Nguyen Nam Hai, chairman of the Vietnam Pepper Association, speaks at the Vietnam Pepper Crop 2018 –Orientation and Action Plan in 2019 seminar in HCM City. (Photo: VNA)HCM City (VNS/VNA) - With supplyremaining higher than demand in the global market, pepper prices are unlikelyto recover this year, according to the Vietnam Pepper Association.
Speaking at a seminar on Vietnam Pepper Crop2018 – Orientation and Action Plan in 2019 held in Ho Chi Minh City on May 10,Nguyen Nam Hai, chairman of the association, said Vietnam exported over 235,800tonnes of the spice worth nearly 775 million USD last year, a year-on-yearincrease of 9.7 percent in volume but a fall of 30.8 percent in value.
According to the International Pepper Community, global output topped 556,000tonnes last year, up 7 percent from 2017. Vietnam remained the world’s biggestproducer with 230,000 tonnes.
Global demand is estimated to increase by 2 percentannually, while supply is growing by 8-10 percent, according to the IPC.
With this imbalance, the fall in prices inrecent years was inevitable, it said.
Hai said Vietnam would continue to lead theworld in production and export this year, with output expected to reach 250,000tonnes and exports, 235,000 tonnes.
“In the global market, supply will remain higherthan demand, and thus it will be hard for prices to increase in 2019.”
Do Ha Nam, General Director of the Intimex GroupJoint Stock Company, said: “Although the pepper industry is facing manydifficulties in terms of market, Vietnam’s pepper exports still grew well. Besides,pepper prices on the farm are 43,000-45,000 VND per kilogramme, and this is theprice farmers accept.”
If the sector wants prices to increase, thepepper-growing area must decrease globally, he said.
“The important issue now is to reduce thecultivation areas in places that do not have suitable soil or weather for thespice and to focus on improving quality,” he said.
According to the association, Vietnam’s pepperquality has improved significantly in the past few years, with more farmerscomplying with hygiene and safety standards to meet global criteria orswitching to organic farming.
But more efforts are needed and should start atthe farm level, it said.
“To further improve pepper quality, there is noother way than creating linkages between businesses and farmers.”
Hai said the Government should have stringentregulations to ensure the success of this linkage model. The model is nowprevalent only in 2-3 percent of the pepper farming area, he said.
Nguyen Ngoc Luan, Director of the Lam SanFarmers Cooperative, said the association and other relevant agencies shouldprovide farmers with more market information to help them make betterproduction plans.
Delegates said growers must always avoid the abuseof pesticides and chemical fertilisers.
At a time when supply is higher than demand,firms should apply modern processing technologies to make high-value productsand diversify their products to meet customers’ demands, they said.
Hai suggested that Vietnamese exporters bemore actively studying free trade agreements the country has signed to takeadvantage of their benefits to boost exports.
The spice is among the country’s keyagricultural exports, with shipments going to more than 100 countries and territories,he said, adding Asia is the largest market, accounting for more than half,followed by the Americas, the EU and Africa.-VNS/VNA
Speaking at a seminar on Vietnam Pepper Crop2018 – Orientation and Action Plan in 2019 held in Ho Chi Minh City on May 10,Nguyen Nam Hai, chairman of the association, said Vietnam exported over 235,800tonnes of the spice worth nearly 775 million USD last year, a year-on-yearincrease of 9.7 percent in volume but a fall of 30.8 percent in value.
According to the International Pepper Community, global output topped 556,000tonnes last year, up 7 percent from 2017. Vietnam remained the world’s biggestproducer with 230,000 tonnes.
Global demand is estimated to increase by 2 percentannually, while supply is growing by 8-10 percent, according to the IPC.
With this imbalance, the fall in prices inrecent years was inevitable, it said.
Hai said Vietnam would continue to lead theworld in production and export this year, with output expected to reach 250,000tonnes and exports, 235,000 tonnes.
“In the global market, supply will remain higherthan demand, and thus it will be hard for prices to increase in 2019.”
Do Ha Nam, General Director of the Intimex GroupJoint Stock Company, said: “Although the pepper industry is facing manydifficulties in terms of market, Vietnam’s pepper exports still grew well. Besides,pepper prices on the farm are 43,000-45,000 VND per kilogramme, and this is theprice farmers accept.”
If the sector wants prices to increase, thepepper-growing area must decrease globally, he said.
“The important issue now is to reduce thecultivation areas in places that do not have suitable soil or weather for thespice and to focus on improving quality,” he said.
According to the association, Vietnam’s pepperquality has improved significantly in the past few years, with more farmerscomplying with hygiene and safety standards to meet global criteria orswitching to organic farming.
But more efforts are needed and should start atthe farm level, it said.
“To further improve pepper quality, there is noother way than creating linkages between businesses and farmers.”
Hai said the Government should have stringentregulations to ensure the success of this linkage model. The model is nowprevalent only in 2-3 percent of the pepper farming area, he said.
Nguyen Ngoc Luan, Director of the Lam SanFarmers Cooperative, said the association and other relevant agencies shouldprovide farmers with more market information to help them make betterproduction plans.
Delegates said growers must always avoid the abuseof pesticides and chemical fertilisers.
At a time when supply is higher than demand,firms should apply modern processing technologies to make high-value productsand diversify their products to meet customers’ demands, they said.
Hai suggested that Vietnamese exporters bemore actively studying free trade agreements the country has signed to takeadvantage of their benefits to boost exports.
The spice is among the country’s keyagricultural exports, with shipments going to more than 100 countries and territories,he said, adding Asia is the largest market, accounting for more than half,followed by the Americas, the EU and Africa.-VNS/VNA
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