Vietnam accounts for one-third of the global pepper market, but still has to import high-quality pepper to export to fastidious markets.
Mr. Do Ha Nam, Chairman of the Vietnam Pepper Association (VPA), mentioned this paradoxical fact at the Industry’s Annual Meeting in Ho Chi Minh City on May 20, 2016.
Pepper prices increase
VPA said that by the end of April, Vietnam had exported nearly 70,000 tons of pepper, reaching a turnover of nearly US$562 million, up nearly 24% in volume and over 9% in price over the same period in 2015. Export price of black pepper the average import was 7,680 USD/ton, down 1,100 USD/ton; white pepper was 11,500 USD/ton, down 1,084 USD/ton compared to the same period last year.
Currently, the whole country has basically finished harvesting the 2016 pepper crop. In April and May, the pepper market started to be active due to strong price fluctuations. If in February and March, the price of pepper is only about 130,000 – 140,000 VND/kg, in May the price has skyrocketed to 160,000 VND/kg and continues to increase steadily until now about 180,000 VND/kg.
Vietnam’s pepper price in the world market in May also increased slightly from 3-5% compared to March. Currently, the export price of black pepper is over $8,000/ton and white pepper is $11,550/ton.
According to VPA, this year is forecasted to continue to be a year that the pepper industry has many advantages in terms of both price and output. However, with the current growth rate, the pepper industry may face long-term difficulties due to hot and uncontrolled growth.
The world warns about quality
According to VPA, the pepper industry is in a period of hot growth. Vietnam’s pepper growing area is constantly expanding, averaging 10-20% per year. This growth leads to many risks in terms of varieties, techniques, natural conditions, etc., in addition, pepper prices have remained high since 2014 making farmers more and more abused fertilizers and pesticides. in care to increase productivity. Therefore, the quality of Vietnamese pepper does not meet the requirements of fastidious markets.
Currently, Vietnam accounts for 32% of the world pepper market. The second country is India with only about 18% (domestic consumption is the main feature). Next is Indonesia 16%. However, Vietnam still has to import high-quality pepper to export to the Japanese market, on the other hand, Vietnamese products to Europe are also very few compared to other countries. Even according to Mr. Do Ha Nam, the European, American and Canadian Spice Associations have repeatedly warned about the increasing pesticide residues in Vietnamese pepper. “Pepper is facing a great risk, it needs to be dealt with by the Agriculture sector drastically, otherwise the pepper industry will not be able to develop in the future,” Mr. Nam suggested.
In 2015, Vietnam’s pepper exports reached over 133,000 tons, down 15% in volume compared to 2014 but the turnover reached 1.27 billion USD, up 5.4%. Pepper accounts for about 9.35% of Vietnam’s total agricultural exports.
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