Analysts say the investment is well worth the money. Pepper commodity prices have been in a “bull market” since 2006 and were still reaching new highs as of February, according to the Indian spice company group Nedspice’s annual pepper report. Nedspice estimates that 40 to 45 per cent of global consumption takes place in Asia.
Data from analysis firm Knoema showed white pepper prices have climbed rapidly from $2,400 per tonne at the end of 2005, to a peak of $15,500 per tonne in July 2015. As of March, the price approached $13,000. Black pepper prices peaked during June 2015 at $10,900 per tonne, compared to $1,560 per tonne in July 2005, according to Nedspice.
“During 2014 Vietnam topped the list with a crop of 155,000 tons, 38.6 per cent share of global production,” Nedspice stated in its report. “Playing the market leader‘s role Vietnam set the benchmark for the global pepper price.”
According to a paper by Jara Zicha, an analyst with the market research firm Mintec, pepper prices have climbed in part due to higher demand, which is strongest in Southeast and East Asia.
These trends make for an increasing number of pepper farms in Vietnam and Cambodia, which draw in thousands of people who cut trees – any trees – to make the supporting stakes for pepper plants, interviews indicate.
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