Pepper yield for exports this year is expected to fall because of unfavourable weather conditions, according to a report released by the Ministry of Agriculture and Rural Development yesterday.
"The total pepper exports this year may reach 86,000 tonnes, worth nearly US$619 million. These figures are down by 30 per cent in volume and 16 per cent in value," the ministry informed.
Tran Duc Tung, Director of the administrative office under the Vietnam Pepper Association, said that bad weather had badly affected crops, and many older plants had died due to severe conditions.
The ministry reported that in 2011, the country exported 125,000 tonnes of pepper, valued at $736 million. Although the volume year-on-year increased by only 7.2 per cent, the value surged by 74.6 per cent.
Demand for pepper has risen year-on-year in most markets.
Last year, the price of pepper climbed sharply in both the domestic and export markets, thanks to high demand and low supply.
The price of black pepper soared to a record high of VND161 million ($7,600) per tonne in September 2011, up by 116 per cent against the same period in 2010. The price of white pepper also soared by 99 per cent reaching VND197.5 million ($9,300) per tonne.
On an average, the price of pepper last year was roughly $5,870 per tonne, up by 66.3 per cent over 2010.
However, since the beginning of this year the price has fallen by $800 per tonne.
"The domestic price is falling in line with the world market," the ministry said.
The ministry estimates that the price would continue to decline due to low demand.