A long time ago, raw material prices in Vietnam market had a thriving session like yesterday. After only 1 day, pepper price was suddenly increased sharply, from 7,000 – 7,500 VND / kg. Currently pepper prices are at the highest level from the beginning of 2020 to the present.
Specifically, the price of pepper in Dak Lak and Dak Nong areas was at 58,500 VND / kg. Pepper price today in Gia Lai reached 58,000 VND / kg.
The highest pepper price in Ba Ria – Vung Tau is 60,000 VND / kg; Binh Phuoc VND 59,000 / kg. In Dong Nai, the lowest pepper price is 57,000 VND / kg.
Pepper price suddenly increased sharply to 7,000-7,500 VND / kg in just one session. This is the highest increase in 1 year. Photo: I.T
Previously, the MARD report had forecast that pepper prices would recover gradually in the last 6 months when the Covid-19 epidemic was well controlled; supply – demand return to the equilibrium. At the same time, increased quality of pepper and increased labor costs will also contribute to support prices of pepper.
One of the reasons for the high price of pepper is that farmers do not want to sell. Because the price of pepper at the beginning of 2020 was too low, sometimes it was below 40,000 VND / kg, farmers accepted to “hold the goods” in the warehouse, waiting for the “golden grain” price to recover gradually.
Especially, the low price of pepper has lasted for too long (from 2018) until now, pepper farmers have not made profits or even suffered heavy losses, so many families quit pepper farming and reduced the area of pepper gardens. . Since then, the supply pressure on the market is no longer as harsh as before.
While according to the Vietnam Pepper Association, the demand for pepper imports is on an increasing trend in some countries around the world, especially from the Chinese market. This contributed to the momentum of pepper price increase in May.
Besides, during the recent low price of pepper, many speculators in the world market have stepped up buying activities, thereby positively impacting the global pepper market.
Earlier, on May 27, the pepper trading market also had a vibrant session when pepper prices in the Central Highlands simultaneously increased from 3,000 to 3,500 VND / kg. In the photo: Pepper farmers in Lam Dong were worried about low prices for about 3 years. (photo of Hoang Hanh)
According to data from the General Statistics Office on May 29, after the first 5 months of this year, the country has exported 147,000 tons of pepper worth US $ 309 million, up 0.4% in volume, down nearly 18% in price. compared to the same period last year.
Thus, the average export price in the past 5 months reached 2,102 USD / ton, equivalent to about 49,000 VND / kg.
Earlier, in April 2020, the export volume of pepper reached 36 thousand tons, worth US $ 73 million.
The five largest pepper export markets of Vietnam in the first 3 months of 2020 are the United States, India, Myanmar, Pakistan and Germany with 39.2% of the market share. It is noteworthy that from April to now, the demand for importing pepper from China has shown a strong increase. After the quarantine order was eased due to the Covid-19 epidemic, Chinese businesses began to return to buy both black and white pepper.
Due to the increasing demand for pepper imports in some countries around the world, especially from the Chinese market, it has contributed to a continuous increase in pepper price since the beginning of May.
