Pepper exports fall as speculators shift money into coffee

 

Vietnam’s pepper output is high this crop, at 200,000 tons, but exports in the first five months of the year fell sharply as speculators reserved money to buy Robusta coffee.
The General Department of Customs (GDC) reported that Vietnam exported 131,500 tons of pepper and had an export turnover of $406.5 million dollars, a decrease of 11.6 percent in quantity and 33.2 percent in value compared with the same period in 2022.
The average export price in May was $3,106 per ton, a decrease of 1.6 percent compared with April and 31 percent compared with May 2022. In the first five months of the year, the average export price of the product called ‘Vietnam’s black gold’ was just $3,092 per ton, down 33.2 percent compared with the same period last year. 
The exports to most key markets dropped sharply in the first five years. The five largest markets, including the US, UAE, India, Germany and the Netherlands, all saw decreases of 34-57 percent.
Of the top 10 key markets, only Turkey and Egypt saw sharp three-digit growth rates, 165 percent and 160 percent, respectively. However, export turnover to the two markets account for a small proportion of Vietnam’s total exports.
The international pepper community has warned that the global market will remain lackluster. The slow global economic growth and weak demand from the US and Europe will hinder price increases. Meanwhile, speculators are injecting money into Robusta coffee rather than pepper.
Vietnam is the leading country in terms of pepper output. In 2022, Vietnam exported 220,000 tons, accounting for 55 percent of total pepper output in the globe. The world’s market slump will affect Vietnam’s pepper exports. 
Vietnam’s black pepper on June 24 was traded at $3,500 per ton in HCM City (500g/l), $3,600 (550g/l), while white pepper was $5,000 per ton.
In early June, the black pepper price dropped sharply in the domestic market compared with late May 2023 due to weak demand from the US and Europe. The price has slightly decreased, now hovering around VND69,000-72,000 per kilogram.
American and European importers have come back to the market, but they have not made deals as they are still waiting for the harvest crop in Indonesia.
According to the Vietnam Pepper and Spices Association, pepper output in the 2022/2023 crop is expected to increase by 10 percent to 200,000 tons. However, as many farmers have chopped down pepper to grow fruit trees, short supply may occur in three years.

https://vietnamnet.vn/en/pepper-exports-fall-as-speculators-shift-money-into-coffee-2160124.html

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China remains Vietnam's top pepper export market

 

Vietnam has exported 2,657 tonnes of pepper to the Chinese market as of mid-June. Exports to US and EU markets have dropped.
According to preliminary data from the Vietnam Pepper Association (VPA), Vietnam exported 11,305 tonnes of pepper in the first 18 days of June, and the total export value reached $41.1 million.
China remains the top export market for Vietnamese pepper, with exports reaching 2,657 tonnes in the first 18 days of the month. The leading exporters are Nedspice Vietnam, Olam, and Pearl Group Corporation, with respective exports of 1,045 tonnes, 738 tonnes, and 670 tonnes.
Asia was the biggest destination for exports in the first five months of 2023, reaching 78,907 tonnes and accounting for 59.9 per cent of total export turnover, with China being the largest export market with 46,169 tonnes, accounting for 35 per cent and growing 1,668.9 per cent compared to the same period in 2022.
In contrast, imports of Vietnamese pepper into the Americas and the US fell by 13.1 per cent and 15.5 per cent, respectively. The EU region decreased by 9.4 per cent during the same time period. Currently, 16.8 per cent of Vietnam's total pepper export revenue comes from the EU.
"Buyers in this region have a strategy of anticipating more new crops from Indonesia (July–August) and Brazil in the hopes that the purchase price might decrease," said Hoang Thi Lien, VPA president.
"In addition, purchasers from the EU and the US have not rushed to enter the market in the past five months due to the abundance of inventory from prior years," she said.
Lien explained that Brazilian pepper has always been more competitively priced than Vietnamese pepper, but due to the issue of contamination from Salmonella on the EU market, Vietnamese products continue to have an edge on this market.
"Recently, in an effort to diversify markets, pepper from Brazil has begun to appear in the Middle East and Africa at lower prices than pepper from Vietnam, thanks to benefits in logistics and geographic location," Lien said.
The VPA advises domestic businesses to closely evaluate their financial capacity prior to signing contracts for large quantities, long-distance delivery, and low pricing and to be proactive in identifying new markets in the future.

VIETNAMNET GLOBAL

22/06/2023   16:01

In Bangladesh Spices get costlier ahead of Eid-ul-Azha

 

Pimple Barua, Chittagong
June 19, 2023 2:17 PM 

The demand for spices in the country has skyrocketed as the Muslim community eagerly prepares for the upcoming festival of Eid-ul-Azha. Consumers are bracing themselves for abnormally high prices as the spice market grapples with a surge in costs. 

Recent domestic and international economic crises, coupled with import issues, have pushed up spice prices to record levels.
Eid-ul-Azha holds immense significance for Muslims, with food products witnessing a surge in demand during this festive period. Spices, in particular, experience a substantial increase in sales during Eid-ul-Azha. While Bangladesh has achieved self-sufficiency in livestock for Eid-ul-Azha sacrifices, the spice market continues to face challenges due to the Russia-Ukraine war, the dollar and LC (letters of credit) crises, leading to reduced imports.

