1-2 years more for pepper export to grow

VCN - Pepper is one of the Vietnamese key export agricultural products, but the domestic and export prices have continuously decreased recently. Regarding the development of pepper industry, Mr. Nguyen Nam Hai, Chairman of Vietnam Pepper Association, said that in the near future it would be difficult for pepper prices to recover, and it will take at least 1-2 years.
1 2 years more for pepper export to grow Vietnam to reduce pepper area to focus on quality
1 2 years more for pepper export to grow “Pale” brand - the enterprises hard to stand
1 2 years more for pepper export to grow Unstable prices, pepper turns to clean production
1 2 years more for pepper export to grow
Mr. Nguyen Nam Hai, Chairman of Vietnam Pepper Association

In recent years, pepper prices have been on a downward trend, especially since the beginning of the year, the pepper prices have been around 42,000-45,000 VND/kg. According to you, what is the reason why pepper prices are below their cost?

In fact, it is due to its supply and demand. While the supply of area, productivity and output of both Vietnam and the world has increased in recent years, the demand for pepper has increased only at 2-2.5%/year.

Specifically, the pepper prices reached the highest level in 2013 and 2014, about 230,000/kg VND. When pepper prices reached the peak, farmers in the localities expanded their pepper areas. Even, pepper was grown in areas with inadequate soil and climate conditions in the hope of achieving high value.

In Vietnam, the pepper area was just over 53,000 ha in 2013. However, after 5 years, by 2018, the area for pepper cultivation in the whole country was 152,000 hectares, 3 times higher than in 2013. In addition to Vietnam, pepper areas in other countries such as Brazil, Cambodia... also increased. In sum, the world pepper supply was higher than demand, so pepper prices were lower.

The world pepper inventory over the years made the loss of pepper more serious, didn’t it, sir?

Exactly. While the supply has been high, the pepper inventory from year to year has made the supply much more than its demand. The current pepper price is around 45,000/kg. This is the lowest level in the past 10 years, lower than the cost. Now the cost for farmers is around 50,000 VND/kg.

In recent years, diseases caused pepper deaths in many localities. Will this affect the pepper area in Vietnam in the coming time, thereby indirectly affecting pepper supply in Vietnam, sir?

There are many causes for the area of dead pepper. First, it is due to climate change. Besides, in the past, when the price was high, people still grew pepper on areas that did not meet the planting conditions. These areas were not good for pepper to grow, leading to the diseases. In addition, due to the low price of pepper, farmers' investment in pepper in all stages, such as care and harvest, was significantly reduced... However, pepper deaths were only in districts and localities, and this area was not large enough to impact pepper supply.

When will the slump of pepper prices slow down, in your opinion?

In the short term, it is difficult to recover the pepper prices. In 2019, pepper prices are certainly not as high as they were in the past. Currently, the excess supply is too much, it will take 1-2 more crops for pepper to recover.

Many viewpoints suggest that in order to be more proactive, to develop a stable processing and exporting pepper industry, it is necessary to establish a pepper trading floor soon. What is your opinion?

Establishing the pepper trading floor is very good, but it is still in the research stage. The State is creating good policy conditions. Some ministries are also focusing on studying this issue. However, the pepper trading floor has not been implemented in Vietnam yet.

In the current context, what is the fundamental and effective solution to help the Vietnamese pepper industry gradually escape the difficulties, towards a more sustainable development, sir?

In the current urgent development, it is necessary to restructure the Vietnamese pepper industry. In particular, the first important issue is to reduce the area. The areas that were previously not good enough for pepper growing but farmers still planted, causing diseases and low productivity, should be converted to other crops to achieve greater efficiency. Besides, it is necessary to have a link between businesses and farmers to create sustainable material areas, minimize the use of pesticides and chemical fertilizers.

1 2 years more for pepper export to grow Value adding problem for pepper

VCN- Facing the inadequacies due to the recent fast area increase, the pepper industry has made certain ...

In addition, the current pepper for export is mainly raw material, the ratio of white pepper and crushed pepper is too low compared to the raw materials. There are many things processed from pepper that Vietnam has not promoted, such as in biology, medicine, functional food processing or products related to pepper materials... Therefore, the pepper processing industry must aim at deep processing products, creating added value, leading to higher pepper prices. That is the way forward for sustainable development.

Thank you, sir!

According to the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development): pepper export in the first 2 months reached 31 thousand tons and 92 million USD, up 4.3% in volume but decreased by 20.4% in value compared to the same period of 2018. The average export pepper price in January 2019 reached 2,943 USD/ton, down 26.4% compared to the same period of 2018.

The domestic pepper market decreased in February. In comparison with the previous month, the pepper prices in Dak Lak, Dak Nong, Gia Lai and Dong Nai decreased by 2,000 VND/kg to 43,000 - 44,000 VND/kg. The pepper prices in Ba Ria Vung Tau fell 1,000 VND/kg, reached 45,000 VND/kg. The pepper prices are still in a downward trend due to the influence of a large number of global pepper inventories. In the next month, the pepper prices are expected to continuously decline, reaching 40,000 VND/kg, because the global pepper supply is continuing to be supplemented when Vietnam and India - two major pepper producing countries, are in the new harvest season.

