In 2022, Vietnam's pepper and spice exports will reach 1.4 billion USD, this industry sets an export target of 2 billion USD by 2025.

On the morning of April 21, the Vietnam Pepper Association collaborated with other organizations to organize the conference "Vietnam journey to become a sustainable supplier of pepper and spices".

The seminar had the participation of representatives of  the Ministry of Agriculture and Rural Development , representatives of the Ministry of Industry and Trade, representatives of localities with spice material areas, and representatives of organizations supporting sustainable agricultural development. such as IDH Netherlands, Sippo, CRED Switzerland... with the large participation of enterprises processing, producing and exporting Vietnamese agricultural products and spices.

According to a report of the Vietnam Pepper Association, in the first quarter of 2023, Vietnam exported 76,727 tons of pepper, with a total export turnover of 235.9 million USD. Compared to the same period last year, the export volume increased by 40.5% or 22,112 tons, however, the export turnover decreased by 7.3% or 18.5 million USD.

In the first quarter of 2023, Vietnam exported 18,685 tons of cinnamon, total  export turnover  reached 54.8 million USD, up 45.8% in volume and 13.8% in value over the same period last year. In the first quarter of 2023, Vietnam exported 3,369 tons of star anise, total export turnover reached 21.6 million USD, compared to the same period last year, the export volume increased by 261.9 %.

Vietnam is one of the major spice producers and exporters in the world, of which exports account for about 11% of the global market share in 2022 (according to ITC), of which the leading position is Major imports in the US, EU, China, India and Middle East markets of some Vietnamese spices such as pepper, cinnamon and star anise...

Recently, the import markets have continuously had warnings about pesticide residues as well as increased frequency of control and tightening of MRLs for food in general, including Vietnamese spices. . Therefore, it is essential for businesses to access information about the market situation and commodity industry, understand the regulations of Vietnam's state management agencies as well as the regulations of the importing country.

Mr. Nguyen Van Dien - Director of the Forestry Production Development Department - General Department of Forestry (Ministry of Agriculture and Rural Development) said that with favorable natural conditions, creating cinnamon and lake spices. pepper, when ranked Top 5 in the world. Over the years, the spice industry has made important contributions to the overall picture of agricultural exports. More specifically, this industry is associated with more than 1 million farmer households producing raw materials. However, the journey to reach the goal of supplying the world with good spices is arduous. Because the current production area is fragmented, production is small, and linkages are limited, it is very difficult to create a material area in the true sense of the word. Besides, meeting the requirements for quality and residues of pesticides in export markets.

Sharing the same opinion on this issue, Ms. Nguyen Thi Quyen - representative of IDH Vietnam - assessed that the biggest challenge for pepper exports is pesticide residues, while cinnamon exports are excess. amount of heavy metals. In addition, there are environmental challenges such as reducing carbon emissions, encouraging sustainable farming models, sustainable intercropping models, etc. In addition, there are social challenges such as child labor. gender equality labor.

Overview of the Conference

Ms. Hoang Thi Lien - President of the Vietnam Pepper Association - said that Vietnam currently ranks first in terms of export proportion and export output of pepper, however, there is room for further development and exploitation for the crop. pepper is still there.

Because, currently, Vietnam has been integrating globally, with many  Free Trade Agreements  (FTAs) being signed, in which, when the FTAs ​​come into effect, the group of agricultural products including family crops. position has absolute comparative advantage in the global spice market, because we have the advantage of geographical location, weather, climate, soil.

Despite achieving certain results and advantages, however, in the current world market context, the spice industry in general and pepper in particular are not only affected by supply and demand factors but also by supply and demand factors. influenced by many other factors such as geopolitical factors may be the main cause of continued instability.

Strict requirements and regulations of the import market on non-tariff barriers continue to increase, especially issues related to pesticide residues (related to pepper) and heavy metals (relating to the cinnamon tree). The unpredictable evolution of climate change will be the main challenge for the global agricultural sector. These types of increased costs will have a big impact on supply.

Ms. Hoang Thi Lien said that in 2022, the export turnover of pepper and spices will reach more than $1.4 billion, contributing to more than $55 billion in export turnover of agro-forestry-fishery products for the whole year. 2022.

It is the world's first pepper producer and exporter, and second in the world for cinnamon. However, there are still many shortcomings within the industry, such as the lack of an intermediary role between the private sector and the public sector, between the state and enterprises and the absence of the role of the Association; lack of market research, lack of connection between businesses and farmers, farmers and processors;….

Ms. Hoang Thi Lien shared, with the goal of turning Vietnam into a sustainable and multi-spice exporter, not just pepper and cinnamon, creating synergy and positioning as a spice country. in the world market, aiming to export over 2 billion USD in the industry in the next 3 years.

The pepper and spice industry also sets a goal of sustainable development in the future. This requires all members in the entire chain to go together and must go together, along with building a brand, improving the competitiveness of this industry.


Origin: peppervietnam.com