Pepper factory – The “keyholder” of the pepper trading activities


As the leading agricultural product, more companies tend to trade pepper products. Therefore, the pepper factory has played a vital role in the supply chain of the pepper industry, which decides the success of the company.

Vietnam pepper factory overview

Pepper factory plays a vital role in the pepper supply chain

Definition of pepper factory

Pepper factory is a large facility that has the essential equipment and a workforce of the well-trained crew for processing the raw material of pepper into the final product, which can be sold in the market. These products include black pepper, white pepper, pepper powder, green pepper, red pepper, pink pepper, serving different demands and various groups of customers.


Definition of pepper factory

Location of pepper factories

Each region’s preferences for black pepper are catered to in the manufacturing process. The majority of black pepper producers are found in agricultural countries like Vietnam, Brazil, Indonesia, and India due to:


  • The long-life culture and a skilled, knowledgable, and experienced labor force
  • The availability of materials for manufacturing, the price of pepper is quite low, allowing for consistent output
  • These countries’ reputations have been established through time, resulting in customer familiarity. As a result, dealers frequently approach the black pepper producers in these agricultural countries first.

Processing procedures in a pepper factory in Vietnam

The workers in the pepper factory usually proceed the following steps to produce black pepper – the most trade type of pepper in the market:

  • Step 1: Harvesting: When one of the berries begins to turn red, it should be plucked by hand (Each country has its own criteria but usually)
  • Step 2: Fermentation: The outer skin of the berries must be fermented in the sun, which allows enzymatic processes and gives them a black hue.
  • Step 3: Threshing: The berries are removed by hand or with the use of specialized instruments. Following that, a winnowing basket is used to separate the larger and smaller bits.
  • Step 4: Washing: To determine which black pepper berries are suitable for culinary usage, they are soaked in cold water.
  • Step 5: Blanching: This process stimulates the enzymatic and dry processes that result in the desirable black hue. Berries should be submerged in hot water for 10 minutes, or until the color darkens on the outside.
  • Step 6: Drying: Pepper is sprinkled on clean mats and scraped every 3-4 hours to keep it away from contamination sources. Pepper should have a moisture content of 12-13.5%.
  • Step 7: Grading: Winnowing baskets can be used to remove dust and grime while also grading the grain.
  • Step 8: Grinding: When black pepper is traded, grinding it increases its commercial worth.
  • Step 9: Packaging and storage

Varieties of product in a pepper factory

Other products of pepper although having different characteristics but similar in the processing procedure in the pepper factory.

Varieties of pepper Characteristics
White pepper  The pepper berry is not harvested until it is brilliant red to create white pepper. The red berry is separated from the spike and immersed for almost a week in gunny bags in a stream. To avoid discoloration, the stream’s water should be clear. The bags are trampled till the pericarp is removed after they have been removed. The white peppercorns have been rinsed and dried properly.
Decorticated black pepper The outer skin of black pepper has been mechanically removed. When white pepper is in scarce supply, it might be used as a replacement.
Green pepper Green pepper is made by artificially drying or preserving immature pepper berries in brine, vinegar, or citric acid. In France, they are very popular.
Pepper oleoresin Solvent extraction is used to remove this from black pepper, which is then utilized to flavor dishes.
Black pepper oil The pepper is crushed and then distilled with steam.
Pickled green pepper Green peppers that are still immature are pickled in vinegar or brine. In France and West Germany, this is quite popular.
Freeze-dried green pepper This is created in West Germany from brine-preserved imported green peppercorns.
Rose pepper This is the process of preserving overripe red pepper berries in brine or vinegar.

Three main factors affect the price of pepper factory

Several elements attributed to the price of pepper include demand, supply volume, government policies, and sea-freight rates.

Demand and supply volume

  • Demand: Pepper prices have recently surged as a result of a demand surplus versus supply amount. Due to the ease of social distancing orders in several EU countries, as well as increased demand around significant holidays such as Christmas and New Year, the pepper export price has risen dramatically in 8/2021.


  • Supply: Pepper output volume has declined as a result of the clear impact of the world’s top pepper export country, Brazil, on the unpredictable climate, which has caused the harvesting season to be postponed. Furthermore, transportation limitations slowed the delivery of pepper to consumers during the Covid-19 outbreak. As a result, pepper prices skyrocketed, posing a problem for traders.
2017 2018 2019 2020 2021
Vietnam 200,000 230,000 260,000 240,000 180,000
Indonesia 70,000 73,000 78,000 77,000 79,000
Brazil 65,000 72,000 80,000 95,000 90,000

Production of pepper (MT)

Government policies

In the pepper industry, the government’s backing is crucial. Tariff-free agreements, such as SAFTA, EVFTA, and others, help pepper exporters by cutting prices and supporting the pepper industry’s development.


Governmen Policies

Sea-freight rates

Because goods transportation is halted, logistical costs will rise, resulting in a decrease in the volume of pepper exported. Container congestion at ports might lead to pepper scarcity and a drop in domestic purchases. Similarly, the current “super-economic” cycle forces the US and other countries to inject money into the market, rising fuel and gasoline costs. As a result, freight costs drive up pepper export prices.


Sea-freight rates

In recent years, the gap between global supply and demand for pepper has been gradually closing. In addition, high input expenses such as labor, fertilizer, gasoline, shipping costs, and so on are likely to keep pepper prices rising in 2022.

The top 3 pepper factories on the global scale

To find a prestigious pepper factory, traders should find information on offline and online yellow pages, google, e-commerce sites, trade fairs, and through intermediary companies. The following factories have affirmed their position in both international and domestic markets:


Olam was reorganized in 2020, and the Olam Food Ingredient (ofi) was founded with the goal of providing the best quality of product of food and beverage. With the long-life background history, the Olam factory is armed fully with machines and facilities optimized for pepper manufacturing activities. The company also processes cocoa, coffee, dairy, nuts, and spices as raw materials and ingredients.


Olam Spices


In 1997, Nedspice Processing Vietnam Ltd. was founded. Nedspice was the first firm in Vietnam to develop a new factory with an integrated sterilization facility in response to our client’s requests for more high-quality and microbiologically clean pepper. The factory has been continuously enlarged and modified over time. Nedspice Processing Vietnam Ltd. is now a top single spice ingredients processor thanks to a combination of cleaning, grading, sterilizing, and grinding capabilities.




K-Agriculture is a well-known name in the processing and retailing of pepper products in Vietnam. The company’s pepper factory is fully equipped with cutting-edge machinery and a talented workforce. To demonstrate its professionalism to clients, K-Agriculture is happy to share images and videos of the manufacturing process.



Contact Information:

  • WhatsApp: +84855555837
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In conclusion, the pepper factory is an important element in the supply chain of the pepper industry. Companies wishing to expand and optimize business activities should choose a reputable with standard quality to reach the desired success in the future.

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About author Camila Nguyen

She has 13 years experience in connecting B2B customers around the world and provide best-quality agricultural products from Vietnam to them. She would love to share her knowledge about agricultural products through the blogs. You can contact her on Whatsapp via number: +84 84 4444 867 to get the free consultancy

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