In the first 6 months of the year, pepper prices decreased by 16,000 – 17,000 VND/kg compared to the end of 2017.
The Import and Export Department (Ministry of Industry and Trade) said that domestic pepper prices in June 2018 decreased compared to the previous month. Specifically, in June 2018, the price of black pepper in the domestic market decreased from 4.4% to 7.0% compared to May 2018, the lowest price was 53,000 VND/kg in Dong Nai province. the highest is 55,000 in Ba Ria – Vung Tau province. The price of white pepper reached VND 97,000/kg, stable compared to May 2018, but lower than the price of VND 117,000/kg in the same period in 2017.
Pepper prices fell due to abundant supply and no signs of improvement in the export market. In general, in the first 6 months of the year, pepper prices decreased due to large supply, down 16,000 – 17,000 VND/kg compared to the end of 2017.
In recent years, the development of pepper growing areas has spiraled out of control. The whole country’s pepper area is about 152,668ha, exceeding the 2030 orientation plan of the Ministry of Agriculture and Rural Development by more than 300%. According to the Vietnam Pepper Association, in the face of a situation of oversupply and falling prices, Vietnam’s pepper industry plans to cut the black pepper growing area by nearly 26.7%.
Regarding exports, according to preliminary statistics, pepper exports in June 2018 reached 23 thousand tons, worth $ 75 million, down 0.4% in volume and 0.2% in value compared to in May 2018, an increase of 0.3% in volume, but a decrease of 30.7% in value over the same period in 2017. Generally in the first 6 months of 2018, pepper exports were estimated at 133 thousand tons, worth 457 million USD, up 5.9% in volume, but down 35.7% in value compared to the first 6 months of 2017.
In June 2018, the average export price of pepper was estimated at 3,261 USD/ton, up 0.2% compared to May 2018, but down 30.9% compared to June 2017. In the first 6 months of 2018, the average export price of pepper reached about 3,439 USD/ton, down 39.3% compared to the first 6 months of 2017.
The Import-Export Department forecasts that pepper prices will continue to decline in the near future due to oversupply pressure. According to the International Pepper Association, in the past 5 years, inventories have increased by about 20,000 tons/year. It is expected that in 2018, the output of pepper in stock from the previous crop will reach about 104,000 tons.
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