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Vietnam pepper production industry: Towards sustainable development

Pepper brings high economic value and is one of the main export agricultural products of our country. The Vietnam pepper production industry has contributed greatly to the economic growth of our country, improving the people’s living standards.

An overview of Vietnam pepper production

In terms of pepper production and export, Vietnam is consistently ranked first in the world. Vietnam produces more than 40% of the world’s pepper and holds over 60% of the world’s pepper export market share.

Vietnam pepper production situation

Our country’s main crop is pepper. Currently, the country’s total pepper crop area exceeds 130 thousand hectares. The export market accounts for 95% of Vietnam pepper production, while the domestic market accounts for 5%. Vietnam exported pepper to 105 countries and territories, with the greatest export turnover of 1,429.2 million USD in 2016, then steadily dropping to 660,6 million USD in 2017, 2018, 2019, and 2020, with the largest export volume of 285.3 thousand tons.

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Vietnam pepper production situation

  • In 2015 and 2016, the price of pepper in Vietnam peaked, with foreign currency earnings ranging from 8000-9500 USD per tonne of exported pepper.
  • Since 2016, pepper prices have been steadily declining, leaving growers with little or no care and no pest management, resulting in low output, poor quality, and efficiency.
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In 2015 and 2016, the price of pepper in Vietnam peaked

  • By 2019-2020, each ton of pepper for export will only be worth 2300-2500 USD on average. Pepper growers confront several challenges, losses, and inability to repay debts taken out to invest in pepper growing at this price.
  • Pepper prices grew steadily in the first months of 2021, both domestically and internationally. After a lengthy period of decline, the Vietnam pepper production industry is gradually improving. This is encouraging news for the pepper business as a whole, and for pepper growers in particular.
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Pepper prices grew steadily in the first months of 2021

Types of pepper produced in Vietnam

The Vietnam pepper production industry produces five types of pepper used in Vietnam: black pepper, white pepper, red pepper, green pepper and ground pepper.

  • Black pepper: Black pepper is the most prevalent and well-known of the peppers grown in Vietnam. Black pepper is the most commonly produced product in Vietnam, accounting for over 70% of total pepper production. Black pepper is a somewhat spicy spice with a faint aroma that is commonly used to enhance the peppery, toasty flavor of a meal. Vietnam black pepper prices in markets are fluctuating in the range from 4050 USD with 500 g/l to 4250 USD with 550 g/l.
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Black pepper

  • White pepper: White pepper is known as skull pepper, one of the pepper products in Vietnam pepper production. Because of the black shell, it is frequently used to provide aroma for opulent meals without detracting from the dish’s aesthetics and color. According to IPC, Vietnam white pepper prices in the world markets are about 6050 USD/MT.
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White pepper

  • Green pepper: is a sort of Vietnam pepper production that is picked whole bunch while still green on the tree and is not fully mature. It will have a moderate scent and a little spicy flavor. The pepper can be readily eaten and chewed by the eater. This is the sort of consumption in Vietnam for domestic consumption. Vietnam green pepper is traded in the domestic market with its prices at about 80,000-100,000 VND/kg.
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Green pepper

  • Red pepper: It is named red pepper because the skin is pink or red and it has a fiery taste like pepper. Red peppers – a product in Vietnam pepper production – have a diuretic and laxative effect, and can be used to treat flu, colds, coughs, and bronchitis symptoms. Red pepper is usually produced to serve the domestic market. The price of dried Vietnamese red pepper is about 260,000-280,000 VND/kg.
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Red pepper

  • Ground pepper: Ground pepper is black or white pepper that has been finely ground. Pepper powder in Vietnam pepper production is a spice that enhances the attractiveness and flavor of foods. People in Vietnam frequently use ground pepper or purchase the seeds to grind or use.
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Ground pepper

Areas which produce pepper in Vietnam

Vietnam pepper maintains an area of ​​130,000 hectares with an output of 250,000 tons/year. Pepper is mostly grown in Vietnam’s Southeast region and Central Highlands, which account for approximately 95 percent of the Vietnam pepper production; the rest is distributed between the North Central and Central Coast provinces. In terms of area, productivity, and output, the Central Highlands and Southeast region lead. Other pepper-growing locations include Phu Quoc (Kien Giang), which has a long-standing brand name, and the Quang Tri pepper-growing region…

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Areas which produce pepper in Vietnam

Because the entire agricultural land area of these sites has allowed the growing of fruit trees and traditional industrial plants for a long time, Vietnam pepper is grown extensively in these areas.

