In the first two months of the year, the price of pepper has increased by an average of 8,000 VND/kg, especially on March 4, 2021, it increased sharply to 3,000 VND/kg. On March 5, 2021, pepper prices in Dak Lak and Dak Nong provinces were traded at 60,000 VND/kg.
Meanwhile, in the Southeast region, pepper prices also increased sharply by 3,000 VND/kg. Pepper price today in Dong Nai 57,500 VND/kg ; Ba Ria – Vung Tau 60,000 VND/kg; Binh Phuoc 59,000 VND/kg.
Pepper prices rise higher than expected
“Happy and surprised” is the sharing of Central Highlands pepper farmers about the phenomenon of pepper price increasing by 3,000 VND/kg in one day. This is a price increase that has been seen for a long time in the pepper market. Previously, the price of pepper only increased by 500 – 1,000 VND/kg.
Before harvesting the pepper crop in 2021, many experts predicted that pepper prices would increase in 2021, but a sharp increase like May 4, 2021 has surprised many people.
The reason for the sharp increase in pepper prices is that speculators are buying more and pushing prices up to attract goods. Experts also recommend to farmers, that the new pepper crop has not been harvested, the amount of pepper in the population is still there, besides the export situation is facing difficulties due to the lack of empty containers, pushing up the transportation cost. People should not see high prices but borrow money to reserve because the risk is very large.
Pepper prices increased, farmers are very happy but still worried, because this year the yield is not high, the cost of hiring workers to collect increases, diseases on pepper trees are still there…
According to preliminary statistics of the General Department of Customs, pepper exports in the first 15 days of February 2021 reached 6,533 tons, worth $ 19,288 million, accumulated from January 1 to February 15, 2021 reached 23,417 tons, worth $67.923 million. Compared to the same period in 2020 decreased by 7.6% in volume, but increased by 13.06% in value. The average export price of pepper in January 2021 is estimated at 2,884 USD/ton, up 4.23% compared to December 2020 and up 16.2% compared to January 2020.
On the world market, at the end of the latest trading session, spot pepper price at Kochi – India floor increased by 53.4 rupees per quintal (0.15%) at 35,862.5 rupees per quintal. Pepper price Increase in pepper price farmers are very happy but still worried, because this year the yield is not high, the cost of hiring workers to collect increases, the disease on pepper is still there… India is having a series of increasing days consecutive growth in the past half month.
Vietnam’s pepper automatically dominates the global pepper market
March is Vietnam’s pepper harvest season, so every year March is the lowest pepper price, but this year the pepper price is very good and it is forecasted that in the coming months the pepper price will be much better, this year growers spend a successful year.
According to Mr. Do Ha Nam, former Chairman of the Vietnam Pepper Association, Chairman of the Board of Directors, General Director of Intimex group (VPA), many people think that this year the average pepper price is about 60,000 VND/kg. In time, Chinese traders increased their purchases sharply and pushed the price of pepper to 60,000 VND/kg, making it difficult for speculators.
“Experience shows that, in the pepper market, if you see last year’s high price, it will be the average price of next year. It has been the same for a long time. Last year it increased to 60,000 VND/kg, then next year’s average price will certainly be average. will be 60,000 VND/kg So, at the beginning of the season, everyone bought and pushed the pepper price to 53,000 – 55,000 VND/kg, seeing that this price was “delicious”, Chinese traders “jumped in” to scoop up the goods. Chinese traders rely on the judgment of experts and businesses with a lot of market experience, then use finance to hit the market, by creating a resonance wave that causes market spikes and pushes the market price. The school goes up,” said Mr. Nam.
Pepper prices in the market are very good and beneficial to farmers, but due to low pepper prices a few years ago, farmers in Vietnam and other countries did not invest in development, resulting in low pepper harvest.
In 2016, the price of pepper sometimes reached 220,000 VND/kg, while coffee and rubber prices at that time fell sharply, so pepper was once considered one of the key crops contributing to poverty reduction and income improvement. for farmers, even many people quickly become billionaires thanks to pepper plants.
Therefore, many farmers have demolished a part of the old coffee area and switched to growing pepper. After the first few years of getting the price, the price of pepper started to decline, the profit earned was no longer enough to reinvest in pepper plants. In addition, diseases spread causing pepper plants to die gradually, causing many difficulties for farmers, so many areas have reduced the area by intercropping.
The total demand for pepper in the world is about 500,000 tons/year, Vietnam exports over 280,000 tons/year, accounting for about 56% of the world pepper market. This year, although Vietnam’s pepper area has decreased, there are many comments that the amount of pepper for export will not be lower than 60%, because there are some pepper growing areas in Cambodia that cannot be exported by themselves and have been brought to Vietnam. South, contributing to the total export volume of Vietnam’s pepper.
Vietnam is accounting for a very high proportion of exports, as long as Vietnam stops selling for a short time, the market will automatically fluctuate. Vietnam’s pepper output automatically dominates the global market.
“If management is done well, Vietnamese pepper will dominate the world market, and in fact, farmers are also very smart now that when pepper prices fluctuate, people are not in a hurry to sell to make prices higher. The market is quite good,” said Mr. Nam.
