The Ministry of Industry and Trade is actively carrying out a wide range of trade promotion activities aimed at enhancing market connectivity as a way of creating additional opportunities for pepper enterprises to boost exports.
The opening two months of the year saw the country’s pepper exports record contrasting growth as output dropped by 11.2% but grew by 43.8% in value over the same period from last year. The reason was that the export price of Vietnamese pepper grew by 61.9% on-year to reach US$4,681 per tonne. The Import-Export Department under the Ministry of Industry and Trade forecasts that global pepper prices will continue to increase due to falling output and high transportation costs.
In terms of the domestic market, in late February, the price of black pepper also increased sharply, from VND500 to VND1,500 per kg compared to the same period last month, while the price of white pepper stood at VND121,000 per kg, VND1,000 per kg lower than the beginning of February, although it rose sharply compared to the price of VND72,000 per kg during the same period from last year.
According to Hoang Thi Lien, chairwoman of the Vietnam Pepper Association (VPA), global demand for pepper has soared by 3% compared to last year, although the output of other pepper growing countries is decreasing day by day. This creates a special advantage for pepper exports, particularly with the price of Vietnamese export pepper in the opening months of this year witnessing a drastic upturn.
The VPA leader also stated that over the past decade, the nation has beat other growing countries such as Brazil, Indonesia, and India to become the world's leading pepper exporter, accounting for 60% of the global pepper export market share.
Factors such as favourable weather, soil, and competitive labour prices have helped the country’s pepper exports be competitively priced compared to similar products from other markets.
Furthermore, the quality of Vietnamese pepper has greatly improved to meet all market segments. In recording these remarkable achievements, Vietnamese stakeholders have joined hands and adhered to good manufacturing practices (GMP), whilst also integrating pest management (IPM) to deliver strong products to the market.
At present, the nation has more than 30 enterprises investing and applying high-tech standards in processing with a production capacity of 120,000 tonnes per year.
Most notably, with local farmers aware of the benefits of sustainable agricultural development, they have paid more attention to growing pepper according to sustainable farming methods, with areas of pepper certified for international organic standards increasingly being expanding.
Recently, the Ministry of Industry and Trade organised an online trading event for spices and flavouring products, including pepper products from both Vietnam and India. Many private meetings aimed at seeking partners and business opportunities have also been conducted by enterprises of the two countries.
This comes as Sybil Agri Vietnam Co., Ltd. signed a contract to export 10 tonnes of pepper, whilst they are also continuing to negotiate a contract aimed at supplying up to 500 tonnes of pepper for the United Arab Emirates (UAE) market.
Since the beginning of the year, Vietnamese pepper exports have seen positive signs as the VPA was optimistic that pepper exports would increase from the first quarter of the year due to the estimated purchasing demand globally hovering around 130,000 to 160,000 tonnes this year.
Moreover, the quality of pepper is being improved and the VPA is striving to support businesses in promoting deep processing and building a brand name for this product that brings in over US$3 billion annually.
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