Home News-Articles Vietnam black gold fever fever, a month’s price increases 4 times

Vietnam black gold fever fever, a month’s price increases 4 times

by mohan

After a period of sinking at the bottom, pepper – a commodity that is considered as “black gold” of Vietnam suddenly got a price fever. Within a month, the price of this item has increased more than 4 times

The price increased dramatically

According to the Agriculture, Forestry and Fisheries Market Bulletin of the Ministry of Industry and Trade, Vietnam’s pepper export turnover in March 2021 is estimated to reach 30,000 tons, worth $ 86 million, up 123.4% in volume and increase 120.9% in value compared to February 2021.Generally in the first quarter of 2021, pepper exports were estimated at 60 thousand tons, earning $ 174 million, down 25% in volume and 1.4% in value over the same period in 2020. The average export price of seeds pepper reached 2,879 USD / ton, an increase of 31.5% over the same period in 2020.

Statistics show that, in the first two months of 2021, exports of black and white pepper decreased compared to the same period in 2020. However, exports of ground black pepper and ground white pepper increased sharply. Thus, the structure of types of pepper for export has changed dramatically. Businesses reduced the export of raw pepper and replaced them with more specialized processing.With the prosperity in exports, the price of raw material pepper in the country in March also had strong fluctuations. In Ba Ria – Vung Tau, within 1 month, pepper prices increased more than 4 times, from 17,500 VND to 73,000 VND / kg.

Similarly, pepper prices in Dak Lak, Dak Nong, Gia Lai, Dong Nai and Binh Phuoc provinces are all at 72,000 VND / kg, 71,000 VND / kg, 70,000 VND / kg, 74,000 VND / kg and 73,000 VND, respectively. / kg.The cause of pepper price fever, the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development) said that the supply decreased while the demand was flourishing.

In the first half of April, black pepper prices continued to remain stable at VND 70,000-74,000 / kg. Compared to the same period in 2020, the current price of black pepper is twice as high (only reaching 35,000-37,000 VND / kg). White pepper prices were at 108,000 VND / kg, much higher than 57,000 VND / kg in the same period in 2020.Some pepper growers in Dak Lak said that although pepper prices are at a good level, this year’s crop output has decreased sharply, in some places it has decreased by 30-40%. In addition, the disease on pepper has not been thoroughly treated, affecting productivity and output of pepper orchards.

Increased abnormally high risk of hoarding goods

Before the fever of raw pepper prices, farmers in pepper growing capitals expect prices to exceed 80,000 VND / kg and possibly increase to 100,000 VND / kg by the end of this year as supplies are plummeting. Therefore, many people have psychology of hoarding goods, waiting for high prices to sell.

Enterprises in the industry also admitted that in March, pepper was at the time of the harvest. The mentality of growing pepper is “hoarding goods for not selling yet”, traders buy “hold goods” to wait for the price to increase, leading to the phenomenon of scarcity of pepper.Mr. Phan Minh Thong – Chairman of the Board of Directors Phuc Sinh Joint Stock Company – previously also said that until now, there are still many people “hugging” dozens of tons of pepper from the high price period (120,000-150,000 VND / kg).

According to Mr. Thong, the pepper harvest season is expected to end at the end of April. At that time, the pepper output increases, plus the amount of pepper from Cambodia, Indonesia and inventories, the pepper price may not be as high as at present.In fact, this item is not lacking compared to the world demand. Therefore, the more difficult it is for pepper prices to rise to 100,000 VND / kg as some predicted. Therefore, Mr. Thong said that farmers should consider selling time to ensure profit.”Everything is the same, ‘greed will become deep,’ but the market is always competitive, there are always elements of surprise,” he said.

The International Pepper Association (IPC) also said that the unusually high price of pepper in recent times was mainly due to the hoarding of both growers and traders, causing the supply of pepper to be virtual, forcing importers to switch to other countries, mainly Brazil.It is worth mentioning, if Brazil’s prices remain lower and meet all the orders, the hoarding situation of pepper shop owners in Vietnam is very dangerous, possibly falling into the situation of collection prices. high, but the discharge price is low.According to the IPC, the “shock” increase in pepper prices made the pepper market in Vietnam difficult to predict, forcing importers to consider when sourcing the goods.

Mr. Nguyen Nam Hai – President of Vietnam Pepper Association (VFA) – predicted, with the current situation, pepper prices will not increase further, but it will be difficult to lower prices as before. Vietnam is harvesting pepper, but the increase in pepper prices suggests that market demand is in place.According to a survey of VFA, by 2021 Vietnam’s pepper output will decrease around 25% compared to the previous crop.

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