a UNESCAP Intergovermental Organization
a UNESCAP Intergovermental Organization
Pepper News
Unpredictability of Viet Nam Pepper Price
As it was previously reported on March 15, 2020, Viet Nam pepper price has significantly kept increasing after Tet Holiday. Thus, making Viet Nam pepper market to be unpredictable as it affected processors, industrial manufactures and growers. Three weeks past Tet Holiday, Viet Nam black pepper price recorded an increase by 40% as compared to before the Holiday. It was reported that the volume of pepper traded in Viet Nam market was limited and an enormous demand shifted to Brazil as they kept their price low enough. The current single pressure on volume ought to remind Viet Nam as well as other origins the importance to diversify its pepper processing so as able to get more added value such as pepper oil, pepper oleoresin, etc. instead of only basing it on whole product.
IPC observed that the unpredictable pepper price of Viet Nam would create an unwanted effect for both sellers and buyers as it is being a risky venture. Despite growers were benefited from the price increase which resulted in reports that some were holding to their product with the hope of a much higher price, this condition feared to push buyers to shift to other more affordable origins, resulting in the loss of value for the growers holding their product. Though increase of pepper price is a good sentiment, the current sudden pepper prices spike caused skepticism and concerned on the motivation behind the change in such a short period as it was not driven by market forces. Contrary to Viet Nam, other origins were reported less volatile as they have based their production on differentiation in terms of quality instead of just mere volume.
IPC believes that it is the main task of all pepper stakeholders in Viet Nam and internationally to give the growers more information about the supply and demand situations so they would be able to plan better. Furthermore, apart from the late arrival of the new season of which 30%-40% has been completed, the prediction of very much shortage of 2021 would make the price increase less convincing.
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