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With strength in agricultural products, beside the world second rank of rice export, Vietnam also has another considerable product bearing its trade name- Vietnam black pepper- in International market.

Inherent strong point

Black pepper grows well in temperature of 25-27oC and air humidity from 70-90%- It can be said that Vietnam has ideal conditions for planting black pepper. Basing on the disposable potentiality, Vietnamese farmers have been doing well to develop black pepper product to make remarkable profit.

Black pepper yield of 2014 gains 125,000 tons. With export volume of 156,396 tons, average export value of 7,399 USD/ton, its turnover obtains 1,210 billion USD. Year of 2015 brings about more expected figures. In 2015, despite export value of 135,000 tons which decreases 13% compared to the figure of 2014, total export value gains 1,26 billion USD, an 5% increase over corresponding period of preceding year.

One of good features of black pepper is that in proper preservation, within 2-3 years, its quality is not badly affected. Thanks to that advantage, Vietnamese farmers can actively regulate its price in spite of unexpected crop. In particular, they can sell their product at good price, keep product in stock when price falls down and they themselves regulate the price of green pepper. Therefore, pepper price in the market is always in upward trend, the highest mark even mounted to 220,000 VND/ kg. 

Area of pepper is skyrocketing. In second quarter of 2015, total area is 79,000 ha. In fourth quarter of 2015, this figure gains to 86 without full statistics. As expectation of experts, the figure will soon obtain 100.000 ha and even be further expended since many farmer households shift their crops to pepper.

So, which is output for pepper gardens in that case of yield increase ?

Broaden International market

Currently, Vietnam black pepper accounts for 30% of the worldwide pepper production and over 50% of pepper export market share- the impressive figures help build up Vietnam pepper trademark. The largest market of Vietnam pepper export are the US., United Arab Emirates and Singapore, among others are German, Korea, Spain and UK.  Possibly, Vietnam is dominating the world pepper market with respect of many advantages of market, price and trademark. Moreover, the world demand for pepper does not stop increasing and pepper price over the past years has never declined despite competition from India, Indonesia and Brazil (accounting for the rest 50% of pepper export market share).   

Vietnam Pepper Association forecasts the world supply-demand status in 2016 will not witness big change over year 2015 as total demand always comes over supplied volume. Thus, expected export volume can be equal or higher than the one of year 2015.

In spite of the increasing demand and available market, it is still challenge for gardens, medium and small sized enterprises to find out a direct way of export

Understanding market trend, VCCCI with the role of major contact between Vietnamese and foreign enterprises to make advantages of export and import trading linkage. Please contact VCCCI Office in Vietnam to get the soonest support.