2. The World Pepper Industry 2. The World Pepper Industry 2.1. Producing Countries Pepper is cultivated today in many countries. Brazil, India, Indonesia, Malaysia, and Sri Lanka (who are members of the International Pepper Community or IPC) and Vietnam, China, Ecuador, Madagascar, Thailand and Cambodia produce quantities of pepper significant in world trade. Other countries where pepper is grown on a small scale are Mexico, Brunei, Fiji, Samoa, Micronesia, Guatemala, Honduras, St. Lucia, Tanzania, Malawi, Zimbabwe, Benin, Kenya, Cameroon, Ethiopia, Uganda and Zambia. 2.2. Global Production World pepper production has been increasing over the last half century. Recent estimates show that annual production ranged between 176,000 to 239,000 tons during 1991 to1996. IPC estimates that world production in 2003 was much higher at 362,160 tons. This increase in production has mainly been due to a substantial expansion in area and production in Vietnam, as well as increased output from Indonesia and China. In 2004, there was a marginal decline in production of about 3%.

Vietnam has become the worlds largest producer of pepper, followed by Indonesia and India. IPC member countries in 2004 accounted for an estimated 55% of total world production Table 1 gives details of worldwide area, production and yield of pepper during the period from 2001 to 2004. 2.3. Area and Productivity There has been steady growth in area and production of pepper over the last few years. Total planted area reportedly increased from 523,000 ha in 2001 to 563,000 ha in 2003, an increase of 7.7 %. The attractive price for pepper, which prevailed during 1999 and to some extent in 2000, encouraged farmers to expand the area cultivated with pepper. Overall estimated pepper yield, however appears to have peaked in 2002, at 637 kg per hectare, declining in 2003 to 581 kg per hectare, reflecting decreased expenditure on farm maintenance and inputs.

This expansion of area and increase in production is of concern to producers, for the world market has responded to the surplus production with steadily declining prices, to the very low levels prevailing at present. It is observed that the present unattractive price level has discouraged farmers from cultivating pepper in new areas. While the expectation of future production declines may curb further deterioration in price, total supply is likely to remain at a relatively high level, barring any unforeseen developments such as extreme weather conditions in producing countries as newly planted areas are likely to offset declines in productivity in old and poorly maintained farms. 2.4. Pepper Production and Export in the IPC countries in Asia and the Pacific In Asia and the Pacific region, India, Indonesia, Malaysia and Sri Lanka are members of the International Pepper Community. As a smallholder crop providing a source of income for a large number of farmers, pepper is an important commodity at the regional and national level. India : Ninety percent of the pepper grown in India is found in Kerala and the rest mainly in Karnataka, Tamil Nadu, Pondicherry and Andaman and Nicobar Islands. There are small areas of production in Andhra Pradesh, Orissa, Goa, Assam and Tripura.

Black pepper produced in Kerala is known as Malabar Black Pepper. The official estimates of area and production of pepper in different states and Union Territories in India are shown in Table 2. In Kerala, more than 80% of the pepper farms are small (< 0.2 ha) or medium (0.2 ha to 0. 8 ha). Karnataka, which is the second largest producing State in India, grows pepper extensively in coffee plantations using shade tree, mainly silver oak as supports. Yields per hectare in India are among the lowest when compared to other producing countries, mainly because pepper is grown as a mixed crop and improved production technologies are not widely adopted. With nearly 40% of the global area under pepper, Indias share of world production in 2002 was only 23%. With the increasing domestic demand, Indian exports have declined from 36,908 MT in 1988-89 to 17,000 MT in 2003-04, despite relatively high FOB prices compared to other producing countries. Indonesia: Pepper is grown on most of the islands that make up Indonesia.

The more important producing areas are in Sumatra, Bangka and West Kalimantan. Some pictures of pepper farms at different stages of growth shown in Fig.1. Fig.1. Well-managed pepper farms in Central Kalimantan In Sumatra, the main production area is around Lampung. Traditionally, black pepper has been produced here and the pepper from the area is known internationally as Lampung Black. White pepper is produced on Bangka Island and the pepper is traded internationally as Muntok White. Both black and white pepper is produced in West and Central Kalimantan. Production and exports of white pepper from Indonesia during 1999 to 2004 are given in Table 3 below. Generally, Indonesia produces more white than black pepper, but this trend has changed in 2003, with the decline in production in Bangka. Pepper production in Indonesia tends to fluctuate quite significantly as it is affected by prices (though there is a relatively long lag time), weather and other local factors. Malaysia : More than 90% of the pepper produced in Malaysia comes from the State of Sarawak and is known as Sarawak Black and Sarawak White in international trade.

The pictures below (Figure 2 and Figure 3) provide a glimpse of the pepper holdings in the Srikei and Sri Aman Divisions of Sarawak. Pepper now ranks as the second most important foreign exchange earner for Sarawak, after palm oil, with over 70,000 farm families dependent on the crop for their cash incomes. Average farm size is low at 0.2 hectares per holding. Area, production and export of pepper from 1999 to 2004 are given in Table 4. From 1998 to 2002, the area under pepper increased marginally, but total production has been relatively stable, declining somewhat since 2002. While export quantity has fluctuated between 18,000 tons and 25,400 tons, export earnings have fallen sharply since 1999, because of the steep fall in prices. Sri Lanka : There are over 200,000 pepper farmers in Sri Lanka, of whom about 50,000 are dependent on pepper and other spices for their main family income.

The average size of holdings is about 0.4 ha and about 80% of the total holdings are less than 0.8 ha in area. Pepper is cultivated in 14 districts out of a total 26 in Sri Lanka. Table 5 presents the area under pepper by province, from 1998 to 2004. The area under pepper has increased steadily since 1994, mainly because of the better prices that were received by farmers up to 2000 as well as various forms of Government assistance provided for new plantings and replanting. These include cash incentives covering about 40% of the initial investment and extension and education programs to encourage farmers to cultivate perennial crops. 2.4.1. Comparative performance of pepper production in the IPC countries in Asia and the Pacific The four IPC member countries in the Asia and the Pacific Region, namely India, Indonesia, Malaysia and Sri Lanka together account for about 77% of the global area under pepper but only for 49% of global production in 2003. Productivity is low at 413 per kg compared to the average yield of 649 per kg for the world.

