Today, June 1, the price of black pepper in Ba Ria – Vung Tau dropped to 58,000 VND/kg, other markets in the country also decreased, to range from 56,000 to 58,000 VND/kg.
Read more: >> Imported goods “drop” domestic pepper prices
Farmer drying pepper during harvest season
However, according to traders in Chau Duc and Xuyen Moc districts, this price is only purchased by pepper supply companies for “gut term” with reason “no need”. It is known that pepper exporters in the south are looking to supply a new crop from Indonesia and Malaysia to harvest in July-August, which is said to have the most competitive prices today.
In the news on April 19 (Please re-read the newsletter: Pepper prices continue to increase hotly) was mentioned “slow-explosion bomb” from Indonesia.
It is known that some pepper growing areas in the Lampung region of this Van Dao Nation began to harvest early, so the asking price for black pepper fell below $ 3,000 / ton, down 4% compared to the previous week. Therefore, it is not excluded that the top discharge of the previous season is already underway, according to market sources.
In contrast, the contract to supply white pepper to Chinese traders at this time was rejected from the buyer side, according to white pepper processing manufacturers in Xuan Loc – Dong Nai. Customers switched to other sources with more competitive prices such as Indonesia offering white pepper at $4,120/ton (FOB – Pkl Pinang) and Malaysia’s offering at $4,055/ton (FOB – Kuching), while the asking price for white pepper was of Vietnam is approximately $4,280/ton (FOB – HCM) and China’s is approximately $6,000/ton (FOB – Hainam).
Obviously, the pressure of the new pepper crop in Indonesia and Malaysia, two producers who are also members of the International Pepper Association (IPC) at this time is not small.
According to IPC’s trade report, in 2017 Indonesia exported 42,700 tons of pepper of all kinds with a total value of 236 million USD, down 20% in volume and 45% in value compared to 2016’s exports. In which, the Vietnamese market alone imported 16,500 tons, accounting for nearly 40% of the country’s export of pepper. While the US, an important consumer market, imported only 7,200 tons, accounting for 17% and India also imported a significant amount of about 4,600 tons, accounting for 11% of Indonesia’s exports.
According to a report of Vietnam’s Agriculture and Rural Development Sector, the export volume of pepper in May 2018 is estimated at 22 thousand tons, with a value of 70 million USD, bringing the pepper export volume in the first 5 months of 2018 to an estimated 108 thousand tons. tons and 377 million USD, up 5.4% in volume but down 37.6% in value over the same period in 2017. The average export price of pepper in the first 4 months of 2018 reached 3,537 USD/ton, down 42% compared to the same period in 2017.
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