In just about 20 days, pepper prices continuously fluctuated, sometimes skyrocketing to 80,000 VND/kg, then fluctuated around 73-75,000 VND/kg. Around this issue, the reporter of Gia Lai Newspaper had an exchange with Mr. Hoang Phuoc Binh – Standing Vice Chairman cum General Secretary of Chu Se Pepper Association.
People in Chu Puh district harvest pepper. Photo: Highlands
* Reporter: Pepper prices are constantly fluctuating, is it unusual, sir?
– Mr. HOANG PHUC BINH: According to the language of the market, pepper prices in the past few days are entering a “shake” cycle (ie, fluctuate up and down continuously). The price increase is very welcome, but the rapid and sudden increase has caused a lot of turmoil. Through understanding the situation, it was found that most farmers kept their goods and did not sell them. Agents collect goods to sell mainly to speculators, not to exporters. Therefore, exporters cannot purchase goods to meet immediate export contracts or repay previously signed contracts.
The lack of output is the reason for the high price of pepper. Thus, it can be seen that the price of pepper fluctuates from the supply-demand relationship, adjusted by the market, not by a “hand” as the price. If in 2020, Vietnam’s pepper output is 240,000 tons, this crop year is estimated to produce less than 150,000 tons. The production cost of pepper is in the range of 65-70 thousand VND/kg, but at the current selling price, the grower will have a little profit.
* Reporter: Why is the output expected to drop so sharply this year, sir?
– Mr. HOANG PHUC BINH: Recently, I directly surveyed 6 key pepper growing regions of our country: Ba Ria-Vung Tau, Dong Nai, Binh Phuoc, Dak Nong, Dak Lak and Gia Lai. With more than 30 years of experience in directly growing pepper, and then working for the Pepper Association for ten years, I can confirm this. Previously, some comments said that pepper production this year was expected to reach 220,000 tons. If so, it can be said that it is a “trick” of the business. People mean such high output to keep prices low, not to raise prices to buy goods at low prices, in order to have higher profits.
In the early years of high prices, people started planting. When the year of the peak price came, they rushed to plant more. Obviously, the massive planting of pepper has led to overproduction, when prices fell. At present, output has decreased, and prices have increased. For example: In the period 2001-2006, pepper prices went down. Then, from the bottom of 2006, pepper prices started to go up continuously until 2015 reached the highest peak. Since 2016, the price at this peak started to go down again.
Because when the price of pepper fell too low, it sometimes hit the bottom of 35,000 VND/kg, while the production cost at that time was about 45,000 VND/kg, so the more investment he lost, the more he lost. Therefore, people neglect their pepper gardens, do not take care or invest in care, only in moderation, along with the influence of the weather, which makes the yield unsatisfactory.
* Reporter: The price of pepper is increasing and is expected to increase, maybe people will expand the area again. So, what do you recommend?
– Mr. HOANG PHUC BINH: This could be the beginning of a bull cycle. Currently, pepper prices are having a “shake” but the future depends on market movements. However, I also advise people to be cautious when replanting pepper trees. In the past, farmers did not cultivate properly, the residue of pesticides and nutrients in the soil was still high, difficult to eliminate, and fungal diseases remained in the soil. Therefore, in order to sustainably develop pepper plants, farmers need to ensure two basic conditions: knowledge about pepper cultivation and investment ability.
Firstly, pepper growers must absolutely not replant on dead pepper gardens; must choose suitable soil to avoid the high clay ratio leading to water retention, susceptible to fungal diseases; must choose good varieties; avoid planting concrete and wooden pillars, need to be planted on live pillars; must keep the grass smooth in the dry season and drain the water in the rainy season. In particular, it is necessary to intercrop with other plants to reduce pest pressure; application of economical irrigation technology; grow organically in order to avoid the abuse of fertilizers and chemical drugs… Secondly, it is necessary to consider investing in planting according to their financial ability, should not follow the market, seeing the price go up, then massively plant, the price goes down. then quit.
* Reporter: Thank you Sir!
According to the Vu Thao (Gia Lai Newspaper)
