Chinese traders increase pepper purchases in Vietnam

Published 2024년 6월 19일

Tridge summary

The recent surge in pepper prices in Vietnam is driven by the return of Chinese traders and market speculation, leading to erratic price fluctuations. This situation benefits farmers but poses challenges for intermediary businesses due to limited supply and high purchase costs. Despite being a top exporter, Vietnam's pepper market is largely controlled by FDI enterprises, with the Vietnam Pepper Association keeping an eye on potential market manipulation by Chinese businesses. The Ministry of Agriculture and Rural Development has reported a 10% decrease in pepper output due to El Nino and is urging farmers to adopt sustainable farming practices. Speculation has caused rapid price increases and subsequent drops, affecting small and retail units.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Talking to Tien Phong reporter, Mr. Le Viet Anh, General Secretary of the Vietnam Pepper and Spice Association, said that the current "hot" increase in pepper is partly due to Chinese traders catching The beginning of pepper purchasing returned after a long absence. Meanwhile, in the trading market, speculators suddenly buy and sell or smuggle goods to the market, causing pepper prices to fluctuate erratically and unpredictably. According to Mr. Viet Anh, the increase in pepper prices will help farmers benefit. But for intermediary businesses, it is easy to fall into a situation where it is difficult to trade and sell. The amount of goods sold on the market is not abundant, this farmer household does not sell, it is quite difficult for businesses to buy from other households, and at the same time face the situation of possible loss due to the purchase price being higher than the contract price...Representative of the Association believes that, in the context of rising pepper ...

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