13/10/2023
Import pepper from Vietnam: Market overview
Vietnam controls the majority of the world’s pepper production and supply, so many importers choose to import pepper from Vietnam. Regarding the pepper industry in Vietnam, the country produces nearly 40% of the world’s peppers. The output of pepper in Vietnam varies depending on the season, but it is typically between 200 and 280 thousand tonnes. Dak Lak and Dak Nong produce over half of Vietnam’s pepper, followed by D**g Nai, Gia Lai, and Ba Ria-Vung Tau. The majority of pepper in Vietnam is collected between January and April.
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Pepper growing areas
High price fluctuation is one of Vietnam’s difficulties and also difficult for importers who import pepper from Vietnam. Prices were very low in 2019 and 2020 due to massive production and excess, and many farmers have given up pepper farming due to low profitability. This resulted in a 10-20% decrease in output. Prices rose again in 2020/2021, however, the Vietnam Pepper Association encouraged farmers not to increase their pepper harvest in 2021 to avoid oversupply.
Vietnamese processors import huge volumes from Brazil, Indonesia, Cambodia, and Malaysia in order to ensure a constant supply and make use of the country’s large production and cleaning facilities. As a result, black pepper shipped from Vietnam is frequently a combination of several origins.
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A pepper farmer in Vietnam
Vietnam is the world’s top exporter of pepper. Countries that import pepper from Vietnam can be listed as The United States accounting for 21% of Vietnamese pepper exports, followed by China (18%), the United Arab Emirates (5%), India (5%), and Germany (4%). Vietnam’s pepper exports to Europe expanded rapidly, reaching 39 thousand tonnes in 2020. Germany has the greatest market share for Vietnamese pepper in Europe, accounting for 39%, followed by the Netherlands (24%), the United Kingdom (20%), and France (17%) (source: OEC data)
Import pepper from Vietnam: Different types of pepper
Pepper is the dried berry of Piper nigrum. The term ‘’peppercorn’’ is often used to avoid confusion with “green pepper” and “red pepper”, which are also used to describe other types of spices and vegetables. There are four types of pepper you can find in Vietnam: Black pepper, White pepper, Green peppercorn and Red peppercorn. You should distinguish these pepper varieties if you want to import pepper from Vietnam. They are all different varieties of pepper plants, but they are prepared and processed differently. In addition, most of the peppers traded in the market now are Black pepper and White pepper.
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types of pepper
The first step you should apply to import pepper from Vietnam is to know what types of pepper you will buy. Below are details about four common types of pepper:
Black Pepper: Black pepper is the most common type of pepper imported from Vietnam and is made by picking the berries when they are still green, then allowing them to dry in the sun until they turn dark and wrinkled. Black pepper is typically more pungent and has a stronger flavour than the other types of pepper. There are many types of black pepper based on its density: 300 GL, 400 GL, 450 GL, 500 GL, 550 GL, 570 GL, 580 GL or 600 GL. The unit GL is used to measure the density of the black pepper. The higher the density is, the more oil content is and the higher price of the black pepper is. Types of black pepper are also categorized based on production quality, which consists of FAQ and MC quality. FAQ stands for Fair Average Quality, while MC stands for Machine Cleaning. The biggest difference between these two qualities is the level of admixture. Normally, FAQ black pepper has an admixture of 1% max, while MC black pepper has an admixture of 0.2% max. And the price of FAQ black pepper is lower than that of MC black pepper.
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Black pepper
White Pepper: Ripe berries with the pericarp removed. These are basically the seeds of peppercorns. White pepper is commonly produced by soaking fully ripe berries in water. This process decomposes the pericarp, which can then easily be removed. The flavour of white pepper is milder and less pungent compared to black pepper. White pepper is often used in dishes where a black speck would be visible, such as in white sauces or light-coloured dishes.
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White pepper
Green Peppercorn: Green peppercorn is made from unripe berries that are picked before they turn red. They are then either dried or preserved in brine. Green peppercorns are less pungent than black pepper and have a fresher flavour. In the production process, blanching and controlled tunnel drying are commonly used to prevent oxidation and preserve the green colour. For the European market, using sulfur dioxide as a colour-preserving additive for dried green peppercorns is not allowed.
Red Peppercorn: Red peppercorn is made from fully ripe berries that are left on the vine to mature. They are sun-dried and have a sweeter, fruitier flavour than black pepper. Red peppercorns are also less pungent than black pepper. This pepper is generally the priciest. Actually, red peppercorn is not common for international buyers to import pepper from Vietnam.
Four steps to import pepper from Vietnam
It is important to do research about specific steps and requirements during the pepper import procedure. The import procedure may vary from country to country. If you want to import pepper from Vietnam, this step-by-step guide is helpful for you.
Step 1: Finding a reputable supplier
There are plenty of cases where exporters scammed buyers by not shipping the goods after the buyer make a payment. Or the seller may deliver goods of lower quality than agreed upon. Therefore, doing extensive research on your supplier before you import pepper from Vietnam is paramount of importance.
