Vietnam Pepper Holds 60 per cent of Global Exports

Vietnam still maintains its position as the world’s leading pepper exporter as it accounted for 60 per cent of world pepper exports in March 2006, according to the International Pepper Community (IPC) statistics, a position the country is expected to hold despite extended drought in some growing areas.

 

According to the Vietnam Pepper Association, total export volume reached 26,574 tons by March, up by 42 per cent over the same period last year. Vietnam is expected to ship as many as 100,000 tons of pepper in 2006, making up for more than 50 per cent of total world pepper shipments.

 

The quality of Vietnamese pepper has also improved year after year and the product sold at $1,170 per ton free on board (FOB) in March, 2005.

 

Though prices rose to $1,205 per ton in March 2006, they are still $200-250 per ton lower than Malaysian, Indonesian and Indian products of the same quality. Indian companies earn large profits when they import Vietnamese pepper for re-processing and sale on the world market.

 

The association plans to cooperate more closely with the State, enterprises, farmers and scientists in order to pursue higher productivity, technological improvement, and the increased competition needed to improve Vietnam’s standing in the global pepper market.

 

Vietnamese pepper output is forecast to decrease in 2006 due to drought. But because the area under pepper cultivation has expanded, supply will remain high.

 

Vietnam currently has 52,500ha under pepper cultivation and average yield is 2.3 tons per hectare. Yield may drop, however, to 2.1 tons per hectare in 2006 due to the bad weather. Yet that figure is still 300kg per hectare higher than in India.

 

Vietnam, often selling 98 per cent of its pepper crop, has presented its products to around 72 countries and territories worldwide, up from only 30 in 2002.

 

Among the importers, India is taking the lead importing about 1,902 tons of pepper from Vietnam in March. 87 tons of which were white pepper. Following are Singapore, the Netherlands, the United States and the Middle East.

 

The country now has 90 enterprises involved in pepper exports throughout the country, mostly in the southern region. Twenty-six units of which are managed by the association, registering a combined market share of 81 per cent.