These countries also showed a mixed trend in the growth of area and production on a year to year basis. The area under pepper in these countries is summarised in Table 6. Total area under pepper increased between 1999 and 2002 by over 15,000 hectares. It is to be noted here that even after the steep fall in price from the peak level in 1999, area expansion has taken place. The same period has seen sharp declines in the total value of pepper produced in these countries, from over US$660 million in 1999 to US$208 million in 2004 Table 7 below shows estimated domestic value of pepper production in the four countries. Total production increased from 145,740 MT in 1999 to 182,600 MT in 2002 in IPC countries in Asia and the Pacific but declined to 149,020 MT in 2004.

In all the four countries there have been some fluctuations in production, but the declining trend in estimated value of production is clear, falling by over 65 % in the space of five years. Export earnings from pepper also saw steep declines after 1999. While total exports of pepper from the IPC member countries in the Asia-Pacific region did not change very much during 1999 to 2003, ranging from 100,000 tons to 114,000 tons, 2004 saw a sharp fall, to 78,182 tons. The export value declined from US$534 million in1999 to just over US$146 million in 2004, by 72% in 5 years. Exports and export earnings from pepper for the Asia-Pacific IPC countries are shown in Table 8 below. Quantity and value of pepper exported from IPC member countries in Asia and the Pacific for the period 1999 to 2004 are given in Table 8.

Export earnings from pepper are important to all the IPC countries in Asia and the Pacific as a source of income for farmers and intermediaries as well as a source of foreign exchange. The fall in export earnings has adversely affected the lives of many pepper farmers and is likely to further reduce pepper production in these countries. 2.5.1 Pepper exports Total pepper exports have shown a substantial increase during the period 1985-2004, from 96,162 tons in 1985 to 230,521tons in 2004, recording a compound growth rate (CGR) of 4.7 percent. The emergence of Vietnam as the worlds largest exporter of pepper between 2001- 2004 is another significant development during this period. Demand (as reflected by the export figures) has increased most significantly over the last 7 years, as can be seen from the CGR of 7.2 percent during 1997-2004. This has absorbed a major portion of Vietnamese production. Whole pepper is usually exported as black, white or green.

However black and white pepper account for more than 95 percent of pepper exports from the producing countries. Country wise exports of black pepper are shown in Table 9. Black Pepper Over the last 20 years black pepper exports have increased from 76,816 tons to 197,447 tons recording an annual growth rate of 5%. Over the last few years, Vietnam has overtaken the traditional pepper producing countries such as India and Indonesia and added considerable to world pepper production. Exports of black pepper from producing countries are shown in Table 10. White pepper The market segment for white pepper is generally smaller than for black pepper and has not shown growth comparable with black pepper. White pepper exports have fluctuated between 19,346 tons in 1985 to the highest of level of 41,388 tons recorded in 2002, after which exports declined to 33,074 tons in 2004. The annual growth rate recorded for the period 1985-2004 was only 2.9 percent.

It is difficult, however to assess demand for white pepper, as there is likely to be some conversion of black pepper to white when the price of black pepper is low. Exports of white pepper from the major producing countries are shown in Table 11. 2.5.2. World Imports of Pepper World imports of pepper, including pepper for re-export in various forms, has increased in line with exports. The United States is the worlds largest importer and consumer of pepper, Singapore features strongly in world trade in pepper as an importer but though much of the imports are re-exported. Germany and Netherlands are also important pepper importing countries for a domestic consumption as well as for processing and re-export. Over the last two years, India has also begun to import significant amounts of pepper, as domestic demand for grinding and extraction as well as other uses expands. Growth in imports has also been significant in the United Arab Emirates (UAE), France, Pakistan and Poland. 2.6. Prospects and Challenges for the Industry Global availability of pepper has increased substantially during the last decade. Although production has come down in IPC countries, particularly in Indonesia and Malaysia, overall supply has exceeded expectations, primarily due to increased production in Vietnam.

With production consistently increasing since 1997, significant quantities of carryover stocks have been built up, in producing countries as well as some consuming and intermediate markets. This sizeable stock and the increasing production trend are pushing down prices of pepper in all producing countries. The steep fall in price, by as much as 70%, has greatly affected pepper farmers, some of whom are dependent on pepper as the primary source of cash income. There are a number of challenges facing pepper producers in different regions today. More than in the past, pepper cultivation today faces the risk of serious diseases, such as Phytophthora foot rot and virus disease. Foot rot disease is rampant in most of the producing countries and it is difficult to locate any farmer free from the fear of its incidence. It is a devastating disease and has adversely affected pepper production in most countries to varying degrees. The recommended control measures are as yet not fully dependable in preventing or eradicating the disease. Technological advances have been effective however, in improving yields significantly, by as much as three or four times from the same land area in some cases.

Research and development activities, particularly in terms of selection of high yielding varieties from good cultivars and in the development of hybrids, have increased productivity in most countries. The potential for higher output is even greater if more farmers adopt such technology, as at present adoption rates are generally low. Pepper is used in cuisine because of its pungency. Piperine is the compound providing pungency to pepper. While there is a trend for foods to be more spicy or "hot", it is not pepper alone that is satisfying this growing demand. Chilies, with many varieties having varying levels of pungency, may be said to be competing with pepper in making food preparations hot (spicy). It is relevant to note here that imports of chilly into USA are growing faster than imports of pepper. Compared to pepper, chilies are grown widely in many parts of the world and are easy to use either in fresh or dry form. India alone produces over 1.2 million tons of dry chilly in one year. Though Western palates may be generally assumed to prefer the milder heat of pepper to the pungency of chilies, there is apprehension that because of its low price, chilies may be substituted for pepper in certain applications.

