In the first week of August 2017, the price of domestic pepper increased slightly due to a number of markets boosting import of pepper from Vietnam, especially skull pepper (white pepper) while the amount of HT from Indonesia launched to the market in the year. Now it is down more than the previous year and the US market is buying more strongly from Indonesia than the same period last year.
However, at present, prices are tending to slow down due to people starting to sell more and exporting enterprises restricting exports due to the time of excessive fluctuations of prices along with obstacles in quarantine procedures causing export goods. no longer as smoothly as in previous months.
The recent information on VPA's internal website about some pricing practices of some foreign traders is a warning and sharing information among VPA members to help each other minimize business risks. In order to avoid widespread business, it will greatly affect the domestic pepper market.
This phenomenon is likely to continue because these traders (including foreign traders and Vietnamese) are still more located in the HT growing regions than in previous years due to the good profitability of the HT. People have been speculating and buying strongly at harvest (April / April 2017) to expect higher prices at the end of the year, but because the market this year is constantly falling, they are afraid and always looking for ways. to push the item out with the expectation of a higher price at the time of purchase so that there is no loss and it may be profitable.
HT enterprises (including export enterprises and domestic purchasing enterprises) should therefore be more cautious and wary of trading not only with Chinese traders but also with other subjects when having similar behaviors.
Export enterprises need to monitor closely the world market price signals, focusing on keeping traditional markets, diversifying markets, focusing on official export methods, avoiding dealing with markets that have already been exported. There are many high-risk lessons. The big HT buying agents in the country are also very careful, restricting transactions with new households or small agents that provide their own products but unknown backgrounds, less reliable even though they have good prices.
The Vietnam Pepper Association will also work closely with businesses, providing timely warnings to avoid spreading risks.
Source VPA (peppervietnam.com)
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