Pepper price drops to five-year low
Pepper price drops to five-year low
The purchase price of dried pepper dropped on Tuesday by VND10,000 per kilo to VND95,000-100,000 per kilo in Dak Lak, Gia Lai and Dak Nong provinces against last week.
Farming product trading agencies in these Tay Nguyen (Central Highlands) provinces said this was the steepest reduction in the last five years. Many farmers said they would hold off on the sale of pepper and wait for better prices in the future, Tuoi tre newspaper reported.
A representative from an enterprise exporting farming products said the reduction was due to high supply while demand had not increased.
The total area used for pepper cultivation in the Central Highlands and other regions nationwide has exceeded their plan, therefore supply in the market has increased, the representative said.
Ho Phuoc Binh, deputy chairman of the Chu Se Pepper Association, said the current low price of pepper was not unusual. Furthermore, according to some forecasts, pepper prices over the coming years are expected to drop to VND50,000 per kilo, similar to previous levels, due to the increasing supply of pepper.
According to statistics of the pepper industry, Viet Nam has the total area of 130,000-150,000ha, thrice the amount of area allotted under the development plan for pepper cultivation.
Therefore, Viet Nam’s total pepper output was expected to reach 300,000 tonnes in the next 3-4 years, which would be enough supply for the world, Binh said.
However, Binh said farmers should not destroy their pepper trees when prices decrease and grow them when the price surges. They should focus on investing in the development of clean pepper and improving quality, instead of worrying about pepper consumption or reductions in pepper prices.
