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Global Market Pepper Prices Predicted to Rise
21 | 07 | 2007
Global short supply and high demand will continue to drive up export prices of Vietnamese pepper next month, from the current US$3,200 per ton, according to the Vietnam Pepper Association (VPA).
The association also forecast that export prices may hit around US$4,000-5,000 per ton, as high as those offered in 1998-2000.
 
Rushed stockpiling of pepper products for export are already impacting the commodity, selling for VND43,000 (US$2,687) per kilo on the domestic market, up VND21,000 (US$1,312) from the beginning of this season.
 
The International Pepper Community previously predicted a thin pepper supply in the world market from the 2007-2008 crop, due to a 3.46 per cent rise in consumption demand in addition to an up to 20 per cent drop in output caused by bad weather and disease.
 
Vietnamese exporters shipped 10,000 tons of pepper last month, worth a total of $20 million. Since January, 18,000 tons were exported, for approximately $45 million.
 
The slump in pepper sales was offset by surging price.
 
Ministry officials said the value of pepper surged by 72 per cent since 2006, balancing most losses suffered by farmers and vegetable traders; the industry as a whole reported a year-on-year growth of 13 per cent.
 
Vietnam, supplying 60 per cent of world pepper consumption, predicts bumper pepper exports this year with total earnings eyed at US$300 million, or US$195 million higher than last year.


(Vietnam & World Economy)
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