Continuing information about the cause of skyrocketing pepper prices in recent days, talking to the writer, Mr. Nguyen Tan Hien Deputy General Director of Tran Chau Import Export Service Trading Joint Stock Company, and Vice Chairman of Pepper Association Vietnam (VPA) stated that the market is currently in a mess of information about material inputs.
Accordingly, some agents are hoarding goods to push prices up to make a profit by spreading rumors that pepper prices may rise to 70,000 – 80,000 VND / kg due to import demand in the growing market.
This has led to farmers not wanting to sell due to higher prices, making it difficult for exporters to make purchases.
Talking to the writer, Mr. Phan Minh Thong, Chairman of Phuc Sinh Joint Stock Company, who was named as the “king” in exporting pepper, said the fact that the demand in the world is still low when Many restaurant systems are still closed.
“Many of our customers who bought from us want to sell back to the company. Some customers even want to postpone deliveries to overcome the difficult period.
By the present. Their customer segment is the hotel restaurant which is currently closed, ”Mr. Thong said.
“Prices are rising, but people do not benefit because overseas customers only want to buy at the old prices, and the new prices they do not accept,” Mr. Hien said.
The vice president of the Vietnam Pepper Association said that the act of spreading false rumors directly “killed” the export of pepper by domestic enterprises while almost the only output of Vietnamese pepper was exports.
According to the Ministry of Agriculture and Rural Development, 95% of Vietnam's pepper is for export, the remaining 5% is for domestic consumption.
Benefits are not in the hands of Vietnam's pepper industry
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Mr. Hien said that his enterprise supply for contracts in June was sufficient but the contracts from August to October are lacking.
“In case of insufficient domestic supply if people do not sell, we will have to import products from Brazil or Indonesia. However, this is good for the foreign pepper industry, not the domestic market, ”Mr. Hien said.
Representatives of the Vietnam Pepper Association said that Vietnam's pepper prices increased virtually, creating conditions for other markets to expand market share. In Vietnam, the goods only pass through, and hand in speculation, not out of Vietnam.
Mr. Thong reiterated the past lesson of Vietnam's pepper industry to leave opportunities for other countries.
“At the time of pepper price up to 120,000 VND / kg, people hoarding goods do not want to sell to wait for prices to rise further. This creates an opportunity for Brazil to increase the export of pepper from 40,000 tons to 85,000 tons. The strong supply pressure pushed pepper prices down to only VND 80,000 / kg and farmers and businesses' money was also swept away, ”Mr. Thong said.
Another more dangerous consequence, according to the Vice President of the Pepper Association, is that the price of virtual pepper increases along with the price of input materials such as seeds, fertilizers … are cheap, causing farmers to rush to plant pepper again, causing supply. was redundant even more redundant.
Chinese traders benefit
Mr. Hien said that the price of pepper was only VND 38,000 – 42,000 / kg at that time, Chinese traders bought a lot because of cheap prices.
However, recently, when pepper prices skyrocketing, they have sold back to Vietnam for profit.
“In the context of skyrocketing pepper prices, they sold back into the Vietnamese market for shipments still on the border.
Even some shipments have been exported to China but not yet consumed, traders transport back to Vietnam to sell, “Mr. Hien said.
Long-term pepper price is still under pressure of oversupply
Sharing with the writer, Mr. Nguyen Nam Hai, Chairman of Vietnam Pepper Association, said that this price increase is only temporary and not a manifestation of a long-term price recovery phase because the supply in the world is still large. than the bridge.
“While the demand for pepper in the world grows only 2.5% / year, the supply growth rate reaches 8% / year,” Mr. Hai said.
In fact, Mr. Hien said last week and today (1/6) selling pressure has made pepper prices start to decline.
Price movement in May. (Data: tintaynguyen.com. Summary: Duc Quynh)
According to data from tintaynguyen.com, on Saturday (June 30), the price of pepper in Vung Tau decreased to 56,000 VND / kg, after peaking at 60,000 VND / kg, the price was last seen in November 2018. .
In Binh Phuoc, Dak Lak, Dak Nong and Gia Lai, the price of pepper decreased by VND 4,000 / kg to VND 52,000 – 55,000 / kg. Dong Nai decreased less, 3,000 VND / kg, to 54,000 VND / kg.
This morning, only in Gia Lai province, the pepper price increased by VND 1,000 / kg to VND 53,000. In contrast, in Dak Lak, Dak Nong and Vung Tau, pepper prices decreased marginally by VND 500 / kg to VND 54,000 – VND 55,500 / kg.
According to the Ministry of Agriculture and Rural Development, the estimated output is 250,000 tons, the inventory in 2019 will turn to about 90,000 tons, so the supply in 2020 is estimated at 350,000 tons, accounting for more than 50% of supply worldwide.
“The supply is still high while a series of major restaurant systems in the world are still frozen, so there is no reason for the overall price to rise sharply. Therefore, hoarding goods, not selling at this time is not recommended, ”Mr. Thong said.
