Exports of processed pepper increasing while whole-grain reducing
![Exports of processed pepper increasing while whole-grain reducing](/temp/resize/400x300/upload/news/07-2021/77594be2-60e3c1769eda11a465be204f.jpg)
To increase the export value, Vietnam's pepper industry is gradually shifting from exporting the whole-grain to value-added products such as ground and crushed pepper.
The white pepper after being crushed into powder.
The change of exported pepper products is evident in the first months of this year. According to the Import-Export Department (Ministry of Industry and Trade), in the first four months of 2021, exports of ground black and white pepper increased sharply, while those of whole-grain black and white products decreased.
Specifically, the General Department of Customs reported that, in the first four months of 2021, exports of whole-grain black and white pepper reached a total of 72,210 and 6,510 tons decreasing by 23.6% and 26.1% in volume, respectively. In contrast, exports of ground black and white pepper increased by 14.5% and 69.3%, with a volume reaching 9,900 and 2,510 tons, respectively.
Vietnamese pepper enterprises’ reduction exports of whole-grain pepper and increase of ground pepper is in line with the changing demand in the world market. In recent years, major importers are switching to importing ground or crushed pepper and reducing purchases of whole-grain products.
Such change is obvious in the United States - the world's leading pepper market. In the first four months of this year, US pepper imports reached 27,200 tons, worth US$88.1 million, up 5.9% in volume and 19.6% in value compared to the same period in 2020. Notably, during the same period, US imports of ground or crushed pepper increased sharply by 42.5% over the same period last year, reaching 8,700 tons. Meanwhile, imported whole-grain pepper decreased by 5.7% to 18.4 thousand tons.
In the Chinese market, after the first 4 months of the year, pepper imports reached 5,750 tons, down 26.4% over the same period of 2020. China's pepper import demand had clearly shifted from whole-grain pepper to ground or crushed products. Specifically, China's imports of whole-grain pepper fell by 28.2% in the first four months of the year, to 5,400 tons. In contrast, ground or crushed pepper increased sharply by 19.3% over the same period last year.
Vietnamese pepper imported into China is also following the trend. In the first four months of the year, China imported a total of 1,000 tons of pepper from Vietnam and 80% of it, equivalent to 835.6 tons, was whole-grain pepper, down 71.8% over the same period last year. Meanwhile, China increased its imports of ground or crushed pepper from Vietnam to 371.4 tons, equivalent to an increase of 37.4%.
Thanks to the export promotion of ground and crushed pepper, the total export value has increased significantly. In the first four months of this year, while the export price of wholegrain black pepper for export stood at an average of USD2,834/ton, the average price of ground black pepper
Along with a sharp increase in pepper prices of all kinds in the first months of this year due to reduced supply, the export promotion of ground and crushed pepper has helped Vietnam pepper export increase sharply in value, despite a strong decrease in quantity. The latest reports from the General Department of Customs revealed that in the first five months of this year, while the export volume of pepper just stood at over 121,000 tons, down 17.1% over the same period in 2020, the value again reached USD380 million, up 23%. This is consistent with the new direction of Vietnam's pepper industry, which is to reduce quantity but increase quality and value.
Many Vietnamese enterprises are exporting other processed pepper products besides ground and crushed pepper. For example, Phuc Sinh Joint Stock Company in HCM City has exported products such as freeze-dried pepper and green pepper sauce to many markets in Europe and North America.
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