According to the Vietnam Pepper Association, the purchase price of black pepper in some localities has reached 80,000 VND/kg, the highest in the past 4 years. It is forecasted that pepper prices will continue to increase in the near future when the amount of pepper in Vietnam, the world’s largest pepper exporter, is not much.
Mr. Tran Duc Tung, Chief of Office of the Vietnam Pepper Association, said that currently, the price of good quality black pepper purchased from gardeners is up to 80,000 VND/kg, white pepper is over 100,000 VND/kg, the highest in four past year. “Pepper prices are still struggling, but it is beneficial for exporters because world pepper production is not high while demand is very high,” said Mr. Tung.
The reason for such a sharp increase in pepper prices, according to Mr. Tung, is that pepper plants are affected by weather and pests and lose crops in many countries, including Vietnam, Indonesia, Malaysia, India and Brazil. countries that account for 80% of global pepper production.
According to the Vietnam Pepper Association, in the first and second quarters, only Vietnam and India supplied pepper to the world market. Malaysia and Indonesia are only harvested from August onwards, but only for Brazil until the end of the year. The productivity and output of pepper in the above countries are forecasted to have a downward trend, leading to a situation where demand exceeds supply and continues to push pepper prices up.
According to the Ministry of Industry and Trade, this year domestic pepper production is estimated at 90,000 tons, down nearly 20% compared to the previous year (110,000 tons), due to the influence of weather and pests. Especially, the recent drought situation in the Central Highlands has strongly affected the quality and output of pepper. According to the forecast of experts, the price of pepper in the world as well as in Vietnam will continue to increase in the last 6 months of the year, however, the amount of pepper in reserve in businesses and gardeners is not much.
The remaining amount of pepper for export in the second half of 2010 of Vietnam is very low, only about 30,000 tons, down 40% compared to the same period last year. Therefore, the Association also recommends that member enterprises from now until the end of the year should closely monitor the world market price and hoard to sell when the price is best; Besides, it is also necessary to pay attention to the processing stage to increase the export value of pepper.
According to the TBKTSG Online
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