At the review conference of pepper year 2018-2019 organized by Vietnam Pepper Association (VPA) on May 10 in Ho Chi Minh City, Mr. Nguyen Nam Hai, VPA President, said that in 2018 pepper prices will maintain. If it is around VND 55,000-60,000 / kg, it will continue to decrease to around VND 41,000 / kg, which is less than one fifth of the peak price. The reason for the continuous decline in pepper prices in recent years is due to the fact that pepper production in the world and in the world has increased, leading to the oversupply.
Vietnam pepper occupies the No. 1 position in the world
Specifically, the total output of pepper in the world produced in 2018 was about 556,000 tons, up 8.3% from the previous year. In particular, Vietnam continues to lead in pepper production with 230,000 tons, accounting for 42% of total world production.
From 2015 to the present, the supply of pepper in the world has continuously increased from 8% -10%, while demand increased only 2%. Oversupply of supply caused the price of pepper to plummet. Previously, the domestic price was up to 250,000 VND / kg, now down to about 40,000 – 41,000 VND / kg. With this selling price, the households who grow pepper can harvest profit by themselves while hiring laborers to harvest will suffer losses.
Experts and businesses at the conference said that global pepper production in the coming time is still in an uptrend so prices are likely to continue to go down. According to the International Pepper Association, in 2019, world pepper output will reach 602,000 tons, an increase of 8.27%, of which Brazil increased by 28%, Cambodia increased by 17%. In Vietnam alone, the production is expected to reach 240,000 tons, an increase of about 9%, as the new planting area from 2014-2016 begins to be harvested.
To avoid this situation, pepper businesses believe that there is no other way to link with each other, and at the same time link with farmers to create clean pepper production areas, even to produce organic to export. Export with high prices. This is the best solution for sustainable development.
In addition, businesses must improve processing capacity, associated with market development; organize safe and sustainable pepper production; enhance quality control, input materials. Strictly control the process of processing and preserving; innovate production technology, increase the percentage of white pepper to 30% -40%, diversify products (organic pepper, red pepper, ground pepper, pepper plastic) …
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