The Sunday Times FT - China's entry into 'pepper' world boosts Lankan meeting

Kandy - The entry of China into the International Pepper Community marks a period of improvement for pepper. Though China opted to take an ' Observer 'status in the IPC, yet her entry was applauded at the opening session of the IPC international conference in Kandy last week.

China occupies sixth place in the world market, according to Jlan Chunlin, Vice-Chairman of the Department of Agriculture of Hainan Province, China.

He pointed out that the acreage consumption per capita per year is less than 22 kg, lower than the world level. In international trade, black pepper is almost a half of what is produced. Chinese imports black pepper around 1000 tons every year, but exports only 1000-2000 tons (mainly from Hainan). In recent years, the main consuming and importing countries are almost developed countries and China is not only an exporter but also an importer.

Therefore, the market has an optimistic view of pepper plantations in China, which occupies 10 per cent of the world market. Hainan is the most suitable and concentrated area for pepper plantations.

He said that in 2005, the plantation area in Hainan was more that 90 per cent of the national total. The three counties - Qionghai, Wechang, Wanging -- are the main pepper producing areas in Hainan.

At the Kandy meeting, it was announced that there would be a change in the chairmanship of IPC with Malaysia taking over the chair. General Manager of the Pepper Marketing Board of Malaysia, Grunsim Ayom is expected to be appointed to this post.

IPC’s annual report released on September 6 points out that as the pepper industry began its recovery from the low prices of the last few years with declining production in most member countries, IPC was in a position to play an effective part in the development of the industry. It is an opportune time, it says, to ensure that farm level development is on a sustainable basis and does not continue to be subjected to the savings and that are characteristic of most commodity markets.

IPC now comprises six pepper producing countries as full members -- Brazil, India, Indonesia, Malaysia, Sri Lanka and Vietnam accounting for almost 90 per cent of global production.

World production of pepper in 2005 was estimated at 315,000 tons down by almost 14 per cent from a peak of 364,500 tons in 2003.

Pepper production in Sri Lanka is estimated at 13,000 metric tonnes in 2006 and the same figure is expected in 2007. Domestic consumption for 2006 is an estimated 6,295 metrics but exports from Sri Lanka have remained static at 7,000 metric tonnes.

Vietnam is the largest exporter of pepper with 96,179 metric tones in 2005. IPC’s present Executive Officer A. Abdulla from Malaysia who retired after last week’session is to be replaced by Dede Kuruma from Indonesia. .