Vietnam 2011 pepper output may rise up to 16pct: Executive

Vietnam’s pepper output in 2011 may rise up to 16 percent on year to 110,000 metric tonnes, a senior trading executive familiar with data from the Vietnam Pepper Association said Monday.

“There are instances of disease in some areas, but on the whole, the crop looks good,” said the executive in HCM City, who didn’t wish to be named.

The crop season in Vietnam, the world’s largest producer and exporter, begins in mid-February and lasts about three months.

The executive said Vietnam’s exports will likely remain steady in 2011 due to low carry-forward stocks. The country exported 116,000 tonnes in 2010, he added.

Export prices may come down slightly when the new crop hits the market next month, according to him.

The average price of black pepper for 2010 was about $3,500/tonne and is currently around $4,500/tonne.

However, any significant decline in pepper prices is unlikely as “farmers are not desperately in need of money. They will hold and sell only when prices are good enough.”

Strong global demand, which is increasing about 2 percent every year, will also support prices, he added.

The US is the largest importer of Vietnamese pepper, followed by Germany and the United Arab Emirates. – Dow Jones

Tags: Vietnam Pepper, Vietnam Pepper prices