Hung Phuoc (Binh Phuoc)
Certain area of old pepper farms were dead because farmers would not further invest in such farms. However these shortages are made up by the new area (newly cultivated since 2016/2017) which are now due to be harvested. Productivity in general, is better than 2018, said the farmers. From the pictures you can see the fruitful pepper vines which are ready to be picked up within next couple of weeks.
Pepper prices keep declining and therefore, farmers are paying less care, investment in the pepper farms. Consequently, they have to use cheaper & natural alternatives (that is close to organic fertilizers) rather than to pay for chemical fertilizers). Pesticide residue might not be a big issue now and afterwards.
For those who can manage above well, still they can earn some margins against production costs to retain their pepper farms. The others, optionally switch their cultivations to orchard like grape fruits, jackfuits, avocado, etc.
We also can see blooming cashew farms on the way. Weather is fine and it is promising a good crop for both pepper and cashew in Binh Phuoc.
Nam N'Jang, Thuan Ha, Thuan Hanh, (DakSong/ DakNong)
Weather is favorable to the harvest and drying thus far.
ares in this area said that crop yield is expectedly better than 2018. However, margin is becoming very thin, asymptotically touching the production cost. Only farmers with good financial provision for the crisis, can confront. The others who don't, are going bankruptcy or have to sell off their farms.
Despite of the market decline, we still saw a lot of young pepper farms on the way. These area would be the back up for those which are dead, migrated to other trees. Althought they might not be fully cared of (for sake of cost cutting) like they were treated 3-4 years ago when pepper prices were very high, they can still produce considerable quantities.
Keep passing through K'rong Nang, Ea H'leo (DakLak) and DakDoa, Chuse (Gia Lai) where we could see lots of pepper farms being picked up or waiting to be picked up. Farmers are showing gloomy views that market prices keep dropping touching their production costs.
Organic cultivation: way to get off the surplus crisis
High quality organic pepper is still well bought at good premium by the packers (50%-60% higher than the conventional quality) who committed their purchases. Farmers whose farms are part of the cooperatives and are certified (for example by Control Union) can rest assure that their peppers are always well consumed. More farmers are turning out avoid using chemical fertilizers and pesticides. First to save costs, second they can treat their farms naturally close to organic standards.
In 2018, Vietnam exported 235,000MTs which is a historic record but 2019 could be even bigger. Brazilian pepper is apparently more competitive and therefore, Vietnamese pepper shall need to be corrected further towards its main crop.
Your inquiries/counter-bids or market information exchanging, discussions are mostly welcomed anytime.
Please feel free to contact us.
Ngoi Nha Hat Vietnam Co., Ltd.