By Thanh Nguyen/ Ha Thanh

Related News

Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

VCN - Hanoi City aims to have clean agriculture by 2030, from land, water to air, and clean the environment, especially rivers. Hanoi must create a difference for agricultural product brands, products must be certified and must build the brand "made in Hanoi".
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participating in cross-border e-commerce channels is considered a potential direction for domestic enterprises to directly approach Chinese consumers.
Sustainable production, anticipating the pepper market

Sustainable production, anticipating the pepper market's price increase cycle

VCN - Pepper and spice exports are facing positive prospects as the price increase cycle begins to return. The pepper and spice industry is implementing many activities to promote sustainable production and improve quality to seize market opportunities.
Sustainable production will bring advantages to Vietnamese pepper and spices

Sustainable production will bring advantages to Vietnamese pepper and spices

VCN - Adjusting production and adapting to new requirements is key for Vietnam to maintain its leading position in the international market of pepper and spices.

Latest News

Việt Nam tightens fruit inspections after warning from China

Việt Nam tightens fruit inspections after warning from China

The Plant Protection Department has urged local authorities and relevant agencies to strengthen the inspection and monitoring of durian cultivation areas and export packing facilities following a warning from China.
Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Trade promotion, product introduction and brand promotion also need to be innovated to attract customers effectively.
Freight transport via China-Việt Nam cross-border trains posts rapid growth

Freight transport via China-Việt Nam cross-border trains posts rapid growth

The Nanning branch of China Railway Group Limited reported a sharp increase in freight transport on the China-Việt Nam cross-border railway last year, with trains departing from Guangxi carrying a total of 19,670 containers, marking a staggering annual increase of 1,153 per cent.
Vietnamese retail industry expects bright future ahead

Vietnamese retail industry expects bright future ahead

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.

More News

Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable industry is setting new records and is expected to reach an export turnover of US $10 billion by 2030. With great potential and advantages in developing agricultural products, Vietnam has been affirming its position as one of the world's leading agricultural exporters.
Fruit and vegetable industry aims for $10 billion in exports by 2030

Fruit and vegetable industry aims for $10 billion in exports by 2030

Based on impressive export results in recent years, Việt Nam’s fruit and vegetable industry has set a target of achieving US$10 billion in export value by 2030, according to the Việt Nam Fruit and Vegetables Association.
GDP grows by over 7 per cent, exceeds target for 2024

GDP grows by over 7 per cent, exceeds target for 2024

The growth rate is relatively impressive for the 2011-24 period, only lower than the rates of 2018, 2019 and 2022.
Vietnamese pepper: decline in volume, surge in value

Vietnamese pepper: decline in volume, surge in value

In December 2024, Việt Nam exported 15,265 tonnes of pepper of all types, including 12,771 tonnes of black pepper and 2,494 tonnes of white pepper, generating a total turnover of $100.6 million.
Việt Nam maintains position as RoK’s third largest trading partner

Việt Nam maintains position as RoK’s third largest trading partner

Việt Nam continued solidifying its position as the Republic of Korea (RoK)’s third-largest trading partner in 2024, trailing only China and the US, marking the third consecutive year of the significant trade relationship.
Greater efforts to be made for stronger cooperation with European-American market

Greater efforts to be made for stronger cooperation with European-American market

The European-American Market Department (MoIT) will monitor regional developments and explore opportunities to strengthen Việt Nam’s economic and trade ties.
Leather, footwear industry aims to gain export growth of 10% in 2025

Leather, footwear industry aims to gain export growth of 10% in 2025

The footwear sector will still focus on exporting to available and easy-access markets such as Africa and Asia to increase revenue.
Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

VCN - Green transformation not only helps enterprises minimize the risk of being eliminated from important export markets, but also creates opportunities to build sustainable brands, enhance product value and reach high-end customer segments globally.
Việt Nam to complete database of five domestic manufacturing industries in 2026

Việt Nam to complete database of five domestic manufacturing industries in 2026

The project to build a comprehensive database of domestic industries aims to enhance the capacity and efficiency of trade remedy investigations. It also serves as a strategic tool to protect domestic production.
Read More

Your care

Latest Most read
Việt Nam tightens fruit inspections after warning from China

Việt Nam tightens fruit inspections after warning from China

The Plant Protection Department has urged local authorities and relevant agencies to strengthen the inspection and monitoring of durian cultivation areas and export packing facilities following a warning from China.
Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Trade promotion, product introduction and brand promotion also need to be innovated to attract customers effectively.
Freight transport via China-Việt Nam cross-border trains posts rapid growth

Freight transport via China-Việt Nam cross-border trains posts rapid growth

The Nanning branch of China Railway Group Limited reported a sharp increase in freight transport on the China-Việt Nam cross-border railway last year, with trains departing from Guangxi carrying a total of 19,670 containers, marking a staggering annual increase of 1,153 per cent.
Vietnamese retail industry expects bright future ahead

Vietnamese retail industry expects bright future ahead

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.
Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable indu
Mobile Version