Illustrative image (Photo: VNA)Hanoi (VNA) – Vietnamesefarmers and businesses are worrying as pepper export revenue is expected todrop to under 1 billion USD in 2018 for the first time after four years despitestrong increases in shipments.
Vietnam has held the position as the world’s biggest pepper exporter for 18years, selling its pepper to more than 100 countries and territories worldwide.Shipment volume increased from 50,000 tonnes in 2001 to over 200,000 tonnes atpresent, making up more than 60 percent of the total pepper trade volumeglobally.
Export revenue from the productsurpassed 1 billion USD for four consecutive years: 1.2 billion USD in 2014,1.26 billion USD in 2015, 1.42 billion USD in 2016 and 1.12 billion USD in2017.
However, world pepper prices have beendeclining, resulting in falling revenues for Vietnam in spite of increases inshipments to most markets.
Between January-November, Vietnam had shipped abroad some 220,000 tonnes ofpepper for 718 million USD, up 8.9 percent in volume but down 32.5 percent invalue year-on-year, the Ministry of Agriculture and Rural Development reported.
The US, India and Pakistan remained Vietnam’s major pepper importers, with theirmarket shares standing at 19.6 percent, 8.2 percent and 4.3 percent,respectively, the ministry said. Export volume to all the three markets showedremarkable increases, with 29.4 percent for India, 11.1 percent for the US and21.9 percent for Pakistan.
Meanwhile, earnings from most markets contracted compared to last year, with thebiggest reduction (57.5 percent) recorded in the United Arab Emirates (UAE).
In the 11-month period, Vietnamese pepper was sold at the price of about 3,264USD per tonne, down 37.9 percent as compared with the same period last year.
However, local farmers and businesses are hoping that the price will go up inthe time ahead thanks to diminishing oversupply.
According to the International Pepper Community (IPC), the world’s total pepperoutput in 2019 is expected to reach 492,200 tonnes, down from 523,400 tonnes in2018.
In Vietnam, prolonged torrential rains triggered floods that killed hundreds ofhectares of pepper.
Nevertheless, strong increases in globalprices would not be possible as Brazil is entering a new harvest.
The Vietnam Pepper Association (VPA) said to raise pepper price, the only wayis to improve product quality.
During the 2018-2019 crop, Vietnam has about 100,000 hectares of pepper, witheach ha producing about 2.47 tonnes, said Nguyen Mai Oanh, VPA Vice Presidentand General Secretary.
Local farmers have paid more attention tocultivation and production standards in order to produce clean products. Asmany as 20 big firms have invested in pepper processing plants using high technologies,with total capacity of 60,000 – 70,000 tonnes, which meet GMP or otherinternational standards.
The Agro Processing and Market Development Authority suggested businesses joinhands with farmers in order to create sustainable sources of materials and stopthe abuse of pesticides and chemical fertilizers, thus helping regain theVietnamese pepper sector’s position in the world market.-VNA
VNA
