There are few agricultural products that produce and export next year higher than the previous year in 10 consecutive years thanks to quite stable prices like pepper.
While most commodities such as rice, rubber, coffee, cashew kernels, shrimp and fish all have price cuts; Only pepper continues to stand at high prices, with the prospect of reaching about US $ 900 million in export value by the end of this year compared to US $ 693 million in 2011.
Thousands of billionaire households
Although sometimes low, but never before Vietnam pepper prices lower than the price. It can be said that this is the most attractive agricultural product at the moment. Of the 2 million hectares of industrial crops (coffee, rubber, cashew, tea …), the pepper area is only about 50,000 ha, accounting for 2.5% of the total area, but the pepper accounts for over 8% of the export value. The export value of pepper is about 6,800 USD / ha, 6 times higher than tea, 4 times higher than rubber, 3.8 times higher than cashew nuts, 2.6 times higher than coffee. There are thousands of farmers across the country earning more than 1 billion dong / year like 64 pepper farmers at Phuoc Loc High-yield Club Union (Xuan Loc district, Dong Nai), especially in the lake area. In Chu Se district, Gia Lai province, thousands of households are billionaires.
According to the Vietnam Pepper Association (VPA), the average price of black pepper in the first months of 2012 was over 6,300 USD / ton (increased by more than 1,600 USD / ton), white pepper was 9,200 USD / ton (increasing over 2,100 USD / ton). It can be said that, in the first 5 months of 2012, domestic pepper price reached a record high ever, on average 120,000 dong / kg, up 33%; white pepper 190,000 VND / kg, an increase of 46% over the same period in 2011. By mid-May, the amount of pepper exported nearly 52,500 tons, the export value of nearly 357.4 million USD, up 11.4% in volume and increased by 46.1% in value over the same period in 2011. Pepper export in 2012 is forecast at about 123,000 tons with a turnover of nearly 900 million USD.
Dominate the world market
The amount of pepper traded as above is a condition that controls the price of transactions on the world market. But to do this, the enterprise or VPA itself cannot do it without the coordination and support of pepper farmers in the country. Around 2006, the time when the price of pepper was exported to the lowest level was 900 USD / ton, while the price was up to 1,000 USD / ton, VPA advised farmers to store and not sell if it was less than 1,200 USD / ton. Thanks to this consensus, world pepper prices subsequently reversed dramatically, rising to USD 1,700 – USD 1,800 / ton. In 2007, VPA advised against selling below 2,500 USD / ton which was followed by many households and then selling the average price of 3,200 USD / ton. With 2 times of recommending and keeping this successful price, pepper growers have experienced, do not rush to sell massively when the price drops but keep in stock. Pepper price then increased to USD 3,500 / ton and then USD 3,800 / ton.
Thanks to that way, for many years, the price of pepper in the world has no longer been up and down in the same cycle as before and always high. Currently, Vietnam's pepper has been exported directly to most markets, limiting consumption through intermediaries, thus minimizing risks, losses, adhering to the world price level in every time. As a result, the income of the producers and businesses are profitable. The lesson of pepper has been learned by the association and businesses of the coffee industry (Robusta) and cashew (with a transaction volume of 50% – 60% of market share). This has had initial success with coffee in this crop.
Vietnam pepper has been present in more than 80 countries and territories, in many major markets such as the US, Europe, Asia, the Middle East … From 2003 to now, Vietnam is the No. 1 pepper exporter. gender, accounting for 40% – 50% of global pepper trading.
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