According to agents and traders in the Southeastern pepper growing regions, the slight increase in pepper prices was due to the demand for export goods, not the tight supply problem.
Pepper exports of Ea Ktur Coffee One Member Limited Company
Yesterday, Thursday, October 18, prices of black pepper in raw material areas continued to increase by 1,000 VND / kg. Specifically, the price of black pepper in the Ba Ria – Vung Tau market increased to 57,000 VND / kg, the remaining raw material areas in the Southeast and the Central Highlands ranged from 54,000 to 55,000 VND / kg.
According to exporting traders, the amount of pepper exported to meet winter demand is not small. But in the past, European traders often gathered strongly goods from Vietnam right after the harvest season, so the export volume at the end of the year tended to decrease gradually. Combined with that the negative interest rate of the Euro has encouraged European speculation as much as possible to gather pepper. Only when pepper prices become expensive, consumer markets have to consider their budget and look to the origin to buy directly, so pepper prices usually skyrocket until winter.
The domestic market of Vietnam has also recorded a strong increase in domestic black pepper prices right after the Muslim holy month of Ranadan, which is also the time when pepper speculators in Dubai gather.
However, the recent tendency of supply to exceed demand has caused pepper prices to plummet in most markets, especially when Vietnam’s pepper output exceeded 200,000 tons / year. When pepper prices increase, not only Vietnam but also farmers in many other countries in the world also expand their pepper growing areas because they have more advantages in terms of land, production conditions, investment capital … Brazil, believed to be a new force in the pepper market, has the potential to rise to be the world’s second-largest pepper producer.
Another problem is that Brazilian traders often sell goods in an organized manner, unlike the Vietnamese market where they buy to where to sell and the inventory of pepper is not abundant. According to an export trader in Espírito Santos, a state that thrives on pepper growing areas and is very likely to rise to the top of Brazil, said they often sign purchase contracts right before the new harvest season for farmers. peace of mind to stabilize production, calculate investment costs for the whole upcoming crop. Besides, Brazilian pepper farmers often sell through their brokers. This trader did not hesitate to disclose the usual asking price “soft” than Vietnamese prices due to more favorable conditions.
It is known that the traditional pepper-growing state of Paraná in southern Brazil is currently harvesting a new crop and immediately followed by the state of Espírito Santos, with some regions at the same time of harvest in Vietnam and Cambodia.
According to world pepper market information, pepper prices increased last week in Vietnam, Indonesia and Sri Lanka but decreased in India, while other countries were relatively stable. Specifically, prices of Vietnamese black pepper for grades 500 and 550 Gr / l increased by 45-50 USD / ton and white pepper increased by 40 USD / ton, while in Lampung Indonesia, prices rose by 150 USD / ton, while Indian Kochi pepper prices decreased. 200 USD / ton, compared with the previous week.
According to agents and traders in the Southeastern pepper growing regions, the slight increase in pepper prices was due to the demand for export goods, not the tight supply problem.
Market observers said that the source of black pepper imported from Indonesia is currently not feasible, as the local price of black pepper has increased by 150 USD / ton. While import of black pepper from Brazil has slowed down due to the accumulation of goods at export ports.
According to the English (Young Intellectual / CafeF)
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