Pepper exports are booming in Vietnam, up $50 million from the previous year.

The website, BaoMoi, reports that Vietnam is the largest pepper exporter in the world. There are around 60,000 hectares under pepper cultivation throughout the country.

While growth in Vietnam’s pepper industry has improved the incomes of thousands of farmers, there are still many challenges.

High prices have caused farmers to rush into planting trees which has made it difficult to control diseases. Pepper yield have fallen each year due to the impact of disease and unfavorable weather. The high use of fertilizers is also threatening sustainable development of the sector.

Vietnamese pepper is mostly exported raw at low prices and there is interest in investing in technologies to diversity products and improve quality.

The demand for pepper is higher than the supply, keeping prices high in local and foreign markets. In 2013, Vietnam is expected to export 130,000 tonnes of pepper worth US$850 million.

Read the full story: Pepper exports explode above US$850m on continued demand