Pepper supply lags behind demand

Pepper supply lags behind demand

Pepper exports are set to fall sharply in November and December since there is little of the crop left to ship this year, according to the Viet Nam Pepper Association.

Around 110,000 tonnes of the spice were harvested this year, virtually unchanged from last year, and 10,000-15,000 tonnes have been imported for re-export.

In the year-to-date 99,000 tonnes were exported, a decrease of 14.4 per cent in volume. With domestic demand of 5,000 tonnes and an equivalent border trade, only around 10,000 tonnes are left in stock.

Last year exports were higher because of stocks left over from 2010.

Globally too, pepper output has not changed much this year, but average prices have been higher, the association said.

The VPA expects prices to be volatile both at home and internationally for the rest of the year.

VPA chairman Do Ha Nam said Viet Nam's pepper output could increase in the coming years, and enterprises should therefore invest more in processing and diversification of products to add value.

Local businesses should enhance linkages among themselves, exchange information, and improve management to create healthy competition and develop the industry, he added.

Pepper is grown mainly in six provinces – Binh Phuoc, Gia Lai, Dak Nong, Dong Nai, Ba Ria-Vung Tau, and Dak Lak.

After global pepper prices began to rise since last year, many farmers have expanded the area under the spice, especially in Dak Nong, Dak Lak, and Gia Lai.

But with many pepper-growing areas are plagued by crop diseases and unfavourable weather, helping farmers combat diseases is an urgent task to secure the industry's long-term development.

The country exports the spice to 80 countries and territories. The EU and Asia are the main buyers, accounting for 39.2 per cent and 36.6 per cent of exports respectively.

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