Chongqing - Yang Huazhong, Chairman of Chongqing Jiangjin Fengyuan Pepper Co., Ltd., expressed stoic confidence in the pepper export market as his company processed a recent order destined for Vietnam.
"600 jins (300 kilograms) of green Sichuan peppercorns are prepared for shipment, with a firm commitment to loading upon receipt of the final payment, as per our policy," he said.
Workers are processing Jiangjin green Sichuan peppercorns. (Photo/ Jiangjin District)
Export opportunities spur local peppercorn quality improvement
The intense fragrance and numbing flavored Jiangjin green Sichuan peppercorns have begun to carve a niche in the global market. It has expanded to Japan, South Korea, Southeast Asia, and across continents to France, the United States, and Canada. By 2023, overseas sales reached 10 million yuan (about USD 1.41 million), up over 40% year-on-year.
However, the domestic market paints a different picture. A continual downturn has seen prices of fresh peppercorns to as low as 2 yuan per jin, causing financial pressure among local farmers. Yu Dacheng, a farmer from Jiangjin District who once cultivated 500 acres of Sichuan peppercorns, has witnessed a decline in income due to falling market prices.
Data shows that, from 2014 to 2022, peppercorn production in China's principal producing areas surged from 289,000 tons to 574,000 tons, while domestic consumption stagnated at around 420,000 tons annually, showing supply exceeds demand.
"This situation is what drives our peppercorns toward global consumers," commented Liu Hong, Deputy Director of Jiangjin District Agriculture and Rural Committee.
Jiangjin District has actively sought to expand export markets to harness this opportunity. Yang's company, a pioneer in this effort, discovered that export prices were 50 to 100 percent higher than domestic prices. Measures have been implemented to maintain export quality, including establishing bases with local farmers to enhance production standards.
These endeavors have also opened new opportunities for local peppercorn farmers, who are now motivated to improve cultivation techniques and pepper quality to meet export standards.
The journey of Jiangjin green Sichuan peppercorns began with a fortuitous meeting between Yang and a Taiwanese businessman in 2008. This encounter led to over a year of preparation, including base construction and strict pesticide residue control, ultimately resulting in the first export of fresh peppercorns.
Over a decade, peppercorns of Yang's company expanded its export channels, introducing various processed products to the U.S., Canada, Japan, and South Korea markets.
Jiangjin green Sichuan peppercorn planting base. (Photo/ Jiangjin District)
Establish 12 peppercorn export bases to meet EU standard
In response, Jiangjin District has introduced policies to support Sichuan pepper exports, such as incentive programs and technology upgrades. These policies benefit not just enterprises but also local farmers like Yu.
For example, peppercorns grown to export standards fetch higher prices than the domestic market rate. "The profit per jin has increased from 0.4 yuan to 2.4 yuan, yielding about 4,000 yuan per acre, which is a substantial return in the agricultural industry," Yu said.
Besides, Jiangjin has collaborated with six agricultural suppliers to boost exports and establish 12 peppercorn export bases that meet EU standards. Furthermore, digital technology has revolutionized processing workshops, enhancing the standardization of quality control and ensuring the consistency of products like Sichuan peppercorn oil.
Liu remains optimistic about the future of Jiangjin peppercorns in international markets. "Improving product quality and production efficiency is key," he asserts. "Sustained efforts in quality assessment, grading, traceability, and comprehensive quality testing will solidify our position in the global market."