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To identify potential pepper exporters from Vietnam, try reading credited Vietnamese publications and looking for businesses that are highly recommended. Try using the keywords “import pepper from Vietnam” in your search on Google or Bing. Some other keywords you can try are “Vietnam leading pepper company, “buy pepper in bulk from Vietnam,” “pepper suppliers from Vietnam,” “Vietnam wholesale pepper,” etc. Additionally, you can use the same keywords to search on social networking sites like Facebook, LinkedIn, Instagram, etc.
To import pepper from Vietnam you can also visit B2B websites such as YellowPages, one of the most prestigious websites that lists the best businesses operating in all sectors in Vietnam, including agriculture export. As an alternative, you might search on Tridge, a reliable website for acquiring global food and agricultural products. To be listed on Tridge, agricultural businesses must offer transparent information and high-quality goods. You can find many good pepper companies here to import pepper from Vietnam. A trustworthy supplier will have an information-rich website system, scientific articles that include comprehensive knowledge about products, an export guide and B2B trading tips.
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finding pepper suppliers on Tridge
The next step you should do to import pepper from Vietnam is to try contacting the list of potential suppliers you have made to find out more about the quality of the products they offer. This allows you to determine if they are a true company to cooperate with in the long term. Never be afraid to request pictures of your suppliers’ products, factories, growing zones, quality certificates, company licenses, B/L of prior orders, or other pertinent documentation from them. To determine if they truly comprehend the things they are providing, you could also ask some questions about their expertise to see if they know how to import pepper from Vietnam.
Step 2: Knowing the requirements to import pepper from Vietnam
Once you have decided which kinds of pepper you are interested in, you should research the import laws in your country. There are three different kinds of requirements that you must be aware of:
Quality requirements: When you import pepper from Vietnam, it is important to ensure that the product has been produced, processed, stored, packed, and labelled in facilities that meet proper sanitation standards and general food safety requirements. The specific regulations for imported pepper will vary depending on the country of import.
Document requirements: Before you import pepper from Vietnam, you should directly contact the customs authority in your country to know which kinds of documents you must have to import pepper. After that, you should require the exporter to prepare a full set of documents so that you can use them to import pepper from Vietnam. Here is a list of popular documents for pepper import that exporters in Vietnam must give importers:
Bill of Lading
Commercial Invoice
Packing list
Certificate of Origin
Certificate of Fumigation
Certificate of Phytosanitary
Certificate of Cargo Insurance
Other special documents depending on requirements from the country of import such as Certificate of Quality and Weight, Health Certificate, Certificate of Analysis, Certificate of Conformity, etc.
Import Duty: Check the import duty that your country levies on pepper before importing them and reselling them. Knowing the import duty helps you determine exactly the cost and revenue of the consignment if you import pepper from Vietnam.
Below are the HS codes of pepper products for your reference:
Whole grain pepper: 090411
Ground pepper: 090412
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Import duty for pepper in some countries
Step 3: Negotiate the terms and sign the contract to import pepper from Vietnam
After choosing the right products to import pepper from Vietnam, you will negotiate a contract with the seller. The sales contract will include terms of goods, terms of payment, terms of time, terms of delivery, and each party’s responsibilities and obligations.
Terms of goods: This term state the name of the pepper products, their specification, package and quantity. Here are the most common parameters for specification to import pepper from Vietnam:
Moisture content: The standard moisture level for black and white pepper is 12-13% max
Foreign matter or Admixture: pepper must be free from foreign matters, foreign odours, diseases, and any other disorders. The common level of admixture for pepper is 0.2% – 1% max.
Density of peppercorns: Whole pepper is sorted by density, which influences the price of the product. Some popular kinds of pepper density are: 500 G/L, 550 G/L, 570 G/L, 580 G/L, 600 G/L, and 630 G/L.
Piperine content: According to the Codex Standard, piperine content in black pepper must be at least 2% for whole pepper and 3.5% for ground pepper, while for white pepper, the content should be at least 3% for whole pepper and 4% for ground pepper. However, buyers who import pepper from Vietnam sometimes have higher expectations and may ask for higher piperine content.
Ash content: the maximum content of total ash for white and green pepper is 3.5%, while it is 7% for black pepper. The acid-insoluble ash limit is set at 1.5% for black pepper and at 0.3% for white and green pepper.
Volatile (essential) oils: To enter the high-end market, the minimum essential oil content should be 2ml/100g in black pepper, 1.5ml/100g in white pepper, and 1ml/100g in green pepper.
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Regarding the package, Polyethylene bag is the favoured packaging when buyer import pepper from Vietnam. The size of the packaging varies depending on the buyer, but it is usually 25kg bag. The dimensions should conform to standard pallet sizes (800mm x 1,200mm and 1,000mm x 1,200mm).
For retail sales, you should aim for packaging weighing between 20g and 40g. Common kinds of packages for pepper retail sales are plastic bags, glass containers and paper bags.
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Package for pepper (25kg PP white bag)
Terms of payment: This term state the method that the buyer will pay money to the seller. To import pepper from Vietnam, there are typically two commonly used payment methods in the trade.
The first of which is the L/C (Letter of Credit). This method allows for secure payment transactions between banks on behalf of both the buyer and seller. It ensures that payments are made once both parties have fulfilled the terms and conditions of the deal. It’s particularly useful for buyers with limited credit history. This method is advantageous for importers as it allows them to hold off on payment until they receive their full shipment of pepper.
