Pepper exporters push value added shift to reduce reliance on raw exports

Pepper exporters push value added shift to reduce reliance on raw exports

The association’s statistics showed that Việt Nam exported 10.544 tonnes of pepper worth US$69.3 million in the first half of September.

Farrmers harvest pepper in Đắk Lắk Province. Việt Nam, as the world’s largest pepper exporter, is benefitting from high prices but the heavy dependence on raw material export makes the sector vulnerable. — VNA/VNS Photo Tuấn Anh

Vietnamese pepper exporters are setting their sights on boosting value-added production as heavy reliance on raw material exports poses a serious threat to sustainable growth, the Vietnam Pepper Association has warned.

According to the association’s statistics, Việt Nam shipped 10,544 tonnes of pepper worth US$69.3 million in the first half of September.

Even though export volumes fell by nearly 10 per cent to 166.5 tonnes in the first eight months of this year, export value surged by almost 28 per cent, propelled by a global price rally.

The average price for black pepper reached $6,335 per tonne while white pepper exceeded $8,500 per tonne, marking the highest levels in recent years.

Association President Nguyễn Nam Hải explained that the global supply of pepper is tightening. Major producers such as India and Indonesia are grappling with extreme weather and shrinking cultivation areas.

As the world’s largest pepper exporter, Việt Nam is benefiting from these high prices but remains vulnerable due to its dependence on raw material exports, he said.

“It is critical to focus on increasing value,” Hải stressed.

At present, only 15-20 per cent of Việt Nam’s pepper exports are processed products, while the majority is shipped in raw form. Processed goods such as ground pepper, oil and extracts fetch prices two to three times higher than raw pepper.

Without investment in processing, Việt Nam risks losing its competitive edge in key markets such as the US and EU, which increasingly demand processed products that meet strict food safety and traceability standards.

With export prices at record levels, farmers and traders are enjoying strong profits, Nam said. But he warned that without a shift towards value-added production, the current opportunity could be short-lived.

The focus, he added, will be on strengthening regional production linkages, encouraging investment in processing and building a strong national brand for Vietnamese pepper.

Bizhub