Vietnam is famous for its agriculture. Beside its best import and export of rice, pepper-a famous Vietnamese spice, is also an outstanding product.
Pepper grows well in the condition of 25-27 degree Celsius. It requires the moist from 70-90% (Vietnam has the ideal region to grow the product). Based on our potential, Vietnamese farmers have been doing a great job in developing peppers with the best harvests.
The amount of peppers harvested in 2014 reached to 125000 tons, the quantity of import and export reached to 156,396 tons with the average export price reached to US$7399/ton. But that was not it. In 2015, pepper brought even more expectable data than in 2014. In this year, the export quantity decreased 13% compared to 2014, it only reached to 135000 tons. However, the overall export worth went up to US$1.26 billion which increased 5% compared to 2014. Pepper has the unique characteristic which is if it is maintained in a good condition, it can last up to 3 years, the quality will be the same. This is the advantage based on which, Vietnamese farmers can adjust the price in the market even if it’s not in its ideal season. Particularly, farmers can sell when the need for pepper increases, and then store them when the need decreases and adjust the price in order to sell in the markets. Therefore, pepper price is always high and the highest reaches to US$10/kg. The area for growing pepper is remarkably expanding, particularly in 2015. The total area was 79000 ha. In February, 2015, the area reached to 86000 ha. This number is not going to and then store them when the need decreases and adjust the price in order to sell in the markets. Therefore, pepper price is always high and the highest reaches to US$10/kg. The area for growing pepper is remarkably expanding, particularly in 2015. The total area was 79000 ha. In February,
2015, the area expanded to 86000ha and this number is not a full calculation. According to many experts, the pepper growing area will soon go up to 100000ha. Therefore, several farmers have changed from other crops to pepper.
However, if the harvest increases, where will the product go?
International market widely opens
Nowadays, Vietnamese pepper takes up to 30% of the world production, and more than 50% of export pepper export market share- these impressive numbers have contributed in making Vietnamese pepper brand. The largest export market of pepper is the US, the United Arab Emirates and Singapore. Also there are other markets such as Germany, Spain and Britain. Vietnam is commander-in-chief of world pepper production with many advantages of the market, the price, and the brand. The pepper consuming need in international market shows as the pepper price in recent years hasn’t decreased although there are many other companies from India, Indonesia and Brazil introducing their pepper products (these companies take the other 50% of the market share).
Pepper Association of Vietnam forecast that the need and supply of pepper in 2016 will not suffer from a big change from 2015 when the need is greater than the supply. From that, the total of export expect may be equal or higher than 2015.
Even there are high demand, the market is there but to direct export, the product consume is still a challenge for farmers and entrepreneurs who buy small amounts of products.
With understanding of the market, VCCCI with the goal to connect Vietnamese business and other countries’ business. We will bring advantages from connecting import and export to the entrepreneurs. Contact with VCCCI in Canada for greatest support.