“This is the most difficult period of Vietnam pepper,” Vietnam Pepper Association Chairman Nguyen Nam Hai opened the story of a new category last year that was on the “billion USD” export list.
By the end of 2018, pepper officially lost the billion dollar export milestone. According to data from the Import-Export Department – Ministry of Industry and Trade, Vietnam's pepper export volume increased by 8% in volume, but could not offset the price decrease of 37.3% compared to the previous year.
Rushing to grow because of the high price, Vietnamese farmers now “tear eyes” for pepper
Currently, the price of pepper in the world is about 43,000 VND / kg, while the production cost of Vietnamese farmers is around 50,000 VND / kg, Mr. Hai said.
The main reason is the overheating in pepper area in recent years.
When the price of pepper reached its peak, a pepper fever spread throughout the province when the revenue generated per hectare was 5.2 times higher than coffee, 5.6 times higher than rubber and 8 times higher than tea.
World pepper prices peaked at US $ 10,000 per tonne in 2014. At that attractive price, farmers from other countries rushed to plant pepper, and it seems that Vietnam is the most enthusiastic producer.
An article of Tuoi Tre in 2014 mentioned the “pepper fever” in Gia Lai, when the area of pepper in the whole province at that time was over 10,000 hectares, while the plan for 2020 was only 6,000 hectares. .
Pepper has caused a fever throughout the province when the revenue generated per hectare is 5.2 times higher than coffee, 5.6 times higher than rubber and 8 times higher than tea.
According to Mr. Hai's data, in 2013, Brazil had a pepper output of 35,000 tons, by 2018 it reached 85,000 tons.
In 2013, Cambodia achieved an output of 5,000 tons, 2018 also increased to 32,000 tons.
In Vietnam, in 2013, the output of pepper was more than 134,000 tons, so far the output is still around 250,000 tons.
In 2013, the whole country had only 52,000 ha of pepper cultivation, by 2019 it was 152,000 ha, meaning after only 5 years, the scale of pepper cultivation has tripled.
The industry's suffering nearly twenty years of “hegemony” the world about export
“If we talk about the amount of pepper exported, the whole world exported 388,000 tons in 2018, then Vietnam exported 245,000 tons, accounting for about 60% of the world's pepper exports,” said the President of the Vietnam Pepper Association. Nam shared.
After peaking at USD 10,000 / tonne in 2014, world pepper prices began to plummet. Until now, the price of pepper at 2,000 USD / ton, about 2USD or about 43,000 VND / kg, which is approximately 5 times lower.
The story of Vietnam's pepper industry made the Minister of Agriculture and Rural Development Nguyen Xuan Cuong exclaim: “The theme of today's event fits the pepper industry best. This is a typical example of the production.” do not “merge” with consumption “.
Accounting for 60% of the world export, in 5 years the production doubled a spice, which, in essence, was not suitable for high consumption.
In an interview on the sidelines, Minister Cuong said that Vietnam's agriculture currently faces three major challenges in 2019: Reorganizing production with 8.6 million small households into a collective agriculture. centered on managed goods; Organize agricultural production to adapt to climate change; and Deep integration in the face of fierce competition from global economies.
“Since 2008, when the global economic crisis occurred, countries have tended to focus on prioritizing investment in the agricultural sector, considering this as an area not only to ensure wage security. joint practice, but also a top priority for most countries “.
“Therefore, when Vietnam wants to join the global agricultural chain, it must be under very fierce competition pressure in the early period,” Minister Cuong said.
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