Overview of Vietnamese Star Anise
This article offers an in-depth look at Vietnamese star anise, highlighting its importance in cuisine, health, and as a key export product. It covers the spice’s characteristics, growth, and processing, revealing how these factors contribute to its quality. The piece also explores star anise’s chemical makeup, showcasing its diverse health benefits and culinary uses. Additionally, it provides practical advice on selecting and storing star anise to preserve its flavors. Finally, the article introduces Prosi Thăng Long, a major exporter, emphasizing the spice’s role in Vietnam’s agricultural success and its global market presence.
Vietnamese Pepper Market Analysis: Challenges and Opportunities
This report provides an in-depth analysis of the challenges and opportunities facing the Vietnamese pepper market, including production declines, regulatory pressures, and international competition. It highlights the importance of sustainable development, quality improvement, and strategic market diversification to navigate the complex global landscape. The report underscores the need for the Vietnamese pepper industry to adapt to new regulations, enhance traceability, and engage in cooperative models to maintain its competitiveness in the global spice market.
Vietnam’s Star Anise Export Analysis Report: A Valuable Economic Opportunity
Star Anise is a product of the star anise tree, a type of plant that thrives and grows in limited regions worldwide, including some provinces in Vietnam and China. The star anise tree ranges from 2 to 6 meters in height, with straight trunks and thick, fragrant leaves. Notably, the star anise tree only begins to yield flowers from the fourth year onwards after planting, with stable yields achieved after 20 years.
Star Anise is not only widely used in Vietnamese cuisine as a seasoning for dishes like pho and curry but also known for its ability to stimulate the taste buds and create appetizing sensations. This enhances the value of star anise, not just as an agricultural product but also as a crucial component in the food industry.
Market Summary:
In the global market context, star anise, a particularly rare and valuable product, has brought Vietnam significant revenue, with nearly 8 million USD in just the first two months of 2024. Known as a hard-to-find product, the rarity of star anise has attracted attention and high demand from countries such as India and China, as well as the US market.
Notable Export Results:
According to preliminary data from the Vietnam Pepper Association (VPA), Vietnam’s star anise exports in February 2024 reached 558 tons, generating revenue of 3.4 million USD. Overall, in the first two months of the year, revenue reached 7.9 million USD from 1,437 tons of star anise, although there was a slight decrease of 2.3% compared to the same period last year. India, importing 731 tons, accounted for 50.9% of total exports, followed by the US market with a rate of 9.3%.
Key Export Enterprises:
Among the companies contributing to this achievement, Prosi Thang Long and Nedspice lead with export volumes of 333 tons and 109 tons, respectively.
Market Prospects and Potential:
Looking ahead, according to a report by Fortune Business Insights, the herbal product market, including star anise, is expected to reach a value of 430 billion USD by 2028. Vietnam, with over 5,100 species of medicinal plants and a promising environment, is poised to become a significant player in this economic sector.
Pepper Prices Surge on February 21: Continues to Rise for Three Key Reasons
Today’s pepper prices on February 21 range between 86,500 – 89,500 VND/kg. In other pepper-producing countries such as India, Indonesia, and Brazil, production is also forecasted to decrease. This will lead to a reduction in pepper imports into Vietnam in 2024.
In Dak Lak and Dak Nong provinces, today’s pepper prices were purchased at 89,000 VND/kg, an increase of 2,000 VND/kg.
In Gia Lai province, today’s pepper price is at 86,500 VND/kg, up by 1,500 VND/kg.
Meanwhile, in Dong Nai, today’s pepper price is at 87,000 VND/kg, an increase of 2,000 VND/kg.
In Ba Ria – Vung Tau province, today’s pepper price is at 89,000 VND/kg, up by 2,000 VND/kg.
And in Binh Phuoc province, today’s pepper price was purchased at 89,500 VND/kg, an increase of 1,500 VND/kg.
Today’s pepper prices increased by 1,500 – 2,000 VND/kg in other localities compared to the same time yesterday. This marks the second consecutive day of strong increases in the domestic market.
The increased demand from various markets such as the US, EU, Asia, and Africa for immediate delivery orders in Q1 2024 has driven prices up even as Vietnam enters the peak of the harvest season.
