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| Pepper price today August 9, 2023, it's time for businesses to target customers willing to pay for beautiful, high-quality products. (Source: Shutterstock) |
Pepper prices today in the domestic market decreased slightly in some key localities, trading from 71,000 - 74,000 VND/kg.
Specifically, pepper price today in Gia Lai is at 71,000 VND/kg.
Pepper prices today in Dong Nai province (71,000 VND/kg); Dak Nong, Dak Lak (72,000 VND/kg); Binh Phuoc (73,000 VND/kg) and Ba Ria - Vung Tau are at the lowest level of 74,000 VND/kg.
Thus, after 6 consecutive days of increase, pepper prices in the domestic market have begun to decrease slightly.
According to records, after increasing quite strongly in the first months of the year, pepper prices are likely to remain stable in the third quarter of this year.
After many years of “good harvest, low price”, farmers in many places are no longer interested in this agricultural product. In Ia Sam village, Ia Rong commune, Chu Puh district, Gia Lai province, over the past 6 years, some households have converted ineffective pepper areas to mulberry cultivation for silkworm raising.
Similarly, in recent years, many pepper growers in Duong Hoa commune, Kien Luong district, Kien Giang province have faced difficulties due to losses. Many households are no longer able to survive and have switched from growing pepper to other crops.
According to statistics from the Department of Agriculture and Rural Development of Kien Giang province, by June 2023, the whole province had about 493 hectares of pepper; compared to the same period in 2022, the pepper growing area decreased by about 52%. Not only has the area decreased, but pepper productivity has also decreased significantly compared to before.
To develop pepper exports sustainably, businesses believe that it is necessary to invest in increasing the proportion of processed products and reducing the proportion of raw pepper exports, but this is not easy. Currently, Vietnamese small and medium-sized enterprises find it difficult to enter the world's large food chains to supply ground pepper products.
For many years, Phuc Sinh Joint Stock Company has been one of the largest pepper exporters in the country, mostly exporting raw pepper. However, this company affirmed that it is time to shift all raw products to processing for export. Currently, the company has 3 large raw material areas, linked with 6,000 farms, the sustainable pepper raw material area continues to expand at a rate of 15 - 20% per year.
Mr. Phan Minh Thong, Chairman of the Board of Directors of Phuc Sinh Joint Stock Company, pointed out that businesses need to "focus on in-depth development, targeting countries that pay for beautiful, high-quality products".
It is necessary to develop sustainable raw material consumption areas, ensure control of pesticide residues, and promote linkages between businesses and farmers. This is what the pepper industry is doing to restructure the industry in a sustainable direction, focusing on processing instead of expanding output as before.
In the world market, pepper harvest in southern Brazil has begun, while in the northern region it is expected to start from August to October this year.
While the harvest from Indonesia peaks in July to August. This means there will be a steady flow of new supply in the third quarter of this year.
In addition, inventories in both producing and consuming countries remain significant. In many producing countries, pepper growers tend to hold back stocks in anticipation of higher prices.
Meanwhile, demand from China is showing signs of slowing after the country bought significant quantities in the first months of this year.
Global economic uncertainties also continued to weigh on demand in the US and Europe, limiting speculative activity.
However, the market also has factors supporting prices as pepper growers in Vietnam and India retain a portion of their pepper after the harvest has ended and wait to sell at higher prices.
The developing El Nino weather pattern in Asia is also raising concerns about supply in the coming season.
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