The Ministry of Trade’s Export Product Development Director, Olvy Andrianita, said that Indonesian spices are indeed in demand and are needed by the world market, one of which is vanilla. In addition to food and beverage needs, vanilla spices are also used for the cosmetics industry.
“Here I also describe some of the commodities that are our strengths, for example vanilla, vanilla is the raw material for the food and beverage industry, also cosmetics,” Olvy said in the webinar Strategy for Diversification and Adaptation of Spice Export Products in the Period and After the Covid-19 Pandemic, Thursday (6/25).
She mentioned that the largest importers of Indonesian vanilla spices were the United States of America (47.73 percent), France (18.10 percent), Germany (9.31 percent), Canada (5.80 percent), Japan (2.73 percent) , The Netherlands (2.22 percent), Mauritius East Africa (2 percent), Switzerland (1.27 percent), Australia (1.25 percent), and Italy (1.19 percent).
Furthermore, she explained that currently Indonesia is second in vanilla exporters at 8.71 percent. Whereas the first place was still occupied by Madagascar by 55.35 percent. Then in third place were France (7.43 percent), Canada (6.43 percent), and Germany (4.97 percent).
“Indonesia, the second largest exporter of vanilla, is still small at 8.71 percent, where the biggest main dominance is still in Madagascar. I think we need to struggle to make our vanilla products better than other countries’ products,” she said.
Currently, the Ministry of Trade has prospective export destinations for selected commodities. As in 2019, it is divided into two, namely traditional and non traditional countries.
For traditional countries, Olvy said there were five countries whose prospects for spice exports were dominated by the following countries, namely the United States of USD 144.62 million, India of USD 100 million, Vietnam of USD 90.25 million, China of USD 47.12 million, and the Netherlands USD 31.81 million.
“India ranks second, even though India is actually an exporter to the world, so actually it is a competitor for us. Also Vietnam. We export spices to Vietnam, but Vietnam is also supplies spices to the world. We must understand how to respond to this,” she said.
While for non-traditional countries, there are Saudi Arabia with USD 13.27 million, UAE with USD 12.62 million, Pakistan with USD 11.29 million, Canada with USD 10.80 million and Thailand with USD 7.70 million.
“So this divers the prospects for the export of spice commodities at the moment, so I think other countries that have great potential. We can develop it, such as Eastern Europe also the fractional countries like Bosnia, including Russia,” she said.
Olvy added, not only with the European Union but this could also be developed with countries that already had agreements with Indonesia such as the Free Trade Agreement, Mozambique, Australia, and others. “We need to respond because the article is already open and with an agreement it will be easier for us to enter the markets of these countries,” she said.
Reporter: Tira Santia