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Vietnam black pepper: The top choice for traders

Vietnam is the world’s leading producer and exporter of black pepper. Vietnam black pepper is regarded as a valuable, high-quality product due to its competitive advantages.

An overview about Vietnam black pepper

Vietnam black pepper is reputable in the world. To understand the reasons for promoting the activities of Vietnam black pepper, the history and characteristics are essential.

The history of Vietnam black pepper

The Vietnam black pepper originated in the 17th century when the first black pepper tree was planted. At the end of the 19th century, Chineses grew pepper extensively in Phu Quoc, Hon Chong, and Ha Tien while French people planted pepper in Binh Long, Ba Ria – Vung Tau, Quang Tri, and Quang Nam.

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The history of Vietnam black pepper

In the early 20th century, the number of pepper trees increased and reached 544,000. But soonly, the pepper price in the world increased and pepper cultivations were expanded throughout many areas in Vietnam. In 996, while leading pepper manufacturing companies such as Indonesia, Malaysia, and Brazil had a poor crop due to external factors, Vietnam had developed extensively pepper plantation and cultivation.

Vietnam black pepper proportion

The structure of pepper for export of Vietnam continues to change positively in the direction of decreasing for whole pepper and increasing for ground or crushed pepper.

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Vietnam black pepper proportion

In November, black pepper was still the most exported variety, but its share in total exports fell to 65% from 69% in the previous month and about 80% in the past. Instead, the share of ground black pepper increased to 16.4% this month from 15.6% the previous month. Similarly, the proportion of white pepper whole grains increased to 11.8%; ground white pepper accounted for 5.4% and the rest was pepper soaked in vinegar, wood, nailhead, green, pink… accounted for 1.4%.

Vietnam black pepper characteristics

According to Vietnam Black Pepper Quality Standard, non-processed black pepper (NP) or semi-processed black pepper (SP) is split into 4 categories based on weight/volume including special grade, grade 1, grade 2, and grade 3.
The following table illustrates the physical characteristics of black pepper:

Criteria Required specifications Processed pepper
Black pepper NP or SP
Special grade Grade 1  Grade 2  Grade 3
1. Extraneous matter, no more than (%) 0,2 0,5 1,0 1,0 0,2
2. Light berry, no more than (%) 2 6 10 18 2,0
3. Pinhead and broken berry, no more than (%) 2,0 2,0 4,0 4,0 1,0
4. G/L, no less than 600 550 500 450 600

The following table illustrates the chemical specification of black pepper:

Criteria Required specifications
Black pepper NP or SP Processed black pepper Ground pepper
1. Density, no more than 13,0 12,5 12,5
2. Dried ashes, no more than (%) 7,0 6,0 6,0
3. Dried non-volatile ether extract, no less than (%) 6,0 6,0 6,0
4. Evaporation, no less than (%) 2,0 2,0 1,0
5. Piperine, no less than (%) 4,0 4,0 4,0
6. Insoluble ash in acids, no more than (%) x x 1,2
7. Raw coarse, no more than x x 17,5

Flavor requirements for Vietnam black pepper are when it is ground into black pepper powder, it must have a strong fragrance and no odor or a peculiar taste to it.

Vietnam black pepper growing regions

Black pepper is ideal for temperatures ranging from 10 to 35 degrees Celsius. In addition, the plant thrives in areas with high humidity and light winds. There are numerous pepper-growing areas in Vietnam that produce a large amount of black pepper.

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Vietnam black pepper growing regions

  • Central Highlands: With two different seasons: the rainy season and the dry season, the rainy season typically runs from May to October, while the dry season runs from November to April the following year. The annual rainfall averages roughly 1800 mm, with the rainy season accounting for the majority of this. Furthermore, the humidity levels conditions are optimal for the development of pepper plants. A massive, fertile, well-drained basalt soil area appropriate for cultivating Vietnam black pepper plants exists in the Central Highlands. This soil is said to be ideal for growing industrial crops.
  • Southeast region: The Southeast has a sub-equatorial climate with consistent temperatures throughout the year, a pleasant natural condition, and a deep seasonal differentiation, which is excellent for the monsoon’s functioning.
Province 2018 (ha) 2019 (ha)
Dak Lak 38,616 36,396
Dak Nong 34,113 32,286
Dong Nai 19,022 18,191
Binh Phuoc 17,178 16,216
Ba Ria – Vung Tau 13,161 13,161
Gia Lai 16,278 10,731
Others 11,487 13,019
Total 149,855 140,000

Other Vietnam black pepper-growing regions in Vietnam include

  • Phu Quoc: Pepper is grown primarily in the hills and mountains of Phu Quoc. Phu Quoc pepper has a distinct aroma and flavor in its natural state.
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Phu Quoc

  • Quang Tri: In the southern part of North Central Vietnam, Quang Tri province grows one of the most exquisite Vietnam black peppers in the country. With roughly 20000 hectares of good basalt red soil, Quang Tri province is well-positioned to produce this type.
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Quang Tri

