(July 5 – Giacaphe.vn) The rapidly growing pepper area in Cambodia at the same time as rising world prices have raised concerns that a sharp increase in pepper production across the Kingdom could make the market worse. fall in the price of the next crop and cause the industry to collapse.
Hean Vanhan, Deputy Minister of Agriculture, said that the large-scale cultivation of pepper in recent years, encouraged by rising prices, has helped increase Cambodia’s pepper production. He said total pepper production doubled last year and has increased eightfold since 2013, which has impacted global supply due to a similar increase in production in the producing countries. another big pepper.
“According to our data, pepper production has increased significantly, but now the big concern of farmers is that the market has stagnated,” he said yesterday.
Ministry figures show that total pepper production has increased to 20,054 tonnes this year, compared with 11,819 tonnes in 2016 and only 2,498 tonnes in 2013. More than 5,000 hectares of pepper are now planted compared to just 400 hectares in 2013.
Pepper production is largely in Tbong Khmum province with nearly 15,000 tons last year. While the provinces of Ratanakiri and Kratie each contributed about 1,200 tons.
The world price of pepper has tripled between 2009 and 2015, which has encouraged new investments in pepper cultivation and consequently the area under pepper has grown rapidly. However, prices have fallen sharply as Vietnam, the world’s leading producer and exporter, continues to increase its pepper production capacity.
The country, which accounts for about a third of global pepper production, is expected to increase production to more than 200,000 tonnes this year, from 175,000 tonnes last year.
Mr. Vanhan also said that increased supply and falling prices had pushed the industry to a difficult moment.
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. speak. “Otherwise, the industry may not be saved.”
According to Mr. 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 mainly rely on Vietnamese brokers to buy pepper. Its pepper is sold to international customers.
Var Rothsan, an expert from the Ministry of Commerce, said that oversupply has put downward pressure on pepper prices, while brokers buy from local farmers for only 3 USD/kg, lower than the cost of production. export.
He said that the ministry is aware of the challenges that Cambodian pepper farmers are facing and is looking for solutions.
“We know the problem and we are trying to give farmers the opportunity to find their own markets, while reducing production costs.
Rothsan also added that the ministry is also working to build a new collective brand for Cambodian pepper to increase pepper consumption in international markets, a move that helps farmers access these markets and reduce costs. dependence on Vietnamese brokers.
“We need time to build consumer confidence through a collective label that ensures the quality and food safety of our pepper,” he said, adding that the launch of the brand could it will take 2 years.
Yin Sopha, executive director of Memot Dar Pepper Agricultural Development Cooperative, said the local price of black pepper has dropped to $3.50/g, well below the 2014 peak of $10.5/g. kg. This decline has left pepper growers in debt, he stressed.
“Prices have dropped significantly this year and most farmers cannot afford to pay interest on bank loans,” he said.
English (follow The Phnom Penh Post)
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