Pepper is used in many ways today, unlike in the past. Other than in food, it finds applications in the preparation of traditional and modern medicines, nutraceuticals, perfumes, and other products. Also, pepper is used in many different forms. Some of the value-added products that have been developed include pepper oil, pepper oleoresin, green pepper in brine, dehydrated green pepper, and freeze dried pepper. Most of these products have helped to provide new value to pepper, by creating new uses, both in food and non-food applications. Pepper oleoresin, for example, helps the meat processing industry use pepper more conveniently; it may reduce total pepper used by the industry however, because of the higher efficacy of oleoresin. With the present oversupply situation and no immediate prospect of a significant decline in production (barring unforeseen climatic changes), efforts to improve the current poor prices need to focus on increasing demand for pepper. In this respect, three areas hold promise: Promotion in new and emerging markets. There has been significant growth in some new markets, including China, some central European countries and in the Middle East. These and other new markets should be the focus of a concerted campaign to improve consumption.

Development of new products and uses of pepper. Research and development efforts need to be stepped up to enhance the use of pepper and pepper derivatives in both food and non-food sectors. New food products should seek to take advantage of the trend towards "hot" and ethnic foods. In the non-food sector, the intrinsic properties of pepper (medicinal, insecticidal, anti-bacterial, etc) should be investigated comprehensively, with a view to develop new products for the market. Increasing consumption in producing countries. Most pepper producing countries have relatively low per capita consumption levels for pepper. Efforts to promote the consumption of pepper in producing countries should be stepped up, particularly in terms of using pepper in value-added products for export and domestic consumption. To ensure access to markets in developed countries and to meet expectations of the major users of pepper, there has to be continued emphasis on improving quality of products exported and consumed in producing countries. In addition to the traditional quality considerations relating to physical cleanliness, attention has to be paid to microbiological and chemical safety of pepper and pepper products. Pepper growers, traders and processors need to be aware of the quality requirements of importing countries and to put in place quality systems such as GAP and HAACP.

For producing countries, interaction with authorities and trade associations in importing countries should also be a priority, to ensure that reasonable, uniform and achievable quality requirements are imposed. Pepper Production Guide for Asia and The Pacific Vietnam maintains world's top pepper exporter so far this year - Xinhua | English.news.cn Vietnam maintains world's top pepper exporter so far this year NetEase Weibo HANOI, April 25 (Xinhua) -- Vietnam maintained to be the world' s top pepper exporter when the country exported 38,374 tons of pepper in the first quarter of this year, pocketing 254.1 million U.S. dollars, according to the Vietnam Pepper Association (VPA) on Thursday. The figures posted an increase of 23.5 percent in volume and 20 percent in value year on year, the ever highest records, both in volume and value, that the country has ever achieved, said the association. In the context of domestic and global economic difficulties, pepper remained in the list of Vietnam's top agricultural products with high export revenues.

However, pepper export prices declined during the first quarter this year compared to the same period last year, with the average export price for black pepper reaching 6,266 U.S. dollars per ton (92 dollars/ton lower than last year), and 8,869 U.S. dollars per ton for white pepper (436 dollars/ton lower than last year). Despite all these, Vietnam exported pepper to more than 80 countries and regions, which accounted for only 30 percent of the world's pepper consumption, but up to 50 percent of the world's pepper trading amount. With this, Vietnamese pepper production sector has enjoyed a lot of prospects for development in the coming years, said VPA Chairman Do Ha Nam. Major import markets of Vietnamese pepper are the United States (accounting for 21.13 percent of the country's pepper exports), Germany (11.6 percent), the United Arab Emirates (7.39 percent) and Singapore (6.77 percent). According to VPA, about 40 percent of the total pepper output of this year's crop was exported with good prices, hence domestic pepper exporters could increase their export volume remarkably.

Since 1996, pepper cultivated areas have been expanded, with an increase of nearly 30 percent, reaching over 52,000 hectares as the end of 2004. The country's pepper largest producers are located in the Central Highlands provinces of Dak Lak, Gia Lai and Dak Nong, and southern provinces of Dong Nai, Binh Phuoc and Ba Ria-Vung Tau. Last year, Vietnam exported over 119,000 tons of pepper, earning 808 million U.S. dollars, a decrease of 4.2 percent in volume, but an increase of 10.4 percent in value, year on year, making the country as the world's top pepper exporter, according to the Vietnamese General Statistics Office.

Editor: Zhu Ningzhu Vietnam pepper exports crossed 110,000 tones | Business Standard News Vietnam pepper exports crossed 110,000 tones Whereas India could hardly managed to export only 9,500 tones of pepper during the period July 25, 2014 Last Updated at 14:48 IST email this article Type address separated by commas Your Email: Enter the characters shown in the image. Send me a copy: ALSO READ Pepper prices to be steady Pepper imports from Vietnam double in Jan-April this year Vietnam pepper exports up 40% in Jan-Apr Vietnam pepper output likely to be 150,000 tonnes, India's 45,000 Indian pepper exports in soup Vietnam, world’s largest producer and exporter of black and white pepper, has exported 111,395 tones of pepper, including 100,820 tones of black pepper and 10,575 tones of white pepper during January – June period of the current year.

Compared to the same period of 2013, exports rose 35.16% in volume, Black pepper exports increased 42.19% where as white pepper dropped roughly 10%. Whereas India could hardly managed to export only 9,500 tones of pepper during the period. Much higher prices offered by India had caused the serious fall in the export of pepper. According to Vietnam Pepper Association (VPA) export turnover marked a strong growth over the same period , increased 47.5% equivalent to US $257 million. The total value of exports reached $797 million in which black pepper contributed $694 million and white pepper $103million. This hike was mainly due to the sharp increase in the global price of the commodity for the last one year. The average export price of black pepper during the period was US $6,885 per tone and white pepper reached 9716 per tone, with a corresponding increase of $707/tone for black pepper and for white pepper the increase was $851/tone over the same period of last year.

