Econ
Vietnam’s pepper export to India skyrockets
Vietnam’s pepper export turnover to India posted a year-on-year whopping surge of 209 percent in volume to more than 7,100 tons in the first quarter of this year, reports from the General Department of Customs showed.
However, the export value to the market reached US$25.06 million, surging only 77 percent against the same period last year, as the product’s export price dropped sharply by 42.8 percent to $3,514 per ton.
The shipment to India accounted for 11.9 percent and 11.3 percent of Vietnam’s total pepper export volume and value in the period, respectively.
Vietnam shipped 60,033 tons of pepper in the same quarter, raking in $221.66 million, up 17.4 percent in volume but down 31.5 percent in value over last year’s corresponding period.
The United States was the largest consumer of Vietnamese pepper, accounting for 17.2 percent of the country’s total volume of pepper exports with 10,364 tons, and 19.3 percent of the total value at $42.84 million. Although exports to India only amounted to 7,132 tons (11.9 percent of total export volume) and were valued at $25.06 million (11.3 percent of total value), the market posted the strongest growth.
Pakistan remained the third largest importer, consuming 3,993 tons of Vietnamese pepper worth $13.69 million.
Over the three-month period, export values to most markets suffered a decline compared to the same period last year despite high export volumes to some markets., and export prices dropped across all markets.
Vietnam is now the world leader in pepper production. It exports to 109 countries and territories, mainly to Europe, Asia and America.
However, experts have urged the pepper industry to restructure as its production is showing signs of deterioration due to rampant cultivation, diseases, lack of quality control, poor production links and poor value-chain development.
Minister of Agriculture and Rural Development, Nguyen Xuan Cuong, said that if the shortcomings were not corrected, they would affect sustainable pepper development.
According to MARD data, by the end of 2017, the total pepper farming area exceeded the 2020 plan by more than 100,000 hectares, mainly concentrated in the Central Highlands.
The danger was that although global pepper production had increased by 7 percent year-on-year in 2017, overall demand only increased by 2.4 percent. Considering current supply and demand, the pepper bubble would soon burst.
Nguyen Nam Hai, chairman of the Vietnam Pepper Association (VPA), said that as global consumption did not increase in tandem with supply, world pepper prices had fallen to their lowest levels in recent years. The increase in pepper acreage in Vietnam had also significantly contributed to the decrease in pepper price.
This was lower than prices between 2013 and early 2017, when global average prices were around $7,000 to $8,000 per ton, according to the International Pepper Community (IPC).
Hai said that the only solution was to stop expanding production, stabilizing it at 100,000 hectares across the country, with yearly average output of 180,000 to 200,000 tons.
According to the VPA, pepper product quality and safety is often demanded by importers such as the United States and the European Union.
Nguyen Ngoc Luan, Director of Lam San Agricultural Co-operative in southern Dong Nai Province, said that since its establishment in 2014, his co-operatives had been oriented towards clean pepper production for export to the EU. If farmers cultivated clean pepper according to the cooperative’s procedures, they were guaranteed selling prices 10 per cent higher than the market, while higher quality organic product was sold 30 to 50 per cent higher.
VPA Chairman Hai agreed that the restructuring of the pepper industry must focus on quality and sustainability.
Vietnam exported 60,033 tons of pepper in Q1 2018
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Vietnam shipped 60,033 tons of pepper in the same quarter, raking in $221.66 million, up 17.4 percent in volume but down 31.5 percent in value over last year’s corresponding period.
The United States was the largest consumer of Vietnamese pepper, accounting for 17.2 percent of the country’s total volume of pepper exports with 10,364 tons, and 19.3 percent of the total value at $42.84 million. Although exports to India only amounted to 7,132 tons (11.9 percent of total export volume) and were valued at $25.06 million (11.3 percent of total value), the market posted the strongest growth.
Pakistan remained the third largest importer, consuming 3,993 tons of Vietnamese pepper worth $13.69 million.
Over the three-month period, export values to most markets suffered a decline compared to the same period last year despite high export volumes to some markets., and export prices dropped across all markets.
Vietnam is now the world leader in pepper production. It exports to 109 countries and territories, mainly to Europe, Asia and America.
However, experts have urged the pepper industry to restructure as its production is showing signs of deterioration due to rampant cultivation, diseases, lack of quality control, poor production links and poor value-chain development.
Minister of Agriculture and Rural Development, Nguyen Xuan Cuong, said that if the shortcomings were not corrected, they would affect sustainable pepper development.
According to MARD data, by the end of 2017, the total pepper farming area exceeded the 2020 plan by more than 100,000 hectares, mainly concentrated in the Central Highlands.
The danger was that although global pepper production had increased by 7 percent year-on-year in 2017, overall demand only increased by 2.4 percent. Considering current supply and demand, the pepper bubble would soon burst.
Nguyen Nam Hai, chairman of the Vietnam Pepper Association (VPA), said that as global consumption did not increase in tandem with supply, world pepper prices had fallen to their lowest levels in recent years. The increase in pepper acreage in Vietnam had also significantly contributed to the decrease in pepper price.
This was lower than prices between 2013 and early 2017, when global average prices were around $7,000 to $8,000 per ton, according to the International Pepper Community (IPC).
Hai said that the only solution was to stop expanding production, stabilizing it at 100,000 hectares across the country, with yearly average output of 180,000 to 200,000 tons.
According to the VPA, pepper product quality and safety is often demanded by importers such as the United States and the European Union.
Nguyen Ngoc Luan, Director of Lam San Agricultural Co-operative in southern Dong Nai Province, said that since its establishment in 2014, his co-operatives had been oriented towards clean pepper production for export to the EU. If farmers cultivated clean pepper according to the cooperative’s procedures, they were guaranteed selling prices 10 per cent higher than the market, while higher quality organic product was sold 30 to 50 per cent higher.
VPA Chairman Hai agreed that the restructuring of the pepper industry must focus on quality and sustainability.
