The black pepper price is reducing due to high supply
In the first 6 months, the price of pepper decreased by 16,000-17,000 VND / kg compared with the end of 2017.
Export Department (Ministry of Industry and Trade) said that domestic pepper prices in 6/2018 decreased compared to the previous month. Specifically, in June 2018, prices 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 level The highest is 55,000 in Ba Ria – Vung Tau province. The price of white pepper was 97,000 VND / kg, stable compared to May 2018, but lower than the price of 117,000 VND / kg in the same period of 2017.
Pepper prices fell due to abundant supply and export markets have not signaled prosper. In general, in the first 6 months of 2009, prices of pepper decreased due to the large supply, down 16,000 to 17,000 VND / kg compared with the end of 2017.
In recent years, the development of pepper plantations has been out of control. The area of pepper in the country is about 152.668ha, exceeding the planning to 2030 of the Ministry of Agriculture and Rural Development more than 300%. According to the Vietnam Pepper Association, in spite of over supply, the price of pepper is constantly decreasing. The pepper industry in Vietnam plans to reduce the area of black pepper by 26.7%.
According to preliminary statistics, pepper exports in June of this year totaled 23 thousand tonnes valued at $ 75 million, down 0.4% in volume and down 0.2% in value against the previous week. In May, 2018, pepper export was estimated at 133 thousand tonnes worth 457 tonnes. USD, up 5.9% in volume but down 35.7% in value compared with the first 6 months of 2017.
In June, the average export price of pepper was estimated at $ 3,261 per tonne, up 0.2 per cent from May 2018, but down 30.9 per cent from June 2017. In the first six months of 2018, the average export price of pepper was about $ 3,439 per ton, down 39.3% from the first half of 2017.
Export and Import Department forecasts pepper prices will continue to decrease in the coming time due to oversupply pressure. According to the International Pepper Association, over the past five years, the stockpiles have increased by about 20,000 tonnes a year. It is expected that in 2018, pepper output from the previous crop will reach about 104,000 tons.