Partnering with farmers to build a sustainable pepper industry

Nedspice Processing Vietnam Limited has invested in two modern processing plants in Ho Chi Minh City and Dong Tam Commune, Dong Nai City. By 2025, the company's total export volume of spices and agricultural products reached 28,000 tons. Furthermore, over its 27 years of operation in Vietnam, the company has partnered with about 10,000 pepper farmers to build a sustainable production chain that meets export market standards.

A reporter from Dong Nai Newspaper and Radio, Television interviewed Jos van Gulick, General Director of Nedspice Processing Vietnam Limited, a Dutch-invested enterprise, about the company's long-standing investment in processing and its efforts to develop a sustainable pepper production linkage chain in Dong Nai.

Developing sustainable pepper-growing regions

Could you share some important milestones in the company's investment journey in Dong Nai?

Jos van Gulick, General Director of Nedspice Processing Vietnam Limited.

Since 2013, the company has implemented a farmer linkage program in Dong Nai. In 2014, the first group of farm households to participate received international quality certification. In 2017, the company expanded the farmer linkage model throughout Dong Nai Province (now Dong Nai City). In 2020, the company established a processing plant in Dong Nai. During the 2020–2025 period, the company carried out projects to enhance the value of the production linkage chain by supporting Dong Nai's pepper products to obtain organic certification and other international certifications verifying product quality. To date, the program has established more than 50 farmer clubs and cooperatives with 2,500 member households participating in the linkage chain. Of these, more than 1,000 households have obtained organic certification and other internationally recognized certifications.

Why does the company place such emphasis on developing a sustainable pepper-growing area?

A key challenge facing pepper production today is the declining share of output that meets the quality standards of many demanding markets. This is due to small-scale farming, intercropping, and cross-contamination among crops. In the coming years, pepper production will continue to face numerous challenges, including the degradation of agricultural ecosystems, shrinking cultivation areas, rising production costs, climate change, disease outbreaks, and market requirements for quality and traceability. Increasing output as cultivation areas shrink will require greater investment in research into high-yield varieties, as well as improvements in the scale of farmers' production, which remains fragmented and small-scale.

Jos van Gulick, General Director of Nedspice Processing Vietnam Limited, speaks with Nguyen Thi Hoang, Member of the Dong Nai City Party Committee and Vice Chairwoman of the City People's Committee (second from left), during a visit and working session by city leaders at the company.

The company will therefore continue to maintain and expand its sustainable pepper supply chain program in Dong Nai City. During the 2026–2030 period, it aims to strengthen the sustainable production linkage chain; continue training and support for farmers on Good Agricultural Practices (GAP), organic certification, and other international certifications; and implement additional projects on Integrated Pest Management (IPM), regenerative agriculture, biodiversity, carbon footprints and carbon credits, net zero, and the conservation and protection of forest ecosystems. Regarding the net zero initiative, in addition to pepper cultivation, the company aims to conserve and restore ecosystems. It has launched a program to provide 10,000 trees to farmers, aiming to support ecosystem development and generate carbon credits for sale.

What support programs will the company implement for pepper farmers in the coming phase?

Farmers participating in the sustainable pepper production linkage chain receive regular training in pepper cultivation and care techniques at each stage of plant growth. The company guarantees the purchase of pepper that meets quality standards at prices 7% to 15% above prevailing market levels, while certified organic pepper commands prices 17% to 25% above those of uncertified pepper. The company also provides farmers with tree seedlings to serve as living supports for pepper vines, solar-powered equipment for irrigation and household use, partial material support for pilot organic pepper cultivation models, and livelihood support and farming tools for female farmer members.

The Netherlands is the world's second-largest exporter of agricultural products and possesses extensive expertise in large-scale, high-yield agricultural production. Nedspice maintains close cooperation with various partners, particularly leading Dutch technology companies. The company serves as a bridge for transferring advanced agricultural knowledge, leveraging Dutch high-tech agricultural networks to connect key partners, and supporting smallholder farmers in applying modern production techniques and improving productivity. Its goal is to promote sustainable, high-tech agriculture in Vietnam. Dong Nai has favorable conditions, including suitable land, for sustainable pepper cultivation with high productivity and quality.

Investing in deep processing

Could you share more about the scale of the company's processing plants in Vietnam?

The company's first processing plant was established in Ho Chi Minh City. Meanwhile, its second was built in the northern area of Dong Nai City, a transit hub for spices transported from the Central Highlands. The strong performance of the Dong Nai facility prompted the company to invest in additional warehousing there. The processing plants in Dong Nai and Ho Chi Minh City each have an annual capacity of 25,000 tons. 

At present, Nedspice's processing facilities in Vietnam account for approximately 75% of the company's total processed spice output worldwide. Pepper is the company's main product in Vietnam, along with other processed spices such as turmeric, cinnamon, and ginger. The company focuses on increasing product value through deep processing rather than simply buying and reselling goods. Most of its exports from Vietnam currently consist of deeply processed products.

Nedspice, a global company specializing in the procurement, processing, and supply of spices, herbs, and dried vegetables, has invested in processing plants in Vietnam, delivering significant benefits by creating stable market outlets, increasing the value of agricultural products, and enhancing the competitiveness of Vietnamese pepper.

What are the company's investment plans for processing in the coming years?

The spice sector records relatively modest growth, averaging about 3% annually. However, the company's growth rate exceeds the market average because it has established a strong foundation through sustainable production linkages with farmers. This program has received significant support and cooperation from local authorities and the State of Vietnam.

The company is working with relevant organizations to identify pepper varieties and farming models suited to the next phase. Regarding the establishment of demonstration gardens, it hopes to cooperate in selecting a pilot model in Dong Nai and then determine which model is best suited to farmers. The company also supports digital transformation in cooperative management and household-level farming.

Jos van Gulick, General Director of Nedspice Processing Vietnam Limited

Nedspice is considering Dong Nai as a potential location for an integrated, export-oriented spice processing complex that meets food safety standards and is designed to generate long-term economic value for the region. The expected benefits for Dong Nai include creating skilled and sustainable employment opportunities for the local community and supporting advanced processing infrastructure and food safety. The project also aims to increase Dong Nai's export value through deep-processed agricultural products while generating revenue for the city through employment and Nedspice's supplier network. The company plans to invest in a central processing plant in Dong Nai and is therefore particularly interested in investment incentive policies. Given its processing and export business model, it also hopes to secure a plant location close to the raw material production region and conveniently linked to export ports.

By Binh Nguyen – Translated by Minh Hong, Minho