Vietnam stops increasing black pepper production in 2018

Also in the “billion dollar” export category and in the “dominant” position of the world market for pepper, pepper is facing the risk of over supply due to spontaneous increase.

When “dominate” the output is also difficult

It can not be denied that the development of the pepper industry in Vietnam has been quite impressive, with the change of meat of the countryside thanks to pepper cultivation. However, it seems that the overheating in the area (tripled only from 2010-2017), but lack of attention, investment necessary for product quality … is causing both businesses (DN) and people Pepper is facing many risks.

Particularly in Ba Ria-Vung Tau, reported at the new pepper industry conference took place, the area of ​​pepper cultivation in the province has nearly doubled compared with the planning. According to the plan, by the year 2020, the province has about 7,000 ha of pepper, but it is estimated that the area of ​​pepper may reach 13,200 ha in the next two years.

Indeed, the pepper area of ​​Vietnam in 2017 is 152,000 hectares, up 22.5% compared to 2016. In many other pepper growing areas in the world, the phenomenon is similar. The balance on the demand side makes the price of pepper in 2017 drop sharply from about 200,000 VND / kg to over 60,000 VND / kg.

The record price shock caused exports of pepper in Vietnam increased by 20% in output, but the turnover decreased to 22%.

According to the General Department of Customs, in the first quarter 2018, the country exported more than 60,000 tons of pepper of all kinds with turnover of more than 222 million USD. Compared with the same period in 2017, export volume increased by 18%, but turnover decreased by 31% due to the sharp decline in pepper prices over the past year.

Fortunately, the International Pepper Community (IPC) forecasts that pepper prices this year will be hard to recover, but will not fall sharply as in 2017, as many countries no longer see significant economic returns from pepper. At the current price should also not encourage investment, development.

In 2018, Vietnam will remain the world leader in export pepper production, equivalent to 2017, with around 180,000-200,000 tonnes. The estimated turnover is still unknown.

Forecasting the situation this year for farmers and pepper producers is more optimistic than last year, but according to the enterprises and analysis of the Vietnam Pepper Association (VPA), record price shock in 2017 are early warning signs that a spontaneous production has genuinely overshadowed the risk outlook when supply exceeded demand. And more than pepper is a spice item, not essential consumer goods or food, so the “rescue” of agricultural products will be difficult to work effectively with many other items before …

The risk of “losing cow”, to worry “to make cages”

According to the association of Ba Ria-Vung Tau, the link between the government, people and enterprises is not close, leading to the development of pepper cultivation spontaneously; There is no clear commercial promotion for pepper, the intellectual property rights of the geographical indications of pepper of Ba Ria-Vung Tau have not been exploited, not linked to the national pepper brand. … Along with that, the price fell sharply causing farmers to move to the queue up price. Purchasing of many enterprises is difficult.

But “tunnel lighting” has emerged when the pepper areas are tightly linked with farmers, with international quality certification, meeting the export requirements to the fastidious markets are gradually forming. Although only about 10% of the total pepper area of ​​the province, but obviously, both businesses and a part of farmers are more aware than ever, it is time to change the farming habits, retired from the race area growth and yield.

Tran Phuoc Hau, Assistant General Director of Tran Chau Trading and Import-Export Service Joint Stock Company, said that this year, the company has been continuously being pushed by price buyers and technical barriers in major markets of Vietnamese pepper. also raised. Part of the difficulty of exporting pepper is the risk of over supply. “In order to focus on improving the quality of our pepper, we have set up a sustainable pepper production plan in 2017 and to find new markets in Eastern Europe,” she said.

During the shift, it seems that FDI enterprises are one step faster. General Director of Nedspice Spice Processing Company (Dutch), Mr. Willem Van Walt Meijer has information: Cooperated with 1,600 farmers in Binh Phuoc for nearly 7 years with the first goal is to ensure Trace the origin of the product to each household. Where there is no quality products, enterprises will have agricultural extension staff to support the adjustment of cultivation, harvesting and preservation procedures; There is even a bonus policy for farmers who have good products.

“The only solution for Vietnamese pepper is to improve quality. More and more Japanese customers are coming to us and are willing to pay a premium for their products, “said Willem Van Walt Meijer.