Revitalizing the Loc Ninh peppercorn brand
(VOV) - The Vietnam peppercorn industry has expanded over the past five years to become one of the world's top markets and is ideally situated to potentially become even a more significant player in the global spice market.
During the five-year period businesses in the industry have begun to nurture a greater appreciation for the stringent quality requirements for food product exports into major markets and as a result the image of the industry has improved somewhat.
At a recent seminar discussing the revitalization of the Loc Ninh peppercorn brand, participants suggested a concerted effort be made to invest in and develop the brand over the next three to five years.
Tran Duc Tung, head of office of the Vietnam Pepper Association (VPA) said at present, Vietnam’s exports account for approximately 37% of the market in the ASEAN region, 30% in Europe and 7% in Africa.
This vast market share demonstrates that Vietnamese growers and producers can compete head on with their counterparts in the more demanding markets Tung said— and with additional research and development could be even more highly successful.
At present, there are roughly 200 registered domestic and foreign export businesses throughout the nation. Several major foreign traders have only recently increased their presence in the Vietnam market.
Nguyen Thi Mai Oanh, vice president of the Vietnam Pepper Association (VPA) said the export price is much lower than other nations due to lack of compliance with good agricultural practices (GAP) standards.
To develop the Loc Ninh brand in both domestic and foreign markets, there should be greater effort from farmers and traders to adhere to GAP standards to control pests and diseases that negatively affect plant production.
If Vietnam wants to secure a solid foothold in the global market, businesses should attach importance to stepping up their game and concentrate on improving safety and hygiene, said Nguyen Tri Dung, a director of the Minh Tran Company.
Vuong Ngoc Bich, director of An Huy BT Co, Ltd also emphasized the importance of reducing the use of fertilizers, pesticides and herbicides in the cultivation process, noting, the world’s leading foreign peppercorn buyers are willing to pay premium prices higher than US$300 per tonne if no excessive pesticide residues are detected.
However the overuse of fertilizers, pesticides and herbicides by farmers has caused the peppercorn trees to degenerate and as a result they have become more susceptible to disease, which is negatively affecting sustainability of the industry, Bich said.
Mr Tung said in the first five months of the year, Vietnam exported 72,000 tonnes of peppercorns, grossing revenues of US$657 million. In the remaining months of the year, the industry needs to export 40,000 tonnes in order to fulfil the set target of 120,000 tonnes for the year.
The Southeast Asian nation has roughly 80,000ha under cultivation, 52,000ha of which can now produce harvests, with an average output of 2.4 tonnes per ha. Binh Phuoc province takes the lead in building the Loc Ninh brand.
On March 25, 2014 the National Office of Intellectual Property of Vietnam (NOIP) granted certificates to 16 households that grow trees in Loc Ninh with a total cultivation area of more than 25 hectares.
Vo Dang Khoa, Director of the Centre for Investment, Trade and Tourism Promotion of Binh Phuoc province said the development of Loc Ninh brand should give fresh impetus to the cultivation of peppercorn trees in the province in the coming time.