Vietnam’s bucket black pepper price is still slightly higher than Indonesian pepper price and this has encouraged a considerable amount of new season pepper from Indonesia to be imported to Vietnam.
Read more: >> Indonesia – Vietnam “shake hands” to stabilize the pepper market
>> Domestic pepper prices continue to fall because of imported pepper
Indonesian farmers are harvesting a new pepper crop (photo: Anh Van)
Today Thursday 2/8, the price of black pepper in buckets in domestic raw material areas was adjusted down by 1,000 VND/kg. Specifically, the price of black pepper in Ba Ria – Vung Tau stands at 52,000 VND/kg, in the remaining localities, the price ranges from 50,000 to 51,000 VND/kg. In general, the price of black pepper in buckets has decreased by 3,000 VND/kg, or by 5.45% compared to the first day of July 2018.
The reason for the decline in pepper prices was attributed to the decrease in export asking prices. According to the data of the pepper industry, within the past 1 month, the export price of Vietnamese black pepper of 550 G/l grade has decreased by 150 USD to stand at 2,600 USD/ton and the export price of 500 G/l black pepper has also decreased. decreased by 150 USD to stand at 2,450 USD/ton (FOB – HCM).
Meanwhile, the export price of ASTA black pepper for Indonesia also decreased by 150 USD to stand at 3,000 USD/ton (FOB – Lampung) and the FAQ black pepper price stood at 2,415 – 2,420 USD/ton (FOB).
According to traders, the price of black pepper in Vietnam’s bucket is still slightly higher than the price of black pepper in Indonesia’s bucket, and this has encouraged a significant amount of Indonesian new-season pepper to be imported to Vietnam.
According to the weekly report of the International Pepper Community (IPC), in 2017 Indonesia exported a total of 42,700 tons of pepper of all kinds and accounted for 40% of that, or nearly 16,500 tons of pepper exported to Vietnam. .
Also according to IPC, this year’s pepper crop has been harvested for nearly a month in Indonesia and Malaysia while it is almost completed in Sri Lanka, with production forecast not as positive as last year’s crop. The reason for the decrease in output was due to a sharp drop in world pepper prices, which caused farmers in many pepper growing countries not to take care of them. There have even been commercial reports that some pepper cultivation areas have been converted to other crops. In Indonesia alone, pepper farmers in Bangka and Belitung let grass cover the entire orchard without caring, even harvesting. If the price of pepper drops for a long time, the output will certainly decrease significantly and the people here will no longer be interested in this pungent flavored bean.
Market sources said a significant volume of new-season pepper from Indonesia will be imported to Vietnam during this time. However, observers said that it cannot be ruled out that including the previous season’s pepper being speculated on the spot according to the high-level meeting between the two countries. “Vietnam – Indonesia shake hands to stabilize the pepper market” in August last year.
Meanwhile, Brazil will harvest this year’s pepper crop around September – October, following the harvest of Indonesia and Malaysia. For the past several months, Brazil has not had any pepper delivered to the ship because the supply has been exhausted and the farmers here are still not used to storing pepper. But this year’s pepper crop has been contracted by them to sell quite significant futures to regular customers in North America and the EU.
However, the export volume of our country’s pepper delivered to the ship is quite stable and Vietnam still holds the leading position in the world’s pepper exports.
According to an estimate of Vietnam’s Agriculture and Rural Development industry, the export volume of pepper in July 2018 is estimated at 21 thousand tons, with a value of 64 million USD, bringing the export volume of pepper in the first 7 months of 2018 to 153 thousand tons and 517 million USD, up 3.7% in volume but down 36.1% in value over the same period in 2017. The average export price of pepper in the first 6 months of 2018 reached 3,430 USD/ton, down 39.4% compared to the same period in 2017. The largest pepper export markets of Vietnam in the first 6 months of 2018 were the United States, India, Pakistan and Germany with 37.1% market share.
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