The Hindu Business Line : 47,500 tonnes shortfall seen in global pepper supply

Drop in crop
Indonesian pepper production next year could drop 57 per cent to 15,000 tonnes.
Output this year is estimated at 35,000 tonnes, compared with 30,000 tonnes last year.
Output in Vietnam could be 10,000 tonnes lower at 90,000 tonnes.

G.K. Nair

Kochi, July 27 Global pepper supply this year is estimated at 3,29,000 tonnes, a deficit of 47,500 tonnes, against the projected demand of 3,76,500 tonnes.

Of late, increased industrial use is pushing up the demand for pepper in the world market at a time when the world output has been showing a declining trend due to erratic weather and diseases, according to recent reports from Indonesia and Vietnam.

Indonesia scenario

Consumption of pepper by the food industry in China, Russia and India is on the increase, the reports said.

Meanwhile, industry sources in Indonesia were quoted as saying that its pepper production next year would drop by 57 per cent to 15,000 tonnes due to unfavourable weather conditions there. They said that Indonesian output this year is estimated at 35,000 tonnes, compared with 30,000 tonnes last year, mainly because of good carryover stocks.

Production

According to the Indonesian Pepper Exporters Association sources, production next year might drop to 15,000 tonnes provided the weather turns out to be good. The increase in production this year, they said, is not because of improvement in productivity but due to carryover stocks with the growers and dealers.

Though there is an estimated increase of 17 per cent in Indonesian availability this year, a substantial shortage is expected in the world supply in 2007.

Production in Brazil, where the current crop harvesting is spread from July to October and even to November, is estimated at around 40,000 tonnes, a report from Brazil said.

Output

According to reports from Hanoi, the output this year in the world’s top producer, Vietnam, is estimated to be around 90,000 tonnes, as against over one lakh tonne last year, due to unfavourable weather and diseases.

The report quoting the Vietnam Pepper Association sources said that tight supply position in the world market might push up the prices to $4,000 a tonne.

Pact signed

Meanwhile, Vietnam and Indonesia are reported to have signed an agreement for setting up of a joint committee in an effort to increase cooperation in pepper production and exports.

The agreement has emerged after the four-day conference of the exporters of Indonesia and Vietnam from July 8 – 12 in Jakarta, the reports said.

The committee would meet every year to review the pepper output statistics of each country apart from exploring the possibilities to take up marketing of pepper jointly.

Growth in production

There has been a dramatic growth in world pepper production from 1997 to 2003, recording an increase by over 90 per cent during the six-year period.

The changes from the traditional production levels were in response to the relatively high pepper prices of 1997 as farmers invested in new plantings and replanting of old vines.

Add to this the entry of Vietnam in 2002 had pushed up the total world output further.

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