Pepper prices are very good. Many provinces focusing on pepper rushed to plant but there was no reason for the increase in area. Because, wealth through spending and bankruptcy can also be for consumption. So which scenario for Vietnamese pepper?
“Fever of the century”
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Over the past 2 months, provinces in the Central Highlands and Southeast have simultaneously caught the fever of pepper. In June, the price of 1 pepper with 3 eyes like in Binh Phuoc is 15,000 VND and has increased to 25,000 VND. Wooden 4m high venom previously only 180,000 VND / venom has increased to 300,000 VND but scarce and no stock. Venom from beton also increased from VND 100,000 / post to VND 120,000. The seedling shops in front of the Central Highlands Agro-Forestry Science Institute (Dak Lak) are in a state of “fire” even though prices have doubled. On the market, there are 3 varieties, Vinh Linh, pepper and Like Indian varieties, each breed has the appropriate characteristics in specific conditions of production and soil but the buyer has no choice, moreover, whether it is rope or gourd, the standard must be 3- 4 main body wires, but now they are ignored by the tongue.
The price of seeds, materials and labor has increased, causing the cost of new planting per hectare of pepper soared from 220 million / ha to 350 million (already available land) but still did not discourage farmers, a lot of coffee gardens be liquidated quickly to make room for pepper. In Gia Lai, the new planting area is forecasted to be about 700 – 800 hectares, Dak Lak is also likely to add 600 hectares. Binh Phuoc has the largest pepper area in the country with a statistic of 10,866 ha in 2011 but it seems to be saturated but the number of new planting is estimated to be about 500 ha … Other provinces with large pepper growing areas such as Dak Nong and Ba Ria Vung Tau and Dong Nai both increased. Also according to statistics, Vietnam's pepper area in 2011 reached 55,800 hectares but it is predicted that it is likely to exceed 1,000-2,000 hectares.
High prices are the motivation to expand the area. According to the International Pepper Association (IPC), the price of pepper has increased sharply in the past 3 years. In 2010, the average price of black pepper was traded at 2,973 USD / T, in 2011 it increased to 4,779 USD and 6 months. beginning of 2012 was 6,513 USD / T. The corresponding figure for white pepper is 4,432 USD; 7,117 USD and 9,434 USD / T. Rising world prices have pushed up domestic black pepper prices from VND 55,000 / kg to VND 125,000 / kg, even in Gia Lai, pepper prices have reached VND 160,000 / kg. Also according to IPC, the price of pepper increased in line with the decline in production and productivity of many countries in the world. India, which previously had output of more than 100,000 tons, has reduced to 50,000 tons in 2009 and in 2011 only 40,000 T. Indonesia decreased from 52,000 tons in 2009 to 41,000 tons, Brazil from 40,000 tons in 2009 decreased to 35,000 tons. The decline in output has led to a reduction in inventories from 100,000 T to only 35,000 T.
International scientists visit intensive pepper gardens in Quang Thanh, Chau Duc and Ba Ria-Vung Tau communes
“Vietnam number one”
This is the statement of Mr. S. Kannan, IPC General Director on the visit to farmers' pepper gardens in Quang Thanh commune, Chau Duc district, Ba Ria Vung Tau on August 8. Also during that trip, Dr. Sumanasena, Director of Sri Lanka's Multi-Farming Research Institute, was also impressed by the fact that the model of intercropping with tea coffee “every Vietnamese farmer deserves to be a real scientist. “.
Not only just talk, the market newsletter in May 2012 of IPC has the paragraph: “Compared to April 2012, the price of black pepper in May 2012, increased by 2.1% from 6,703 USD / ton to 6,844 USD / ton. , white pepper increased by 2% from 9,459 USD / ton to 9,651 USD / ton. The price index increase is mainly due to the price increase taking place in Vietnam, the largest supplier, although prices in other pepper growing countries are decreasing … Due to lack of competition, Vietnam is still an accurate representative. market orientation, prices and farmers in Vietnam are not interested in selling pepper at lower prices and are willing to keep inventories. ”
With an output of over 100,000 tons, accounting for one third of the world's output and 50% of the global trading volume, pepper is not only the only agricultural product in Vietnam that dominates and controls the market, but also the craft that makes up the market. the best in the world. Phuc Sinh, a limited company trading 16,000 tons of pepper / year, accounts for 7% of trading volume of pepper worldwide is the leading enterprise in the world in this item. The Vietnam Pepper Association contributes US $ 90,000 annually to IPC – the strongest association in the world.
Should follow the oil palm of Malaysia?
Previously, Malaysia decided to destroy rubber and cocoa to grow palm oil and now oil palm has become the most effective crop and Malaysia has become the dominant country of palm oil market in the world. Malaysia does that because its natural condition is best suited for oil palm.
Vietnam pepper also has similar features because it is grown on volcanic ash, people familiar with intensive, industrious and agricultural labor is not lacking. So should policymakers take the opportunity of pepper countries in decline and expand the area to overwhelm? Unfortunately the answer is not recommended for the following reasons:
Ea H'Leo is a key growing district of Dak Lak, but many areas die from 20-30% to 100% because of fungal diseases
Rich thanks to pepper and also because of bankruptcy. Why are the key provinces in pepper rushing to plant but the pepper area has not increased much, it can only be explained that the new planting area is very high just enough to compensate for the annual dead area because Disease.
Big pepper areas like Chu Pah, Chu Puh, Ea H’Leo have hundreds of billionaires, but also many households have become bankrupt because of pepper. During a survey of international scientists on pepper recently, it was also discovered that Vietnamese pepper gardens are facing dangerous diseases.
Do countries' output continue to decline? Answering the question of why India's pepper production decreased from 100,000 T to only 40,000 T, while India was the only country with a thorough scientific research on pepper and a pepper gene bank. Professor Anandaraj, director of the Indian Spices Research Institute, explained that India's decline in area due to the epidemic in the past time has mainly been in concentrated places, where Indians have grown extensive pepper so it is difficult for the area to be further reduced. , on the other hand, the Indian government has a policy to support pepper growers (for spaceless and 2 pepper lines for each pole) and India has also been able to breed new varieties with a yield of 5 T / ha and are resistant to bear higher. Other countries like Indonesia and Malaysia are also having similar policies.
Demand increased insignificantly: When listening to Mr. S. Kannan, IPC General Director said pepper trading increased by 8% / year, many people thought this was an opportunity for Vietnam. However, surveying the data series for 15 consecutive years, the demand for pepper has not increased significantly, while the trading volume increased because the output of some countries decreased.
No other place in the world has the advantage of pepper like Vietnam, especially in the Central Highlands (the average yield of Gia Lai is 4.52 T / ha) but it is also impossible to open more areas because pepper only a little surplus is that international speculators have lowered prices, but the lesson price has dropped below 2,000 USD / T in the years 2002 – 2006 is still hot.
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