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Vietnam earns USD 22.8m from star anise exports

Vietnam earned more than USD 22.8 million from star anise exports in the first five months of the year, reinforcing its position as the world's second largest producer of the high value spice.

Citing data from the World Spice Organisation, the Vietnam Pepper and Spice Association (VPSA) said Vietnam has around 55,000 hectares of star anise plantations, producing about 22,000 tonnes annually. This ranks the country second globally behind China, which produces between 90,000 and 95,000 tonnes a year, mainly in Guangxi and Yunnan.

Vietnam earns USD 22.8m from star anise exports - 1

Dried star anise flowers (Photo: VPSA).

In Vietnam, star anise is grown primarily in Lang Son Province, with around 40,000 hectares, followed by Quang Ninh Province with 8,600 hectares, Cao Bang Province with 4,500 hectares and smaller cultivation areas in Thai Nguyen Province.

Thanks to favourable natural conditions, star anise from Lang Son commands the highest prices on the market because of its superior essential oil content. The province accounts for approximately 87.5 per cent of Vietnam's total output.

During the first five months of the year, Vietnam exported 5,769 tonnes of star anise. Although export volume and value fell by 24.9 per cent and 21.1 per cent respectively compared with the same period last year, export earnings still exceeded USD 22.8 million.

The average export price remained strong at USD 3,951 per tonne.

Exports recovered in May, with shipments reaching 1,439 tonnes worth USD 5.6 million, up 5 per cent in volume and 4.2 per cent in value from the previous month.

Asia remained Vietnam's largest export market, accounting for 78.1 per cent of shipments. However, demand weakened, with export volume to the region falling 31.9 per cent.

India, Vietnam's largest buyer of star anise, imported 3,599 tonnes during the period, down nearly 39 per cent year on year.

Meanwhile, Europe emerged as the fastest growing market, with exports surging more than 56 per cent to 413 tonnes. Shipments to the Americas also rose 5.7 per cent to 816 tonnes despite weaker demand in the United States.

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