Pepper across US$1 billion threshold

Pepper has high export potential, gradually reaching the pepper export turnover target of 1US$ billion this year. However, a long-term strategy to enhance the value added to this commodity is needed.

In the first seven months of the year,  pepper maintained steady growth rates in terms of quantity and price with exports reaching 119,000 tonnes, up by 29 percent compared to the same period last year,  export value  reaching US$862 million up by 46.1 percent, and export prices up by 10.6 percent. Vietnam’s largest pepper import markets are US, Singapore, the United Arab Emirates and India, cosuming about 46 percent of Vietnam’s pepper exports.
According to the Vietnam Pepper Association (VPA), by the end of 2014, Vietnam’s pepper exports will exceed the target of US$1 billion with exports hitting about 125.000-.130,000 tonnes. Average pepper price in the Central Highlands and the South East were up to VND188,000 per kg in July, higher from VND42,000- 55,000 per kg compared with the beginning months of the year due to increased global pepper prices.
Currently, Vietnam’s pepper has been sold to more than 90 countries and territories and has consolidated its foothold in the world pepper market. According to the International Pepper Community (IPC), that the total pepper supply in 2014 plus inventory is relatively small due to 15-20 percent decrease in pepper yield seen in some large pepper exporters such as India and Indonesia.
According to the Ministry of Industry and Trade, pepper is placed in the commodity group with high export potential. However, the local pepper processing  technology should be renovated in order to improve the value added to this export item./.


Vietnam Enocomic News - 08/27/2014

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