The biggest advantage of Vietnam is their huge production and the highest productivity across the world. Thanks to these key factors, the county could offer the lowest prices across the world. The Indian prices were higher by US $3,000/tone than the Vietnam’s quotes which literally drove India out of the international market of the spice, said a top Kochi based exporter. Even Indian manufacturers of value added products depend mainly on imported pepper. North Indian markets also sell imported pepper as it is cheaper compared to the local grades. During this year Vietnam is reported to have a total production of around 150,000 tones while India’s production confine to less than 35,000 tones. Some growers projects a much lower production than this; at around 25,000 tones only. The leverage of large scale production and productivity help Vietnam growers to offer world’s lowest price tags. U.S. market continues to be the largest importer of pepper from Vietnam with 22,632 tones during January – June period of the current year.

However, Singapore emerged as a strongest importer of Vietnam pepper in recent times , the volume of imports of Singapore in the first 6 months reached 12,618 tons , up 6,524 tons from last year. While most markets like India , Saudi Arabia , Pakistan, Netherlands , Spain have seen an increase in their imports , except Germany. German market recorded a drop in imports from Vietnam . In the first 6 months Germany imported only 3525 tons, according to the data of Vietnam Ministry of Agriculture. India imported 7431 tones of Vietnam pepper during this period and Pakistan had bought 4511 tones. Vietnam's pepper exports could fetch a record US$1 billion this year, with around 140,000 tonnes of the spice to be exported, according to the Vietnam Pepper Association (VPA). The International Pepper Community (IPC) forecast that global supply to fall by 45,000 tonnes this year to 320,000 tonnes and demand to remain high, keeping prices high. With 50% global market share, Vietnam has been able to dominate the market.

Vietnamese pepper products are exported to 90 countries and territories, the association said, with the EU and Asian countries being the largest export destinations. Price gallops Meanwhie global prices breached the level of US $10,000/tone, while domestic farm gate pepper prices are moving in the 12500 levels. With Malaysia and Indonesia experiencing supply crunch and India turning out to be a net importer, sky is the limit with regard to pricing of pepper, said a leading exporter. Vietnam pepper exports crossed 110,000 tones Whereas India could hardly managed to export only 9,500 tones of pepper during the period India struggle hardin the global market KOCHI 25 JULY Vietnam, world's largest producer and exporter of black andwhite pepper, has exported 111,395 tones of pepper, including 100,820 tonesof black pepper and 10,575 tones of white pepper duringJanuary - June period of the current year.

Compared to the same periodof 2013, exports rose 35.16 per cent in volume , Black pepperexports increased 42.19 per cent where as white pepper droppedroughly 10 per cent. Whereas India couldhardly managed to export only 9500 tones of pepper during the period. Much higherprices offered by India had caused theserious fall in the export of pepper. According to Vietnam PepperAssociation [VPA] export turnover marked a strong growth overthe same period , increased 47.5 per cent equivalent to US $257 million. The total value of exports reached $ 797 million in which black pepper contributed $ 694 million and whitepepper $ 103million.This hike was mainly due tothe sharp increase in the .. Vietnam, world’s largest producer and exporter of black and white pepper, has exported 111,395 tones of pepper, including 100,820 tones of black pepper and 10,575 tones of white pepper during January – June period of the current year.

Compared to the same period of 2013, exports rose 35.16% in volume, Black pepper exports increased 42.19% where as white pepper dropped roughly 10%. Whereas India could hardly managed to export only 9,500 tones of pepper during the period. Much higher prices offered by India had caused the serious fall in the export of pepper. According to Vietnam Pepper Association (VPA) export turnover marked a strong growth over the same period , increased 47.5% equivalent to US $257 million. The total value of exports reached $797 million in which black pepper contributed $694 million and white pepper $103million. This hike was mainly due to the sharp increase in the global price of the commodity for the last one year. The average export price of black pepper during the period was US $6,885 per tone and white pepper reached 9716 per tone, with a corresponding increase of $707/tone for black pepper and for white pepper the increase was $851/tone over the same period of last year.

The biggest advantage of Vietnam is their huge production and the highest productivity across the world. Thanks to these key factors, the county could offer the lowest prices across the world. The Indian prices were higher by US $3,000/tone than the Vietnam’s quotes which literally drove India out of the international market of the spice, said a top Kochi based exporter. Even Indian manufacturers of value added products depend mainly on imported pepper. North Indian markets also sell imported pepper as it is cheaper compared to the local grades. During this year Vietnam is reported to have a total production of around 150,000 tones while India’s production confine to less than 35,000 tones. Some growers projects a much lower production than this; at around 25,000 tones only. The leverage of large scale production and productivity help Vietnam growers to offer world’s lowest price tags. U.S. market continues to be the largest importer of pepper from Vietnam with 22,632 tones during January – June period of the current year.

However, Singapore emerged as a strongest importer of Vietnam pepper in recent times , the volume of imports of Singapore in the first 6 months reached 12,618 tons , up 6,524 tons from last year. While most markets like India , Saudi Arabia , Pakistan, Netherlands , Spain have seen an increase in their imports , except Germany. German market recorded a drop in imports from Vietnam . In the first 6 months Germany imported only 3525 tons, according to the data of Vietnam Ministry of Agriculture. India imported 7431 tones of Vietnam pepper during this period and Pakistan had bought 4511 tones. Vietnam's pepper exports could fetch a record US$1 billion this year, with around 140,000 tonnes of the spice to be exported, according to the Vietnam Pepper Association (VPA). The International Pepper Community (IPC) forecast that global supply to fall by 45,000 tonnes this year to 320,000 tonnes and demand to remain high, keeping prices high. With 50% global market share, Vietnam has been able to dominate the market.

