Reduced buying demand coupled with an increase in acreage and yields over the years has made pepper consumption difficult. Pepper prices in the country are falling at the bottom, the lowest in the last 6 years. Up to 18/5, in the main raw material areas in Gia Lai, Ba Ria-Vung Tau, Dak Lak, Dong Nai pepper prices are only 79,000 to 81,000 VND / kg.

Specific analysis causes a sharp decrease in the price of pepper, according to the Vietnam Pepper Association (VPA), some rumors that Vietnam is pepper pepper in 2016/2017 season launched in late 2016 are causing many Foreign customers “take advantage” to put pressure on pepper prices. From the end of 2016, the world pepper business world recognized the 2016-2017 season Vietnam has the largest pepper season accompanied by increased production. This has had an impact on the psychology of buyers, leading to a buying limitation on prices.

Also in the country, the pepper market in Vietnam has recently appeared a large amount of pepper originated from Cambodia, bringing more abundant supply of capital. In addition, new pepper growers at the end of the harvest often promote sales to cover the initial investment costs. These have created a psychological “panic” and compete to sell out despite the low prices.

According to forecasts, due to abundant supply, in the coming time pepper prices continue to decline sharply. VPA also recommends, at this time, people need to calm, should not “sell off” the price will rise again; And should sell out when pepper prices show signs of recovery. At the same time, in the current context, it is necessary to stop the expansion of the pepper growing area to avoid further surplus supplies.

At the same time, in order to overcome the devaluation of pepper, localities should re-organize production soon, especially to bring small and small farmers to groups of households, cooperative groups, or new cooperatives. Easy access to scientific and technical progress, credit and input supplies. In addition, it is necessary to review and plan for each pepper growing region; Implement intensive farming to bring high economic efficiency; Cooperate with agricultural extension to transfer advances in science and technology to farmers for intensive cultivation and sustainable development of pepper.

(Vietnam Financial Times)