In a landmark development, Cambodia began its pepper exports to China, signaling a significant step in its trade relations. Last month, following extensive preparatory efforts spanning a year, Cambodia successfully dispatched its first pepper shipments to China, its most substantial trade ally to date.
Reported by Cambodia’s state-run TVK television channel, the initial exports included 30 tonnes of black pepper, which made their way to Qingdao, China, in two separate consignments on April 10 and 20, 2024. Embarking on this venture, Cambodia introduces its pepper, renowned globally for its superior quality, into the Chinese market for the first time, as announced by TVK on a social media platform.
Sela Pepper Co. Ltd, aligning with this development, recently conveyed through a social media post that it had sent off its premiere shipment on April 20, 2024, with plans to dispatch another consecutively.
The decision to procure Cambodian pepper was first disclosed by the Chinese Embassy on May 12, 2023, setting off a year-long journey to actualize the exports. This venture is poised to significantly bolster the Cambodian pepper industry, particularly benefiting the local farmers.
The Cambodia Pepper and Spices Federation (CPSF) lauded this initial phase, viewing it as a promising avenue for escalation and industry expansion. In discussions with the Khmer Times, Vannal Van, the Executive Director of CPSF, emphasized the considerable prospects that the expansive Chinese consumer market holds for Cambodian pepper exports. This venture promises to invigorate the domestic production, uplifting rural demographics and planters through improved pricing and potentially amplifying pepper cultivation.
However, CPSF delineated a substantial hurdle impeding rapid growth, citing the limited number of Cambodian cultivators and processors presently accredited with the General Administration of Customs of China (GACC) for direct exports.
In the buildup to these exports, Cambodia had forwarded pepper samples to prospective purchasers in China, capturing interest from markets across China, the US, the Middle East, and North Africa. In May 2023, GACC green-lighted Cambodia’s export proposition, effectively clearing the path for local pepper sales in the Chinese marketplace.
Current statistics reveal that Cambodia’s foreign pepper sales approached $10 million in the initial quarter of this year, with anticipations of further growth owing to the new Chinese market entry.
Amid exploring these prospects, CPSF is also venturing into other markets, including those in the Middle East, North Africa, and the US.
According to the Ministry of Agriculture, Forestry and Fisheries, pepper cultivation in Cambodia spans 6,935 hectares. Presently, the price for a metric tonne of black pepper ranges between $4,000 and $4,500—showing a notable increase from the previous year.
Cambodia’s pepper exports encompass a variety of products, from the Geographical Indication (GI) labelled Kampot pepper to non-GI varieties including mixed, good-practice-agriculture, and organic pepper, with GI pepper primarily targeting the EU market.
Notably, the Kampot Pepper Promotion Association, governing GI pepper production, is also keen on expanding to the Chinese market.
Reflecting on the year 2023, Cambodia saw a dip in pepper exports, totaling 6,153 tonnes—a 26.76 percent decline from the former year, attributed to low market prices deterring farmers from selling their produce, thus impacting the overall export volume.
Source: Khmer Times
