On Thursday, August 2, the price of black pepper at all domestic raw material areas decreased by VND 1,000 / kg. Specifically, the price of black pepper in Ba Ria – Vung Tau stood at 52,000 VND / kg, the remaining localities price ranges from 50,000 to 51,000 VND / kg. Generally, the price of black pepper buckets decreased VND 3,000 / kg, or 5.45% compared to the first day of July 2018.
The reason for the decline in pepper prices was attributed to the fall in export offer prices. According to data of the pepper industry, within the past month, the price of Vietnamese black pepper exported at grade 550 G / l has decreased by US $ 150 to stand at US $ 2,600 / ton and the price of black pepper exported grade of 500 G / l also decreased by 150 USD to stand at 2,450 USD / ton (FOB – HCM price).
Meanwhile, Indonesian black pepper export price of ASTA also dropped by 150 USD to stand at 3,000 USD / ton (FOB – Lampung) and FAQ black pepper price stood at 2,415 – 2,420 USD / ton (FOB).
According to traders' opinion, the price of Vietnamese black pepper is still marginally higher than that of Indonesia and this has encouraged a significant amount of new Indonesian 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 which, nearly 16,500 tons of pepper were exported to Vietnam. .
According to the IPC, this year's pepper crop has been harvested for nearly a month in Indonesia and Malaysia while it has been nearly completed in Sri Lanka, with poor production forecast as last year's crop. The reason for the decline in output is that the sharp decline in world pepper prices has caused many farmers in pepper-growing countries not to care. There have even been trade reports saying that some areas of pepper cultivation were converted to other crops. In Indonesia alone, pepper farmers in Bangka and Belitung have allowed grass to cover the entire garden without care, including harvesting. If the price of pepper drops in a long time, the yield will be greatly reduced and people here are no longer salty but with this spicy flavor.
Market sources said a significant amount of new pepper from Indonesia will be imported to Vietnam at this time. However, observers said that excluding the first crop of pepper was speculated on the spot following a high-level meeting between “Vietnam – Indonesia shook hands to stabilize the pepper market” in November. 8 years ago.
Indonesian farmers are harvesting a new pepper crop (photo: Anh Van)
Meanwhile, Brazil will harvest pepper this year around September to October, following the harvest of Indonesia and Malaysia. For several months, no pepper has been delivered to Brazil because supplies are exhausted and farmers here are still not used to storing pepper. But this year's pepper crop they have signed quite significant futures contracts for patrons in North America and the EU.
However, the volume of export pepper of our country delivered to the ship was quite stable and Vietnam remained the leading export pepper.
According to the Vietnam Agriculture and Rural Development sector, the export volume of pepper in July 2018 was estimated at 21 thousand tons, with a value of US $ 64 million, bringing the export volume of pepper in the first 7 months of 2018 to an estimated of 153 thousand tons. tons and 517 million USD, up 3.7% in volume but down 36.1% in value over the same period in 2017. Average export price of the first 6 months of 2018 reached US $ 3,430 / 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.
Domestic pepper prices suddenly dropped sharply
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