The Cambodian Pepper and Spice Federation was established last month by the Ministry of Trade and the Ministry of Agriculture, Forestry and Fisheries.
Global pepper production by country – 2017
Cambodian farmers who grow pepper without geographic identification (GI) continue to struggle due to low prices while next year's productivity is expected to decline, said Yin Sopha, managing director. Dar-Memot pepper agriculture development cooperation said.
According to Mr. Sopha, this year, the price of pepper without the market price is still below production cost, so the industry is not expected to expand next year.
Since the beginning of the harvest season, the price of pepper has been at US $ 2.6 / kg, below the level of profit. Lower prices are due to the general state of the global market.
Pepper prices No further increase is possible, as global supply of pepper is greater than demand – prices are unprofitable for farmers and the area under cultivation will not increase.
Sopha said that this sector will no longer be a viable investment option if prices continue to fall.
Forming a federation
According to a report from the Ministry of Agriculture, Forestry and Fisheries, as of 2016, the Kingdom of Cambodia has 5,000 hectares of pepper growing, the country's pepper exports increased from 1,050 tons in 2016 to 2,698 tons last year.
The government has formed a new federation for the Kingdom's pepper industry to strengthen markets and address challenges in this sector, as the current crop faces falling prices.
The Cambodia Pepper and Spice Federation was established last month by the Ministry of Trade and the Ministry of Agriculture, Forestry and Fisheries.
The federation will promote the value of pepper and seek new markets, especially for non-GI pepper farmers, depending on unofficial export to Thailand and Vietnam.
Song Saran, managing director of Cambodia's AMRU Rice Co Ltd, elected president of the federation, said he is seeking technical assistance to address key issues before the union operates.
We have no updates yet pepper prices. In the immediate future, we must seek technical support for the federation. We will address the main issues now and from there action will be taken.
Vorn Savory, a pepper farmer in Memot district of Tbong Khmum province, who owns a 5 hectare farm of pepper, said he still sells pepper to traders.
I have no hope pepper prices increase. Most pepper farmers here are considering selling their farms because they cannot repay the loan, he added, growing pepper is no longer a good option for farmers because there is no sustainable market.
- It is known that GI pepper currently only has Kampot and Quang Tri pepper
Read more: >> Cambodia: Negative outlook for pepper
>> Cambodia became the 6th largest producer of pepper in the world
Source Mai Vy (giacaphe.vn)
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