners to consider expanding investment activities in Vietnam.
The association said that the global corporation McCormick (USA) currently invests in many countries such as India, China and some European countries. This is also the largest importer of US spices.
In 2023, the US will import 54 thousand tons of Vietnamese pepper, accounting for 20.5% of exports to markets. Of which McCormick imported 3.5 thousand tons.
However, this business has not expanded its investment in Vietnam even though it is the partner importing the most pepper. This company is currently just stopping being a partner and choosing a number of large companies to supply pepper for export to the US market.
In addition, there are also a number of other large corporations with technology, capital, and investment in the spice processing industry such as Fuch of Germany, BC Foods and Symríse of the US, AB World Foods of the UK, and Paulig Group of Finland. need to pay attention and consider expanding investment in Vietnam.
Currently, the entire Vietnamese spice industry has 14 factories with deep processing technology.
VPSA believes that the State needs to consider supporting businesses to invest in processing technology through preferential loans that prioritize investment in science and technology, or partial subsidies (30-50%). investment costs (like India and Sri Lanka) in the form of R&D investment to gradually form the Vietnamese spice value chain in the world spice industry.
Currently, Vietnam ranks third in the world as a spice supplier and processor after India and China, but mainly exports products with low processed content.
Source: H.America/Enterprise & Business
