Increasing added value for Vietnamese spice products

Vietnamese spices are now exported to more than 125 countries, dominating many important markets. This is an industry with 95% of output being export goods, so it is necessary to focus on investing in deep processing and trade promotion to increase the added value of this industry.

95% of output is export goods

Ms. Hoang Thi Lien, President of the Vietnam Pepper and Spice Association (VPSA), said that Vietnam currently ranks third in global spice exports and dominates many important markets. Of which, Vietnam ranks first in the world in pepper production and export. Cinnamon exports have also ranked first in the world since 2022 and third in the world in star anise exports.

According to Ms. Hoang Thi Lien, the global pepper market is valued at 5.43 billion USD/year, forecast to grow by an average of more than 20% in the period 2024-2032. Vietnam has been the world leader in pepper production and export for over 20 years, accounting for 40% of the harvested output and 60% of the global export market share.

Pepper is a staple in Vietnam's spice industry. By 2024, pepper exports are expected to reach a value of 1 billion USD. Illustrative photo

According to VPSA data, in July 2024, Vietnam exported 21,771 tons of pepper of all kinds, of which black pepper reached 19,371 tons and white pepper reached 2,400 tons. The total pepper export turnover in July 2024 reached 129.9 million USD, of which black pepper reached 112.2 million USD and white pepper reached 17.7 million USD. Compared to June, the export volume decreased by 22.7%, the turnover decreased by 7.9% and compared to the same period in July 2023, the export volume increased by 43.7%, the turnover increased by 128.9%.

In the first 7 months of the year, pepper exports reached 164,357 tons, of which black pepper reached 145,330 tons and white pepper reached 19,027 tons. Total export turnover reached 764.2 million USD, of which black pepper reached 652.0 million USD and white pepper reached 112.2 million USD.

In the spice group, cinnamon is the second most valuable export item after pepper and in the world market, Vietnam also ranks first in terms of output. In the past 6 months, Vietnam exported nearly 45,000 tons of cinnamon, with a total turnover of 127 million USD. Compared to the same period in 2023, the export volume increased by 3.9% but the turnover decreased by 1.8%. The main export markets are India, the US and Bangladesh...

Regarding star anise, Ms. Lien said that Vietnam's star anise output ranks second in the world (after China), with an area of ​​55,000 hectares, star anise output reaching 22,000 tons in 2023. Star anise is a plant with high economic value, producing products that have been widely used in many fields such as medicine, flavoring, cuisine and handicrafts...

In July 2024, Vietnam exported 1,662 tons of star anise, with a turnover of 7.8 million USD, an increase of 7.4% compared to June. The main star anise export market was India, with 1,062 tons, accounting for 63.9%. In the first 7 months of 2024, Vietnam exported 8,685 tons of star anise, with a total export turnover of 41.9 million USD. Compared to the same period last year, the export volume increased by 5.1% but the turnover decreased by 17.1%.

In addition to pepper, cinnamon, and star anise, Vietnam also has many other spice plants that have the opportunity to develop. The whole country has about 68,100 hectares of chili cultivation, with an annual output of about 100,000 tons of dried chili.

According to preliminary statistics from the Vietnam Pepper Association (VPA), in July 2024, the country exported 697 tons of chili, with a turnover of 1.6 million USD. Compared to the previous month, the export volume decreased by 14.5%.

Vietnam is one of the world's leading countries in supplying spice products with an export turnover of about 1.5 billion USD per year. Photo: VNA

In the past 7 months, the total chili export volume of the whole country reached 8,023 tons, an increase of 3.5% over the same period in 2023. In particular, the Asian market continued to play a leading role with 7,727 tons, an increase of 2.1% over the same period in 2023; the American market reached 143 tons, an increase of 123.4%; the European market reached 80 tons and Africa was 73 tons.

Regarding ginger and turmeric, according to VPA data, the export of ginger, turmeric and other spices in the first 6 months of the year also reached 17,280 tons with a turnover of 33 million USD, down 33.6% in volume but up 5.1% in value compared to the same period in 2023. The main export markets of Vietnamese ginger and turmeric include India with 6,635 tons, accounting for 38.4%, Bangladesh with 3,561 tons, accounting for 20.6%, Indonesia with 1,396 tons, accounting for 8.1%.

Currently, our country ranks third in the world in supplying and processing spices after India and China. The entire Vietnamese spice industry has 14 factories with deep processing technology.

Need to increase export value for spice industry

Along with the development of spices, the pepper industry also has the opportunity to increase the value of export turnover when the demand for this item increases globally. Enterprises expect pepper to return to become a billion-dollar item. This is an opportunity for Vietnamese enterprises but also poses the problem of improving quality, focusing on preliminary processing and processing to meet market demand. The main export markets of Vietnamese spices include the US, the European Union, India and China.

As a country with advantages in developing spices, Mr. Tran Van Hieu, Director of Dace Environmental Development and Consulting Company Limited, said: Currently, Vietnamese spices are exported to many markets, creating opportunities for expanding output, but there will be difficulties. Specifically, each market will have its own regulations and standards for agricultural products, so production units in Vietnam must adapt to be able to export to many markets.

In addition, through the export process to markets such as Europe, it shows that partners, in addition to importing fresh and pre-processed agricultural products and spices, also require and have a great demand for products that are more processed, mixed, and organic spices to meet diverse needs in cuisine, serving Muslims...

Mr. Thai Anh Tuan - Deputy General Director of Simexco Dak Lak Import-Export Company said: "Directly linking and guiding farmers to implement the planting and production stages so that our products are clean products, then we have a factory for preliminary processing, sterilization and processing to ensure the standards of the inspection units they issue and are qualified to export to demanding markets".

Every day, the factory can produce 30-40 tons of finished pepper, and every year can export 7,000-10,000 tons of pepper to the US, EU, Middle East and many other countries. The process of preliminary processing and processing is strict, from the stage of receiving raw materials, the factory must check the quality to ensure cleanliness, and no pesticide residue is allowed.

Linking with farmers for green production, along with investing in technology and modern machinery to increase product value as well as meet the increasing demand of importers is helping to increase the export value of pepper in particular and the Vietnamese spice industry in general.

Mr. Nguyen Quy Duong - Deputy Director of the Plant Protection Department, Ministry of Agriculture and Rural Development said: "Sustainable production is needed to serve exports to other countries, including the EU. The Ministry of Agriculture and Rural Development, as well as the Pepper Association, especially businesses, must take action to comply with the new EU regulations."

Vietnam accounts for over 40% of the world's pepper output and over 60% of the world's pepper export market share. However, this spice is still mainly exported raw, Vietnamese enterprises need to invest in deep processing according to market demand to further increase the export value of pepper in particular and the spice industry in general.

VPSA leaders also requested the Ministry of Agriculture and Rural Development to have appropriate solutions to ensure sustainability for Vietnamese pepper. Regarding the cinnamon industry, Vietnam does not have a strategic orientation for sustainable development at the national level; there is a lack of mechanisms to conduct research to promptly respond to market demands. Meanwhile, the situation of chemical residues in herbicides and pesticides in cinnamon bark still occurs...

Source: https://congthuong.vn/nang-cao-gia-tri-gia-tang-cho-san-pham-gia-vi-viet-nam-338483.html