Vietnam pepper production process

To produce Vietnam pepper, farmers have to go through many stages: cultivation, collection, process, package, preservation…

  • Cultivating

Pepper thrives in fertile, organic-rich, porous, well-drained soil; the lowest soil pH is 4.5; the optimal pH is 5.5-6.5; the arable land layer is over 70cm, preferably over 1m; the soil slope is less than 10%, preferably 3-5%; and the groundwater level is more than 2m deep during the wet season. Before planting, the land for Vietnam pepper production must be carefully plowed and pathogen-treated. Lime should be applied before final harrowing on acidic soils; the amount of lime applied is typically 1.5-2.0 tons/ha.

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Cultivating

Each Vietnam pepper production hole is fertilized with 7-10kg of manure + 200-300g of superphosphate fertilizer, mixed with topsoil and placed about 20cm into the hole for single cuttings or 40x40x40cm for double cuttings; each hole is fertilized with 7-10kg of manure + 200-300g of superphosphate fertilizer, mixed with topsoil and placed about 20cm into the hole for double cuttings.

  • Collecting

The harvest season varies by region, with the Southeast and Phu Quoc harvesting from January to March, the Central Highlands from February to April, the South Central Coast from March to May, and the North Central Coast from May to July.

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Collecting

Do not collect when the pepper is still green; the optimum time to harvest black pepper is when the bunch has more than 5% ripe yellow or red fruits, and the best time to harvest white pepper is when more than 20% of the fruit is ripe.

When harvested, they can be exposed right away to make black pepper, or incubated for 1-2 days in the cool to continue to ripen to make pepper; mix regularly during incubation to get even results; and separate from the resulting beam when exposed. The temperature is 12 degrees Fahrenheit with a high of -1 degrees Fahrenheit.

  • Processing

Before drying, pepper should be put in hot water (80-90C) for 1-2 minutes, mixed thoroughly, then removed to cool, drained, and dried to reduce contamination and get a good color. Instead of immersing peppers in hot water, when they are exposed to the sun about 3-4 pm, they are gathered in mounds and covered with canvas overnight, where the Vietnam pepper production temperature can reach 60-70 degrees Celsius.

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Processing

Cleaning drying equipment and yards, as well as drying peppers on bamboo poles, plastic tarpaulins, or cement yards, should be done before each drying session, with a plastic net around the drying area to keep animals out. If the sun is shining, 3-4 days of drying is sufficient; the moisture content of the seeds after drying must be less than 13%; the finished product is known as black pepper. To dry pepper, keep the Vietnam pepper production temperature in the drying chamber steady at around 55-60 oC and clean the drying chamber before each drying session. Before being stored and consumed, pepper should be cleaned of impurities (soil, stones, branches, stalks, and fruit bunches) by sieving, fanning, and blowing to obtain dried black pepper.

  • Packaging
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Packaging

After UV sterilization, the pepper is ready to eat. They are placed in containers before being fed into sophisticated, self-contained mechanized packing processes. Vietnam pepper production products are produced in a variety of packaging sizes and quantities to meet market demands.

  • Preserving

Pepper must be dry, with a moisture content of 12-13 percent, and free of impurities before being stored. Pepper should be stored in double-layer bags with the inner layer being a plastic bag (PE) to avoid mold and the outside layer being a PP bag or sack. The bag used to hold the pepper must be brand new. In a dry, well-ventilated warehouse, pepper is loaded onto shelves or pallets. Chemicals, fertilizers, and other products must be kept separate from livestock, rats, and pests in the pepper storage warehouse. Check the warehouse on a regular basis to detect and respond to unusual manifestations.

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Preserving

Elements affecting Vietnam pepper production industry

Some elements which can affect the Vietnam pepper production industry include: supply, demand, shipment.

  • Supply

From 2001 to 2018, Vietnam has risen to become the world’s leading pepper exporter with an annual export volume of over 200,000 tons, accounting for about 60% of global export volume and being present in more than 100 countries and territories. According to figures from 2018, the country’s total pepper crop area was 149.9 thousand hectares, with a total output of 255.4 thousand tons. Vietnam pepper production expanded to about 100,000 hectares in just ten years, from 2008 to 2018 and is on an increasing trend over time.

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Supply

  • Demand

According to statistics from Vietnam’s General Department of Customs, Vietnam pepper production exported approximately 156,500 tons with a revenue of 850.8 million USD as of August 15, 2017. This demonstrates that Vietnam’s pepper industry remains proactive and has a significant impact on both the European Spice Association and the International Pepper Association.

