Profit of growig pepper is about 60% of the revenue

Among the major groups having high turnover in the export-commodities of Vietnam in the past 7 months, pepper is leading. According to data of General Statistics Office, although the value obtained from pepper exports not so much as the other items, just reached 888 million, but growth rate is the highest in the group, to 46.1%.
 

Harvesting pepper (Photo: BaoCongThuong)

This growth rate, when comparing with domestic agriculture, exports of pepper is actually a highlight. Because in the past 7 months, many agricultural products have decreased in both volume and value, such as: rice, cassava and cassava products, rubber...

According to the new report about potential export announced by the Ministry of Industry and Trade, pepper is assessed as the high export potential product. Vietnam is a leading export of pepper in the world. Vietnam pepper is produced mainly for export purposes, holded 95% of total production.

According to statistics in 2012, although export volume decreased 4.2% but exports turn-over increased 10.4% compared to the previous year, reached $ 687.2 million. In 2013, exports of pepper Vietnam rank on the top of the world, with the volume of 133,000 tons (up to nearly 15% compared to 2012), turnover is nearly $ 901 million (over 13% compared to 2012). The two largest markets of Vietnam‘s pepper are United States and Germany, accounting for nearly 30%.

In particular, the pepper is one of the farm products having the highest profit in our country, a profit accounted for 60% on total revenues.

Export of pepper is mainly raw product – low price

Currently, the total area of pepper plantation in our country is growing strongly under the impact of increasing prices in recent years. World’s demand has increased 3-5% / year. Statistics showed that the pepper area in the whole country is about 600,000 hectares, mainly concentrated in the Southeast (more than 50% of the total area), Central Highlands (31% of the total area). However, according to Mrs. Nguyen Thi Thu Hang, Head of the Evaluation Advisory export potential (under the program "Improving competitiveness of small and medium sized enterprises in Vietnam through supporting local businesses system"), Vietnam has not pay attention enough to the processing technology.

Specifically, the processing activities for export pepper in our country mainly focus on the two main ingredients, they are black pepper and white pepper not ground. In addition, the exporters buying pepper most of the traders, this ratio accounts for about 80% of the total volume of pepper are included in the transaction, causing great difficulties for businesses in the stage of quality control pepper on the origin, process engineering pepper and pepper category.

According to the Vietnam Pepper Association, demand for pepper stable world, even still increase in the coming years, therefore, the price of pepper is forecast to continue to rise.

The need to boost branding, enhance quality

To develop the potential of the industry, Ms. Hang recommend that we need apply science and technology in processing pepper to enhance the added value of pepper export.

At the same time, the Government should give priority to research and development of new varieties, disease treatments for objective measures to improve the quality of pepper... by established the Vietnam Pepper Institute.

Besides, the research team under the program "Improving the competitiveness of the export of small and medium enterprises in Vietnam through commercial systems supporting local" petitions, the Intellectual Property Department (Ministry of Science and Technology) should guide the formulation and registered trademarks. Ministry of Industry and Trade build the branding Vietnam. To buil the brand we should focus on some points such as linked sites and tourist attractions in the brand, such as: Chu Se pepper, Phu Quoc pepper, Tien Phuoc pepper...

Moreover, Vietnam Pepper Association to strengthen the providing of market prices information to businesses and growers understand the market movement. On the business side, need to link with farmers, investors and directly supervise planting and care system to control the consumption of raw clean materials with high quality.

In particular, many experts also warned that people should limit consumption to expand acreage spread, avoiding the massive price increases, growing, cutting back when prices fell source that exports instability. Instead, a recommendation that yet, need to focus on transforming the area are old standards, investment in seeds, growing techniques and processing to meet international standards for value-added products import ... /.

Source: tintucnongnghiep