Chapters 8.10c
8.10c - Chili Peppers As a Value Addition
Lucas Gaiger,University of Guelph, Canada
Suggested citation for this chapter.
Gaiger,L. (2025) Chili Peppers As a Value Addition. In Farmpedia, The Encyclopedia for Small Scale Farmers. Editor, M.N. Raizada, University of Guelph,Canada. http://www.farmpedia.org
Introduction
For smallholder farmers chili peppers (Capsicum annum L.) have the potential to be a crop to which increased commercial value can be added after harvest. Many smallholder farmers do grow chilies: however, some sell them fresh, at peak harvest season, which leads to low profits and post-harvest losses (Purba et al., 2022). However, by processing chilies into value-added products, like dried chilies, pickled chilies, chili powder, and pickled chilies, farmers can increase their profitability, extend the shelf life of chilies, and create an extra source of income in the post-harvest season. Below we will explore the importance of value addition in chili processing, we will review low-cost methods accessible to smallholder farmers and look at case studies of chili farmers in countries where there are large populations of subsistence farmers.
Opportunities of Fresh Chili Peppers
At harvest, chili peppers contain between 60-85% water; this is what makes them perish quickly and prone to fungal contamination (Purba et al., 2022). Without proper handling, post-harvest losses can be between 30-50%; this reduces farmers’ earnings by a considerable amount. Additionally, the prices of fresh chilis are volatile; they often plummet at peak harvest season due to the market being flooded with them. A benefit to drying chilies is that they can be stored for months or years if done properly; this can be an opportunity for income stability (Lukas et al., 2023). So, what can be done to help farmers achieve this?
Processing Techniques: Low-Cost Chili Drying Methods
Sun Drying:
Drying chilies is great because it increases their economic value, shelf life, and makes them much easier to transport because it lowers their weight and volume (Lukas et al., 2023). Many women farmers already have experience in sun drying; I will describe a technique for sun drying chilies from Malawi to empower youth in business. The simplest method is open-air sun drying, which farmers can do with minimal equipment. In this method, farmers spread their harvested ripe chilies on a clean surface like a mat or tarpauline and leave them under direct sunlight (Munthali et al., 2023). Chilies should be cleaned and sorted before drying; this involves removing stems, leaves, and damaged chilies, which will prevent mold. For best results, farmers can build or use inexpensive drying racks that are 1 to 1.5 meters wide and 1 meter high; this is to keep the chilies off of the ground when they are drying (Munthali et al., 2023). With good sun, chilies should be able to dry between several days and a few weeks, depending on the weather; the goal is for the chilies to be around 10% moisture content by weight (Munthali et al., 2023). Simple sun drying is cheap but there are challenges: insects, dust, and rodents can contaminate the chilies when they are drying; this is also why it is important to dry them off the ground (Balana et al., 2024). Proper drying techniques can really help transform fresh chilies into a stable product that can add value for the farmers. By simply drying fresh chilies, farmers can add a value of 1.06 USD/kg (Purba et al., 2022).
Fig 1. Dried chilies: This image is from Pixabay and was published prior to July 2017 under the Creative Commons CC0 1.0 Universal Public Domain Dedication license https://web.archive.org/web/20161229043156/https://pixabay.com/en/service/terms/
Method for Preserving Chilies
Pickling:
One of the most common and effective methods for preserving chili peppers is pickling them. Pickling chilies relies on the controlled breakdown of food components to prolong their shelf life and enhance flavour. Pickling is fermenting the chilies using salt to maintain texture, reduce microbial growth, and make sure there is the proper level of acidity that is required for proper preservation (Sultana et al., 2014).
Fig 2. Pickled chilies: https://creativecommons.org/licenses/by-nc-nd/4.0/
Steps for pickling chilies from eHingiriSoko (https://ehingirisoko.digital/eng), a Rwandan based digital market ecosystem:
1. Clean the chilies – Rinse well with clean water and slice the chilies to allow brine to soak in,
2. Fill a clean glass jar or bottle with the chilies, packing them tightly.
3. Make brine – by boiling:
- 1 cup of vinegar
- 1 cup of clean water
- 1 tablespoon of salt
- 1 teaspoon of sugar
- Add garlic or spices as desired.
4. Pour the hot brine over the chilies until they are covered.
5. Close the jar tightly and let it cool.
6. Store in a cool, shaded place or refrigerate if possible. Wait 2-3 days before using, as the flavour improves with time. This method will help preserve chilies for up to months and add value to surplus harvest.
Market Opportunities
By processing fresh chilies into dried chili, pickled chilies, chili powder, or sambal (chili sauce), farmers can increase their market value and at the same time prolong their shelf life (Purba et al., 2022). Fresh chilies spoil quickly; after 3 days at room temperature, they will be past their best before expiry date (Lukas et al., 2023). Processing those chilies into longer-lasting products can prevent post-harvest losses and create new economic opportunities. Value addition can happen through drying, grinding, and making chili-based products which can make them more usable, stabilize prices, and boost incomes for smallholder farmers. If chili input prices are stable, there is the possibility of an added value ratio of 50% (Rianti & Saputro, 2023).
