Developing sustainable pepper linkage  chain for export markets

With more than 20,000 hectares under cultivation, pepper is a staple crop and a major export strength of Dong Nai Province. It has also attracted large enterprises to invest in deep processing, linked to the establishment of a linkage chain for developing clean, sustainable raw material zones capable of meeting the stringent requirements of global markets.

Nguyen Thi Hoang, Member of the Provincial Party Committee, Vice Chairwoman of the Provincial People’s Committee (second from right), visits and engages with organic pepper farmers in Nghia Trung Commune. Photo: Binh Nguyen

Accordingly, pepper farmers in the province are increasingly committed to this crop. They are also boldly transitioning to organic production with the goal of producing safe products that meet global market standards.

Many benefits of organic pepper farming

Thanks to attracting enterprises to invest in processing and implementing many policies to support farmers growing clean pepper for the export market, farmers in the province have been encouraged to switch to organic pepper farming models early. To date, this model has proven effective, benefiting the farmers.

In 2013, the family of Vy Linh Duy, Head of the Nghia Binh 2 Organic Clean Pepper Cooperative Group in Nghia Trung commune, began growing pepper. To date, his family has developed 6 hectares of pepper plants. Duy is also one of the pioneering farmers in the locality to switch to organic pepper farming. Duy shared: "To date, my family's pepper garden has been organically certified for 5 years. This program is supported by Nedspice Processing Vietnam Limited, which has a modern pepper processing factory in Dong Tam commune, to help farmers transition to organic farming. In the early stages of switching to organic production, farmers faced difficulties as pepper yields sharply decreased, and plants grew weaker. But gradually, the pepper plants recovered. The first benefit of switching to organic production is the protection of pepper farmers' health. Organic farming also helps pepper plants become healthier, and the soil gradually becomes more fertile. Therefore, this model is attracting more and more farmers to switch to it."

Regarding raw material area development, for the 2026-2030 period, Nedspice Processing Vietnam Limited continues to strengthen cooperation with the Dong Nai Department of Agriculture and Environment to help the province's pepper industry develop sustainably and enhance its ability to cope with many challenges. For example, major export markets, including European Union, the United States and Japan, continuously raise food safety standards, especially the maximum residue limits for plant protection products; product traceability, linked with growing area codes, becoming increasingly stringent. At the same time, they will accompany pepper farmers in coping with climate change and rising production costs.

Sharing the same view, Hoang Quoc Hung, an experienced pepper farmer in Nghia Trung commune, happily said that in the recent harvest season, the market price for pepper was less than 160,000 VND per kg, but his family's organic pepper sold for nearly 200,000 VND per kg. In addition, when switching to organic production, farmers gain many benefits, especially protecting the health of growers. When switching to organic production, instead of spraying herbicides, farmers cut grass and cover the soil with it, which helps retain moisture in the dry season, prevents soil erosion in the rainy season, and the decaying grass helps improve the soil, making it increasingly fertile. Therefore, pepper plants grow healthier and are less susceptible to diseases. The investment cost for organic processes is not higher than chemical methods but ensures sustainability in production.

Enterprises partner with farmers

The sustainable clean pepper production linkage chain is continuously expanding thanks to the companionship of enterprises, with many practical support policies that bring benefits to pepper farmers.

Since 2013, Nedspice Processing Vietnam Limited has partnered with former Binh Phuoc province to implement the Sustainable Pepper Value Chain Development Program. To date, the program has established over 50 clubs and cooperatives with 2,500 household members participating in the linkage chain. Among them, over 1,000 households have achieved important international certifications and organic certifications.

According to pepper farmers, when participating in the sustainable pepper development linkage chain, farmers regularly receive training on cultivation techniques and pepper plant care at each stage of development. By joining the linkage chain, quality pepper is purchased by businesses at a price 7-15% higher than the general market price; organic certified pepper is priced 17-25% higher than uncertified pepper. Additionally, farmers participating in the linkage chain receive support from businesses for green plant seedlings to serve as pepper trellises; solar-powered machines for irrigation and daily use; partial material support for organic pepper pilot models; and livelihood support, including tools, for female farmer members.

Le Thanh Hung, a representative of Nedspice Processing Vietnam Limited (a Dutch-invested company), said the firm operates globally in pepper and agricultural processing and exports, with total output reaching around 28,000 tons per year. Pepper accounts for approximately 25,000 tons annually, with a wide range of deep processed products. So far, the company has invested in two modern pepper and agricultural product processing plants in Ho Chi Minh City and Dong Tam Commune, and it is planning to develop a large-scale deep-processing plant for pepper products in Dong Nai, closely linked to developing sustainable raw material zones.

By Binh Nguyen – Translated by Mai Nga, Thu Ha