Vietnamese pepper products are exported to 90 countries and territories, the association said, with the EU and Asian countries being the largest export destinations. Price gallops Meanwhie global prices breached the level of US $10,000/tone, while domestic farm gate pepper prices are moving in the 12500 levels. With Malaysia and Indonesia experiencing supply crunch and India turning out to be a net importer, sky is the limit with regard to pricing of pepper, said a leading exporter. George Joseph Trade Data Report: Export /Import Profile of the Global and U.S. Pepper Industry | World Trade Daily Trade Data Report: Export /Import Profile of the Global and U.S. Pepper Industry 6 Comments Pepper Pepper, Harmonized code HS 0904, is a common household condiment. The description in the U.S. census bureau is “pepper of the genus Piper; dried or crushed or ground fruits of the genus Capsicum or of the genus Pimenta.” Pepper has been used since prehistoric times especially in India.

Peppercorns, the unground pepper kernel, have been used as a precious trade item throughout history, so much so that they have been referred to as black gold and used as a monetary commodity. Black peppercorns have been found in ancient mummies and have been written about in Greek literature. Black pepper has been a major part of the spice trade and has influenced European explorers to find new trade routes to India leading to the discovery of the Americas. In 2002, pepper HS 0904, accounted for 20% of the monetary value of all the world’s spice trade. Black pepper today is produced mainly in Vietnam, accounting for 34% of the world’s pepper production. India accounts for 19%, Brazil 13%, and Indonesia at 9%. Download and read the 42 page report prepared by the World Bank. World’s Top Pepper Exporters In 2009 the world’s top exporter of pepper by value was Vietnam. Vietnam, the world’s largest producer of pepper, exported 630 million dollars worth of pepper in 2009, accounting for 17% of the world’s market.

India, the second largest producer of pepper, exported 558 million dollars worth of pepper in 2009, taking 15% of the market. China who only accounted for 7% of the world’s pepper production, represented almost 15% of the world’s pepper export market. World’s Top Importer of Pepper: The United States Just as Rome was heavily reliant upon pepper in their time, so is the United States today. The U.S. imported 671 million dollars of pepper in 2009, and so was the number one importer of pepper in the world. the U.S. imported more pepper than any one country exported. It bought a total of 18% of the world’s pepper in 2009. The next largest buyer of pepper was Germany, who bought less than half that of the United States. Of this 671 million dollars spent on pepper, the U.S. bought 23% from one country, Indonesia, equalling 106 million American dollars spent on Indonesian pepper. India was the U.S.’s number two source for pepper and Vietnam was the third.

The graph below shows the trend of pepper bought from countries by value over the last five years. Pepper imports to the United States from Indonesia were below 30 million in 2006. In 2010 the United States bought more than 100 million dollars worth of pepper from Indonesia. Indonesian sales of pepper to the United States more than tripled in the past five years, upsetting India and all other place holders. Indonesia is represented in yellow in the graph below. ..:: INTERNATIONAL PEPPER COMMUNITY ::.. THE MOST IMPORTANT SPICE IN THE WORLD Known as the "King of Spices", pepper is the most important spice traded internationally. Pepper was one the earliest commodities that was traded between the orient and Europe. In medieval times, pepper frequently changed hands as rent, dowry and tax. "Peppercorn rent" may today mean something trivial or next-to-nothing but in the middle ages, pepper was the preferred currency, prized by the wealthy. The history of medieval Europe throws up further evidence of the influence pepper had in the trading community.

Pepper traders even had their own vernacular names i.e., 'Pepperer' in England, "Pfeffersacke" in Germany and "Poivrier" in France. The cities of Alexandria, Genoa and Venice carried on brisk trade in pepper during the middle ages. In fact, they owed their prosperity to this priceless commodity. Vasco de Gama's discovery of a sea-route to the spice lands of Malabar Coast in 1498 was triggered by his obsession with spices, particularly pepper. Gama's feat had two results. One, it gave Portugal a secure monopoly over the spice trade. Two, it destroyed the economies of Alexandria, Genoa and Venice, which were built on the prosperity which pepper had brought them. For the next two centuries, Lisbon was the richest European port since it remained the key trading center for pepper and other oriental spices. In 1595, Houtman of Holland made a successful voyage to Indonesia. This was the beginning of the end of Portugal's monopoly over spice trade. By 1605, the Dutch drove away the Portuguese from the Moluccas.

Holland gradually established a firm grip over the pepper producing centers near Lampong in Sumatra and Banten in Java. Pepper is a thriving agricultural activity in these regions even today. The Dutch control over spice production and sale was considerably weakened by 1650 when pepper cultivation spread to the Malay Archipelago. The Dutch could not do anything about it because this area was outside their sphere of influence. During the 19th century, London emerged as the world's most important spice center. By then, increased production had driven pepper prices down, making it affordable even to the man on the street. Pepper no longer remained the exclusive commodity of the rich and famous. When the fortunes of the Dutch East India Company were down, the US entered the scene. In 1797, Jonathan Carnes of Massachusetts sailed into the New York waters with Sumatran pepper worth US $100,000. The US cities of Salem and Boston soon became main spice centers. Incidentally, the dare-devil commanders of the 18th century trading ships were the forbearers of the present US merchant marine. Today the pepper trade encompasses the whole world with Western Europe, United States, Japan and Korea being the biggest consumers.

The main pepper producing countries are Vietnam, India, Indonesia, Brazil, Malaysia, China and Sri Lanka PEPPER PRODUCTION The pepper vine thrives best in the tropics, in a moist, hot climate, at elevations from 1500 feet mean sea level, with an evenly distributed rainfall of about 100 inches. The richest growth is seen on fertile, flat or gently sloping land, rich in humus with good drainage and light shade. Between 1997 and 2002, world production of pepper (piper nigrum) increased dramatically from 189,000 tons to 341,000 tons which was an increase of over 12% per annum. The increase in production is mostly attributed to Vietnam's emergence as a major pepper producer. However, output from the other producing countries also increased substantially during this period, with increased production coming from Brazil, India, Indonesia, Malaysia, Sri Lanka and China. There was a fall in production in 2003 in India, Brazil and Malaysia. This trend reversal may be considered significant, especially with Vietnam having reported no increase in production in 2004.