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Demand

The price of pepper will not fall since global pepper consumption is expected to rise by 4% to 5% this year, and household storage rates will be greater than last year, so the supply will not be plentiful. Some economies, in particular, have shown amazing signals of expanding pepper consumption, such as Canada increasing by 48%, and Russia rising by 23%, UK boosting by 31%, Chile increasing by 3 times.

Ways to find Vietnam pepper production companies

The following information will provide you with some pointers on how to find an excellent pepper production company anywhere in the world.

Suggestions for choosing a Vietnam pepper production company

Before you choose a Vietnam pepper production company to use or cooperate with, look over the following aspects to be sure it is a good one.

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Suggestions for choosing a Vietnam pepper production company

  • The internet site (check whether it is a fake version of the one of the pepper companies you are searching for )
  • Information about a business or a corporation (check if they are valid)
  • Where do Vietnam pepper production companies get their raw pepper from?
  • The standard of the goods (you may want them to send you products samples to check the product quality of that company whether it is up to your expectation)

Indicators of a missing Vietnam pepper company

Here are some telltale characteristics of a fake pepper production company to look out for:

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Indicators of a missing Vietnam pepper company

  • Prices are excessively low: Vietnam pepper production company prices should be compared to the ICP’s average pricing. If its reputation is too low, people should be cautious and double-check it.
  • Uncertainty of data: If wholesalers can’t find basic information regarding that company such as location and factory profile, they may be untrustworthy.
  • Demand for prompt payment: If the company demands money before the items arrive, wholesalers should be suspicious. The most common payment method is a 50% deposit and 50% on board, which protects both parties’ rights.

Look for a decent pepper company on channels.

Wholesalers and retailers can get information about Vietnam pepper production companies from both online and offline sources.

Online source

Pepper production places can be found by searching on Google or E-commerce platforms, as well as joining online B2B agricultural groups.

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Online source

  • Searching for “pepper production”, “Vietnam pepper production mills”, and similar queries on Google. In the search results, the most reputable company will be shown first.
  • Using e-commerce sites such as Alibaba, EC21, Go4world, and others to conduct research. On these well-known B2B platforms, several companies have online stores.
  • Joining agribusiness organizations or forums is another fantastic way to find.

Offline source

Wholesalers and merchants will be able to interact with Vietnam pepper production companies and their products face to face if they choose an offline source.

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Offline source

  • Participating in agricultural fairs is a great idea because several well-known pepper factories will be there. Agricultural fairs, on the other hand, are no longer possible because of the Covid-19 outbreak.
  • Working with experienced brokers is another alternative for wholesalers with little experience in this industry. Professional brokers may be able to recommend companies that match wholesalers’ needs because they have relationships with a range of them. Experienced wholesalers or retailers can benefit from professional brokers’ assistance in finding and evaluating products.

Top 3 Vietnam pepper production companies

Below are the top 3 Vietnam pepper production companies you should know.

Hanfimex

In Vietnam, Hanfimex is a major producer and exporter of foods and spices such as cashew, pepper, cinnamon, coffee, and coconut. With over 17 years of expertise and a prominent client base, Hanfimex is regarded as one of the greatest agricultural exporting enterprises in the world. The Ministry of Industry and Trade recognizes the company as a trustworthy customer network.

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Hanfimex

K-Agriculture

K-Agriculture, based in Hanoi, Vietnam, is a respected supplier with over 25 years of experience in exporting agricultural goods such as rice, coffee, and, in particular, several types of pepper to a variety of demanding markets. Africa, the United States, and Japan are its main pepper export markets. K-Agriculture has taken the greatest Vietnamese agricultural products to the international market with the help of the Ministry of Industry and Trade. K-Agriculture, with the tagline “Quality is King”, always ensures the highest quality products at the most competitive pricing. Many certificates, such as HACCP, ISO 9000, and FSSC 22000, have already been obtained by the company.

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K-Agriculture

For more details, please contact us:

  • WhatsApp: +84855 555 837
  • Email: info@k-agriculture.com
  • Website: k-agriculture.com

Visimex

As a member of the NIC GROUP, Visimex Corp., JSC was founded in 2002. Visomex wants to build a sustainable agriculture company that produces ecologically safe products for both domestic and international markets. Visimex pledges to provide only high-quality agricultural goods such as rice, pepper, coffee,.. that comply with international food safety regulations. Visimex has grown exports to 70 nations in the last decade, including the United States, Europe, the Middle East, China, Korea, and Japan.

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Visimex

In the future, the pepper production industry in Vietnam will develop quickly and become one of the key economic sectors bringing many benefits to Vietnam.

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