Some rumors that Vietnam has a pepper crop in the 2016/2017 crop launched in late 2016 are causing many foreign customers to “take advantage” to pressure and pressure pepper prices.
Accompanied by that, in the country, a number of new pepper growers bewildered with market developments should appear “sell off” situation. These things are causing domestic pepper prices to fall abnormally deep.
Falling prices because of … rumors
According to data from the Vietnam Pepper Association (VPA), domestic pepper prices began to tend to decline in 2016 when the area planted to pepper showed signs of “hot” growth. In mid-March 2016, black pepper prices dropped to only VND 130,000 / kg, then increased to VND 180,000 / kg in May.
However, from August to the end of the year, pepper prices always tend to decrease and show signs of being difficult to recover like in 2015. By early 2017, pepper prices were still at 128,000 – 135,000 VND / kg and only decreased. less than VND 100,000 / kg since April 2017.
Recorded from some buying agents, pepper trading enterprises showed that domestic pepper prices on May 18 continued to decline sharply, ranging from 79,000 to 82,000 VND / kg, depending on the region. If compared to the same period in 2016, pepper prices have now fallen by 50%. This is considered a record reduction of pepper industry in the past 5 – 6 years.
For a long time, Vietnamese farmers regarded pepper as a “currency”, they often stored in warehouses and sold only when needed. Many foreign experts have also said that Vietnamese pepper prices are unlikely to fall low, because pepper growers have had a few years of accumulation, so they have a chance to temporarily store goods when prices are low and are less likely to be pressed. This also explains the reason that despite the increase in output, it still managed the market with high selling prices.
However, at this time, pepper price dropped quickly. Explaining this reason, Mr. Do Ha Nam, President of VPA, said that from the end of 2016, the world pepper business community said that the crop year 2016 – 2017 Vietnam was the biggest pepper crop accompanied by the output. higher. This has affected the psychology of buyers, resulting in limited buying to squeeze prices.
In the country, Vietnam pepper market recently also appeared a large amount of pepper originating from Cambodia, making the already abundant supply of capital. Besides, those who just planted pepper at the end of the harvest often promote sales to cover the initial investment costs. These things have created the psychology of “panic” and scrambled to sell out despite falling prices.
“Accounting for nearly 50% of global pepper production, Vietnam has many advantages to regulate the market. At this time, people need to be calm, should not “sell off”, the price of pepper will rise again; and need to sell when pepper prices show signs of recovery. At the same time, in the current context, it is necessary to stop expanding the area of pepper cultivation to avoid the excess supply, ”Mr. Nam said.
International visitors visit the pepper garden
Clean pepper production – a solution for sustainable development
In recent times, when the area, pepper production increased rapidly, the amount of exports increased, a few warnings from importing countries about the problem of chemical residues in pepper in Vietnam have appeared. Exceeding the permitted level of the host country. Especially in the current context, when the price of pepper in the period of recession, the quality issue was put first.
According to Mr. Do Huong Duong, Deputy General Director of Phu Nhuan Service Joint Stock Company (Maseco), although the quality of pepper still has some shortcomings, the reality is not as bad as the media mentioned. .
Currently the production cost of Vietnamese pepper is lower than other sources, so information related to “poor quality” and “chemical residues” will be diffused by competitors to “drown” Vietnamese pepper.
This is the unhealthy competition of foreign partners and this not only happens in the pepper industry but also in other agricultural products, especially seafood.
This is evidenced by the fact that pepper export turnover to the markets has continuously grown over the years. According to the Ministry of Agriculture and Rural Development, in the first 4 months of 2017, the country exported about 75,000 tons and 456 million USD, up 9% in volume.
Currently Vietnam pepper has been exported to over 105 countries. The largest import markets of Vietnam pepper in the first 3 months of 2017 were the United States, United Arab Emirates, Pakistan, India and Germany with a 41% market share.
The markets with strong export value of pepper were Thailand (49.6%), Pakistan (37.9%) and the UK (37.2%) … This data shows that the quality of Vietnamese pepper is guaranteed. To meet the most stringent technical and food safety requirements of today's fastidious markets.
Vietnam's export price of pepper is currently much lower than that of other pepper supplies, the difference may reach over 1,000 USD / ton. With many years of experience exporting pepper to the fastidious EU market, Mr. Nguyen Ngoc Luan, Director of Lam San Cooperative (Dong Nai) said that in order to improve the value of Vietnamese pepper, there is only one way to produce pepper. meet the needs of the world.
“Because of the characteristics of pepper industry, only when farmers produce clean pepper in the direction of organic farming or meet the standards of good agricultural production practice (Gap) will Vietnam pepper be able to stand firm. and reach out to the world. When there is a stable market, the price of Vietnamese pepper will have a better price than the current one, ”Mr. Luan said.
In the context of the current market fluctuations, in addition to advising people to stop planting new pepper, Mr. Do Ha Nam, VPA President also said that people need to change their farming habits and focus. take care of existing pepper gardens in a sustainable manner, minimizing the use of chemical medicines to prevent pests and diseases, leaving no residue in pepper. At the same time, promote the movement of pepper farming towards organic.
“With the requirements of the current import market, the areas and output of pepper using plant protection drugs and chemicals exceeding the permitted level will be boycotted by domestic enterprises, not waiting for water partners. besides speaking, “Mr. Nam said.
Source VNA
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