Price reduction and supply pressures: difficult problem of export pepper

Pepper prices have not been braking for more than a year, after setting a record price, up to 220 million per ton …
Vietnam can supply around 200,000 tons / year, accounting for 62% – 65% of total pepper output.

According to preliminary statistics of the General Department of Customs, pepper export in 8/2018 is estimated at 20,000 tons, worth 58 million USD, the export of pepper in the first eight months of 2018 estimated 173 thousand tons, with USD 577 million, increasing 13.07% in volume and 11.29% in value over the same period. However, average export prices in the first seven months reached $ 3,379 per ton, down nearly 40% over the same period in 2017.

Global pepper demand ranges from 300,000-350,000 tons / year. Vietnam can supply around 200,000 tons / year, accounting for 62% – 65% of total pepper output.

Have not exploited the advantage

Due to the pressure from the supply, the price of pepper on the world market fell sharply, affecting the domestic market price. Pepper prices have fallen from VND 200,000 / kg at the beginning of last year to VND 70,000 / kg at the end of the year. This decline will continue from the beginning of 2018 and prices are ranging from 47,000 to 49,000 VND / kg.

In July, export prices of black pepper and white pepper at Saigon port continued to fall, causing the average pepper export price in the first seven months of 2018 to reach USD 3,379 per tonne, lower than USD 51 per tonne. the average price of exports in the first 6 months of 2018 and down to 61.5% over the same period in 2017.

Although the price of pepper in Ba Ria – Vung Tau increased by VND1,000 / kg to VND49,000 / kg last week, and a day earlier in Gia Lai (Chse Se), the price of pepper increased slightly by VND500,000 to VND47,000. kg. In Dak Nong, Binh Phuoc and Dong Nai stand at 48,000 VND / kg, coming to the production cost and causing difficulties for farmers.

The International Pepper Association (IPC) forecasts that by the end of the year pepper prices will not fluctuate much as world market demand is not rising. The Farmers Processing and Market Development Department also recommends that export enterprises should actively take advantage of the fact that the country holds a large supply of resources and that there is a business problem. Good to raise export prices up.

According to the Department of Crop Production, from 2010 to present, the area of ​​pepper in the country increased very fast. In 2010, the country only planted 51.5 thousand hectares; in 2014 was 85,591 thousand hectares; By the end of 2017, there were 152,668 thousand hectares, an increase of 196.3% compared to 2010 and exceeding the plan of over 100 thousand hectares.

Meanwhile, according to the pepper sector development plan of the Ministry of Agriculture and Rural Development target 2020 to 2030 vision, the country’s pepper cultivation area is only 50,000 hectares, the product area is 47,000 hectares , the pepper plantation area is now 3 times larger than the original plan. It is expected that in 2018, pepper production will reach 230,000 tons, up from an estimated 210,000 tons in 2017 (175,000 tons in 2016).

By the way of quality

The increase in pepper area in Vietnam has contributed significantly to the increase in pepper area in the world. In 2010, the world planted 443,881 hectares; By 2015 it is estimated to be 518,823 hectares, an increase of approximately 75,000 hectares compared to 2010, concentrated mainly in Vietnam.

This is the reason why the price of pepper has not slumped for more than a year, after setting a record price, up to 220 million per ton. With this price peaks, farmers interest 5 times more than the production cost so everyone excitedly expand the area.

According to Minister of Ministry of Agriculture and Rural Development Nguyen Xuan Cuong, in the past years, the area of ​​pepper growing too fast can not be controlled, posing big problems if not timely removed, not only down but also the risk of breaking the whole industry.

Only one commodity with export value of more than $ 1 billion, but so far no seed is recognized as unacceptable. Or the lack of standard cultivation procedures is also one of the important causes leading to diseases in many areas of pepper cultivation. Therefore, pepper plants should not follow the vegetarian diet. more that must be quality.

“It is necessary to focus on restructuring the pepper industry first, the area of ​​pepper should not be increased but must resolutely pull down, so that focus is reduced in inappropriate places, not planting new areas. Ministry of Agriculture and Rural Development should focus on working on pepper, select good varieties for recognition, and find out the standard cultivation procedures for each sub-region “Cuong emphasized.

According to experts, in 2018, although pepper production in some big producing countries, including Vietnam, may decrease, but as the area for harvesting is still increasing, total global supply will remain higher than 2017 and higher than demand.

This has made the world’s prices unlikely to increase, profits from pepper and farmers are not the same as in previous years, and the export of pepper will be difficult due to technical barriers from importing countries. Up to 95% of Vietnam’s pepper output is used for export