Global pepper production is forecast to reach 538,000 tonnes in 2021, according to Vietnam-based exporter PTEXIM, representing a decline of about 55,000 tonnes from the previous year.
In Indonesia and Brazil, where harvesting is about to start shortly, new season crop estimates are pegged at 55,000 tonnes (-10% y-o-y) and 95,000 tonnes (+6% y-o-y), according to PTEXIM. Production in Brazil has been adversely affected by drought; however, the output is projected to increase year-on-year (y-o-y), owing to an expansion in the production area.
The Vietnamese exporter projects Vietnam’s pepper output to reach 220,000 tonnes in 2021, 20,000 tonnes less than last year, taking the 2021 exportable supply to 285,000 tonnes, with additional 42,000 tonnes of carry-in stock and international pepper imports. The production decline follows a reduction in planted area, as farmers have been moving to better performing cash crops, such as coffee, fruit or vegetables, due to the previously subdued market prices.
The Mintec Benchmark Prices of Vietnamese pepper (550 grams per litre) fell 3% in the four-week period to 14th July, to USD 4,010/MT, from a three-and-a-half-year high of USD 4,135/MT in the second half of June.