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Overview Black Pepper High Demand Limited Supply Project Details Project Returns  Risks and Safeguards

Limited Supply

The pepper vine is quite sensitive to soil conditions, rainfall and temperature and other environmental factors during various stages of growth. Various reasons can be mentioned why global pepper supply has not been able to keep up with demand. Increases in input costs at the farmer level (e.g. Fertilizer, pesticides, labor, water, etc.), Land availability, Investments in new gardens only yield returns after 3 years, spread of disease due to minimal crop alternation and high usage on fertilizers, competing crops like coffee and rubber, yield (kilos/hectare) differences between the producing countries, currency fluctuations are factors contributing to restricted supply. Urbanization and demographic changes are other elements that influence pepper production. As the younger affluent generation seeks employment outside the agriculture sector, older farmers, who are generally also smallholder farmers, transition to higher incentive crops.

 

Pepper Price - Monthly