Pepper exports still increased during the Covid-19 epidemic, plus speculative activities, which helped pepper prices tend to increase slightly in key growing areas.
A pepper garden in Long Khanh, Dong Nai.
According to Mr. Hoang Phuoc Binh, Vice Chairman of Chu Se Pepper Association (Gia Lai), in recent days, pepper prices in this area have tended to increase slightly and are currently around 38,000-39,000 VND/kg.
Information from the Center for Industry and Trade Information (Ministry of Industry and Trade), shows that pepper prices are increasing in all key pepper growing areas, in some places have returned to the mark of 40,000 VND/kg.
Specifically, on May 6, the price of black pepper in Ba Ria – Vung Tau is 40,000 VND/kg; Binh Phuoc 39,000 VND/kg, Dong Nai 39,000 VND/kg…
Mr. Binh said pepper prices increased thanks to import demand starting to return in some markets. After a temporary halt due to the Covid-19 epidemic, Chinese customers have returned to buy both black and white pepper. In which, white pepper is being bought a lot by them.
Besides, because recently, pepper prices dropped to low, which is considered to be at the bottom, so many speculators actively bought. This also contributed significantly to the increase in pepper prices.
According to the Import-Export Department (Ministry of Industry and Trade), the requirements of social isolation and restrictions on customs clearance of goods of many countries around the world to prevent Covid-19, disrupted the global supply of pepper. This is believed to be one of the main reasons for the increase in export prices of pepper in some major producing countries.
It is worth noting that while the Covid-19 epidemic has made the export of many agricultural products of our country difficult, the export of pepper in the past time has been affected more or less in some markets. school, but overall it’s still pretty normal.
According to estimates of the Import-Export Department, pepper exports in April reached 40,000 tons, worth $80 million, up 8.2% in volume, but down 14.3% in value compared to April 2019. . Generally in the first 4 months of 2020, pepper exports reached 121 thousand tons, worth USD 256 million, up 11.9% in volume, but down 9.4% in value over the same period in 2019.
The export volume of pepper increased, showing that this item has remained relatively stable in the past 4 months. The decrease in value was mainly due to the fact that supply was still outstripping demand, causing pepper prices in the world market in the first months of this year to continue to decrease compared to the same period in 2019.
Nedspice Group forecasts that, although global pepper production is estimated to decrease by about 12% in 2020, it is expected that inventories will still exceed total market demand.
In some major producing countries, pepper production remains high. For example, in Vietnam, this year’s output is estimated at about 250,000 tons. Adding 90,000 tons of inventory from last year, the total supply of pepper is 340,000 tons. In India, pepper production this year is forecast to increase by 20,000 tons compared to 2019 and reach 65,000 tons.
According to Mr. Binh, in the coming months, after the epidemic is under control, European and American customers … return to the market, pepper prices may continue to increase, but the increase is not much, because this year, The world pepper market is still in a state of oversupply.
However, by the end of this year and next year, pepper prices are likely to increase more strongly. The reason is that Vietnam’s pepper output will decrease significantly. In the past few years, due to low pepper prices, many pepper growing households are no longer able, or no longer interested in investing in pepper gardens. Therefore, although the pepper area has not decreased much, the output of the coming crops may decrease sharply due to the decrease in overall productivity.
According to the Import-Export Department, in the context of complicated developments of the Covid-19 epidemic, affecting Vietnam’s pepper export activities, the pepper industry has changed the structure of export products. Accordingly, businesses are upgrading the processing stage to increase product value and at the same time improve competitiveness in the world market in the coming time.
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