Pepper industry aims 1 billion USD annual export target

Photo for illustration.

The pepper industry is hoping to attain an annual export value of 1 billion USD within the next few years, buoyed by increasing global demand for the staple.

Based on market forecasts, the Vietnam Pepper Association (VPA) expects pepper exports to reach 130,000 tonnes this year with a market value of 850 million USD, an increase of 55 million USD over last year's figures and 157 million USD more than 2011.

VPA chairman Do Ha Nam said pepper prices had continued to go up in recent years, encouraging farmers to expand their pepper growing to regions without arable conditions, including the northern and southern areas in Lam Dong province.

Statistics from the association showed that Vietnam cultivates around 2,000 additional hectares of new pepper plantations each year. The area was expected to reach 60,000 hectares next year while Government figures place predict around 50,000 hectares by 2020.

It is said the average price of black pepper last month reached 6,471 USD per tonne, representing an 81 USD increase in comparison with last year and 834 USD per tonne higher than 2011.

He said Vietnam had not wanted to sell black pepper however conceded the price of the ingredient last week climbed to 6,650 USD per tonne.

Vietnam has been the world's largest pepper producer, thus allowing farmers and exporters to be active in controlling selling quantity. This has helped pepper prices fluctuate around 110,000-130,000 VND per kilo for the past three years.

Vietnamese pepper is exported to more than 80 countries and territories, with the EU, Asia and the US being the largest importers.

Pepper is grown primarily in the provinces of Binh Phuoc, Gia Lai, Dak Lak, Dak Nong, Dong Nai and Ba Ria-Vung Tau.