At the close of the latest trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 3,905 USD/ton, a decrease of 0.18%; Brazil ASTA 570 black pepper at 4,100 USD/ton, up 50 USD/ton; and Kuching (Malaysia) ASTA black pepper remained at 4,900 USD/ton.
The price of Muntok white pepper is 6,157 USD/ton, down 0.18%; the price of Malaysia ASTA white pepper remains at 7,300 USD/ton.
Vietnamese black pepper traded at 3,900 USD/ton for the 500 g/l variety, and the 550 g/l variety at 4,000 USD/ton; white pepper at 5,700 USD/ton.
Speaking to the press, Mr. Nguyen Tan Hien, Vice President of the Vietnam Pepper and Spice Association (VPSA), commented that Vietnam’s pepper production in 2024 could be at its lowest in the past five years.
Mr. Hien added that in other pepper-producing countries such as India, Indonesia, and Brazil, production is also forecasted to decrease. This will lead to a reduction in pepper imports into Vietnam in 2024. In Southeast Asia, Vietnam mainly imports pepper from Indonesia, but the price of Indonesian pepper is increasingly expensive as Indonesia’s main customers are Japan, South Korea, and China – who are willing to pay high prices. Therefore, Indonesia only sells to Vietnam when there is an excess supply.
For Brazil, despite lower prices than Vietnam, with the situation of drought and crop failure, Brazilian farmers will also not be in a hurry to sell at low prices. With low inventory levels, forecasted decrease in production, and lower import volumes, Mr. Nguyen Tan Hien believes that Vietnam’s pepper exports in 2024 could be at the lowest level in the recent five years. This means that prices are also expected to be high in the coming period.
Due to the impact of climate change, the 2024 harvest season is delayed compared to 2023, with Vietnam’s pepper production in 2024 expected to reach only 170,000 tons, a decrease of 10.5% compared to 2023.
Vietnam Pepper report 2023
Vietnam Pepper report 2023
Through evaluation and review of data compared with previous forecasts, Vietnam’s pepper output in 2023 is estimated at about 190,000 tons, up 3.8% compared to 2022.
Forcast of 2024 crop: floods occurred in July in the Central Highlands, especially in Dak Nong province, it will more or less affect the pepper garden if the pepper garden is not treated and drained to avoid waterlogging and flood rain. However, it is not as worried as the El Nino phenomenon that will take place at the end of the year and last until the beginning of next year, which leads to drought, lack of rain and may reduce Vietnam’s pepper production next year.
By the end of June 2023, Vietnam exported 152,986 tons of pepper of all kinds, black pepper reached 138,377 tons, white pepper reached 14,609 tons. Compared to the same period last year, the export volume increased by 21.8%, equivalent to 27,433 tons, but the export turnover decreased by 14.6%, equivalent to a decrease of USD 82.3 million.
The average export price of black pepper in the first 6 months of 2023 reached USD 3,484/ton, white pepper reached USD 5,011/ton, down USD 879 for black pepper and USD 1,070 for white pepper, respectively.
Vietnam domestic pepper market was closely reflecting the market. By mid May, the domestic price was still at 76,000 VND/kg, then the price dropped continuously and is now only around 70,000 VND/kg. Weak purchasing power from traditional markets such as the United States and Europe, plus signs of slowing down from the Chinese market, which has reduced buying since June, and the waiting for
the harvest of Brazil and Indonesia are the main factors. Reasons for the price of Pepper to go down.
Prosi Thang Long is the top 10 of the biggest exporters with 3,210 tons exporting to over the world.
Source: Vietnam Pepper Association
Vietnam star anise report 2023
Vietnam star anise report 2023
As of June 30, 2023, Vietnam has exported 7,443 tons of star anise, with a total export turnover of 45.7 million USD, compared to the same period in 2022, the export volume increased by 85.7% and the value increased by 68. 0%. The average export price of star anise in the first 6 months of the year reached USD 6,140/ton, down 9.6% over the same period last year.
India continues to be the main market for Vietnam star anise exports, accounting for 61.8% to 4,603 tons and increasing by 00.2% over the same period. Followed by markets: China accounted for 8.7%, the US accounted for 6.5%, the UK accounted for 3.8% and the Netherlands accounted for 2.5%.
Prosi Thang Long is the largest star anise exporter with 1,229 tons, accounting for 17% of the export market share to over the world.
