In the first week of August 2017, the domestic price of pepper increased slightly because some markets boosted the import of pepper from Vietnam, especially skull pepper (white pepper) while the amount of HT from Indonesia hit the market last year. This year, it is lower than the previous year and the US market has increased buying from Indonesia more than the same period last year.
However, at present, the price is tending to slow down because people have started to sell a lot and export enterprises have limited exports due to abnormal fluctuations in price over time along with obstacles in quarantine procedures, causing export goods to become unstable. not as favorable as in the past months.
The recent information on VPA’s internal website about some foreign traders’ price-raising behavior is warning information, shared among VPA members to help each other reduce risks in business. business, avoiding the spread of the incident will strongly affect the domestic pepper market.
This phenomenon is likely to continue because these traders (both foreign and Vietnamese) are still located in more HT growing areas than in previous years due to the fact that HT has made good profits over the past years. People have speculated, bought strongly at harvest time (March-April 2017) to hope to sell at a higher price at the end of the year to make a profit, but because this year’s market price is continuously falling, they are afraid and always find ways. to push the goods out with the expectation that the price will be higher than at the time of purchase so that there is no loss and possible profit.
HT enterprises (including export enterprises and domestic purchasing enterprises) therefore need to be more cautious and vigilant in trading transactions, not only with Chinese traders but also with other entities when they have similar behaviors.
Exporters need to closely monitor world market price signals, focus on keeping traditional markets, diversify markets, focus on official export methods, and avoid dealing with markets that have already been established. There are many high-risk lessons. The large domestic HT purchasing agents are also very careful, restricting transactions with small households or agents who just supply them with unknown background, less reliable even though they offer good prices.
The Vietnam Pepper Association will also always stand by businesses, providing timely warning information to avoid risks that may spread.
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