Today, November 16, 2022’s pepper price is in the range of 58,000 – 61,500 VND/kg. The Vietnamese pepper industry has gone through a period of ups and downs. That was when the price dropped to 34,000 VND/kg in March 2020, then increased again and reached 89,000 VND/kg in early 2022. Since March 2022, the pepper price has continuously gone down.
In Dak Lak and Dak Nong provinces, today’s pepper price is 59,500 VND/kg.
In Gia Lai province, today’s pepper price is 58,000 VND/kg.
Meanwhile, in Dong Nai, today’s pepper price is 58,500 VND/kg.
In Ba Ria – Vung Tau province, today’s pepper price is 61,500 VND/kg.
In Binh Phuoc province, today’s pepper purchasing price is 60,500 VND/kg.
Today’s pepper prices move sideways in key growing areas compared to the same time yesterday.
The profit margin is less attractive, pepper has passed its golden age. (Photo: Internet)
In the ”Vietnam Pepper Yearbook 2022” published this morning, the Vietnam Pepper Association assessed that the country accounts for 35% of production and 55% of the global pepper market share, the Vietnamese pepper industry has gone through a period of ups and downs. That is when the price fell to 34,000 VND/kg in March 2020, the lowest level in more than 10 years. From the second half of 2020, pepper prices increased again and reached 89,000 VND/kg in early 2022. From March 2022, the pepper prices have continuously decreased and now standing at 60,000 VND/kg in November 2022.
In 2019, the Vietnamese pepper sector achieved the highest output of 290,000 tonnes, maintaining the number 01 position thanks to the large expansion of areas in the period 2014 – 2016 due to price motivation. However, this is also a signal that the forecast consequences of supply exceed demand. Prices went down and fell to their lowest level in the past decade and the profit margins of pepper production were no longer attractive.
Accordingly, the country’s pepper production decreased by 17% in 2020, reaching 240 thousand tonnes, of which Gia Lai, Dak Lak, and Binh Phuoc provinces were recorded with the highest decreases. There is no sign of stopping as Vietnamese pepper production continues to decline 25% in 2021 compared to 2020 and is estimated to reach 175 thousand tonnes by 2022.
It is forecast that in the coming time, the global economy may turn out to be worse. Farmers will face more challenges if they continue to invest in growing pepper. This makes it increasingly difficult for farmers to invest, care for and maintain pepper gardens. The scenario will get worse, especially with unpredictable climate change and pest issues. In addition, increasingly strict regulation of key markets also leads to trade barriers.
Facing the above situation, the Vietnam Pepper Association said that, at present, some mechanisms have been implemented to mitigate these issues, such as through establishing cultivation contracts and free MRL standards to meet the needs of the market. Enterprises are encouraged to cooperate closely or associate with cooperatives and farmer groups to ensure that pepper production meets market demand.
In addition, farmers who want to sell their products at better prices must improve their farming knowledge through training courses, seminars, and conferences organized by certified units. In addition, the participation of all enterprises in the pepper industry such as exporters, processors, traders, etc is also encouraged to provide more value-added products, benefiting both parties./.