World pepper production in 2003 was estimated to be 327,250 metric tons. In 2003, Brazil produced around 35,000 tons of pepper (32,000 tons black and 3,000 tons white pepper), from around 41,000 hectares cultivation. The state of Para is the main producing area with about 32,000ha under pepper. Other smaller pepper producing areas in Brazil are in Espirito Santo, Bahia and Maranhao States. The varieties of pepper grown in Brazil include Singapore (Kuching), Bragantina (Panniyur-1), Guajarina (Arkulanmunda), Iacara-1, Kottanadan-1, Apra, etc. In India, pepper cultivation is mainly confined to the Southern States i.e, Kerala, Karnataka and Tamil Nadu. The total area under cultivation for 2002 was estimated at around 220,620 ha, with Kerala accounting for almost 70% of the total production.

There are many varieties of pepper developed and grown in India, including Karimunda, Kottanadan, Panniyur -1, Panniyur-3, Panniyur-4, Panniyur-5, PLD-2, Subhakara etc. The main pepper producing areas in Indonesia are Lampung province for black pepper and Bangka Belitung province for white pepper. The total production from these two provinces accounts for 70-80% of the total pepper production in Indonesia. The other 20-30% comes from West Kalimantan, East Kalimantan, South Sulawesi and West Java. In 2003 the total production was 57,000 tons comprising of 33,000 tons of black pepper and 24,000 tons of white pepper. The main varieties grown in Indonesia are Bulok Belantung, Jambi, Kerinci, Lampung Daun Lebar (LDL), Bangka (Muntok), Lampung Daun Kecil, Petaling etc.

In Malaysia, the main pepper producing area is the State of Sarawak which accounts for more than 95% of the total Malaysian production. Other pepper producing states are Johor and Sabah. In 2003, the area under pepper cultivation in Malaysia was estimated at 13,000 ha. Semongok I, Semongok II, Semongok III, Semongok Perak, Kaluvally, Kuching, Belantung, and Djambi are some of the varieties grown in Malaysia. In 2003, Malaysia produced 22,000 tons of pepper comprising of 19,800 tons black and 2,200 tons white. The total area under pepper cultivation in Sri Lanka in 2003 was 31,000 hectares, with the Central province having the largest share (more than 50%), and the rest spread over the North-Western, Sabaramuwa, Uva, Western and Southern provinces. Panniyur, Kuching and local selections such as PNMI are the main varieties grown in Sri Lanka.

Total production of pepper in Sri Lanka in 2003 was 12,750 tons. In Vietnam total cultivated area was estimated at about 52,000 hectares in 2003. The main production areas are in the Central Highlands and the South East, which together account for more than 84% of the total area. The total production of Vietnam in 2003 was reported to be 88,000 tons (85,000 tones of black and about 3,000 tones of white pepper). See also Statistics on World Pepper Production, Contrywise (2000-2010) on this CD WORLD PEPPER TRADE Generally, pepper is identified by its port of export or the region where it is grown. 'Lampung', a commercially important pungent black pepper is grown in the Lampong province of Sumatra and in a few other areas of Indonesia. 'Malabar' is a variety of pepper produced in the Alleppey district of the southwest coast of India, while 'Tellicherry' is yet another grade of black pepper, grown in the northern part of the Malabar coast of India.

'Sarawak' pepper is grown in Sarawak State in Malaysia, along the northwestern coast of Borneo. 'Brazilian' pepper is produced in the state of Para on the Amazon River. Brazil was the first country in the western hemisphere to produce pepper on a commercial scale. Japanese settlers were largely instrumental in producing 'Brazilian' pepper in increasing quantities. 'Muntok' is the most important variety of white pepper grown in the island of Bangka and exported through Pangkalpinang, a port on the south eastern coast of Sumatra. A major production center for white pepper in Bangka was developed by Chinese planters over the past century. 'Brazilian' white pepper is lighter and less pungent than 'Muntok'. 'Vietnam' pepper is now extensively traded though Vietnam became a major producer of pepper only very recently. In 2003, the export of pepper from producing countries was reported to be 226,160 tons. This is a decline of 7% from 2002. It is for the first time in five years that a fall in total exports has been reported.

India, Indonesia and Malaysia were the main countries that exported less, offsetting Vietnam's increase in exports. Exports of pepper from producing countries have increased consistently, from 135,700 tons in 1998 to peak at 242,600 tons in 2002 which indicates an annual rate of increase of over 15%. While Vietnam's exports have contributed much to this increase, export increases from Brazil, Indonesia, Sri Lanka and Malaysia have also been significant. However, exports of whole pepper from India have been on the decline, reflecting the increase in grinding and extraction activities. See also Statistics on World Pepper Export, Contrywise (2000-2010) on this CD. PEPPER & PEPPER PRODUCTS The products developed from pepper broadly fall into four groups i.e., black pepper, white pepper, green pepper and oil and oleoresin of pepper. Black pepper is the whole dried fruit of the plant, while white pepper is the dried seed after removing the pericarp of the berries. White pepper is neither too spicy hot nor too bland, and is supposed to be the best of all peppers.

Black as well as white pepper, are widely used as a food ingredient, and as a flavouring agent for a variety of processed foods. Because of their curative value, the medical and pharmaceutical industries also use them extensively. Pepper oil, oleoresin and green pepper have other applications also. Black Pepper: : Black pepper is obtained by drying the ripe green berries. It is widely used by the food industry, in processed meat and in confectionery products. Black pepper is mostly used in three forms - powder, oil and oleoresin. Most countries import whole pepper berries and convert them into powder. Quality-conscious food processors prefer whole black pepper since the pepper oil, oleoresin and the flavour of the original spice are retained in them. USA is the main market for black pepper. White Pepper: White pepper is prepared from the optimally mature peppercorns. The berries are kept under running water for 7 to 9 days to soften their pericarp. After removing the pericarp by scrubbing, the white peppercorns are washed and dried. White pepper is mainly used in the preparation of light-coloured dishes, sauces and soups. West Europe constitutes the major market for white pepper.

