At the conference to summarize the pepper crop year 2018-2019, organized by the Vietnam Pepper Association (VPA) on May 10 in Ho Chi Minh City, Mr. Nguyen Nam Hai, President of VPA, said that from 2015 up to now, the Pepper supply in the world increased from 8%-10%, while consumption demand only increased by 2%, leading to oversupply, and a sudden plunge in pepper prices.
Previously, the domestic pepper price was up to 250,000 VND/kg at one time, now it has dropped to only about 41,000 VND/kg. This makes pepper growers fall into a price crisis, only pepper growers who harvest by themselves make a little profit, while hiring workers to harvest is considered a loss.
According to the International Pepper Association, in 2019 world pepper production will continue to increase, expected to reach about 602,000 tons, up 8.27%, of which Brazil increases 28%, Cambodia increases 17%. Vietnam alone is forecasted to produce 240,000 tons, an increase of about 9% because the new planting area from 2014-2016 began to be harvested, so prices are still likely to go down.
The solution for this situation, according to pepper businesses, is that there is no other way to link up with each other and at the same time associate with farmers to create a clean pepper production area, even if they have to produce organically for export. imports at high prices.
In addition, enterprises need to improve processing capacity, associated with market development; organize safe and sustainable pepper production; enhance quality control, input materials. Strictly control the processing and preservation process; innovate production technology, increase the percentage of white pepper for export to 30%-40%, diversify products (organic pepper, red pepper, ground pepper, pepper plastic)…
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