Worried that output will decrease and Brazil will catch up
Sharing about the pepper industry, Ms. Hoang Thi Lien – President of the Vietnam Pepper and Spice Association – acknowledged that pepper is one of the commodities traded in large quantities in the world. The price of this product is in an increasing cycle due to push factors in the market.
“Large supplies from Vietnam and Brazil both decreased because of the impact of El Nino, causing prices to increase,” she said. Meanwhile, Vietnam’s export pepper market has had major adjustments, new markets have appeared, including Pakistan, Germany, Korea, and India, all recording growth at 3-digit levels.
These reasons pushed pepper prices to grow quite strongly. Specifically, at this time last year, the price of pepper was only 67,000 VND/kg, now reaching 97,000 VND/kg, an increase of 44.7%.
Vietnam’s pepper output decreased. Photo: Pacificgroup
However, Ms. Lien also admitted that this industry is facing big challenges that farmers and businesses need to improve soon, such as quality issues to meet high-end markets like the US and EU.
“In addition, we must ensure supply by consolidating production areas,” Ms. Lien said. Our country’s pepper output ranges from 170,000-190,000 tons per year. However, recently, because the price was too low, it sometimes hit the bottom of 50,000 VND/kg, making people “bored” with spending.
Last September, when going on field trips to growing areas, the association noted opinions from households that “if pepper prices remain at 60,000-70,000 VND/kg, people do not want to continue growing them.” Worth mentioning, durian and coffee are currently too “hot” and are highly profitable crops.
“The price of coffee has never been higher and far exceeds the price of pepper like it is now,” Ms. Lien commented. According to her, we must have output to determine the selling price on the market. Vietnam is the top pepper producing and exporting country, businesses and buyers around the world monitor every move and source goods from Vietnam.
Therefore, in addition to the price issue, Ms. Lien wants the authorities and localities to pay more attention to pepper trees, support farmers to keep this crop, thereby stabilizing production areas and output.
In fact, Vietnam’s pepper production areas are shrinking and output is decreasing. Meanwhile, our country’s rival, Brazil, is stepping up production to increase output. If we don’t have a strategy, in the next few years, Brazil will catch up with Vietnam, Ms. Lien said.
Regarding the issue of pepper quality, Mr. Le Hoang Tai – Deputy Director of the Department of Trade Promotion (Ministry of Industry and Trade) – said that Vietnamese farmers and businesses need to pay more attention and apply deep processing measures. It is forecasted that the demand for pepper, especially for high-end products, will increase. Consumers are willing to pay high prices for high quality pepper.
When confirming quality and entering the high-end segment, the price of Vietnamese pepper also increased.
https://www.worldysnews.com/vietnam-has-the-largest-warehouse-of-black-gold-in-the-world-but-the-price-is-at-the-bottom-of-the-list/
Greg Abel Tapped as Warren Buffett’s Successor, to Control Berkshire’s Sprawling Empire and Huge Stock Portfolio
Berkshire Hathaway’s Succession Plan: A Look at Key Executives
Warren Buffett has been steering Berkshire Hathaway to success for over five decades, but with the investing icon turning 94 in August, discussions about his succession plan have been escalating. In May 2021, Charlie Munger inadvertently revealed that Greg Abel, who has been overseeing a major portion of Berkshire’s sprawling empire including energy, railroad and retail would be Buffett’s heir apparent.
Influential Factors Behind Buffet’s Decision
Buffett offered the clearest insight into his succession plan to date after years of speculation about the exact roles of Berkshire’s top executives after the eventual transition. The investing icon said that his decision is influenced by how much Berkshire’s assets have grown.
“The sums have grown so large at Berkshire, and we do not want to try and have 200 people around that are managing a billion each. It just doesn’t work.”
The financial statements of the firm show that Berkshire’s cash pile ballooned to nearly $189 billion at the end of March while its gigantic equity portfolio has stocks worth a whopping $362 billion based on current market prices.
Abel Takes Charge
To ensure strategic thinking and capital allocation efficiency within managing such huge amounts of money effectively has become imperative for Berkshire Hathaway as it navigates its future leadership transition. Thus all capital allocation decisions – including stock picks will lie entirely with Abel.
