In just about 20 days, pepper prices continuously fluctuated, sometimes jumped up to 80,000 VND / kg, then fluctuated around 73-75 thousand VND / kg. Around this issue, reporter Bao Gia Lai had an interview with Mr. Hoang Phuoc Binh – Permanent Vice Chairman and General Secretary of the Chu Se Pepper Association.
The people of Chu Pư district harvest pepper. Photo: Highlands
* Reporter: Pepper prices continuously fluctuate, is it abnormal, sir?
– Mr. HOANG PHUOC BINH: According to the language of the market, pepper prices in the past few days are entering a cycle of “shaking” (ie fluctuating up and down continuously). The price increase is very welcome, but the sudden and rapid increase has caused a lot of turmoil. Through grasping the situation, it shows that the majority of farmers keep goods and do not sell. Agents, on the other hand, collect goods and sell mainly to speculators, not to export enterprises. As a result, exporters cannot buy goods to meet export contracts or to repay contracts previously signed.
The shortage of output is the reason for the high price of pepper. Thus, it can be seen that pepper prices fluctuate from the supply-demand relationship, adjusting by the market itself, not by a “hand” making the price. If in 2020 Vietnam’s pepper output is 240,000 tons, this crop is estimated to reach less than 150,000 tons. The production cost of pepper is at 65-70 thousand VND / kg, but at the current selling price, new growers have a little profit.
* Reporter: Why is this year’s output expected to decline so dramatically, sir?
– Mr. HOANG PHUOC BINH: Recently, I directly surveyed in 6 key pepper growing areas of our country: Ba Ria-Vung Tau, Dong Nai, Binh Phuoc, Dak Nong, Dak Lak and Gia Lai. With more than 30 years of experience in direct pepper cultivation, then working at the Pepper Association for several years, I can confirm this. Previously, a few comments that pepper output this year is expected to reach 220,000 tons. If so, it can be said that it is the “trick” of the business. People want to say such high output to keep prices low, not to raise prices to buy goods at low prices, in order to have higher profits.
In the early years of high prices, people began to plant. When the prices reach their peak year, they rush to plant more. Obviously, the massive planting of pepper has resulted in overproduction, and then the price falls. Now, the output decreases, the price increases are natural. For example: In the period 2001-2006, pepper prices went down. Then, from the bottom of 2006, pepper prices started going up continuously until 2015 reached the highest peak. From 2016, the price at this highest peak started to go down again.
Because when pepper prices fell too low, sometimes bottomed out at 35,000 VND / kg, while the production cost at that time was about 45,000 VND / kg, so the more investment was made. Therefore, people neglect the pepper garden, do not care or invest in care, just in moderation, along with the influence of weather, which makes the productivity not reachable.
* Reporter: Pepper prices are rising and are forecasted to increase, so it is possible that people will expand their acreage again. So, what is your recommendation?
– Mr. HOANG PHUOC BINH: This could be the beginning of a bull cycle. Currently, pepper prices are “shaking”, but what the future is due to market movements. However, I also recommend that people be cautious when replanting pepper trees. Previously, farmers did not cultivate properly, the residues of plant protection drugs and nutrients in the soil were still high and difficult to eradicate. Therefore, in order to develop pepper plants sustainably, farmers need to ensure two basic conditions: knowledge of pepper cultivation and investment ability.
First, pepper growers absolutely cannot replant the dead pepper gardens; must choose suitable soil to avoid high clay ratio leading to water retention, susceptible to fungal diseases; must choose a good variety; avoid planting concrete pillars and wooden pillars, it is necessary to plant on living pillars; Grass should be allowed to settle in the dry season and drain water during the rainy season. In particular, need to intercrop with other plants to reduce pest pressure; applying economical irrigation technology; Planting in an organic way to avoid the abuse of fertilizers and chemical drugs … Second, it is necessary to consider investing in planting according to your financial ability, should not follow the market, if prices rise, grow massively, prices down then quit.
* Reporter: Thank you Sir!
According to the Vu Thao (Bao GiaLai)
