While associations and industries, whether large or small, are still struggling to find a place, Vietnam’s pepper industry has dominated both supply and world market prices.
“Pepper is a special commodity that makes us all think about its existence, exports (exports) account for 50% of the world, prices for 3 consecutive years dominate international prices and rise sharply. . Pepper farmers don’t need to borrow money,” said Do Ha Nam, chairman of the Vietnam Pepper Association, generalizing the overall picture of one of the first industries in Vietnam that dominates world prices and supply.
Farmers “regulate” prices
Black pepper price in Chu Se, Gia Lai is currently at 120,000 VND/kg; In Lam Dong, traders also come to the garden to buy black pepper at the price of 120,000 VND/kg. According to Mr. Ho Dinh Huan, Chairman of Chu Se Pepper Association, in this district, there are many large producing households with high output and storage conditions that are selling in moderation. Meanwhile, the Vietnam Pepper Association said that because India’s pepper output this year decreased, so pepper processing and distribution businesses around the world focused on buying in Vietnam, causing pepper prices to increase sharply. In Indonesia, the world’s second largest pepper exporter after Vietnam, it is forecast that the export volume will decrease sharply this year, to only about 23,000 tons, down nearly 48% compared to 2010.
This is a favorable condition for this crop of Vietnamese pepper, because according to the forecast of the Vietnam Pepper Association, the country’s pepper output in the 2011 crop is estimated at 100,000 – 110,000 tons. Therefore, the more hoarding, the more farmers benefit. In many gardens, when the pepper is ripe, the trees are red, and when harvested, spread the canvas under the pepper tree, so the yield is not reduced but the quality is very good.
The current price of pepper has increased by about 30,000 VND/kg compared to the end of March and is the highest level since 15 years. Mr. Nam said: “If 10 years ago, Vietnam did not have a voice in the World Pepper Conference, now if we do not attend, the World Pepper Conference is considered to be of no value, the whole world will I don’t know which direction the market will go, how the price will move.”
Hard to be pressured
Pepper farmers are currently considered the richest compared to other agricultural products. According to Mr. Do Ha Nam, pepper farmers in the morning have pagers everywhere, telling them how much is the world price of pepper, how much is it increasing, they know right away how much the world price is, how much they will sell to businesses, so don’t expect that businesses can force farmers to sell, or expect farmers to sell. They only gradually sell enough to cover the investment costs of the beginning of the crop. They will stop hoarding and wait for the price.
What’s more special is that, not only can’t price farmers, pepper exporters who want to make a profit must be active in finding a way to sell at the root, but cannot sell through the world’s big spice traders. Foreign businesses also cannot jump in to buy coffee like today.
At Chu Se, Mr. Huan said that he wanted to update world pepper prices, domestic pepper prices, how to care for and fertilize with the right techniques and seasons, etc. farmers can text or call at any hour. Even at midnight the rooster crowed. This automatic information answering switchboard is invested and maintained by the Chu Se Pepper Association since about 2006, from the funding that is contributed from 700-800 members, each member only needs to contribute… 1kg. pepper.
According to Mr. Huan, in the past, there was also a situation when the harvest season was in full swing, people pushed to sell, causing the price to drop dramatically. But in recent years, due to understanding the situation of supply – demand, price, some giants of pepper – who harvest from 5-10 tons of pepper/crop or more, only sell a small amount of pepper in the autumn season. plan to cover costs, the rest they keep in stock and closely monitor market price movements to decide when to sell is the most profitable, so most of the households that store pepper won big. It is no longer a strange thing for Chu Se farmers to access the internet to get information about pepper prices.
According to the Vietnamese land
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