ok, well that is the transmission breather pipe, so if its coming out there and the bike is battling to run, you have probably got busted crank seals, and you crankcase compression is blowing passed into your tranny and displacing oil out of the gearbox. the oil seal on the right hand side of the motor (kicker side) will be the problem here. the seeal sits behind the clutch boss and primary drive gear, but id suggest changing both left and right. the left hand side one is behind the magneto which is behind a plastic cover, whip the cover off and check if there is oil around there, if there is that one is shot too.
if the bike is running fine then its probably too much oil in the transmission.
if the bike is cutting out, does it burn white smoke and smell different? if so its definately your crank seals