Vietnam to cut black pepper farm area
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The surge in world pepper prices in the 2013-2015 period led local growers to expand their farms uncontrollably. Vietnam plans to slash its black pepper growing area by 26.7 percent in response to falling global prices, the chairman of the country’s pepper association said Tuesday.
Vietnam is the world’s largest black pepper exporter, accounting for 60-65 percent of global trade, and nearly half of global output.
“We will cut the area to 110,000 hectares from 150,000 hectares over the coming years by encouraging local farmers to grow other crops and remove pepper farms with poor quality,” said Vietnam Pepper Association Chairman Nguyen Nam Hai.
Hai said the surge in world pepper prices in the 2013-2015 period led local growers to expand their farms uncontrollably, from 50,000 hectares in 2013 to the current of 150,000 hectares.
“Now with the increased output, prices have fallen and we need to cut the area,” Hai said.
Vietnam’s black pepper exports in the first quarter rose 17.5 percent from a year earlier to 60,033 tons, but export revenue in the period fell 31.4 percent to $221 million, according to official customs data.
Hai said exports for the entire 2018 are forecast to stay flat from last year at around 215,000 tonnes.
Vietnam’s key markets for the spices include the United States, India, China and Europe.
Questions & Answers
Q.What percentage of the world's black pepper output is produced by Vietnam?
What percentage of the world's black pepper output is produced by Vietnam?
Vietnam accounts for nearly half of the global black pepper output. This significant share highlights the country's dominant position in the international pepper market and the potential impact of its production changes.
Q.How will Vietnam achieve its goal of reducing the black pepper cultivation area?
How will Vietnam achieve its goal of reducing the black pepper cultivation area?
The plan involves encouraging local farmers to cultivate other crops instead of pepper. Also, pepper farms that are deemed to be of poor quality will be removed as part of the strategy.
Q.What impact did increased output have on black pepper prices in Vietnam?
What impact did increased output have on black pepper prices in Vietnam?
The uncontrolled expansion of pepper farms led to a significant increase in output, which subsequently caused global prices for black pepper to fall. This price decline necessitated the current reduction plan.
Q.Which countries are the primary importers of Vietnam's black pepper?
Which countries are the primary importers of Vietnam's black pepper?
Vietnam's black pepper is primarily exported to several key international markets. These include the United States, India, China, and Europe, indicating a broad global reach for its spice exports.