Vietnam’s pepper output accounts for more than 50% of the world market share, but the value brought is not high compared to pepper exports from India, Brazil… and the brand is getting worse and worse!
The negligent way of many businesses and traders is causing discredit of the Vietnamese pepper brand and even farmers (illustration).
The price gap is getting farther and farther
In the 2013 crop year, Vietnam’s pepper output is estimated at 90,000-95,000 tons, down 21% compared to the 2012 crop (102,025 tons), export output is estimated at 90,000-95,000 tons. The reason for the decrease in pepper production, as explained by the Vietnam Pepper Association (VPA), is due to unfavorable weather, along with pests and diseases, especially because many pepper gardens exploited for more than 10 years are old. stunted and low yield.
It is worth mentioning that besides the lower output compared to 2012, the export price of Vietnam’s pepper in the first quarter of 2013 is even further away from the market price. Data from the General Department of Customs shows that, in the first 3 months of 2013, Vietnam exported 38,374 tons (up from 23.5% compared to the same period in 2012), bringing a turnover of 254.1 million USD. However, the export price of this commodity is increasingly far away from the world price. Specifically, the export price of Vietnamese black pepper in February was 498 USD/ton lower than the world price; white pepper price lower than 503 USD/ton.
Explaining the fact that Vietnam’s pepper price is much lower than the world price, Mr. Do Ha Nam – President of VPA said: “The reason for exporting pepper to countries like India and Brazil is because they produce high quality pepper. According to ASTA standards (sterilization according to international food safety and hygiene standards), Vietnam still mainly uses steam, so it only produces clean pepper products. The price of clean pepper is about 200-300 USD/ton lower than the ASTA standard. According to Mr. Nam, thanks to advanced processing technology, the above countries have bought raw goods from Vietnam for processing and then sold to the market at high prices.
Meanwhile, from another angle, Mr. Hoang Phuoc Binh – Vice Chairman of Chu Se Pepper Association (Gia Lai) said: “Because of the psychological factor in 2012, many farmers and businesses stocked pepper. At the beginning of the season, selling at the end of the crop was not as effective as in 2011, so by the beginning of the 2013 crop year, both people and businesses had massively sold out, leading to price pressure. Up to now, the price has dropped sharply from 5,000-10,000 VND/kg compared to the beginning of the January crop year.
According to Mr. Binh, in order to prevent losses when prices fluctuate, businesses need to calculate carefully before signing large contracts, especially long-term contracts because the price may continue to increase in the near future. next.
The danger from… pepper mixed with soil
The current situation of fraudulent business is causing the pepper industry to face many risks in international trade. According to Mr. Binh, many businesses are buying to mix land to make export goods. This will be a big barrier in trade if foreign partners find out. Specifically, Mr. Binh explained the process of “mixing the soil” as follows: “Many farmers dry pepper too dry (only about 10 humidity – PV), while the standard for moisture content of pepper products purchased by businesses is When it is 13-15 degrees, farmers will use fresh pepper and cover the surrounding soil to mix it with too dry pepper so that it is just enough to sell”.
Not only “mixing the soil”, the mixing of leaves and pepper stalks is also utilized by many farmers and businesses.
Mr. Nguyen Ba Thinh – typical farmer of Binh Phuoc province pressed: “Many businesses and traders come to our place of production to collect goods, then we see these units mix dry leaves, pepper stalks, or bad pepper products… in for sale. It is suggested that VPA must strictly control this issue, otherwise it will both affect the Vietnamese pepper industry and push the responsibility for poor quality production to pepper farmers.
Mr. Do Ha Nam said: “In the Central Highlands provinces, the soil has a high metal content, so when it is mixed with pepper for export, many foreign partners will easily detect it and thereby return the goods or press the price. Brands of Vietnamese pepper products are also greatly affected.”
Follow Quoc Hai (Dan Viet newspaper)
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