Vietnam’s average export price will decrease compared to last year, but still higher than the 2014 average price.
Vietnam’s pepper exports are likely to increase by 13% this year, Do Ha Nam, chairman of the Vietnam Pepper Association (VPA) said in an interview with the Bloomberg.
According to Mr. Nam, pepper exports will increase to 150,000 tons from 133,000 tons in 2015. Domestic output is also expected to increase by 10% to 140,000 tons. He also said that pepper output from countries that also export this type of agricultural product such as India, Indonesia and Malaysia may decrease due to the impact of El Nino, affecting the supply of pepper to the global market.
Vietnam’s average export price will decrease compared to last year but still higher than the average price in 2014, Mr. Nam said. Statistics show that the average export price of pepper in 2015 reached 9,500 USD/ton and in 2014 reached 7,750 USD/ton.
“Vietnamese farmers still have the ability to control a part of pepper prices, so the export price this year may not be reduced much,” said Mr. Nam. Bloomberg know in the phone interview. “Pepper growers are still making great profits, so they don’t need to speculate to wait for high prices.”
Vietnam is currently the number 1 pepper producer in the world. According to Mr. Nam, pepper growing area in Vietnam will increase to 100,000 ha this year. Last year, pepper growing area increased from 80,000 to 85,000 hectares. New pepper plants will take about 3 years to begin to bear fruit and can be harvested.
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