“I think what you’re handling with amalgamated sums we will have; you’ve got to think very strategically about how to do big things,” Buffett added. “I think responsibility should be solely with Greg.”
Todd Combs And Ted Weschler Role Shrouded in Mystery
Berkshire investing managers Todd Combs and Ted Weschler, both former hedge fund managers, have helped Buffett manage a small portion of the stock portfolio (about 10%) for about the last decade.
There was speculation that they may take over that portion of the Berkshire CEO role when he is no longer able. However, based on Buffett’s latest comments, it seems Abel will oversee all capital allocation decisions including stock picks.
Abel: Profile of an Energy-Industry Expert
The soon-to-be-crowned Berkshire Hathaway CEO Greg Abel is known for his strong expertise in the energy industry. MidAmerican Energy acquired by Berkshire Hathaway in 1999 saw Abel become CEO in 2008; six years before its rebranding as Berkshire Hathaway Energy in 2014.
- In conclusion, with Buffett not being around forever, it’s worth keeping tabs on Abel as early as now since it seems he will be making big decisions henceforth at one of America’s most successful firms – and a firm whose success or otherwise generally rubs off good or bad beyond its immediate ecosystem amongst a lot more people and businesses alike within America, if not globally.
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Forecast and Factors Affecting Baht Movement for Next Week (6-10 May 2024) by Kasikorn Bank
Kasikorn Bank Public Company Limited or KBANK The forecast for the movement of the baht next week (6-10 May 2024) is at the level of 36.50-37.00 baht / dollar, while Kasikorn Research Center Evaluates important factors that need to be monitored, including signs of intervention in the market to prevent the depreciation of the Japanese yen, the results of the monetary policy meetings of the Bank of England (BOE) and the Reserve Bank of Australia (RBA), statements by the Federal Reserve Officers ( Fed ), which will have an impact on the direction of foreign capital. Asian currency movements and gold prices in the world market
Meanwhile, important overseas economic figures include the service sector PMI index in April. from China, the Eurozone and Japan, April export figures from China, including the number of people applying for weekly unemployment benefits. Confidence index and expected consumer inflation figures (preliminary) for May in the United States.
This week (29 April – 3 May 2024), the baht strengthened, breaking out of the line of 37.00 baht / USD after the results of the Fed meeting. and signs of intervention to prevent yen depreciation by the Japanese authorities. The baht weakened at the start of the week. Equivalent to most Asian currencies. Led by the Yen, which depreciated past the 160.00 line to hit the weakest level in 34 years at 160.17 yen/dollar amid continued pressure after the previous Bank of Japan (BOJ) meeting.
However, the baht gradually recovered and strengthened in line with the yen’s sharp appreciation. Meanwhile, the market is worried about signs of care for the Yen. After official information was revealed that the Japanese authorities intervened in the market this week to support the Yen. (By buying yen and selling dollars) after the Yen depreciated rapidly in the past.
In addition, the dollar has no support. After the results of the Fed meeting (30 April – 1 May 2024) where, despite the decision to maintain interest rates at the original range of 5.25-5.50%, details of the process to postpone reducing the balance sheet were announced. This factor put pressure on US bond yields to adjust downward, along with a statement from the Fed Chairman. Still emphasizing waiting for an opportunity to cut interest rates when US inflation hits. Return to a level the Fed is comfortable with. and rejecting the opportunity to increase interest rates This was a less harsh stance (Hawkish tone) than expected by the market.
On Friday, May 3, the baht closed the domestic market at 36.78 baht / dollar, compared to 36.96 baht / dollar the previous Friday (26 April 2024 Investment by foreign investors). Between 29 April – 3 May 2024, foreign investors sold Thai stocks 2,170 million baht but had a Net Inflow status to the Thai bond market 7,145 million baht (net purchase of Thai bonds 8,395 million baht, deducting expired Debt securities 1,250 million baht)
#KBANK #baht #range #week #36.5037.00 #baht #keeping #eye #Bank #Japan #Fed #statement
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Forecast and Factors Affecting Baht Movement for Next Week (6-10 May 2024) by Kasikorn Bank