Farmers see pepper fetch high prices, despite low yield
Farmers see pepper fetch high prices, despite low yield
Pepper farmers across the country are experiencing a bittersweet situation this year with higher prices getting offset by lower yield.
Figures from the Ministry of Commerce showed that pepper export more than tripled (219 percent) to $25 million in the first half of 2024 compared to the same period last year. Currently, pepper is grown in provinces like Kampong Cham, Thbong Khmum, Kampot and Kep, spread across 6,935 hectares, according to a Ministry of Agriculture, Forestry and Fisheries report.
The price of pepper has increased significantly since early this year providing much-needed relief to farmers, said Mak Ny, President, Cambodian Pepper and Spices Federation (CPSF). It has gone up to $6,000 per ton, which is an increase of about $3,000 per ton compared to last year.
“The price increase is definitely a positive news for our farmers,” Ny said. The CPSF said it is closely monitoring the situation and working with relevant authorities to identify the underlying causes of the export decline.
“We are working closely with farmers to understand the reasons behind why this year the cultivation of pepper went down. As of July, pepper cultivation has fallen 50 percent,” he said.
The decline in pepper cultivation could have been caused by the recent adverse weather conditions, pests or diseases; which would pose a challenge for exports later this year and next. Vietnam is the highest purchaser of Cambodian pepper, representing over 90 percent of total export.
Last November, Cambodia and China signed a memorandum of understanding on requirements for pepper export, which has paved the way for direct shipment of Cambodian pepper to China. In addition to this the Kampot Pepper Promotion Association, which oversees GI pepper production, has also sought to enter China.
The CPSF is also looking at business opportunities in other markets including the Middle East, North Africa and the US. Currently, Cambodia exports Geographical Indication (GI) pepper from Kampot and non-GI pepper. The non-GI pepper exported includes mixed pepper, good-practice-agriculture pepper and organic pepper. Kampot GI pepper is mostly exported to the European Union.
