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| Pepper price today July 16, 2023, unprofitable crop, farmers run out of capital, lose confidence in the market. (Source: Shutterstock) |
Pepper prices today in the domestic market continue to move sideways in some key localities, trading from 67,000 - 70,000 VND/kg.
Specifically, today's pepper price in Gia Lai is the lowest in the market at 67,000 VND/kg.
Pepper prices today in Dong Nai province (67,500 VND/kg); Dak Nong, Dak Lak (68,000 VND/kg); Binh Phuoc (69,000 VND/kg) and Ba Ria - Vung Tau are at the highest level of 70,000 VND/kg.
At the end of the weekend trading session, the International Pepper Community (IPC) listed the price of Vietnamese black pepper at 3,500 USD/ton for 500 g/l, 3,600 USD/ton for 550 g/l; and the price of white pepper at 5,000 USD/ton.
IPC commented that the pepper market this week had mixed reactions as only Sri Lankan domestic prices were reported with a downward trend. Indian pepper prices continued to be reported stable since mid-June 2023.
Indonesian white pepper continued to increase since last week. Stability was also recorded in other Southeast Asian countries.
At this time, domestic pepper prices have increased by more than 10,000 VND/kg compared to the beginning of the season. However, according to feedback on forums, pepper farmers have hardly benefited. Because after many years of losses, farmers have run out of capital, so after this year's harvest, they sell everything to traders instead of storing it to wait for higher prices like many years ago.
In addition, this year's harsh weather forecast will cause pepper to bloom unevenly, resulting in a low number of seeds per vine. However, the main reason is that many families are afraid of losing money, so they do not dare to invest in fertilizer and care. They do not really believe that pepper prices will stabilize and increase again.
Faced with the above situation, the local Department of Agriculture and Rural Development recommends that farmers should focus on taking care of their existing pepper gardens in an organic manner, gradually improving product quality and reducing input costs.
At this time, it is not advisable to massively expand the area. Farmers also need to diversify their crops, from monoculture of pepper to polyculture and intercropping with other crops. This also helps to limit pests and diseases, reduce production costs...
Market trade estimates that Vietnam will need about 100,000 tons of pepper of all kinds for export in the remaining 6 months of 2023. Pepper exporting companies need to import a significant amount of goods from IPC member countries to meet this demand.
Vietnam is one of the largest producers and exporters of pepper and spices in the world, with exports accounting for about 11% of the global market share in 2022.
A survey in May 2023 showed that black pepper export prices increased in major producers such as Brazil (up 13.6%), Vietnam (up 6.9 - 8.3%)... However, by the first half of June, only Indonesia's black pepper price increased by 5%, while other markets remained unchanged.
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