Markets
● India:
In the Indian state of Karnataka, the market for dried chilies is growing, while the demand for green and red chilies slows (Sandeep & Thimmaiah, 2020). The urban demand for processed chili products like chutneys, paste, and powder is increasing, showing how value adding techniques are important to their marketplaces. Sandeep and Thimmaiah (2020) identified three major value chains, where value addition came from drying, grading, sorting, assembly, packing, and handling. Value addition costs range from 7.47 USD to 11.33 USD per quintal (100 kg) (Sandeep & Thimmaiah, 2020), depending on the processor. Even though farmers are significant contributors to the process, wholesalers and processors are the ones who capture the highest share of the value addition by using mechanization for processing, packaging, and transportation. This is because these firms have the advantage of economies of scale, and use it to their advantage to produce more for less. This does not necessarily mean farmers are being taken advantage of by these production/processing firms, but farmers should be aware they probably will not be the biggest benefactors of their own work. It is also a warning for farmers to watch out for predatory producers/processors that could be looking to take advantage of them. There are some ways for smallholder farmers to gain some more bargaining power, for example they can form farmer producer organizations which can help link smallholders to organized markets. They can do this by providing access to inputs, and reducing reliance on middlemen, however, there are some big challenges in building effective farmer producer organizations (Chowdhury et al., 2024).Bangladesh Cost-Benefit Analysis:
Islam et al. (2020) did a thorough analysis of the risks and rewards of chili production in Bangladesh, however no value adding activities were included.1. Total Cost of Chili Production
a. The average total production cost per hectare was USD $4,468. These included expenses like buying seeds, fertilizers, pest control, and land preparation.
b. Hired labour was the highest single cost component (15%) followed by pesticide costs (12%).
2. Revenue and Profitability
a. Gross margin (revenue minus variable costs) was USD $6,354 per hectare.
b. Net return (after deducting all costs) was USD $4,274 per hectare.
c. The cost-benefit ratio was 1.96, meaning for every 1 dollar spent on production, farmers would earn USD $1.96 in revenue, nearly doubling their investment.
d. Islam et al. (2020) found that 86% of farmers reported net returns, and were making a profit from growing chilis.
3. Challenges affecting profitability
a. Disease: anthracnose (mentioned below) caused a 4% loss of yield, resulting in a loss of USD $479 per hectare.
b. Chemical pesticides: Farmers spent USD $525 per hectare on pesticides.
The above numbers were gathered by Islam et al. (2020). It is important to note that these farmers did not use any value additions, so it would be possible to improve economic returns by trying some strategies already reviewed like pickling or drying chilis.
Challenges and Solutions
Anthracnose is a disease that poses the biggest risk to chili pepper production around the world. It is a fungus which naturally inhabits the soil; plants become affected when already contaminated surfaces come into contact with the stems, fruits, or leaves (Islam et al., 2020). This usually happens through unclean farm tools, hands, or splashing water carrying dirt (Saxena et al., 2015). Some symptoms of anthracnose on chilies are sunken or discolored tissue with rings, eventually turning parts of the chili brown, then black (Islam et al., 2020). This infection puts the chili at risk of being infected by other fungal diseases, like Aspergillus flavus, which could create the production of aflatoxins which are dangerous to humans.
What are some cheap and effective solutions to reduce the likelihood of anthracnose? To reduce the risk of fungi, farmers can use mulches to mitigate water splashing, crop rotations with non-host species, thoroughly clean their farm tools, and ensure that they are maintaining proper farm-worker hygiene (Islam et al., 2020). Farmers should also ensure they wear long sleeves, safety goggles, and gloves when handling chili peppers in any manner. They should also make sure they avoid touching their eyes or bare skin with their gloves or hands before washing them as chili peppers will burn.
Conclusion and Gender Implications
The goal of using chili peppers as a value addition product should be to help women farmers earn some extra income to scale up production to the point where they can produce vegetables consistently. Doing this will help them send their children to school (especially girls), pay for medicine/healthcare and hopefully improve their overall quality of life. For example, Njuki et al. (2011) found that when women retain control over income, especially from locally traded crops, they tend to spend more on food, education, and clothing for their children. In the study men spent 6% of their income on food compared to the 23% spent by women on food, so if women can make improve their income with value addition crops, this will benefit the children as well. It is also fair to say that the same would happen with other areas like education, especially for young girls. However, the study also warned that as crops become more profitable, men often try or find a way to take control, reducing women’s economic gains. So, ensuring that women can retain control over chili-based enterprises is key for not only their economic empowerment but for their childrens’ development as well. By focusing on chilies, a crop that can be preserved, processed, and sold in many different ways, women can access both local and niche markets to generate income and hopefully can keep autonomy over how that income is to be used.
