Pepper farmers are facing difficulties.

This year's pepper crop failed, and prices plummeted, plunging pepper farmers into even greater hardship. In particular, the loans taken out to invest in their pepper plantations are hanging in the balance, with no idea when they'll be able to repay them.

CROPS FAILURE LEADS TO DRASTIC PRICE DROP.

In the 2022 harvest season, the 1.5-hectare, 10-year-old pepper garden of Mr. Vu Duc An's family in Phuoc Tien hamlet, Hung Phuoc commune, Bu Dop district, yielded over 3 tons. Last year, his family invested over 50 million VND in care, but this year the pepper garden only yielded about 1.2 tons, and the selling price was also lower. At the beginning of the 2022 season, the price of pepper was around 90,000 VND/kg, but this year it is only 70,000 VND/kg.

This year, the 1.5-hectare pepper garden of Mr. Vu Duc An's family only yielded 1.2 tons.

Mr. An said: "The low price of pepper has lasted for 4-5 years now. Destroying the plantations is a waste, but keeping them is not profitable. This year's harvest has seen a sharp drop in price and crop failure, resulting in heavy losses for farmers and causing many difficulties for their families."

The pepper garden of Ms. Nguyen Thi Thuy's family in Loc Hiep commune, Loc Ninh district, is in a similar situation. According to Ms. Thuy, her family's 4-hectare pepper garden, although not producing high yields in recent years, has consistently yielded 5-6 tons of dried pepper. This year, due to various factors, the pepper garden suffered a heavy loss, with a yield of only 2.5 tons. This is also the general situation for most pepper gardens in Loc Hiep commune.

“At the beginning of the season, I tried my best to take care of the plants, hoping for a good harvest and higher prices, but unexpectedly, the crop failed, and prices continued to fall sharply. I hope that the authorities and relevant agencies will have a plan to support farmers so they can make a living from pepper cultivation,” said Ms. Thuy.

Farmers borrowed money from banks to invest in pepper plantations, but are now facing many difficulties due to crop failure and falling prices. Therefore, we hope that relevant authorities and sectors will provide timely support solutions for farmers. These solutions include debt restructuring and debt deferral to help people feel secure in investing in production, restoring their plantations, and maintaining their pepper crops.

Chairman of the Loc Ninh District Farmers' Association, LE KHAC PHU

According to Le Khac Phu, Chairman of the Loc Ninh District Farmers' Association: This year's pepper crop in Loc Ninh district in particular and Binh Phuoc province in general has failed, with reduced yields. In previous years, the average pepper yield was over 2 tons/ha, but this year it's only about 1.2 tons/ha. Furthermore, the selling price continues to fall sharply, making things extremely difficult for pepper growers.

FARMERS ARE NO LONGER ENTHUSIASTIC

Unpredictable climate change, persistently low prices, and the inability of pepper farmers to reinvest have left them disheartened. This has led to farmers neglecting their crops, causing them to decline, lose productivity, and eventually die off. The family of Mr. Nguyen Van Vui in Viet Quang hamlet, Loc Quang commune, Loc Ninh district is one such example. In 2015, Mr. Vui's family invested in planting 8 sao (approximately 0.8 hectares) of pepper with about 400 plants. However, from 2016 to the present, pepper prices have continuously fallen, while the cost of agricultural supplies has skyrocketed… leading him to become discouraged and abandon his farm.

With a poor pepper crop and persistently low prices, Mr. Vui in Loc Quang commune, Loc Ninh district, has lost interest in his pepper garden and is letting it wither and die.

Mr. Vui said: "In the years when pepper prices were high, every farmer took better care of their crops than they would their own children. Now, when you mention pepper, everyone feels discouraged. For the past few years, pepper growers have been losing money. Most farmers in this area, if they don't switch to other crops, have abandoned their gardens and gone to work as laborers to make a living."

According to Phan Chinh Thuan, Director of Hiep Tien Agricultural and Service Cooperative in Loc Hiep commune, Loc Ninh district: For the past 3-4 years, pepper prices have remained low, causing significant difficulties for pepper growers in reinvesting and maintaining their planted area. As a result, pepper gardens are increasingly depleted, leading to a 40-50% decrease in yield. In response to this situation, 50% of the pepper growing area has been converted by cooperative members to rubber, cashew, and other crops.

A LONG-TERM SOLUTION IS NEEDED

In 2012, Mr. Van Tien Xuan's family in Phuoc Tien hamlet, Hung Phuoc commune, invested over 1.2 billion VND and borrowed an additional 800 million VND from the bank to cultivate 2 hectares of pepper, hoping for a better future. However, for the past five years, the pepper crop has not yielded enough income to cover the reinvestment costs. Faced with this difficult situation, he was forced to dismantle the pepper plantation and switch to growing other crops.

Mr. Xuan said: "The pepper garden represents all of our family's capital, plus money borrowed from the bank for investment. Currently, our family still hasn't been able to repay the bank loan, and we still have to pay interest every month, so life is very difficult. With the low pepper prices lasting for many years, my family is forced to destroy the garden and switch to growing other crops."

Mr. Van, from Hung Phuoc commune, Bu Dop district, had to reluctantly cut down his pepper garden and switch to growing other crops, while he still hasn't been able to repay the 800 million VND bank loan he invested more than 10 years ago.

In 2015, when pepper prices were at their peak, Mr. and Mrs. Sam Van Son, residing in Bon Xang hamlet, Loc Quang commune, borrowed 100 million VND from the District Social Policy Bank to invest in planting 4 sao (approximately 0.4 hectares) of pepper. While the pepper plants were still being cared for, the price dropped below 100,000 VND/kg. Consequently, the capital available for investment in plant care gradually decreased, leading to reduced productivity and the gradual death of the pepper plants. To date, Mr. and Mrs. Son are facing significant difficulties in repaying the bank loan.

Mr. Son said sadly: "The price of pepper is too low; there's not enough money to buy fertilizer and care for the plants, so I have to abandon the garden. I hope the authorities and banks will consider extending the loan term and reducing interest rates to help me restore production…"

According to statistics from the provincial agricultural sector, in 2022, the area of pepper cultivation in the province was approximately 13,858 hectares, a decrease of 1,862 hectares compared to 2021, and is continuing to decline. Currently, many pepper-growing cooperatives and cooperative groups are operating at a reduced capacity, and the area of pepper gardens continues to decrease sharply as members switch to other crops.

Pepper is a finicky crop requiring significant investment. To achieve high yields and quality, most pepper growers have to borrow capital. At the peak of pepper prices, owing hundreds of millions to billions of dong to banks was commonplace. However, since 2016, pepper prices have plummeted, while agricultural input costs have soared, making reinvestment impossible for farmers. Many households have abandoned pepper cultivation. Most pepper growers are still burdened with bank debts they don't know when they'll be able to repay.

To maintain pepper as one of the province's key crops, all levels of government, sectors, and localities need long-term strategic solutions. In the short term, it is necessary to support pepper growers in overcoming difficulties, ensuring they can produce with peace of mind, and providing them with the conditions to maintain their thriving pepper plantations.

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