Pepper exports push past India on top rung

Viet Nam is now the world’s largest pepper exporter.

While India formerly held the crown, the country had a modest harvest this year, which allowed Viet Nam to export more pepper, reported the Viet Nam Trade Office in India.

In April, Viet Nam exported 16,000 tonnes of pepper, valued at US$80 million. In the first four months of the year, 42,000 tonnes of pepper worth $208 million were exported.

The Ministry of Agriculture and Rural Development (MARD) said farmers were encouraged to harvest more pepper this year because of the high demand on the international market.

MARD said the price of pepper has continued to soar since 2007 and experienced a massive surge last July.

During the latter half of 2010, the price of pepper increased by 45-60 per cent when compared to prices from the first half of the year, the ministry said.

The ministry says that the price is likely to increase until the end of May.

Beginning in June, the price will likely hinge on export volume from big pepper suppliers in Indonesia and Brazil.

The Ministry of Industry and Trade expects the country to export 120,000 tonnes of pepper this year, worth $470 million.

Experts said this target was reachable because the International Pepper Centre forecasts that Viet Nam’s total pepper yield this year would increase by 5.3 per cent this year to 100,000 tonnes.

Furthermore, the devaluation of the dong will help exporters reach their target.

Although the country will export a large amount of pepper for a good price this year, Vietnamese experts claim there is still room for improvement.

Despite of the fact that Viet Nam has been one of the world’s biggest pepper producers and exporters, the country often sells its pepper at prices that are lower than those from India, Brazil Indonesia.

The Viet Nam Pepper Association says that Vietnamese pepper is exported through many middlemen.

Moreover, the country exports raw pepper, while other countries export high-quality processed pepper.

To further develop the sector, experts say that the industry needs to focus on branding its product and improving the quality of its pepper. — VNS

Tags: Vietnam Pepper, Vietnam pepper exports