Source: Vietnam Pepper Association
Vietnam Cinnamon report 2023
Vietnam Cinnamon report 2023
The spring cinnamon harvest season (1st crop) has ended from April, 2023 while the autumn cinnamon harvest (2nd crop) will begin in late August depending on weather in the north of Vietnam, the expected harvest in 2023 will be about 45 thousand tons. Export prices were on a downward trend due to weak demand from the US and EU. Meanwhile, export prices in Indonesia were also on a downward trend. Specifically, the export price in April reached $4,393/ton, down 2.6% compared to the beginning of 2023 (according to ITC).
By the end of June 2023, Vietnam exported 43,186 tons of cinnamon, total export turnover reached 129.2 million USD, up 25.1% in volume and 0.4% in value over the same period in 2022. The average export price of cinnamon in the first 6 months of 2023 reached 2,992 USD/ton, down 737 USD compared to the same period last year.
India, USA and Bangladesh are the three main export markets of Vietnamese cinnamon, accounting for 67.1% of which India ranks first with 17,380 tons, up 35.4%; USA reached 5,000 tons, down 4.5%; Bangladesh reached 4,271 tons, up 60.7%.
Exports to India were increasing from early July, pushing cinnamon market were increasing accordingly. Exports also increased in China, Egypt, Indonesia, Turkey, Poland… Biggest exporter is Prosi Thang Long, reached 7,696 tons, up 23.7% and accounted for 17.8% market share export from Vietnam to over the world.
Source: Vietnam Pepper Association
Who are the two biggest importers of Vietnam’s cashew?
Who are the two biggest importers of Vietnam’s cashew?
Cashew nut exports in the first half of 2022 faced many difficulties due to reduced consumption, small orders, etc, but still, retain an important role in major markets such as the US and China.
According to data from the General Department of Customs, in June 2022, cashew nut exports were estimated at nearly US$285 million, down 6.9% in volume and 6.5% in value compared to May 2022. Accumulating 6 months, cashew nut exports are estimated at more than 1.5 billion USD, down 9.2% over the same period in 2021.
According to the Import-Export Department (Ministry of Industry and Trade), Vietnam is currently the number 1 supplier of cashew nuts to the US and China, and Vietnam’s cashew nut market share in these two markets has gone up.
Specifically, data from the US International Trade Commission shows that in the first 6 months of the year, the US imported 80,000 tons of cashew nuts, equivalent to US$ 521 million, up 4% in volume and 8.5% in value compared to the same period in 2021.
Vietnam’s cashew nut market share in total US imports increased from 88.3% in the first 6 months of 2021 to 89.9% in the first 6 months of 2022.
In contrast, the cashew nut market share of Brazil and India in total US imports decreased, from 3.8% and 1.9% in the first 6 months of 2021 to 2.2% and 1% respectively in the first 6 months of 2022.
According to the Chinese Customs, the cashew nut imports of this market in the first 6 months of the year reached 141.5 million USD, up 134% over the same period in 2021, In which, Vietnam is the largest source of cashew nuts for China with US$125 million, up 146% over the same period in 2021. Vietnam’s cashew nut market share in China’s total import value increased from 83.7% in the first 6 months of 2021 to 88.2% in the first 6 months of 2022.
Market current situation
The market is still weak and there is not much buying demand. According to the Vietnam Cashew Association (VINACAS), it is very difficult to consume cashew kernels due to influences from the destination markets this year. Currently, inflation in countries has reached a very high level compared to the previous period.
With the current price of all items being so expensive, people have to spend more money on essential needs, which leads to non-essential items such as cashews being consumed slowly and the price of cashews is also very low and difficult to increase at this time.
PEPPER OUTPUT TO REACH 200,000 TONNES THIS YEAR
Việt Nam’s pepper output this year would reach around 200,000 tonnes, according to the International Pepper Community (IPC).
Output of black pepper was forecast at 175,000 tonnes, while the remainder would be white pepper.
The IPC also predicted the pepper output of the world’s biggest exporters such as Việt Nam, Brazil, Indonesia and India in 2019 would be lower than last year.
The Import-Export Department under the Vietnamese Ministry of Industry and Trade said up to 95 per cent of Việt Nam’s pepper output was exported.
Experts said local pepper producers and exporters should associate and connect with international customers to expand their consumption markets as well as improving pepper quality.
