According to preliminary statistics of the General Department of Customs, pepper exports in August 2018 were estimated at 20 thousand tons, worth US $ 58 million, bringing the export of pepper in the first 8 months of 2018 was estimated at 173 thousand tons, with 577 million USD, up 13.07% in volume and 11.29% in value over the same period. However, the average export price of pepper in the first 7 months reached $ 3,379 / ton, down nearly 40% over the same period in 2017.
Global pepper demand ranges from 300,000 – 350,000 tons / year. Vietnam can supply around 200,000 tons / year, accounting for about 62% – 65% of total world pepper output.
Not exploited the advantages
Due to pressure from the supply, pepper prices in the world market plummeted affecting the domestic market price. Pepper prices have fallen from VND 200,000 / kg at the beginning of last year to around VND 70,000 / kg at the end of the year. This decline continued from the beginning of 2018 and the price of pepper is fluctuating from 47,000 to 49,000 VND / kg.
In July, the export price of black and white pepper at Saigon Port continued to fall, making the average export price of pepper in the first 7 months of 2018 was estimated at $ 3,379 / ton, 51 USD / ton lower than Average export price in the first 6 months of 2018 and decreased by 61.5% over the same period in 2017.
Although over the weekend in Ba Ria – Vung Tau, the price of pepper increased to 1,000 VND / kg to 49,000 VND / kg, and one day earlier in Gia Lai (Chu Se), the price of pepper also increased slightly by VND 500, surpassing the VND 47,000 mark. / kg. In Dak Nong, Binh Phuoc and Dong Nai stood at 48,000 VND / kg, which is about to hit production costs and cause difficulties for farmers.
The International Pepper Association (IPC) forecasts that from now to the end of the year, the price of pepper will not change much due to the increase in world market demand. The Department of Processing and Market Development of Agricultural Products also recommends that export enterprises (enterprises) should proactively exploit the advantage that the country is holding a large supply and needs a business problem. good to be able to raise export pepper prices.
According to the Department of Crop Production, from 2010 to the present, the domestic pepper area has increased very fast. In 2010, the whole country planted only 51.5 thousand hectares; in 2014, it was 85,591 thousand hectares; by the end of 2017, it was 152,668 thousand hectares, up 196.3% compared to 2010 and surpassing the planning by over 100,000 hectares.
Meanwhile, according to the pepper industry development plan of the Ministry of Agriculture and Rural Development until 2020 with a vision to 2030, the pepper growing area of the whole country is only 50,000 hectares, the area for products is 47,000 hectares. , so the current area of pepper is 3 times higher than the original plan. It is expected that in 2018, pepper output will reach 230,000 tons, up from an estimated 210,000 tons in 2017 (175,000 tons in 2016).
Follow the quality path
The increase in Vietnam's pepper area has contributed significantly to the increase in the world pepper area. In 2010, the world planted 443,881 hectares; by 2015, it will be 518,823 hectares, an increase of approximately 75 thousand hectares compared to 2010, focusing mainly in Vietnam.
This is the reason why pepper prices have plummeted for more than a year, after setting a record price of up to 220 million VND / ton. With this peak price, farmers profit 5 times higher than the production cost, so everyone is excited to expand the area.
According to the Minister of Agriculture and Rural Development Nguyen Xuan Cuong, in recent years, the area of pepper has increased too quickly to control, posing big problems if not solved in time, not only causing a decline. logistics but also the risk of disrupting the industry.
The fact that an industry has an export value of more than US $ 1 billion but so far no seedlings have been recognized as unacceptable. Or the absence of a standard farming process is also one of the important causes leading to the disease situation in many pepper growing areas … Therefore, from now on, the pepper trees should not follow the vegetarian route according to the number quality but quality.
“It is necessary to focus on restructuring the pepper industry immediately. First, the pepper area is not increased but must be resolutely reduced. Accordingly, focusing on reducing in inappropriate places, not planting new areas. The Ministry of Agriculture and Rural Development has to focus on doing pepper work right away, selecting good varieties to recognize and at the same time finding standard cultivation procedures for each sub-region. eco ', emphasized Mr. Cuong.
According to experts, in 2018, although the pepper productivity in some major producing countries, including Vietnam, may decrease, but due to the increase in acreage for harvesting, the total global supply will still be higher than in 2017 and higher than demand.
This makes world prices tend not to increase, profits from pepper are not as good as in previous years, and Vietnam's pepper exports will be difficult due to technical barriers from importing countries. Up to 95% of Vietnam's pepper production is used for export, so quality is the way that the pepper industry must go.
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