Indonesia Falls Behind Vietnam in Pepper Production

Indonesia is the world’s second largest pepper producer. In 2013, Indonesia’s pepper production reached 88,700 tons, or an 18.8 percent worldwide market share. Indonesia has the world’s largest pepper production area with 178,000 hectares.

However, the productivity of Indonesia’s pepper production area is only at 0.5 tons per hectare. “The productivity is low despite having the world’s largest pepper production area,” the head of Trade Study and Development Board, Trade Ministry, Tjahja Widayanti said.

Whereas Vietnam is the world’s largest pepper producer, boasting a market share of 34.5 percent of world’s total pepper production. Vietnam’s pepper production in 2013 was 163,000 tons, having a “mere” 51,000 hectares of pepper production area.

Vietnam’s pepper production area is smaller than that of Indonesia and India. “It shows that the productivity of Vietnam’s pepper production area is very high, i.e. 3.2 tons per hectare,” Tjahja said.

Aside from Vietnam, other countries which have a high productivity of pepper production area are Rwanda at 3.9 tons per hectare, Thailand at 3.4 tons per hectare, Malaysia at 2.5 tons per hectare and Brazil at 2.3 tons per hectare.

According to the International Pepper Community (IPC), world pepper production this year is expected to fall by 1.75 percent compared to last year’s realization of 403,213 tons. Some 87.22 percent of which, or 351,710 tons, were contributed by IPC member states. In 2017, pepper production is projected to recover, reaching 425,100 tons. “Global pepper industry is still facing challenges of climate change which adversely affects pepper production and quality,” Tjahja said.

World import of pepper has been increasing. In 2015, the total world import of pepper reached US$3.3 billion with an average annual increase of 15.6 percent throughout 2012-2015. The United States is the world’s largest pepper importer with a 22.8 percent share of the import market. Singapore and India’s pepper imports have significantly increased by 40.7 percent and 27.4 percent, respectively.