Pepper exports are estimated to set a new record of 1.4 billion USD this year. In particular, with the direction of entering the Halal market, it is forecasted to continue to break records in the coming time.
Reclaiming the $1 billion mark after 10 years
According to the latest data released by the General Department of Customs, in October 2024, Vietnam's pepper exports reached 18,415 tons, worth 120.6 million USD, up 7.7% in volume and 9.1% in value compared to the previous month. Thus, in the first 10 months of 2024, pepper exports reached 218,732 tons, worth 1.11 billion USD, down 3% in volume but up 47% in value compared to the same period last year. With this figure, after 10 years, Vietnam's pepper exports have regained the 1 billion USD mark.
Notably, according to the Vietnam Pepper and Spices Association (VPSA), the sharp increase in pepper export turnover was due to the export price of pepper in the first 10 months of 2024 being 51.5% higher than the same period last year, reaching an average of 5,077 USD/ton.
Speaking to VTV Times reporter, Ms. Hoang Thi Lien - Chairwoman of VPSA, estimated that Vietnam's pepper exports could reach 1.4 billion USD this year. This is a new record for the industry. The result is that recently, pepper prices have been in an increasing cycle and are currently maintaining a level nearly double that of previous years. On November 26, the transaction price increased by 1,000 VND/kg, to 140,000 - 141,000 VND/kg.
Vietnam's pepper and spice industry aims to become a source of high-quality spices, produced sustainably, with traceability records and meeting the regulations of import markets, especially large markets such as the US, Germany, UAE...
Of which, the US was the largest export market for Vietnamese pepper in the first 10 months of the year, accounting for 29.3% of volume and 30.4% of total export turnover, reaching 64,112 tons, worth 337.8 million USD, up 48% in volume and 95.2% in value over the same period last year.
Pepper exports to the German market ranked second, increasing by 82.3% in volume and 2.4 times in value compared to the same period last year, reaching 14,346 tons, worth 79.6 million USD, accounting for 6.6% of Vietnam's total pepper exports in 10 months. Next are the markets: UAE with 13,575 tons, accounting for 6.2%, up 35.9%; India with 9,462 tons, accounting for 4.3%. In addition, pepper exports to many other markets such as the Netherlands, Korea, Russia, UK, Pakistan, Egypt, Thailand, France, etc. all grew at double-digit rates.
Dominating the Halal Market
Currently, the country has more than 115,000 hectares of pepper and spice plants, mostly concentrated in the South Central Coast - Central Highlands region with more than 75,300 hectares; the rest are in the Southern and Northern regions. Vietnam is a major exporting country, accounting for about 11% of the global pepper and spice market share.
Talking to the press about the potential for pepper exports in the coming time, Mr. Nguyen Quy Duong - Deputy Director of the Plant Protection Department (Ministry of Agriculture and Rural Development) said that our country is making efforts to turn the pepper and spice industry into a green, ecological and sustainable agricultural industry to not only maintain its presence and position in traditional markets but also penetrate and dominate the Halal market in Indonesia, the Middle East..."This is a market with great potential for Vietnamese pepper. The export market to Halal is estimated to have an estimated consumption of about 10,000 billion USD for food and spices", Mr. Duong emphasized.
Currently, Halal certification remains one of the major challenges as standards are not uniform among Muslim countries. Each country has its own standards and will issue certifications based on each country or region. Therefore, Vietnamese enterprises need to carefully study the market before planning production and export.
However, according to industry experts, the pepper industry is facing many challenges. "First of all, climate change, shrinking acreage, investment costs in irrigation and disease prevention to maintain productivity... have a significant impact on competitiveness," Mr. Nguyen The Phuong - Director of Viet Phuong Trading - Export Company shared with VTV Times reporter.
Regarding the Halal market, Mr. Duong said that this market has many specific standards. In Vietnam, there is an organization that certifies Halal standards. To enter the Halal market, this certification is required. Enterprises need to aim for green, clean products that are Halal certified because Muslims are willing to pay higher prices for such products. Enterprises also need to note that the Halal market is similar to other markets in that each country has its own requirements and enterprises must meet those criteria.
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