Last week, pepper prices moved in a negative direction. In fact, this trend has appeared since the previous week, when pepper prices lost the mark of 50,000 VND/kg in Gia Lai and Dong Nai.
After losing the mark of 50,000 VND/kg in the two provinces mentioned above, in the past week, pepper prices in other localities such as Binh Phuoc, Dak Lak and Dak Nong also fell below this level.
In Ba Ria – Vung Tau, where the pepper price is always the highest in the key growing areas, by June 26, it had also dropped below 50,000 VND/kg.
According to some experts, the price of pepper has continuously decreased in recent years and has lost the milestone of VND 50,000/kg in all key growing areas, for many reasons.
First, there is a phenomenon that Chinese traders, after organizing the purchase of Vietnamese pepper before, have sold pepper to a number of Vietnamese businesses that need to collect enough goods for export. Some leading exporters of pepper have previously signed contracts for long-term delivery at low prices.
Recently, when the pepper price continuously increased (at one point, it surpassed the mark of VND 60,000/kg), these “big guys” have found ways to bring down the price of pepper such as bringing in inventory for many years to deliver or using the media. to scare those who “hug” weak goods…
Although the pepper price has lost the mark of 50,000 VND/kg, it is likely that the price of pepper will not decrease because at the current price, people will not sell pepper anymore.
Meanwhile, traders from China, the US, the EU… have begun to accept new prices, especially when information about pepper production in Vietnam will decrease sharply in the next crop year is gradually being disseminated. outside.
After participating in a trip to survey the current situation in key pepper growing regions, from Ba Ria – Vung Tau to the Central Highlands, Mr. Hoang Phuoc Binh, Vice Chairman of Chu Se Pepper Association (Gia Lai), said, In the 2020/2021 crop year, pepper output will continue to decline sharply.
Specifically, in the 2019/2020 crop year, Vietnam’s pepper output is estimated at 240,000 tons, a sharp decrease compared to 300,000 tons in the 2018/2019 crop year. It is estimated that in the 2020/2021 crop year, pepper output will continue to decrease by 30%.
According to Mr. Binh, in most of the key pepper growing areas in Ba Ria – Vung Tau, Dong Nai, Binh Phuoc, Dak Nong, Dak Lak… most of the pepper gardens have been severely degraded because farmers are no longer able to, no longer interested in pepper garden after 4 years of continuous price reduction, from 200,000 VND/kg to 35,000 VND/kg (April 2020).
In addition, severe weather this year also damaged a series of pepper gardens. These are the main reasons why the yield and output of pepper is on a strong downward trend.
As the world’s largest pepper producer for many years, how Vietnam’s pepper output will be in the next crop year is a big concern of many foreign customers, especially when Vietnamese businesses are currently not offer for long-distance delivery in large quantities (can be understood because the source of goods is not abundant).
Therefore, information that Vietnam’s pepper output is on a strong downward trend will support pepper prices in the near future.
The fact that many small companies have signed export contracts with new prices will also have more or less impact on pepper prices.
Therefore, despite the negative information that some businesses are still releasing to force the price of pepper down, some pepper industry experts believe that pepper prices will soon rise again. Most likely, the price of pepper will not only exceed the mark of 60,000 VND/kg as at the end of May, but may rise to around 70,000 VND/kg by the end of this year.
Follow Thanh Son (Nongnghiep.vn)
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