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The Vietnam News

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Vietnam islanders spice life with pepper

PHU QUOC ISLAND - Farmers on southern Vietnam's Phu Quoc Island are turning to pepper to spice up their lives, but many fear the business may have a dark side, despite a booming export market.
Vietnam has become one of the world's top suppliers of black pepper, and local islanders have rushed to cash in on export windfalls. But for folk more used to smalltime farming or fishing in a remote corner of the Communist-ruled country, world markets are a huge mystery.

Some worry they may not be getting the best deal from savvy traders in Ho Chi Minh City, Vietnam's commercial hub where people are rekindling the free-wheeling, streetwise ways it enjoyed as Saigon before the Communists took over in 1975.

``When talking about farming on Phu Quoc we can only talk about pepper as it is the only crop with value,'' says Le Minh Mau, 60, a typical smallholder.
``But we have no sources of information on world prices,'' he says. ``Maybe when the agents come here they lie about the export prices.''

Mau grows pepper in a plot of around one hectare (2.5 acres) in size on the island, located 47 km (29 miles) off the coast of southern Vietnam on the maritime boundary with Cambodia.
His last harvest was completed in June and yielded around five tonnes of black pepper which sold for 50,000 dong per kilogram ($3.6). Earlier this month Vietnamese pepper was selling for around $4,000 per tonne FOB Saigon Port.

PEPPER RULES

Small pepper plantations with their distinctive crowded, green chimney growths lined in close-knit grids, dot the 593 square kilometre (220 square mile) island.
Local authorities estimate acreage under the crop in recent years has risen to 650 hectares (1,606 acres), although farmers say the actual figure is closer to 1,000 hectares (2,471 acres), having been just 100 hectares (247 acres) at the end of the Vietnam War in 1975.
Output from this year's crop reached a record 1,000 tonnes, compared with 800 tonnes in 1998, local authorities estimate.
With almost perfect weather so far this year farmers on the island predict a bumper harvest in 2000.

Le Minh Dung, vice-chairman of Phu Quoc people's committee, said all pepper on the island was grown by private smallholders and with new acreage coming on line it was hoped some 1,250 tonnes would be harvested next year.
Harvesting takes place from February to June and the country ships up to 90 to 95 percent of its crop.
Vietnam's pepper exports soared in the first half of the year to 23,800 tonnes, up 300 percent from the same period last year. Black pepper export revenue jumped to $91 million in that period, from $35 million the previous year.

GROWERS WARY OF MIDDLEMEN

Van Van Su, 67, a Phu Quoc pepper grower with around two hectares (4.942 acres) and 5,000 pepper chimneys -- each of which holds up to five plants twisting round a central four-metre (13- foot) high wooden pole -- said farmers were at the mercy of middlemen.
The living room of his modest three-room home doubles as a bedroom and pepper processing plant. Two women hand-filled nylon sacks with the dried commodity which was strewn across the floor, and on the bed Su's son-in-law cuddled a two-month old baby girl.

``We have no rights to fix the price,'' Su said. ``It is difficult, it is the Saigon people who come and set the price.
``Even if we were to bring the pepper directly to Ho Chi Minh City to sell we would not be able to carry large quantities.''

Farmers said Phu Quoc authorities had promised initiatives to assist pepper growers, but so far nothing had materialised.
Low interest loans of up to 40 million dong ($2,870) were available from the Bank for Agriculture and Rural Development, but the money had to be repaid within a year, they added.
For Phu Quoc's 70,000 people, the main options are limited to pepper and other small-scale cash crops, or fishing-related work.
Dung of the people's committee said pepper growing, which employed around 10,000 people, offered the chance of salaried employment for labourers and a secure and adequate income for the farmers.
This was not always the case. In 1990 the price crashed to 6,000 dong per kilogram, less than the then going price for fish.

``In 30 years of pepper growing I have a lot of experience,'' said Su. ``Nine or 10 years ago the price was very low and at that time a lot of farmers quit pepper and shifted to fishing.
``But since 1995 when the pepper price has risen, more and more people have started growing the crop. If we have no pepper we cannot live,'' he added. (1 US $= 13,888 dong)

Reuters - August 07, 1999.