A bountiful year ahead for pepper exports

The VPA says the nation’s farmers have increased cultivation areas under pepper by as much as 15%.

In the nine months leading up to October the average export price of black pepper jumped 25.3% year-on-year to US$9.500 per metric ton with the figures tallying in at 117,000 metric tons valued at US$1.11 billion.

The VPA now forecasts exports to climb to a hefty 130,000 metric tons at US$1.2 billion for calendar year 2015 and that the country will retain its leading exporter status of the treasured black pepper commodity.

Pepper production has climbed 36% during the past five years says the VPA, helping the country to supply about half of the global demand. Meanwhile pepper prices have spiked three-fold over the past five years.

The cultivation area rose to 83,800 hectares in 2014 from 55,500 hectares in 2011, producing 147,400 metric tons of pepper last year, much more than India, which  produces about 70,000 metric tons of pepper from an area of about 1,22,000 hectares.

Meanwhile world pepper consumption is estimated to have been growing at an average pace of 2-3% per annum over the past few years, which growth sees no sign of abating.

“The industry has attracted leading brands from Japan, the US, Singapore, India and the Netherlands, which have constructed a number of processing plants throughout the nation,” said Head Tran Duc Tung of the VPA.

Tung said they have most significantly helped the industry improve overall quality of its products, which has helped improve the industry’s image around the globe.

At present, pepper has been shipped to more than 100 nations around the globe. However, the country should improve the added value of its pepper to make further inroads into the global wholesale markets.

Growing pepper trees under VietGAP standards

The VPA noted there is a movement afoot among farmers who want to improve pepper output, leading to the expansion of cultivation areas and the reduction of abusive uses of pesticides in pepper cultivation.

The Ministry of Agriculture and Rural Development (MARD) has issued a number of decrees and policies related to production and harvest activities to help farmers tackle these thorny problems.

“In addition, MARD has launched a number of trade promotion programs to improve the situation,” said Mr Tung.

Mr Tung said to meet export demands, the ministry has instructed farmers in remote areas and the Central Highlands to grow pepper trees in compliance with VietGAP standards and apply advanced post-harvest preservation measures.

In addition, MARD has constructed a research centre to develop pepper trees in the Central Highlands and publicize scientific knowledge to farmers and the general public.