Ground Pepper: Dried pepper berries today are commercially ground using various types of mills, depending on the users' specifications (i.e., particle size, volatile-oil content, etc). Critical factors like grinding temperature, hygiene and packaging affect the quality of ground pepper. The producing countries have a number of spice grinders to grind pepper and other spices, with a variety of machines that run on basic technology as well as sophisticated cryogenic systems. Green Pepper:Green pepper is made from the fully developed but immature berries. They are preserved in brine, vinegar or citric acid and may be dried or kept in the preservative. Europeans are fascinated by the natural green colour and fresh flavour of green pepper. Canned Green Pepper: The separated green pepper berries are washed and filled in cans containing a diluted solution of sodium chloride with or without added acidity. The filled cans are then sealed and sterilized by the autoclave process, and cooled under running water. Europe, USA and Australia use canned green pepper for flavouring food and garnishing meat dishes.

Green Pepper in Brine: Green pepper in brine is made from young, green pepper berries which are carefully detached from the stalks and preserved in a specially formulated solution of vinegar and brine, to retain the natural color and texture of the berries. Dehydrated Green Pepper: Dehydrated green pepper has the green colour and the flavour of fresh pepper. On soaking in water, the berries turn full and soft, but do not have the texture of green pepper in brine. Freeze-drying ensures better dehydration. Frozen green pepper is made by freezing the berries in a brass freezer. Europe is the major importer of frozen green pepper. Pepper Oil: Pepper essential oil or volatile oil is a natural blend of mainly terpenes and their derivatives that form a clear yellowish green to bluish green colour. It is responsible for the characteristic aroma of pepper. Today, this essential oil is still commercially extracted from the pepper berries mainly by the process of steam distillation. Pepper Oleoresin: Pepper oleoresin is a concentrated, resinous extract obtained by conventional solvent extraction or supercritical fluid extraction.

As the name implies, pepper oleoresin consists of a blend of the essential oil, resinous matter of the spice and related compounds like the pungent alkaloid piperine. Pepper oleoresin has a relatively full flavour profile characteristic of pepper as compared to pepper oil. In Malaysia, there is no commercially run oleoresin extraction. Green Pepper Sauce: Green peppercorns are first ground to a puree and then blended with vinegar, salt, sugar or other ingredients. Distinctly piquant with a natural fresh flavour, green pepper sauce is also used as a dip for chips and fries. COMMON USES OF PEPPER As a Food Condiment: The use of pepper as a seasoning/condiment, on its own or in spice blends, is on the increase with the growing popularity of snacks, ethnic foods, ready-to-cook meals as well as healthy low-sugar and salt foods especially in the developed countries. Black pepper tastes strongest when freshly ground although pre-ground pepper is often used in seasonings for convenience. White pepper is less aromatic than black pepper but has special applications, as in white sauces where black pepper would give them an undesirable speckled appearance.

As a Preservative:The value of pepper as a natural preservative for meat and other perishable foods has been known for centuries. Studies have shown that this is due to the anti-oxidant and anti-microbial properties present in pepper. Known Medicinal Uses: Pepper is an important ingredient in Ayurvedic, Chinese, Unani and other traditional medicines. The main therapeutic uses of pepper are as a digestive and as a tonic. Weekly Pepper Prices 21 Nov - 25 Nov 2016 PRODUCERS PRICE Black Pepper Uses, Tellicherry Black Pepper, Malabar Black Pepper Benefits, Suppliers, Exporters Black Pepper Introduction Known as the 'king of spices', black pepper has remained the most precious and valuable form of spices in the world. It is the 3rd most added ingredient in food among the wide range of spices. India is one of the largest producers of black pepper, after China and Vietnam. Black pepper has played a pivotal role in India's international trade and it is said that the Europeans came to India primarily for this very spice. A wide variety of black pepper is traded at an international level, with India as one of the top five exporters of black pepper, along with Vietnam, Indonesia, Brazil and Malaysia.

What is Black Pepper? Black pepper is defined as a small and unripe fruit of Piper Nigrum, a weak climbing plant, which is dried to be used in the form of spice and seasoning. One of the earliest and the most widely used spices, it smells extremely pungent. In India, its production is largely concentrated in South India and other tropical regions. It is derived from the vine of Piper Nigrum. To get black pepper, the berries from the plant are picked when they are still not fully ripe, fermented and then dried in the sun till the time they dehydrate and turn brownish-black in colour. Etymology of Black Pepper The term 'pepper' was derived from the Sanskrit word 'pippali'. From this Sanskrit term came the Greek word 'peperi' and the Latin term 'piper'. These two terms primarily referred to black pepper instead of long pepper. In Hindi, it is known by the name of 'kali mirch'. Constituents of Black Pepper Black Pepper has a sharp and penetrating aroma and it tastes extremely pungent and spicy. The pungent taste is primarily due to the presence of two alkaloids in the pepper, namely pipperine and piperidine.

It is also slightly tangy in taste due to certain specific plant resins that can be found in the seeds of the plant. The presence of monoterpenes like sabinene, beta-pinene, limonene, terpinene, alpha-pinene, myrcene, delta-3-carene and monoterpene derivatives are largely responsible for the pungent and hot aroma that comes from the black pepper. It also contains 3% essential oil, with about 20% of this essential oil being made up of volatile oil like beta-caryophyllene, humulene, beta-bisabolone and caryophyllene ketone. Apart from these basic ingredients, black pepper also contains about 8% to 14% moisture, 1.55% to 2.60% nitrogen and 28% to 49% starch which is obtained by acid hydrolysis. History of Black Pepper Black pepper is one of the first form of spices to have been cultivated since pre-historic times. It has been addressed as a master spice because it has the ability of being stored for years without losing its flavor or aroma.