In the first month of the year, pepper export volume hit 15,000 tonnes worth US$46 million, posting 19.6 per cent and 13.5 per cent increases in terms of quantity and value from the previous month.
The average export price last month was US$3,067 per tonne, falling 5 per cent from December 2018 and 23.5 per cent from the same period last year.
The department said the pepper price in the Central Highland province of Tây Nguyên and the southern region was VNĐ46,000 per kilo – the lowest level in the past 10 years. — VNS
CASHEW PRICE TO RECOVER THIS YEAR
Cashew prices are expected to recover this year on the global market and producers should promote cooperation to remain stable.
Experts spoke at an international conference on the cashew industry held in Huế from March 1-3 to promote close and long-term relationships between cashew companies and create a basis for establishing trade between parties this year.
R K Dhoodes, chairman of the Cashew Export Promotion Council of India (CEPC) said annual consumption of cashew nuts has increased sharply, meaning good news for the global cashew industry.
He predicted demand will continue to rise so prices will also surge.
The CEPC chairman said in the future there should be a common institution for controlling trade activities to ensure parties respect contracts. Prices must be fair to ensure all parties benefit in the value chain.
During the conference, the Việt Nam Cashew Association (Vinacas) and the CEPC held talks about promoting cooperation in stabilising cashew prices this year.
The cooperation between Vinacas and CEPC, representatives of the two largest cashew processing countries in the world – India and Việt Nam, is necessary to gradually stabilise the market and ensure benefits in the global value chain this year and beyond.
Also at the conference, participants asked African countries to control the quality of exported cashews this year.
The conference forecasted that global raw cashew output this year is about 4 million tonnes (or 1 million tonnes of processed cashew), including over 2 million tonnes in Africa and the remainder from other countries including India, Việt Nam, Indonesia and Cambodia.
The conference this year attracted 300 businesses from Việt Nam and other countries. The annual event was under the national trade promotion programme and showed achievements and innovations in food safety and hygiene technology of Việt Nam’s cashew industry.
VN exports
According to the Vinacas, this year, Việt Nam plans to ship 350,000 tonnes of cashew nuts for about US$4 billion, a lower volume but higher value than last year.
By increasing sales of processed products instead of raw cashew, the ratio of processed cashew nuts of Việt Nam is expected to rise 30 per cent, double that of two years ago.
Vinacas general secretary Đặng Hoàng Giang said that along with improving the quality of processed cashew nut, in June 2019, the association will survey the West Asian market, bringing about more choices for exporters in terms of market and product.
Vietnamese cashew is popular in demanding markets such as the US and the EU, paving the way for domestic exporters to expand markets.
Along with seeking new markets, Việt Nam aims to maintain major ones such as the Netherlands, China, and especially the US, which consumes up to 40 per cent of the country’s cashew nuts, said Giang.
He added that the current market trend is products with clear origin, as customers prefer products with strictly controlled quality.
Vinacas Vice President Nguyễn Minh Họa said that to conquer new markets, Vietnamese firms should pay greater attention to studying requirements of the markets to supply suitable products.
Họa noted that with the use of Vietnamese technology over the years, African countries have started processing cashew and reducing their exports of raw cashew. They are expected to compete with Việt Nam in the next five years.
With dependence on materials from other countries, it is crucial for the Vietnamese cashew sector to improve quality to enhance competitiveness, he said.
Vinacas chairman Phạm Văn Công said the association will ask for support from the Ministry of Industry and Trade in implementing the “Cashew of Vietnam” promotion programme as well as other programmes to assist in the building of Vietnamese cashew trademark and providing information and technical support for exporters.
Vinacas will ask the Ministry of Finance to deploy measures to encourage foreign-invested forms to focus on processing, contributing to increasing the ratio of processed products.
Although Vietnamese cashew is defined by the International Nut and Dried Fruit Council as having higher quality than that of African countries and Cambodia, the price of cashew material is not very different than that of other countries.
Therefore, the building of a Vietnamese cashew trademark should start by building a trademark for materials.
Công said Vinacas and the Ministry of Agriculture and Rural Development have built a set of national criteria for cashew material, which will be issued in 2019 and is expected to reduce problems in the quality of materials. — VNS
Source: vietnamnews.vn