A pepper purchasing point (illustration image)
In the past few days, pepper prices fluctuated continuously with strong increases and decreases, but in general, they are still following a downtrend. There was a time when pepper prices fell below 100,000 VND/kg after many years.
According to Mr. Hoang Phuoc Binh, PCT of Chu Se Pepper Association (Gia Lai), in the early days of March, pepper prices in this area continuously decreased, from over 110,000 VND/kg to 8/3, pepper prices dropped sharply. down to 92,000 – 93,000 VND/kg. Ms. Nguyen Thi Mai Oanh, PCT of the Vietnam Pepper Association also confirmed, in the past week, pepper prices across the country have fallen below 100,000 VND/kg.
Thus, it has been a long time since the pepper price has fallen below the above-mentioned level. I don’t remember the specific time, but Mr. Hoang Phuoc Binh said that after about 4 years, the new pepper will be below 100,000 VND/kg. By the end of last week, pepper prices rebounded sharply to 103,000 – 105,000 VND/kg. At the beginning of this week, it dropped to around 100,000 VND/kg
Why is pepper price fluctuating erratically and has such a strong downward trend? Mr. Binh said that this year, all forecasts say that pepper will lose the crop and reduce productivity. However, because in the past time, the area of pepper has increased too quickly because of high prices, so this year’s pepper output may still be slightly higher than last year. On the other hand, the main pepper growing areas are currently in the middle of the harvest season, the output is relatively abundant, businesses take advantage of that opportunity to reduce purchasing prices.
Information from the Vietnam Pepper Association (VPA) shows that the global supply of pepper is also very abundant in the first quarter of this year. Every year, in the first quarter, there are only 3 countries that harvest pepper: Vietnam, India and Cambodia. This year, there is Brazil (because the country is 3 months behind the harvest compared to previous years because of the influence of El Nino). The four countries harvested together in the first three months of the year, making the supply of pepper in the first quarter up to 280,000 tons, accounting for nearly 70% of the total global supply in the whole of 2017.
At the International Spices Conference held in India in February, many people said that global pepper production this year will increase sharply and is expected to reach about 458,500 tons (an increase of about 72,500 tons compared to 2016). ).
However, the global pepper market is still considered bright by international experts. Because the demand for pepper is still increasing by 4%, while the output only increases by 2%/year on average. In terms of production, in the coming time, it is difficult for some large pepper growing countries to increase output such as India, Indonesia, Malaysia… Global weather and climate are still easily causing great risks to pepper crops in many areas. countries, including Vietnam.
Regarding the market, some countries are still increasing strongly importing Vietnamese pepper such as Germany, China, UK, Russia… India is forecasted to increase production compared to last year but still has not met enough domestic demand. . Many consumers around the world tend to prefer new products from pepper such as salted green pepper, dried green pepper, powdered …, which are products that Vietnam is researching and promoting investment. manufacturing.
Therefore, VPA believes that spending is on a strong downward trend, only temporary. Only farmers who need money too much and do not have good financial resources have to sell, while many other households are still storing and waiting for better prices to sell. Because the world supply is still unstable due to the weather, it is likely that this year, pepper prices may not be as high as in previous years, but they cannot be too low.
Mr. Hoang Phuoc Binh said that in Gia Lai, only pepper growers need money to sell. Most households are still storing pepper, waiting for the price to increase before selling. The price this year may not be as expected, but they want at least 105,000 VND/kg or more to consider selling.
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