According to information on Theborneopost.com, the Malaysian Pepper Association (MPB) temporarily stopped buying pepper because the stockpiles were full, while the capacity of pepper processing plants could not meet the seasonal demand. .
Commercial pepper farm in Malaysia
MPB has announced to suspend buying pepper buckets from farmers since July 26. According to Mr. Larry Sng, MPB’s chairman, the suspension is due to the capacity of processing centers located in Kuching, Sibu and Sarikei. is still limited. While Malaysian pepper farmers are at the peak of this year’s pepper harvest.
According to Mr. Stanley Liew, general director of MPB, although he has announced to stop buying, for farmers who need to sell a few quintals, they are still met. The purchase halt is temporary, as we have been buying at full capacity since the peak of the harvest, at the end of June.
Mr. Stanley Liew added, MPB has bought about 100 tons of pepper per day in the last 2 weeks. Mainly buy from local merchants with high regulated prices.
We bought 3-4 times our processing capacity. Therefore, we are increasing manpower to speed up processing. We are full stock, it takes time to process, which takes quite a while.
The problem is, local traders have taken advantage of the pause in buying to force farmers’ prices. They buy from farmers at a lower price of 0.8 – 2 Ringit/kg (equivalent to about 5,000 – 12,000 VND) compared with MPB.
There are also some local traders who smuggled buckets of pepper from Indonesia, Vietnam and neighboring countries to sell to MPB. While MPB always buys at a higher price to benefit our pepper farmers, Mr. Stanley Liew emphasized.
Currently, Malaysia has 33,767 pepper farmers, 95% of which are in Sarawak state.
MPB announced that it will buy pepper in buckets from 8/8.
MPB’s suspension of buying buckets of pepper from farmers has met with some reactions from local government officials. They think this is the job “untimely, unacceptable” and MPB needs a backup plan.
According to estimates of MBP, the output of bucket pepper in 2019 will be about 28,000 – 30,000 tons, expected to spend 50% for export.
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