1. World problems
  2. Instability of pepper trade

Instability of pepper trade

Nature

Since the mid-1950s, pepper has shown the highest degree of annual fluctuation in price of any primary commodity. This instability has reflected considerable short-term fluctuation in production owing to changes in weather conditions and incidence of plant diseases, as well as short-term speculative transactions. An additional factor for price instability is that, as a result of a relatively long gestation period, increases in production resulting from earlier periods of higher prices result in price declines which, in turn, eventually lead to reduced output. These cyclical movements in production often have drastic repercussions on prices.

Incidence

The relative importance of pepper in world trade is small, the total value amounting to about $60 million each year. However, in the three principal exporting countries, pepper constitutes a major source of cash income for a large part of the population in particular localities.

Broader

Value

Stability
Yet to rate
Instability
Yet to rate

SDG

Sustainable Development Goal #2: Zero HungerSustainable Development Goal #17: Partnerships to achieve the Goal

Metadata

Database
World problems
Type
(E) Emanations of other problems
Biological classification
N/A
Subject
  • Commerce » Trade
  • Societal problems » Instability
  • Content quality
    Presentable
     Presentable
    Language
    English
    1A4N
    E3000
    DOCID
    11530000
    D7NID
    142591
    Last update
    Oct 4, 2020