Wrong math, sell buffalo!

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Pepper output increased by 3.1% over the same period last year, reaching 271.7 thousand tons. This is the number reported in the first 6 months of the year on the output of some industrial crops of the General Statistics Office (GSO).

Every year, VPA organizes a survey team to go around the key pepper growing areas to assess specific output…

According to preliminary data reported by the General Department of Customs (TCHQ), pepper exports in the first 5 months of 2021 totaled 121,388 tons of pepper of all kinds, down 17.08% compared to exports in the first 5 months of 2020. The market has asked the question, in 2021, with 7 more months of export, where will the pepper come from?

Exports are lower, worrying about not having much pepper left. Why is it so paradoxical?

The problem is that, after two surveys of key pepper growing areas in the Southeast and the Central Highlands, the Vietnam Pepper Association (VPA) has forecast that this year’s pepper output will only be in the range of 168-180,000 tons. , about 25-30% lower than last year, because many growing areas neglect to take care of fertilizer because of prolonged low prices and widespread diseases, maybe next year it will decrease even more…

Of course, the survey still does not have a high consensus, especially with Mr. Hoang Phuoc Binh, Standing Vice Chairman of Chu Se Pepper Association, a member of the survey team.

Based on the experience of growers and actual observations, Mr. Hoang Phuoc Binh believes that the actual output will decrease even more…

At the meeting of VPA Executive Committee in the first quarter of 2021, Mr. Nguyen Tan Hien, Vice Chairman of VPA, also Phuc Sinh Exporter, affirmed that output may decrease but not by 30% as concluded by the survey team.

Many exporters expressed concern that there will not be enough supply for traditional customers, forcing them to import from other countries to compensate, in the context of volatile prices, many countries have to distance themselves because of covid-19 , shipping rates skyrocketed, speculation and domestic farmers hoarded goods… Never before has the pepper export business faced so many difficulties as now.

Excerpt from the report agricultural situation in the first 6 months of the year of the General Statistics Office: “The output of some perennial industrial plants in the first 6 months of 2021 increased over the same period last year: Tea buds reached 488.7 thousand tons, up 2.3%; rubber reached 390.6 thousand tons, up 3%; cashew nuts reached 342.8 thousand tons, up 4.6%; pepper reached 271.7 thousand tons, up 3.1%.”

Screenshot of the report on the website:

Obviously, the report does not mention agricultural output for the whole year 2021, but the article on Vietnambiz made headlines. “GSO: pepper output in 2021 will reach nearly 272,000 tons” caused panic in the domestic market.

Photo taken from Vietnambiz . page

Perhaps after this article, expect the editor and the person in charge of the news site to be more careful.

However, hundreds of mulberries also poured silkworms’ heads, without the numbers from the report, what would journalists do “draw more legs” (from 6 months to a whole year) ? The question is, where does the report come from?

According to the data reported by the General Department of Customs, pepper exports in the first half of June 2021 reached 16,764 tons, it can be speculated that June exports will reach 33,000 tons. However, the report of the General Department of Customs needs a certain amount of backwardness to collect detailed export reports from Customs Departments across the country sent back after the operation in that month ends.

On the contrary, GSO’s export data is usually an estimate because demand needs to come out sooner, And here is the export figure: 34 (thousand tons) pepper… and 155 (thousand tons) for the whole 6 months.

Report snapshot (xls version)

It is not clear why there is a big difference between the two GSO reports?

Hope the General Statistics Office will confirm soon. In particular, it helps to make the information received by the market more reasonable.

Nguyen Vinh(Giatieu.com)

The post Wrong math, sell buffalo! appeared first on Pepper prices, pepper market information.

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