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HA NOI  (Biz Hub) — The pepper industry will, for the first time, achieve a record gross of US$1 billion this year, with bumper harvest and high prices, according to the Viet Nam Pepper Association (VPA).

Pepper exports are believed to reach around 150,000 tonnes in 2014.

In the first five months of this year, the sector shipped 92,000 tonnes worth $645 million, recording the highest ever increases of 33.6 per cent and 42.3 per cent, respectively, year-on-year.

The United States, Singapore and India topped the list of buyers, making up 40 per cent of Viet Nam's pepper exports, according to the Ministry of Agriculture and Rural Development.

In May, the spice set its highest price record so far, with black pepper worth $6,600 per tonne and white pepper $9,600 per tonne. The average price in January – May reached $6,879 per tonne, up 4.2 per cent year-on-year, due to a considerable fall in global supply.

The world pepper harvest this year is estimated at 320,000 tonnes, down a remarkable 45,000 tonnes over the previous year.

Meanwhile, consumption demand increased 4-5 per cent per year, according to the International Pepper Committee.

Europe, the United States and the Middle East have had a stable and increasing demand for pepper since the beginning of this year, creating advantages for Vietnamese pepper exporters to occupy the global market, the VPA reported.

In 2013, Viet Nam exported 134,000 tonnes of pepper for $899 million, up 15 per cent and 13 per cent in volume and value, respectively, against the previous year.

As the world's largest pepper producer, Viet Nam ships it spice to more than 90 countries and territories.

Viet Nam's pepper plantations cover an area of more than 50,000 ha, majority in the provinces of Binh Phuoc, Gia Lai, Dak Lak and Dak Nong, as well in the provinces of Dong Nai and Ba Ria-Vung Tau. — VNS