Last week, pepper prices on June 25, 2020 continued to decrease by VND 500 / kg compared to the session on June 24. On June 26, 2020, prices in some key provinces in the Central Highlands had a sharp drop of 1,000 VND, pushing the highest price back to 49,000 VND / kg in Ba Ria – Vung Tau.
By the end of last week, prices in the remaining provinces traded around 46,000 – 48,000 VND / kg.
Specifically, in Dak Lak and Dak Nong provinces, pepper prices on June 26 simultaneously decreased by 500 VND / kg, currently purchased at 48,500 VND / kg.
In Ba Ria – Vung Tau province, pepper price also decreased by 500 VND / kg to 50,000 VND / kg, this is the locality with the highest price in the whole region.
In Binh Phuoc province the price continued to decrease by 500 VND / kg to 49,000 VND / kg.
In Gia Lai province, today pepper prices were purchased at VND 47,500 / kg.
In Dong Nai province, today pepper prices are at 47,000 VND / kg, this is the locality with the lowest price in the whole region.
Thus, the price of pepper in the whole region last week fluctuated from 47,000 to 50,000 VND / kg.
Previously, on the world market, export prices of pepper of all kinds in May fluctuated in opposite directions, increasing in Vietnam and Indonesia but decreased in India and China. Particularly, Brazil has closed almost no transactions due to the Covid-19 epidemic.
According to the statistics of the International Pepper Association (IPC), world pepper prices in May 2020 generally had mixed fluctuations. Prices of Vietnamese black pepper grade 500 Gr / l-Asta increased by 15%, grade 550 Gr / l-Asta increased by 14.55%, while that of Indonesian black pepper grade ASTA increased by 5.39% and Indian specialty black MG1 decreased 0.52%. The price of Vietnamese white pepper in the FAQ category increased by 15.23%, the Indonesian white pepper increased by 3.28% while the Chinese white pepper decreased by 3.71%.
According to preliminary data reported by the General Department of Vietnam Customs, the total pepper export volume in June 2020 is estimated at 21,644 tons, worth $ 48,335 million. Compared to May 2020, it decreases 28.68% in volume and 20.63% in turnover. Accumulated in the first 6 months of 2020, the export of pepper is estimated at 168,133 tons, worth $ 357.29 million, down 4.9% in volume and 20.8% in value over the same period in 2019.
The sharp drop in pepper exports was due to the drop in export prices. It is forecasted that from now to the end of the year, pepper prices will continue to remain at a low level, or even decrease further because from 2016 up to now, the area of pepper grown in major producing countries increases strongly, leading to increased pepper output. is higher than demand, leading to a deep fall in pepper prices.
Some industry experts forecast that the price of pepper in Vietnam may drop to only 36-38 thousand VND / kg this year, even down to 35 thousand VND.
World pepper prices have fallen for 4 consecutive years and show no sign of stopping. The reason is that in 2015, the price of this item was at an all-time high, leading to the increase in the cultivated area by producing countries, causing output to increase faster than demand, leading to a surplus situation.
However, experts predict that from the end of 2020, prices may begin to recover when supply – demand returns to the equilibrium level and many businesses increase buying and hoarding kernel when pepper prices are low.
From 2021 it is forecasted that prices will start to increase when production in most countries has declined sharply, including in Vietnam. The increased quality of pepper and the high labor costs will also contribute to the increase in pepper prices from next year.
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