Domestic pepper prices on June 16 leveled off and went sideways. In key pepper growing areas, prices fluctuate from 71,000 – 73,500 VND/kg, in Binh Phuoc from 72,000 – 73,000 VND/kg.
In the newspapers, headlines like: Pepper has lost its value dramatically; Farmers struggle with “black gold”; Pepper prices dropped, crops failed, farmers went bankrupt… making pepper growers and traders even more frustrated.
According to data from the Ministry of Agriculture and Rural Development, in the past 5 months, the average export price of pepper was 3,011 USD/ton, down 35% compared to the same period in 2022. This is the sharpest decline in the past 3 years.
Also in the past 5 months, Vietnam exported 138,000 tons of pepper, equivalent to 414 million USD, an increase of 38.4% in volume, but a decrease of 9.9% in value compared to the same period in 2022. This bitter paradox, Not only pepper growers but also pepper businesses suffer.
[ Xem giá tiêu mới nhất ]As one of the pepper capitals in the Southern region, many farming households in Bu Dop, Loc Ninh districts, Binh Phuoc province have changed their lives thanks to this plant known as “black gold”.
At the end of 2013, pepper prices peaked at 180,000 VND/kg, causing Binh Phuoc farmers to massively sow seeds. Many areas of rubber, coffee, fruit trees… even though the soil and other conditions are not suitable, still have pepper trees pressed into them. Lucky people get it for a few years. Unlucky people have to pay the price with pests, fungus or unfruitful pepper.
Every profession must clearly understand the necessary and sufficient conditions as well as understand the market. And pepper growing is no exception.
In the past few years, when pepper prices plummeted to the bottom of 34,000 VND/kg (March 2020), combined with pests and fungi on pepper trees, Binh Phuoc farmers were again struggling with the planting-cutting cycle. Many pepper gardens were abandoned. Many farmers who tried to keep pepper gardens fell into debt to the point that they had to sell their gardens to pay off the debt.
In 2016, when pepper prices hovered around 130,000 VND/kg, the pepper area in the whole province was 16,452 hectares. Compared to other crops, growing pepper still gives the highest profit, so the area continues to increase.
By 2018, when the pepper area in the whole province reached 17,178 hectares – the highest in the country, pepper prices cooled down to only 55,000 – 58,000 VND/kg.
And since then, pepper prices have been unbearable, while according to gardeners’ calculations, if pepper prices are below 100,000 VND/kg, growers will not make a profit. Therefore, the pepper growing area each year decreases by hundreds of hectares, currently the whole province has only 135,500 hectares.
There have been many solutions proposed by the authorities to support pepper growers. From encouraging the development of pepper trees along value chain links from production, processing to product consumption, associated with modern management, certification of quality and food safety, and sustainable development of pepper trees; to build brands, support pepper growers to get bank loans…
However, the cruel cycle of planting and cutting still clings to pepper growers. Just do a simple calculation: It takes 3 years of planting for a pepper tree to bear fruit, and it takes from the 3rd year after planting for a pepper tree to produce high yields. So when pepper prices rise and farmers return to planting, it will take at least 4-5 years without income. Many families have been devastated by the exhausting pursuit of this market.
The harshness of the market and the helplessness of specialized agencies in the agricultural and extension sectors when they can only “advise” verbally through agricultural extension training sessions or garden visits… have not brought any results. The result is as good as we expected. Like other crops, if pepper growers continue to have the mindset of “getting away with it” and rushing to passively chase after the market, it will be very difficult to escape the situation of “chasing and catching the shadow” of planting and chopping. The fertile red basalt land with a total area of 584,453 hectares is still waiting for the hands and calm minds of farmers to awaken and enrich their hometown of Binh Phuoc.
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