Continuously decreasing in recent years, pepper prices have now fallen to the same level as production costs and are likely to decrease further.
A pepper garden in Long Khanh (Dong Nai)
Pepper export prices also fell sharply, greatly affecting the export turnover of pepper and it is likely that this year it will not reach the $ 1 billion mark as in previous years.
According to Mr. Hoang Phuoc Binh, Head of the Chu Se Pepper Association (Gia Lai), earlier this week, the price of pepper in Chu Se area was only 48,000 – 49,000 VND / kg. Thus, pepper prices in Chu Se are now on par with production costs.
Information from the Ministry of Industry and Trade, said that the price of pepper has also dropped below the milestone of 50,000 VND / kg in many other localities. On August 6, pepper prices in Ea H’leo (Dak Lak), Gia Nghia (Dak Nong) and Dong Nai were all at 49,000 VND / kg; pepper price in Binh Phuoc is 50,000 VND / kg; in Ba Ria – Vung Tau is 51,000 VND / kg.
According to some information in the pepper industry, the price of black pepper has continuously decreased in recent years, due to the fact that pepper from Indonesia is much imported to Vietnam because of the lower bucket selling price. In 2017, Indonesia exported 42,700 tons of pepper, 40% of which was exported to Vietnam.
The global oversupply situation continues when Indonesia, Malaysia, Sri Lanka … have just finished the harvest or are in progress, also put pressure to reduce pepper prices on the world market, in the That includes Vietnam’s export pepper. The price of exported black pepper for grade 550g / l is currently only about $ 2,600 / ton, for grade 500 g / l, to $ 2,450 / ton. The sharp drop in the asking price of black pepper for export also affected the domestic prices of pepper.
Meanwhile, although the transaction was not active, in the pepper market, there were still buyers and sellers. Statistics of the General Department of Customs show that the export of pepper is still quite stable. From the beginning of the year to the middle of July, the amount of exported pepper was 142,348 tons, a slight increase over the same period last year (an increase of 5.38% in volume) over the same period last year.
The drop in pepper prices below 50,000 VND / kg in many key pepper growing areas is causing great concern for the whole pepper industry. Because when the 50,000 VND milestone has been lost, the risk of further decrease in pepper prices is quite possible, when the next pepper output is likely to remain plentiful due to the good season and the growing acreage of pepper.
Mr. Hoang Phuoc Binh said that in 31 years of growing pepper, he had never seen the flowers bloom like this year. If the next 1-2 months, the weather continues to be favorable, the possibility that the 2018/2019 pepper crop will hit the season is very large. In addition, although in recent years, many areas of diseased pepper have died or been transferred to other crops, many farmers continue to grow pepper (new planting in many areas is almost stopped at the end of the year. season 2017/2018 when pepper prices have fallen too much). Therefore, the total acreage of pepper trees in practice has not been reduced much. If the season is successful, the output of pepper is still too large, it is unavoidable.
Therefore, in the coming months, pepper prices are not only very unlikely to recover, but also are in danger of falling sharply. Now that pepper prices are on par with the cost, if they drop further, all pepper growers will inevitably lose money.
The sharp drop in domestic and export prices also affected the export turnover of the pepper industry. In the first 6 months of this year, the average export price of pepper only reached 3,430 USD / ton, down 39.4% over the same period in 2017. Therefore, although the amount of exported pepper increased by 5.2%, the value was down to 36.5% and only reach 452, 64 million USD. It is likely that after 4 consecutive years, the export value of pepper will always be over 1 billion USD (from 2014 to 2018), this year, the export value of pepper will again fall below the 1 billion USD mark.
According to the Son Trang (Nong NghiepVietNam)
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