World pepper market to bring benefits to Vietnam

The world pepper market in 2010 and the coming years will grow benefiting both Vietnamese farmers and processors, said the leader of the Vietnam Pepper Association (VPA).

Speaking at the VPA annual conference held in Ho Chi Minh City on May 7, VPA President Do Ha Nam asked farmers to focus on developing pepper growing following a sustainable development model and food safety as of the 2010-2011 crop to make good preparations for exports.

VPA recommended farmers and enterprises coordinate to adjust the sale volume to suit market demands and prices. Enterprises also need to invest in raising product quality in order to obtain a higher export value.

In order to boost the sustainability of pepper production and reap a high export value, VPA proposed that the Ministry of Agriculture and Rural Development conduct pepper growing according to the Good Agriculture Practices (GAP) from 2010, assist the building of pepper trademarks and promulgate pepper standards for enterprises to apply in production and export.

VPA also proposed that the Finance Minister exempt the value added tax (VAT) for exported pepper to help enterprises ease the shortage in capital.

VPA forecast that the country’s pepper output in 2010 is estimated to be 90,000 tonnes, 20 percent less than the previous year due to bad weather and diseases.

However, the country is likely to export 85,000-90,000 tonnes this year as it has 2,000 ha of three-year-old pepper farms, which are having their first harvest, and 15,000 tonnes of pepper in storage.

The price of pepper on the world market increased from late March based on the forecast that worldwide pepper output would shrink markedly in 2010 and the storage volume decrease, while demand would not decline.

VOVNews

Tags: Vietnam Pepper, Vietnam pepper exports