The importance of black pepper can be judged from the fact that in the ancient times, it was used as a form of currency to pay taxes, dowry, rent, etc. In ancient times, black pepper was found in the nostrils of the Ramesses II, the third Egyptian pharaoh of the nineteenth dynasty. The black pepper was placed there to mummify his corpse as part of the Egyptian ritual. In the Middle Ages, it was used as a means to conceal the foul smell of meat. Black pepper is known to be a native to India and has been used since 2000 BCE. Its production was primarily concentrated in the Malabar coast of Kerala in India. After the Middle Ages, black pepper traveled from this Malabar Coast to Europe, North Africa and Middle East. Malaysia and Indonesia have been growing black pepper for the last 2000 years. The importance of black pepper was one of the many important reasons that attracted the Europeans to come to India. Types of Black Pepper A wide range of black pepper is grown in different parts of India and around the world. Their names are taken from the areas where they are grown and differ in terms of color, shape, chemical characteristics, flavor, etc.

Some of well known variety of black pepper are: Tellicherry: It is a high quality gourmet pepper with large and tasty berries. It's very big in size and does not take much of a time to mature. It is known for its strong aroma and pungent smell Malabar: Grown on the coast of Malabar in Kerala, its flavor is the same as that of a Tellicherry black pepper. Its aroma is sweet and fruity and is largely used in desserts and savories Lampong: Originating from Indonesia, it is known to be one of the best black peppers in the world. Its taste is extremely spicy and is equipped with the strongest aroma possible Sarawak: Produced in the north east part of Bornea in Indonesia, it is considered to be one of the best black peppers in the world. It is extremely fresh, with sharp, pungent taste to it Other Varieties: Allepey, Saigon, Penang, Singapore, etc Cultivation and Storage of Black Pepper Black pepper is obtained from the berries grown on the plant of Piper Nigrum.

To get the best range of black pepper, the plant requires to be grown during a long spell of rainy season, at fairly high temperature and with the help of little bit of shade. After the berries start to get red in color, they are plucked and stored in room temperature. To keep them disinfected, the surface of the berries is soaked into boiled water for about ten minutes. After they turn black-brown in color, they are spread under the sun for about three to four days, so that all the moisture is squeezed out from them. These berries or peppercorns, as they are known otherwise, are then grounded firmly and this is how black pepper is produced. The black pepper must be stored in a cool, dry and dark place so that its flavor can be retained for months. Uses of Black Pepper Black Pepper, being the most oldest spice in the world, is seen both as a taste enhancer and as a medicine.

Its importance can be judged from the following points: Because of its strong flavor and aroma, it is highly used as an added ingredient in food to make it tasty and delectable Owing its strong influence on health, black pepper has been used in many traditional medicine systems like Ayurveda, Unani and Siddha Black pepper acts as an antidepressant and also as an antioxidant that helps in lowering the cholesterol level to a great extent The essential oil present in the black pepper helps in relieving muscular pain, fever, etc. and also helps in increasing blood circulation Black pepper also acts as an effective deterreant to insects. When added with a quarter amount of water, it acts as an effective toxin, capable of killing rodents, ants, potato bugs, etc. Market Scope of Black Pepper Black pepper accounts for the largest volume of exports in India. Kerala, in the southern region of the country, is the largest producer of black pepper, accounting for 90% of total pepper production. Since the past few years, India's rise has been on full swing in terms of export of black pepper. Also, the country holds the 3rd position in the production of black pepper in the world.

Some of the major Indian markets dealing in black pepper are Kochi and Sultan Bethary in Kerala, while Delhi and Nagpur have also emerged as key players in this arena in recent times. Vietnam maintains world's top pepper exporter - Xinhua | English.news.cn Vietnam maintains world's top pepper exporter NetEase Weibo HANOI, Aug. 14 (Xinhua) -- Vietnam continues to be among the world's top pepper exporters, when the country exported 77,000 tons of pepper in the first seven months of this year, earning 532 million U.S. dollars, a decrease of 69 percent in volume, but an increase of 17.1 percent in value year-on-year, reported the Vietnam General Statistics Office on Tuesday. According to the Vietnam Pepper Association (VPA), the country is forecast to export between 110,000-115,000 tons of pepper in 2012, earning about 780 million U.S. dollars, if the pepper price remains as high as those in July at more than 7,000 U.S. dollars per ton.

Currently, wholesale pepper price at key pepper growing areas in Vietnam's Central Highlands and southeast region is between 123, 000-125,000 VND (5.9-7.2 U.S. dollars) per kilo, an increase of 18, 000-20,000 VND (80-90 cents) per kilo against the same period last year. Over the past decade, Vietnam's pepper production has made strong growth. In 2001, VPA had only 34 member companies, which rose to 105 members as of May 2011. During the 10-year period, the average pepper output increased from 3-5 tons per hectare to 9-10 tons/ha, compared with those in India and Indonesia with 0.2-0.3 ton/ha, or Malaysia and Brazil with 1-2 tons/ha.

Vietnam becomes the world's top pepper exporter, having products available in 80 countries and regions, including large markets like the EU, the United States , the Middle East and Asia, and accounting for 40-50 percent of the global export volume, said VPA. According to the Ministry of Agriculture and Rural Development (MARD), the country has about 50,000 hectares of land under pepper growing, accounting for 2.5 percent of the country's total 2 million hectares for the cultivation of five kinds of industrial plants. However, pepper export value makes up more than 8 percent of the total export value of those industrial plants, which is six times higher than tea, four times than rubber, 3.8 times than cashew and 2.6 times than coffee, reported VPA. In 2011, Vietnam exported 123,808 tons of pepper, worth 732.21 million U.S. dollars, a year-on-year increase of 5.9 percent in volume and 73.8 percent in value, accounting for 0.76 percent of the country's total commodity export value.

The country's big pepper importers include the United States, the U.A.E, Germany , Netherlands, India, Egypt , Pakistan , Spain , Britain and Russia . Editor: Liu

Question: Which Asian country is the world’s largest exporter of black pepper?
Answer: Vietnam