The current situation of Vietnam black pepper trade activities

The year 2021 is considered one of the successful periods of pepper in Vietnam with the turnover increased dramatically 43,8% after 11 months. Vietnam pepper industry is expected to grow positively in 2022:

  • Black pepper price: Domestic black pepper prices vary from 79,500 to 82,000 VND/kg as of the end of 2021, significantly lower than the peak of 90,000 VND at the end of October and the predicted level of 100,000 VND/kg. However, 2021 will continue to be a lucrative year for the Vietnam pepper supply market, as a four-year period of price reductions has come to an end, and a new price increase cycle has begun in the pepper business.
  • Black pepper production: Statistics from IPC predict the total black pepper production in 2021 will reach 162,000 MT. This figure reduce 25% compared to 2020 due to the impact of the COVID – 19 pandemic and the extreme weather in growing regions like Dak Lak, Dak Nong. Consequently, many households are reluctant to care for Vietnam black pepper.
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Estimate number of black pepper production in Vietnam (Source: IPC)

  • Vietnam black pepper export: Vietnam was projected to rank the leading position in the total black pepper export value with 205,200 MT in 2021 which occupied 55.7% of the global total black pepper export. The export volume decreased compared to 2020 (255,645 MT) and 2019 (258,303 MT) due to the effect of increasing logistical costs as a result of the social-economic situation.
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The actual number of black pepper export value in Vietnam (Source: IPC)

  • Vietnam black pepper import: In the first 11 months of 2021, Vietnam imported 23,017 tons of pepper, decreasing 34.8% compared to the same period last year and 42.8% and over the same period in 2019. The three largest pepper supplying markets for our country are Indonesia, Cambodia, and Brazil. In which, the amount of pepper imported from Indonesia and Brazil decreased by 48.6% and 42.1%, respectively.
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The actual number of black pepper import value in Vietnam (Source: IPC)

Although being affected by external effects, black pepper export and import witnessed an upward trend, and experts predict the figure will continue to rise in the future. According to Fior Markets, the worldwide black pepper market is predicted to rise at a CAGR of 5.5 percent from USD 3903.5 million in 2020 to USD 5990.65 million by 2028, with a forecast period of 2021-2028.

The competitive advantages of Vietnam black pepper

As a major black pepper exporter, Vietnam has been exporting to 80 countries and territories due to the country’s advantage.

  • Prices: With the help of the government in signing EVFTA, the commercial activities between Vietnam and the EU have been promoted. The black pepper export tariff is reduced by 99%, resulting in the black pepper export price decreasing significantly, creating a price advantage compared to other pepper exporting countries.
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Prices

  • The stability of quantity: The increasing pepper production throughout the years stems from the large cultivation area in Vietnam. The growing acres increase continuously from 51.300 ha in 2010 to 140.200 ha in 2019. The acreage of pepper cultivation reached its peak in 2017 with 152.000 ha. With a large growing area, the Vietnam black pepper quantity remains stable throughout the years.
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The stability of quantity

  • High-quality product: With fertile basalt, the good quality of crop due to the intercropping between pepper and coffee, it is ideal for growing black pepper in Vietnam. The Vietnam black pepper has huge, firm, spicy, and aromatic. Furthermore, pepper is sun-dried to a humidity level of 13% without overcoming any chemical process. In addition, farmers carefully eliminate low-quality seeds to help Vietnamese pepper to be suitable and meet all export criteria in the world.
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High-quality product

With large advantages of internal and external factors, Vietnam’s black pepper has affirmed its role in the international market.

Top 3 Vietnam black pepper suppliers

The top 3 prestigious Vietnam black pepper suppliers are mentioned as follows.

Hanfimex

Hanfimex is a significant manufacturer and exporter of foods and spices in Vietnam, including cashew, pepper, cinnamon, coffee, and coconut. Hanfimex is regarded as one of the best agricultural exporting companies in the world, with over 17 years of experience and a prestigious client base. The company is a reputable customer network that is trusted by the Ministry of Industry and Trade.

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Hanfimex

K-Agriculture

K-Agriculture Factory, one of Vietnam’s prestigious black pepper manufacturers, has sold its products to more than 80 countries throughout the world. Thanks to contemporary milling and polishing procedures and government support, K-Agriculture Factory has been designated as a national representative, exporting the best agricultural commodities to the global market (Ministry of Industry and Trade). The company supplies varieties of pepper: Vietnam black pepper, white pepper, pepper powder that met the GAP, ISO, HACCP standards.

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K-Agriculture

Olam Spice

Cashews were first exported from Nigeria to India in 1989 by Olam International, the parent business of Olam Food Ingredients (OFI). Following a reorganization of Olam in 2020, Ofi was founded with the goal of pursuing a primary listing on the London Stock Exchange’s premium division as well as a secondary listing in Singapore. Olam Food Ingredients (OFI) is the world’s leading provider of food and beverage ingredients and solutions. OFI provides cocoa, coffee, dairy, nuts, and spices as raw materials and ingredients.

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Olam Spice

Conclusion
If you want to understand more about the pepper industry and wholesale pepper on a global scale, please visit our website: k-agriculture.com or contact us by Whatsapp: +84855555837.

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