VPSA recommends that the Vietnamese pepper and spice industry not...

VPSA recommends that in the short term, pepper growers continue to maintain stable production areas, not sell quickly or at a loss, not believe in false rumors, and should register for sustainable farming standards to increase product value.

At present, prices may decrease due to the US and some countries requesting to limit deliveries. However, the association believes that in the next 1-2 months, prices will be decided by farmers, so at present, if selling, only sell enough to meet cash needs, do not sell in bulk in case when prices increase again, there will be no more goods to sell.

"From now until the end of the year, supply and demand will still be the deciding factor. Whether the US imposes reciprocal tariffs on Vietnam or not, the world will still lack goods and prices may increase again," VPSA said.

VPSA believes that in the next 1-2 months, prices will be decided by farmers...

According to VPSA, Vietnam still has certain advantages when Vietnamese pepper cannot compete with American farmers or businesses because the US cannot produce pepper due to unsuitable natural conditions.

US consumer demand is almost entirely dependent on imports, of which Vietnam accounts for over 77% of the market share. Therefore, the possibility of reciprocal tariffs is still open.

The United States has a high demand for pepper to serve the food processing industry. Pepper is an essential spice in food manufacturing, restaurants, fast food chains, meat processing, canning, etc.

US importers are also very concerned about the reciprocal tax. The American Spice Trade Association (ASTA) has urged the US government not to impose this tax because it will cause US businesses to bear additional costs and negatively affect US consumers.

Another positive news is that global supply is increasingly limited due to declining output in some key producing countries such as Indonesia and India due to the impact of climate change, disease and rising input costs.

Furthermore, consumption demand in many countries around the world is increasing, so a decrease in pepper prices is unlikely to happen in the short term, while Vietnam is still the world's number 1 pepper producer and exporter, with advantages in quality, processing systems and sustainable raw material areas.

In an effort to resolve the situation, VPSA has proposed that the government negotiate with the US if there is a tax, it should be equivalent to other countries, for example Brazil only 10%.

On the state side, the Government and ministries are negotiating and lobbying the US Government to consider the proposal to not impose taxes on pepper and spices or to postpone the application period by 45 days. At the same time, the Government, ministries and enterprises/exporters are also making efforts to diversify markets to support sustainable exports.

Source: https://baodaknong.vn/vpsa-khuyen-nghi-nganh-ho-tieu-va-gia-vi-viet-khong-can-qua-bi-quan-248868.html