At the conference on summarizing the crop year 2018-2019, organized by Vietnam Pepper Association (VPA) on May 10 in Ho Chi Minh City, Mr. Nguyen Nam Hai, Chairman of VPA, said that from 2015 to present supply of pepper in the world increased from 8% -10%, while demand increased by only 2%, leading to supply exceeding demand, prices plummeted without braking.
Previously, the price of domestic pepper was up to 250,000 VND / kg, now it drops to only 41,000 VND / kg. This has caused pepper growers to fall into a price crisis, only those who grow pepper self-harvest a little profit, while hiring harvesting workers as losses.
According to the International Pepper Association, in 2019, world pepper production will continue to increase, is expected to reach 602,000 tons, up 8.27%, of which Brazil increases 28%, Cambodia increases 17%. Particularly in Vietnam, it is forecasted that the output will reach 240,000 tons, an increase of about 9% because the new planted area from 2014-2016 starts to harvest so the price is still likely to go down.
The solution to this situation is that according to the pepper businesses, there is no other way to link with each other, and at the same time link with farmers to create clean pepper production areas, even to produce organic to export. Export with high prices.
In addition, businesses need to improve processing capacity, associated with market development; organize safe and sustainable pepper production; enhance quality control, input materials. Strictly control the process of processing and preserving; renovating production technology, raising the percentage of white pepper for export to 30% -40%, diversifying products (organic pepper, red pepper, ground pepper, pepper plastic) …
