PEPPER HARVESTING SEASON IN VIETNAM 2021

 

 

The Vietnamese pepper market has gone through many emotional levels in just a short month.
Through the collection, we would like to send you some quick highlight about the situation of pepper developments in Vietnam from January 1 to March 31, 2021 as follows:

Producers and exporters do not understand what happened within a month when prices rose hot in the middle of the pepper season.
In the past 10 years, it was only in 2011 that the price situation has evolved like 2021 .
Most think that prices will drop when Vietnam is in the peak season in March and
everybody will focus on preparing for full-year orders.
However, the market has grown so fast that many customers have not been able
to buy their expected inventories.

For the most cautious, cannot imagine the price of pepper can increase 42%in just 1 month.
A lot of questions are asked daily which is the main reason:

As for Farmers
• Lost due to poor crop
• Prefer to storing pepper
• Selling other agriculture product instead of pepper
• Price very attractive to storage

Some factors that stimulated many exporters/domestic agents to buy stocks
• China and Domestic speculators buying very aggressively after Lunar New Year.
• Demand coming from Middle East & India for March - April shipment.
• USA customers are more interesting to cover full-year shipments but processors/exporters hesitate to offer further shipments.
• Several exporters are big short and have been buying raw material in secret in order to ensure shipment on time to the buyers.


The hot price increase and one day the increase and decrease amplitude of 15% stimulated many people to participate in speculation.
The rapid increase in prices caused many exporting companies shortage of raw material and many domestic collectors not performing the deliveries as committed, causing the phenomenon of raw materials not being
delivered to the processor.
Therefore, export volume in the first quarter will also decrease with an expected less than 30-35% compared to the same period in 2020.

Many domestic collectors/speculators did not comply with their commitments, causing a serious shortage of raw materials in many times, which
stimulated prices to skyrocket.
Many factors resonate at the same time that makes farmers /speculators have a strong belief that prices will continue to increase in the coming time so they do
not need to sell large quantities when prices are adjusted down.
Despite has poor crop, the cheerful atmosphere has returned in many pepper plantation.
Many farmers actively harvest because prices have met expectations and help farmers feel secure to take care of better pepper.

You may download the full report by clicking here:

https://ptexim.com.vn/en/news/pepper-harvesting-season-in-viet-nam-2021/
 

 

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