Lowest price in 5 years
According to the Ministry of Agriculture and Rural Development, pepper export in March is estimated at 24 thousand tons with a value of 88 million USD, bringing the export volume of pepper in the first 3 months is estimated at 54 thousand tons and 203 million USD, up 5.5% in volume. but decreased by 37.3% in value over the same period in 2017. Notably, the average export price of pepper in the first two months of the year was only US $ 3,822 / ton, down to 44.7% over the same period in 2017. The largest export markets of Vietnam in the first 2 months were the United States, India, Pakistan and the United Arab Emirates with 43.5% market share.
Similar to exports, pepper prices in the domestic market also recorded a significant decrease. In the first quarter of the year, pepper prices tended to decrease with a decrease of 17,000-19,000 VND / kg compared to the end of 2017. Currently, the price of pepper in Dak Lak – Dak Nong, Gia Lai is 53,000 VND / kg. Pepper prices in Ba Ria Vung Tau and Dong Nai are 54,000 VND / kg. Compared to the same period last year, the above price is only half and one-fourth the price in mid-2016. In a broader range, these are the lowest prices in the last 5 years. Regarding the cause, the Ministry of Agriculture and Rural Development stated: The price of pepper decreased due to the abundant supply while the demand was weak. Besides, there is the pressure of supply from neighboring Cambodia, which is developing a large area of pepper cultivation.
Further analysis on the “picture” of pepper industry development in recent years, Mr. Le Van Duc, Deputy Director of the Department of Crop Production (MARD) said: Due to the effects of drought and disease, the area of the lake The world's pepper has plummeted. According to the Food and Agriculture Organization of the United Nations (FAO), between 2006 and 2013, the world pepper area decreased by about 158 thousand hectares. In particular, India decreased by 131.3 thousand hectares; Indonesia decreased by 24.6 thousand hectares and Brazil decreased by 7.4 thousand hectares … The decline of this area led to a shortage of supply, pushing up the price of export pepper. By 2015, Vietnam's pepper purchasing price was about VND 200,000 / kg. It is this high price factor that makes producers in some areas expand pepper acreage, including intercropping areas in coffee and some other crops.
By the end of 2017, the country's pepper area has reached about 152 thousand hectares, the yield reached 25.7 quintals / ha, the output reached 243 thousand tons, accounting for about 58% of the world's pepper market share. The “hot” increase of pepper cultivation area despite planning, even the willingness to destroy the area of other crops to grow pepper is seen as a key reason that the pepper industry gradually tasted “bitter fruits”.
Need to be more drastic
In response to the Customs Newspaper reporter's question about the “hot” development pepper and constantly devaluing as the last time, MARD has been and will have any solutions to overcome, according to Le Van. Germany: Since the beginning of January 2016, MARD has issued Directive No. 132 / CT-BNN-TT on the development of sustainable pepper production. In particular, the Ministry of Agriculture and Rural Development requires localities to review the entire area of pepper in the area, evaluate the implementation of the planning and development of local pepper, clarify the achieved and shortcomings of the regulations. planning and management, proposing practical and timely management solutions for sustainable pepper development. In 2017, the Ministry of Agriculture and Rural Development also issued Official Letter No. 5429 / BNN-TT requesting the provincial People's Committees to focus on the direction, propaganda, training, inspection and measures to manage and develop pepper outside the region. the most planning is the pure planting areas, seriously ill; at the same time timely information on the situation of production, consumption and price forecasts for farmers to regulate production plans, not overheating pepper in the area.
In addition to what has been done, about the upcoming solution, Mr. Duc emphasized: “In order to gradually manage the scale of pepper area, MARD requires localities to review the entire area of pepper, propaganda, encourage farmers not to increase the area for new planting; stop replanting cultivation for old, severely infected areas; identify appropriate crops to guide farmers to switch to other crops more effectively; replace part of pure pepper growing area by intercropping pepper with coffee and perennial fruit trees in the area, reducing density of intercropping pepper in coffee gardens ”. Also according to Mr. Duc, the Ministry of Agriculture and Rural Development also directed the localities to support the development of a model of linking pepper production chains, building a code of planting areas, certified production, forming a production link between farmers and groups. cooperation and cooperatives with processing enterprises, exporting pepper for sustainable development.
An objective view of the story of how to solve difficulties, even “rescuing” the pepper industry from the “whirlwind” of discounts, towards sustainable development, many experts stated the viewpoint: Where entanglement is removed in there. Pepper growing area increased massively, the first error belongs to the farmers when seeking immediate benefits, unable to calculate the long-term fluctuations of market supply and demand. However, the state management agency, despite having built a plan, carried out propaganda and mobilized people, but could not stand out, said that it had “fulfilled its role”. The overall solutions as well as detailed outlines need to be done more drastically and drastically in order to really bring about efficiency, real changes, especially in the evaluation of market supply and demand, promotion. regularly reporting to localities and people as well as supporting the building of models of linking pepper production chains …
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