
Apart from
analysing the latest happenings in the pepper market, they are also
discussing technological progress and measures to sustain prices of the
spice.
Deputy Minister of
Agriculture and Rural Development Le Quoc Doanh said pepper is an
important spice consumed in most countries around the world.
As
the biggest pepper producer and exporter for the last 14 years, Vietnam
not only plays an important role in world trade but also prices, he
said.
But despite its achievements, the country’s pepper industry
faces a number of challenges, such as the large area requiring to be
replanted, many stunted and overexploited pepper farms with diseases and
decreased productivity, and climate change impacts.
Do Ha Nam,
Chairman of the Vietnam Pepper Association, said high prices have
persuaded farmers to expand cultivation without any planning. They end
up planting the crop on unsuitable land and overusing fertilisers,
causing the plants to degenerate quickly and fall victim to diseases, he
said.
Pepper prices might remain high in the short term, but if
production is not monitored carefully, there could be a glut, he warned.
Gunaratne said sustaining the prices and enhancing development are the current concerns of the pepper sector.
To
sustain the growth, it is essential to look for new markets and
technology and ways to reduce costs and improve quality, he said.
Tran
Kim Long, Director General of the Ministry of Agriculture and Rural
Development's Internal Cooperation department, said the supply of pepper
needs to be balanced by promoting domestic consumption in IPC member
countries, development of new products, and fostering trade with
emerging markets through participation in exhibitions and conferences.
Affluent
markets are willing to pay high prices for foods conforming to stricter
standards, he said. They need brand-name products, certificate of
origin, and certification for sustainable production and trading and
environmental effect, he said, adding that firms must pay more attention
to these factors.
Most pepper farmers in Vietnam are small or
medium-sized and so production costs are high. In addition, it is
difficult for companies to procure large volumes of similar quality for
processing and exports.
Improving value and quality is the target for Vietnam's pepper industry, Nam said.
He
urged processors to focus more on safety and hygiene and invest more in
full-fledged processing, diversifying products, using modern
technologies, and adapting to market requirement.
Despite the
financial and economic crisis, global pepper exports have been steadily
increasing, going up from 1.58 billion USD (equivalent to 250,780
tonnes) in 2011 to 1.9 billion USD (equivalent to 249,500 tonnes) last
year, and are forecast to rise to 2.4 billion USD (equivalent to 247,500
tonnes) this year.
Prices have increased significantly to stand at around 9,000 USD a tonne now.
Vietnam's
exports topped a record 1 billion USD in the first 10 months of the
year, as around 140,000 tonnes were shipped, he said.
The country
hopes to export 150,000 tonnes for 1.2 billion USD this year compared
to 132,955 tonnes and 900 million USD last year.
Its products are sold to over 100 countries and territories.
The
IPC comprises six members, namely Brazil, Indonesia, India, Malaysia,
Sri Lanka, and Vietnam, who together account for 85 per cent of the
world's total production and exports.
The roles of the individual
IPC members as well as the IPC secretariat are very important to the
overall coordination of production, stockpiling, and trade to sustain
prices and avoid price uncertainties during the up and down cycles as
has been happening in recent years, Doanh said.
During the second
day of the meeting, delegates deliberate on current happenings in the
industry and developments and programmes undertaken in producing
countries.
They will discuss pepper trade and exchange
information on the global market followed by a field trip to Ba Ria-Vung
Tau province on October 30.
The event is being organised by
the ministry together with the International Pepper Community and the
Vietnam Pepper Association.-VPA