(05/07 – Giacaphe.vn) The rapidly growing pepper growing area in Cambodia at the same time with the increase in world prices has raised concerns that a sharp increase in pepper production across the United Kingdom could cause the market. fall in crop prices next and push the industry to collapse.
Hean Vanhan, Deputy Minister of Agriculture, said large-scale pepper cultivation in recent years, encouraged by rising prices, has helped boost Cambodia's pepper production. He said total pepper production has doubled last year and has increased 8 times since 2013, affecting the global supply due to the same increase in production in seed producing countries. Other big spend.
“According to our data, pepper production has increased significantly, but now the major concern of farmers is that the market has stagnated,” he said yesterday.
Ministry data shows total pepper production has increased to 20,054 tons this year, compared with 11,819 tons in 2016 and only 2,498 tons in 2013. Currently more than 5,000 hectares of pepper were planted compared to only 400 hectares in 2016. in 2013.
Pepper production is mostly in Tbong Khmum province with nearly 15,000 tons last year. While Ratanakiri and Kratie provinces each contribute about 1,200 tons.
The world price of pepper has tripled between 2009 and 2015, encouraging new investments in pepper cultivation and thus the area of pepper cultivation has grown rapidly. However, prices have plummeted as Vietnam, the world's leading producer and exporter, continues to strengthen its pepper production capacity.
The country accounts for about a third of global pepper production, and is expected to increase production to more than 200,000 tons this year, from 175,000 tons last year.
Mr. Vanhan also said that increasing supply and falling prices have pushed the industry to a difficult time.
Black pepper prices in Cambodia, excluding Kampot pepper, have fallen by about 60% since their peak in 2014. “Costs and markets have become important issues that require immediate improvement,” he said. talk. “Otherwise, the industry may not be irreversible.”
According to Vanhan, the government and related organizations should make concerted efforts to protect and promote Cambodia's pepper industry in the international market, as domestic farmers rely heavily on Vietnamese brokers to buy. His pepper sold to international visitors.
Var Rothsan, an expert with the Ministry of Commerce, said the oversupply has put downward pressure on pepper prices, while brokers bought from local farmers for just $ 3 per kilogram, lower than production costs. export.
He said the ministry was aware of the challenges facing Cambodian pepper farmers and was looking for solutions.
“We know this problem and we are trying to give farmers the opportunity to find their own market, while reducing production costs.
Rothsan added that the ministry is also making efforts to build a new collective brand for Cambodian pepper in order to increase pepper consumption in international markets, a move to help farmers access these markets and reduce reliance on Vietnamese brokers.
“We need time to build consumer confidence through a collective brand, to ensure the quality and food safety of our pepper,” he said. will take 2 more years.
Yin Sopha, executive director of Memot Dar Pepper Agricultural Development Cooperative, said local black pepper prices had dropped to US $ 3.5 / g, well below the 2014 peak of US $ 10.5 / kg. He stressed that this decline has brought pepper growers into debt.
“Prices have dropped significantly this year and most farmers are unable to pay interest on bank loans,” he said.
English (follow The Phnom Penh Post)
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