The object of this study is to identify the factors of farmers' competitive advantage in the production and shipment stages based on the value chain analysis theory, which can have the greatest impact on the value of final products, and to demonstrate the effect of these factors on farmers' sales. For this purpose, using the Potter's value chain analysis method, competitive advantage factors were identified, and the effect of paprika farmers' competitive advantage factors on sales was analyzed using the tobit model. As a result of the analysis, it was proved that introduction of the latest renewable energy facilities, a method of controlling the utilization of natural enemies, shipment method, and export back-shipment variables are competitive factors that significantly affect sales growth of paprika farms. In order to enhance the competitiveness of the paprika industry, first, it is necessary to upgrade the paprika production-selection and shipping system. Second, it is necessary to strengthen the role and function of the export integration organization as a single export channel. Finally, it is necessary to expand and distribute the development of domestic paprika seeds that meet the preferences of consumers.