Planting Vietnamese organic chili for export

Many localities are struggling to find markets for agricultural products such as lychee, watermelon, sweet potatoes, and pumpkins. Meanwhile, several farmers have begun implementing a model of Vietnamese organic chili production linked with stable market consumption. As a result, it brings high economic efficiency and open up a promising new direction.

Mr. Khuong is a local farmer in Ea Pok town, Dak Lak province. These days, his family is harvesting their first batches of Vietnamese organic chili.

According to Mr. Khuong, in previous years, he cultivated chili on 5 sao using conventional methods. Notably, these cultivation methods relied on chemical fertilizers and pesticides. When it came time to harvest, traders would come to buy the chilies. However, selling prices were consistently low and unstable. Sometimes, he could not even sell the harvest.

In early March 2021, he partnered with a spice export company to cultivate 3 hectares of chili. The chili variety was Korean bird’s eye chili, which used organic farming methods for export purposes.

The company provided 100% deferred payment support for seeds, organic fertilizers, and biological pest control products. They also offered technical guidance and committed to stable, high-price purchase contracts for all qualifying produce.

Chili is relatively easy to grow and adaptable to different soil types. From transplanting to harvest takes about three months, followed by continuous harvesting for another six months. The yield of Vietnamese organic chili is equivalent to that of conventional methods. In fact, organic chili often produces larger, spicier, and more visually appealing fruits than traditionally grown ones.

Similarly, Mr. Thuc currently has 4 hectares of Vietnam’s organic chili, which is in peak harvest season. He said, all cultivation stages should strictly follow the organic standards to ensure safety for both humans and the environment.

Each day, Mr. Thuc’s family hires over 30 laborers to harvest ripe chilies. The market price for conventional bird’s eye chili is around 5,000 VND/kg. However, the partnered company has committed to purchasing his organic chili at 18,000 VND/kg.

After deducting all production and labor costs, Mr. Thuc estimates a profit of 300 million VND per hectare per year. It is significantly higher than with traditional chili or other crops.

Ms. Thanh, Director of the export company of Vietnam’s chili, shared that in early 2021, the company signed a contract with a Japanese importer to export 30 tons of organic bird’s eye chili per month. As a result, she surveyed and partnered with nearly 10 farming households. Total chili area covered 17 hectares, with a buy-back guarantee at 18,000 VND/kg for qualifying organic chili.

To ensure a reliable source of clean raw materials, the company supports farmers from the beginning. Those who sign up must commit to compliance before contracts are signed. Technical staff has worked closely with farmers at every stage, from cultivation to harvest. Before packaging, product samples are sent to the importing partner for quality assurance.

In addition, the company allocates funds annually to support farmers with advance capital for production. Therefore, the company’s raw material supply area is consistently stable.

“From April 2021 until now, we have successfully exported 60 tons of fresh chili to Japan. We have also recently secured a new partner in South Korea to export 240 tons of chili per month to that market. Currently, we are negotiating and looking to expand our sourcing areas in Dak Lak and Binh Phuoc provinces, targeting about 180 hectares,” Ms. Thanh added.

This model of organic chili cultivation within a value chain framework linked to guaranteed market outlets is proving to be a highly promising direction. It not only helps farmers create jobs and increase income, but also contributes to the structural transformation of agriculture toward commercial, sustainable production across the province.

Vietnamese source: https://baodaklak.vn/channel/3483/202106/trong-ot-huu-co-de-xuat-khau-5741559/