Negotiations surrounding the official export of Cambodian pepper to the Arab market have hit a significant snag due to pricing disagreements...
Negotiations surrounding the official export of Cambodian pepper to the Arab market have hit a significant snag due to pricing disagreements. Despite domestic demand for pepper in Cambodia representing only a small fraction of the annual yield, negotiations with potential Arab buyers have yet to yield a resolution, according to the Cambodian Pepper and Spices Federation (CPSF).
In an exclusive interview with The Post, Mak Ny, president of the CPSF, disclosed that efforts to expand pepper export markets to Arab nations have been ongoing, but official exports are still pending. He pinpointed pricing as the primary obstacle in negotiations between CPSF member companies and prospective Arab buyers, citing the absence of a mutually agreed-upon price as the reason for the delay.
"Due to unresolved price negotiations, there has been no official pepper export to Arab countries," Ny stated, underscoring the persistent challenge hampering trade agreements. While acknowledging the lack of official data on pepper exports, Ny hinted at the possibility of unofficial exports occurring amid the ongoing negotiations.
Ny refrained from divulging specific details concerning ongoing discussions between Cambodian suppliers and interested parties in the Arab market. However, he underscored Cambodia's substantial annual pepper production, ranging between 17,000 and 20,000 tonnes, predominantly aimed at international markets due to limited domestic demand.
In contrast to the broader challenges facing Cambodian pepper exports, Nguon Lay, president of the Kampot Pepper Promotion Association (KPPA), highlighted the success of Kampot Pepper, a renowned geographical indication (GI) brand. Lay emphasized the consistent demand for Kampot pepper driven by its superior quality, which has shielded it from market fluctuations and pricing disputes.
Lay revealed that Kampot pepper prices have remained stable since 2015, with current rates standing at $15/kg for black pepper, $25/kg for red, and $28/kg for white varieties. With approximately 100 tonnes harvested annually, Kampot pepper finds its way to over 50 countries, primarily in Europe, maintaining its reputation as a premium culinary ingredient.
The Ministry of Agriculture, Forestry and Fisheries' 2023 annual report indicated a slight decline in Cambodia's overall agricultural exports, including a notable 26.76% decrease in pepper production compared to the previous year. Former Minister of Commerce Pan Sorasak previously emphasized the strategic importance of the United Arab Emirates (UAE) as a potential key market for Cambodian agricultural exports.
Sorasak predicted that the UAE's focus on food security would pave the way for increased trade opportunities for Cambodian agricultural products in the Arab region. Through leveraging the UAE as a gateway, Cambodian goods are poised to penetrate additional markets across the Arab world, promising brighter prospects for the country's agricultural export sector.
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