Export volume of pepper this year may decline by about 10%, is expected to reach only 108,000 tons compared with over 124,000 tons in 2011, but the value of turnover reached over 800 million USD (2011 was 730 million USD). Thus, along with coffee, pepper is a rare commodity for agricultural exports to increase prices in the current difficult economic situation.
Small but not small
Pepper is an export agricultural product, although it accounts for a modest proportion compared to coffee, rubber and rice, including cashew nuts when the export turnover is USD 1 billion or more, while pepper is still striving to reaching export turnover of 1 billion USD in the coming years. In 2012, it was originally planned to export USD 850 -900 million, but due to the declining export volume due to pests, the productivity in many places was not as expected, so it was only over USD 800 million. Although it has just entered the export market, Vietnam has quickly entered the top pepper exporting countries in the world and for many years, the country accounted for over 50% of the pepper trading volume in the world market, leaving far from India – the biggest exporting country, Brazil, Indonesia … Vietnam's pepper productivity is quite far away from other countries, 3-5 tons / ha, surpassing India, Indonesia 3-5 quintals / ha.
Domestically, pepper accounts for only 2.5% of the total of nearly 2 million hectares of 5 industrial crops, but pepper accounts for over 8% of export value, or about 6,800 USD / ha, 4 times more. rubber; 3.8 times cashews; 2.6 times coffee; 6 times tea (tea). It can be said that the yield between pepper and coffee is similar but the price of pepper is 3-4 times higher than that of coffee. Each hescta pepper can earn VND 200-250 million / ha / year. Therefore, the income of pepper growers is high compared to many other crops, so the life of pepper growers is generally of the well-off, spacious and spacious houses. And that is the reason why the pepper area increased very fast, in 2011 to 55,400ha (8 times in 1995), production is 12 times higher than in 1995.
Regulating export markets
Robusta coffee, cashew kernels, rubber, rice and pepper are the most exported agricultural products in Vietnam, second in the world. In particular, Vietnam Robusta coffee accounts for over 50% of the volume of transactions such as pepper, not to mention other agricultural products such as Vietnamese pangasius fillet, which accounts for over 90%, almost monopolizing the world market. In theory, the overwhelming proportion will dominate the market and prices. But in fact, to be called active export market regulation, thereby keeping prices from fluctuating below the price … only pepper can do this.
In business, agricultural products are highly volatile products, so there is a chorus of “good harvest, devaluation”. Pepper also did not get rid of this situation at the beginning. According to the Vietnam Pepper Association (VPA), the price fluctuation cycle of the world pepper is about 3-5 years. But continuously for many years, the price of pepper sold in the country increased gradually, of course, at some point, the price fell, even fell deeply, but it was still on the price and if in the whole year, the next year would increase more than five. before. To achieve this, Mr. Do Ha Nam, Chairman of the Board of Directors, General Director of Intimex Group Joint Stock Company and VPA Chairman said, thanks to the food, growers keep pepper at home when prices are low. world low, only sell when the price goes up.
It is simple to say, but it is a process of many years to get a high consensus on the price to sell. It can be said that pepper farmers have surpassed the common psychological threshold of Vietnamese farmers. When they see a high price, they keep the goods waiting for a higher price to sell, but when the price is down, they are afraid to sell out and sell again. At the same time, the market price goes down. Now, pepper growers do the opposite, do not sell when prices are too low, but keep waiting for prices to reach a certain level to sell. Over the past 4-5 years, this lesson and experience has been applied more and more thoroughly and synchronously. To this end, many large pepper farmers have registered to buy news from foreign news agencies, equipped with the Internet to get information daily. Therefore, the fluctuations of the market are firmly assured.
In this regard, the VPA's role has made a significant contribution. The VPA recommends that large pepper growers keep, do not rush to sell at the beginning of the harvest or when world prices plummet, as importers try to squeeze prices the same way they have done for so long. with other agricultural commodities. In the first year, the number of households participating is not much, but when looking back to the households who keep the goods, sell them slowly, they will have good prices, which is the belief for other households to be motivated to follow. VPA noted that in 2008, the unified price for people to sell was about 20,000 VND / kg or more, in 2009 to 30,000 VND / kg, then 50,000 VND / kg in 2010. By 2011 was 80,000 VND / kg. kg and this year about 120,000 VND / kg. Consensus and self-set selling prices are made by people based on market information combined with VPA forecasts.
The area of pepper increased year by year has now exceeded the plan (50,000 ha in 2010), especially the Central Highlands. This area accounts for 50% of the country's pepper output (about 52,000 tons). This year, the provinces in the Central Highlands planted 3,200 ha, most of which were in Dak Nong, Gia Lai and Dak Lak, bringing the total area of the region to 24,800 ha. Because not everyone is knowledgeable, many cases of people grow pepper in unsuitable places such as low land, slow drainage … despite the recommendations of the functional industry. More concerned is that the unknown pepper can lead to the spread of disease, causing great damage to the people. In a recent survey of the Department of Crop Production (MARD), the average yield of pepper decreased to 2.4 tons / ha.
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