In just 1 month, the price of ‘black gold’ in Vietnam increased dramatically 4 times after 2 years of being at the bottom.
Vietnamese pepper (such as black gold) is present in 100 countries and territories around the world, accounting for a market share of nearly 60% of the global supply.
After 2 years of sinking at the bottom, pepper in Vietnam suddenly went up by a price fever.
According to the News on agricultural, forestry and fishery markets According to the Ministry of Industry and Trade, in March 2021, Vietnam’s pepper export turnover was estimated to reach 30,000 tons, worth $ 86 million, up 123.4% in volume and 120.9% in value compared to the previous year. February 2021.
Vietnam’s pepper prices suddenly went up by a price fever.
According to data from the Import and Export Department, in 2020, Vietnam’s pepper export volume accounts for 59% of the global pepper export market share with 285,292 tons, an increase of 1.2% in volume, but a decrease of 6.8%. in value over the same period in 2019.
The second largest producer of black pepper in Brazil reached 89,756 tons, accounting for 18% of the market share; Indonesia holds 11% market share with export volume of 51,718 tons; India holds 12% market share, reaching 15,924 tons.
Notably, the price of pepper for raw materials in the country suddenly fluctuated in price. Within 1 month, the potential price of this commodity increased more than 4 times, from 17,500 VND / kg soared to 73,000 VND / kg (in the Ba Ria – Vung Tau market).
Import and Export Department (Ministry of Industry and Trade) said pepper prices in the provinces of Dak Lak, Dak Nong, Gia Lai, Dong Nai and Binh Phuoc were all at 72,000 VND / kg, 71,000 VND / kg, 70,000 VND / kg. , 74,000 VND / kg and 73,000 VND / 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 consumer demand was prosperous.
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). Meanwhile, the price of white pepper was 108,000 VND / kg, much higher than 57,000 VND / kg in the same period in 2020.
Talking with reporters Industry and TradeMr. Hoang Phuoc Binh – Standing Vice Chairman cum General Secretary of the Chu Se Pepper Association (Gia Lai) – said that he is currently in the political service of Vietnamese pepper, businesses buy and sell pepper in the market. The world is focusing on Vietnam to purchase.
The “trigger” jump in pepper prices, said Mr. Hoang Phuoc Binh, there is a high possibility that the current pepper price is both real but also virtual. Because in addition to pepper purchased by export enterprises, there are a number of customers outside the industry who are Vietnamese who want to buy pepper for speculation.
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 because supplies are plummeting. Therefore, many people have the mentality of “hugging” the goods, waiting for the “peak” to sell.
According to the International Pepper Association (IPC), the “shock” rise in pepper prices makes the pepper market in Vietnam difficult to predict, forcing importers to consider when sourcing the goods.
According to a survey of VFA, by 2021 Vietnam’s pepper output will decrease around 25% compared to the previous crop.
Explain T / h (Source Vietnamnet, Industry and Trade)
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