The export price of pepper has continuously decreased, plummeting in the past 4 years, from USD 10 / kg in 2015 to about USD 2 / kg today. Pepper prices falling to an alarming level are not only a story for Vietnam's pepper industry but also for other countries in the world.
At the opening ceremony of the 47th International Pepper Conference on November 12 in Vung Tau City, the International Pepper Association (IPC) issued a warning about the situation of pepper production and trading in the world. are facing the continuous decline in pepper prices in the past 4 years, from USD 10 / kg in 2015 to only USD 2 / kg in 2019.
In the context of global financial crisis, unusual weather fluctuations and uncontrolled pests and diseases, if the industry does not take measures to overcome this situation, this situation will be more serious.
International guests visit the booth of Vietnamese businesses at the International Pepper Conference 2019. Photo: Ngoc Minh
The 47th International Pepper Conference attracted more than 400 domestic and foreign delegates to attend in 3 days, from 12-14 November. Besides trade activities, trade promotion, exhibition booths, import-export conferences, technical conferences …
Delegates from 25 countries around the world who are members of the IPC and related partners in the world pepper and spice industry focused on improving production, processing and trade quality issues. Trade pepper, helping to raise prices.
“Consumer tastes increasingly towards high quality products and ensure food hygiene and safety standards, while production costs rise, prices fluctuate unpredictably. These factors have been destabilizing the production and business of the global pepper industry, including Vietnam, which has the largest pepper production and export in the world, and has been and will remain. continue to be hit hardest, “said IPC representative.
Mr. Pham Van Ly (Binh Phuoc) was awarded the Best Pepper Farming Association by the International Pepper Association. Photo: Ngoc Minh
Currently, the annual export volume of pepper in Vietnam is nearly 250 thousand tons, accounting for 42% of global pepper production. Currently pepper is grown mainly in the provinces of Binh Phuoc, Gia Lai, Dak Lak, Dak Nong, Ba Ria – Vung Tau, Dong Nai, Quang Tri and Phu Quoc, creating livelihoods for nearly 20,000 farmers in the Central Highlands region. and South Vietnam.
However, since 2015, domestic pepper prices have continuously decreased from about VND 200,000 / kg to about VND 40,000 / kg, causing difficulties for farmers and businesses. According to the latest update, pepper price today 12/11 in Central Highlands only reached 40,000 VND / kg.
Vietnam's Deputy Minister of Agriculture and Rural Development Le Quoc Doanh (left) discusses with foreign businesses on the sidelines of the International Pepper Association 2019. Photo: Ngoc Minh
Vietnam's Deputy Minister of Agriculture and Rural Development, Le Quoc Doanh, said that pepper prices have been declining in recent years due to excess supply.
“The sector's planning only produces 50,000 hectares, while the actual area tripled up to 150,000 hectares. Besides the climate change situation, the erratic epidemic also contributes to worsening the situation. The current solution is that businesses should link with farmers to improve the quality of pepper and enhance deep processing, clean processing, product diversification, market diversification to penetrate deeper into the chain. Global supply of pepper, ”said Doanh.
OLam Company's pepper farm in Chu Pưh district, Gia Lai. OLam is currently cooperating with 300 Vietnamese farmers to produce clean pepper
Deputy Minister Le Quoc Doanh said that since 2015, the industry has had PPPs with domestic and foreign organizations to develop pepper production and trading in chains, with production projects. Sustainable pepper, training more than 74,000 farmers to produce international certificates, contributing to improving the quality of exported pepper products.
Today's pepper price in the Central Highlands has dropped to VND 40,000 / kg, making it difficult for farmers. Artwork: I.T
“Besides, you also need to pay attention to the water source used for processing pepper, which is polluted, and enhance the traceability of the product. Vietnam has the advantage of high productivity, up to 3 tons / ha, while other countries only about 1 ton / ha. If Vietnamese pepper has good traceability, it will help improve the value of pepper, ”said Krishna Kumar Menon from Griffith Foods Group (USA).
