In July 2024, pepper exports increased by more than 43%. (Source: Black Pepper Plant)

According to the Vietnam Pepper and Spice Association (VPSA), although pepper export output in the first 7 months of the year decreased slightly by 2.2%, due to high export prices, export turnover increased by 40.8% over the same period.

Specifically, in July, Vietnam exported 21,771 tons of pepper of all kinds; including 19,371 tons of black pepper and 2,400 tons of white pepper. Total export turnover in July reached 129.9 million USD, down 22.7% in volume and 7.9% in value compared to the previous month but up 43.7% in volume and 128.9% in value compared to the same period in 2023.

The average export price of black pepper in July reached 5,861 USD/ton, white pepper reached 7,558 USD/ton, up 15.7% for black pepper and 9.2% for white pepper compared to the previous month.

In the first 7 months of 2024, Vietnam exported 164,357 tons of pepper of all kinds; of which, black pepper reached 145,330 tons, white pepper reached 19,027 tons. Total export turnover reached 764.2 million USD. Compared to the same period in 2023, export volume decreased by 2.2% but export turnover increased by 40.8%. The average export price of black pepper in the first 7 months reached 4,568 USD/ton, up 32.7%; white pepper reached 6,195 USD/ton, up 25% over the same period last year.

The US - the world's number 1 economy - is Vietnam's largest pepper export market in the past 7 months with an output of 43,349 tons, up 48.4% over the same period and accounting for 26.4% of the market share.

Next is the German market with 10,941 tons, up 97.3%; the United Arab Emirates (UAE) imported 10,897 tons, up 39.2%; India imported 8,744 tons, up 39.7%; China ranked 4th with 8,059 tons, down 84.6% over the same period.

Ms. Hoang Thi Lien, President of VPSA, said that the world's demand for pepper is increasing and the European Union (EU) is still a large consumer market for Vietnamese pepper. In addition, the pepper processing capacity of Vietnamese enterprises is also very large, reaching 140,000 tons/year, which is an opportunity to help the Vietnamese pepper industry develop in the coming time.

Meanwhile, world pepper output in 2024 is forecast to decrease, due to unfavorable weather conditions in Brazil and pepper acreage in Vietnam continuing to shrink, from 115,000 hectares (2023) to more than 111,000 hectares.

According to Ms. Hoang Thi Lien, although pepper prices are high, durian and coffee are also selling at high prices, and attractive profits have limited the ability to expand pepper growing areas. Up to this point, there has been no record of pepper growing areas increasing rapidly again in the Central Highlands and Southeast provinces like in previous periods of pepper price increases. Instead, farmers who are still attached to pepper are increasing investment in care to restore productivity, output, and quality of their existing pepper gardens.

In addition to area and output, the quality of Vietnamese pepper is also an issue that needs attention. While markets increasingly demand high food safety and hygiene, recently, Vietnamese pepper has received many warnings about antibiotic residues, heavy metals and microorganisms.

Part of the reason comes from the limited application of technical processes for planting, caring and harvesting, and the application of scientific and technological advances for ethnic minority areas. Localities have not yet built many sustainable linkage chains with the full participation of all parties from farmers to businesses, the state and scientists.

In the coming period, VPSA aims to prioritize maintaining stable pepper acreage, focusing on solutions to improve quality, and diversifying processed products with high added value.

Accordingly, it is necessary to advise and guide farmers to comply with international standards, especially on chemical residues, implement cultivation processes, prevent pests, and process and preserve them in accordance with the climatic conditions of each region. It is recommended that research units promote the development of new varieties with high yield, good quality, and disease resistance.

On the local side, it is necessary to actively coordinate the planning of raw material areas associated with the construction of value chains to link with processing enterprises and exporters, apply digital technology in production management, traceability, and customer connection.

At the same time, continue to expand the production linkage area between enterprises and farmers, encourage the establishment of cooperatives and production groups in raw material areas to act as partners of exporters in the supply chain.