Pepper returns to its position as a billion-dollar export item

(PLVN) - After 10 years, pepper has returned to the billion-dollar export turnover mark. Therefore, the problem is that there needs to be a plan to maintain the billion-dollar status of this item.

10/26/2024 06:21

Need to build a brand for Vietnamese pepper. (Illustration photo)

(PLVN) - After 10 years, pepper has returned to the billion-dollar export turnover mark. Therefore, the problem is that there needs to be a plan to maintain the billion-dollar status of this item.

Export output decreased but turnover increased

According to the General Department of Customs, in September 2024, Vietnam exported 20,000 tons of pepper, worth 125 million USD, up 10.4% in volume and 84.9% in value over the same period last year. In the first 9 months of 2024, pepper exports reached 203,000 tons, earning more than 1 billion USD, down 1.5% in volume but up 46.9% in value over the same period last year...

However, according to data from the Vietnam Pepper Association, in the first 9 months of 2024, Vietnam exported 200,894 tons of pepper of all kinds with a total export turnover of 991 million USD. Compared to the same period in 2023, the export volume decreased by 1.7%, but the export turnover increased by 46.1%. The reason is that the average export price of all types of pepper increased sharply by 30 - 40% compared to the same period last year. As of mid-October, Vietnam's pepper exports reached 209,933 tons, with a turnover of 1.05 billion USD, down 1.9% in volume but up 47% in turnover compared to the same period last year.

Thus, after 10 years, pepper has returned to its position as a billion-dollar export item. In 2014, pepper reached a record turnover of 1.2 billion USD. Many experts assess that after pepper became a billion-dollar export item, pepper cultivation took place massively in many places with large areas, causing a sharp increase in output, supply exceeding demand, leading to a sharp decline in prices over the past many years.

The reason why pepper exports will reach the billion-dollar mark in 2024 despite a decrease in export output is due to a shortage of supply as the pepper growing area in Vietnam has decreased sharply in recent years, causing output to tend to decline, not enough to meet market demand. Therefore, it is necessary to have a plan to maintain the price and quality of pepper, so that this spice can maintain its position as a billion-dollar export item in the following years.

Need to promote deep processing, increase value

Ms. Hoang Thi Lien - President of the Vietnam Pepper and Spice Association (VPSA) said that the year 2024 will see a breakthrough in exports because advantageous markets have increased demand for pepper such as Australia, New Zealand, and Japan. More demanding markets such as European countries have stable import demand, but due to strict requirements, the proportion of Vietnamese pepper is only very small in these markets. The US is still the main export market for pepper, accounting for over 30% of total exports.

However, in large markets, the raw export ratio still accounts for the majority. “We are encouraging members of the association, especially capable enterprises, to continue investing in technology to promote deep processing. However, with deep processing, we also have to worry about the market front. Because deep-processed goods are very specific and depend on the needs of buyers and customers, not each market. Therefore, we must ensure that there is a market for enterprises to dare to invest,” said Ms. Hoang Thi Lien.

In addition, it is also necessary to build a brand for Vietnamese spices in the international market. However, to build a brand, it is necessary for exporters and processors to be directly associated with the raw material areas to work directly with farmers, thereby managing production and thus ensuring quality requirements and ensuring sustainability and traceability. Therefore, it is necessary to be bold and consider investing in brand building.

Ms. Lien analyzed that for customers who are large buyers - the final buyers in the chain, the factors that they are interested in and want to choose as long-term partners are suppliers, processors, and exporters that have production links and support for farmers in the chain. This helps their supply chain to be sustainable. Because when they are a link in the production chain, adjusting to customer requirements in the product supply process can take place faster than suppliers who only work in the commercial segment.

The story of building a brand for Vietnamese agricultural products is not new and always requires the initiative of enterprises. Because when building a brand, it is often necessary to carefully research customers, their needs and desires. Usually, each customer has different consumer market segments, so there have been opinions that if enterprises are left alone in building a brand, it will be very difficult. Therefore, it is necessary to have the cooperation of ministries, branches and localities so that Vietnamese agricultural products in general, and Vietnamese pepper in particular, can have their own brands, thereby significantly increasing the added value of the industry.

Source: https://baophapluat.vn/ho-tieu-tro-lai-vi-the-mat-hang-xuat-khau-ty-usd-post529827.html