Helpful Links to Get Started
This is a video for sun drying chilies: https://www.accessagriculture.org/drying-and-storing-chillies
his is a video for solar drying techniques which can reduce drying time by 50% (Watson et al., 2021) but is a more complex operation than sun drying: https://www.accessagriculture.org/solar-drying-chillies
Once a farmer has dried chilies, a good option is to make chili powder with them. Chili pepper seasoning is a good value-addition because it will last a long time and has exceptionally good value added at 4.24 USD/kg (Purba et al., 2022). Sambal (chili sauce) varies by region, but in Indonesia is has an added value of 19.54 USD/kg.
Here is a great video on making chili powder: https://www.accessagriculture.org/making-chilli-powder FAO Standard for Dried or Dehydrated Chili Pepper and Paprika: https://www.fao.org/fao-who-codexalimentarius/sh-proxy/en/?lnk=1&url=https%253A%252F%252Fworkspace.fao.org%252Fsites%252Fcodex%252FStandards%252FCXS%2B353-2022%252FCXS_353e.pdf
References
1.Balana, B., Popoola, O., Yamauchi, F., Olanipekun, C., Totin, E., Salaudeen, K., Muhammad, A., Shi, W., Liu, Y. (2024). Solar Drying Technology for Post-harvest Loss Management of Horticulture Products: Findings from Baseline Survey in Nigeria. International Food Policy Research Institute (IFPRI), World Vegetable Center (WorldVeg), & Nigerian Stored Products Research Institute (NSPRI). https://cgspace.cgiar.org/server/api/core/bitstreams/16c5937c-a315-4ed4-84cb-2ede6b33b4ea/content
2.Chowdhury, S. R., Ghosh, D., & Rao, T. J. (2024). Sentiment and success potential of farmers’ producer organizations: A systematic literature review. Local Economy the Journal of the Local Economy Policy Unit, 39 (1-2), 92-104 https://doi.org/10.1177/02690942241292724
3.eHingirisoko (2025) Chilies as a Value Addition and Food Safety Module https://ehingirisoko.digital/eng/articles/chillies/value_addition#:~:text=The%20stems%20and%20leaves%20are,mould%20growth%20and%20fungal%20contamination
4.Islam, A. H. M. S., Schreinemachers, P., & Kumar, S. (2020). Farmers’ knowledge, perceptions and management of chili pepper anthracnose disease in Bangladesh. Crop Protection, 133, 105139. https://doi.org/10.1016/j.cropro.2020.105139
5.Lukas, A., Kairupan, A. N., Hendriadi, A., Arianto, A., Manalu, L. P., Sumarno, L., Munarso, J., Hadipernata, M., Elmatsani, H. M., Benyamin, B. O., Junaidi, A., Djafar, M. J., Elizabeth, R., Sahlan, N., Nasruddin, N., Astuti, P., Subandrio, N., Yohanes, H., Koeslulat, E. E., . . . Polakitan, A. (2023). Fresh Chili Agribusiness: opportunities and problems in Indonesia. In IntechOpen eBooks. https://doi.org/10.5772/intechopen.112786
6.Munthali, C., Banda, D., & Corporate Institute of Horticulture. (2023). A Guide to Commercial Chilli Cultivation in Malawi. Corporate Institute of Horticulture, Malawi. https://agrijobs.snrd-africa.net/wp-content/uploads/2024/08/Chilli-AgriBusiness-Course-Training-Manual-for-trainers_MW_EN_09.2023.pdf
7.Njuki, J., Kaaria, S., Chamunorwa, A., & Chiuri, W. (2011). Linking smallholder farmers to markets, gender and Intra-Household dynamics: Does the choice of commodity matter? European Journal of Development Research, 23(3), 426–443. https://doi.org/10.1057/ejdr.2011.8
8.Purba, H. J., Ariningsih, E., Septanti, K. S., Suharyono, S., & Sinuraya, J. F. (2022). Gaining added value of chili (Capsicum annum L.) through processing and its challenges: A case in Bandung, West Java. E3S Web of Conferences, 361, 01011. https://doi.org/10.1051/e3sconf/202236101011
9.Rianti, T. S. M., & Saputro, A. J. (2023). An added value of chili processing results in providing contribution for SMEs. In Proceedings of the 2nd International Conference on Multidisciplinary Sciences for Humanity in Society 5.0 Era (ICOMSH 2022) (pp. 94–102). Atlantis Press. https://doi.org/10.2991/978-2-38476-204-0_9
10.Sandeep, K. T., & Thimmaiah, N. (2020). Significance of value chain analysis for chilli - the case of Karnataka chilli market. The Journal of Research ANGRAU, 48(1), 46–52. https://www.cabdirect.org/cabdirect/abstract/20203306926
11.Saxena, A. (2015). Epidemiology and management of anthracnose of chilli [Doctoral dissertation, Dr. Yashwant Singh Parmar University of Horticulture and Forestry].Shodhganga. https://shodhganga.inflibnet.ac.in/handle/10603/220269
12.Watson, A. G., Aleckovic, S., & Nallamothu, R. (2021). A novel and improved solar drying system appropriate for smallholder farmers. Drying Technology, 40(11), 2274–2282. https://doi.org/10.1080/07373937.2021.1931295