Sources within the market revealed that around 90% of spices used in Bangladesh are dependent on imports.
 Although the country produces some spices on a limited scale, it fails to meet the growing demand. Consequently, spices need to be imported from the global market
The ongoing crises in Syria and Afghanistan have further contributed to the surging demand for spices, particularly hot spices, in Bangladesh.
Dry hot spices in high demand include cumin, cinnamon, cardamom, pepper, bay leaves, cloves, dried whole chilies, dried whole turmeric, mustard and coriander. While mustard, black cumin, sweet cumin, bay leaf, pepper, turmeric, and coriander are produced domestically, they still need to be imported to meet domestic demand. 

Other spices, such as cumin, cinnamon, cardamom, pepper, cloves, nutmeg, mace (Javitri), shahi jeera, white pepper, fenugreek, Randhuni, and star flower, are almost entirely reliant on imports. Additionally, perishable spices like onions, ginger, and garlic are partially produced domestically but heavily dependent on the global market.
China has traditionally been the largest exporter of spices to Bangladesh, followed by Indonesia. However, India has recently risen to the second position, surpassing Indonesia. 

Bangladesh also imports spices from countries like Sri Lanka, Syria, Afghanistan, Pakistan, Madagascar, Guatemala, Turkey, Egypt, Cambodia, the United Arab Emirates, Singapore, Thailand, Vietnam, Caribbean Islands, Ethiopia and Myanmar. Of late, the import of spices from top countries has seen an upsurge due to global changes, with Bangladesh importing over 100,000 tons of dry spices annually.

The wholesale prices of various spices provide insight into the soaring costs. Indian cumin is now being sold at Tk770 to Tk800 per kilogram, while cumin from other sources, including Afghanistan, costs up to Tk850 per kilogram. Just a year ago, cumin prices ranged from Tk300 to Tk350 per kilogram. Cinnamon, which was previously priced between Tk210 and Tk250 per kilogram, is currently wholesale at Tk320.

Pepper prices have surged from Tk150-650 to Tk670 per kilogram, cardamom has seen an increase of several hundred taka to Tk1,500 per kilogram, cloves have risen by at least Tk700 to Tk1,500 per kilogram, sweet cumin has witnessed an increment of Tk200 to Tk310 per kilogram, coriander prices have climbed by Tk50-60 to a maximum of Tk180 per kilogram, and fenugreek has increased from Tk20 to Tk130 per kilogram. 

Black cumin has seen a rise of Tk50-70 to Tk250 per kilogram, shahi cumin has surged from Tk350-400 to Tk850 per kilogram, Randhuni has increased by Tk50-200 to Tk220 per kilogram, and mustard prices have jumped from Tk40-50 to Tk 95-105 per kilogram. 

Star Flower has seen a substantial increase from Tk200-250 to Tk1,280-Tk1,300, and bay leaves have risen by Tk15-20 to Tk85-90 per kilogram.

Selim Chowdhury, proprietor of Rahim Trade in Khatunganj, the country's largest wholesale market for consumer goods, said the quantity of spices being imported falls far short of the country's requirements. With the demand for spices soaring during Eid-ul-Azha, the prices of imported spices have risen due to various factors, including the dollar crisis.
He believes that resolving the import crisis is crucial for stabilizing the spice market in Bangladesh.

Among perishable spice products, onions are currently priced between Tk70-80 per kilogram in the wholesale market. The halt in onion imports from India has led to an increase in prices within the country. Moreover, the Chinese ginger and garlic markets have become unstable due to the import crisis, resulting in high prices for ginger from Myanmar and Indonesia.

With the domestic ginger season yet to commence, consumers should brace themselves for high ginger prices during the upcoming Eid-ul-Azha. Chinese garlic remains in high demand, but due to limited imports, prices for Indian and domestic garlic have also surged. Garlic is currently being sold at almost double the price compared to last year. 

Additionally, the price of dry chilies, a key spice product in the country, has reached record highs. Earlier, dry chili prices ranged from a minimum of Tk100 (in season) to a maximum of Tk250 per kilogram. However, over the past year, the price has hit a record high of Tk500 per kilogram. Presently, the price of dry chilies fluctuates between Tk320 and Tk450, despite a slight decrease. 

On the other hand, the market for whole turmeric provides some relief to buyers. While previously sold between Tk100 and Tk110 per kilogram, domestic and imported turmeric is now priced between Tk125 and Tk130. Although turmeric and pepper are produced domestically, traders import them from India to meet the demand for high-quality spices.

Asim Kumar Das, owner of M/s Asim Enterprises, a spice importer in Khatunganj wholesale market, explains that most of Bangladesh's spice products are imported from the global market. Previously, traders used to import goods at Tk82 to Tk84 per dollar, but the price of the dollar has now reached Tk112. 

Furthermore, the imposition of tariffs has significantly increased import costs, leading to higher spice prices than ever before. 

Asim Kumar Das fears that there may be a shortage of spices in the country during Eid-ul-Azha due to the increased duties on spice imports, treating them as luxury products.

+++++++++++++++++++++++++++++++++

1 taka = 0.00924 USD

1 usd = 108.18000 taka

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https://www.dhakatribune.com/bangladesh/2023/06/19/spices-get-costlier-ahead-of-eid-ul-azha

CLOVE - A CURTAIN RAISER FOR 2023 SEASON

Tamatave, Madagascar, 18 June, 2023:-
Global Clove market is complexed with fundamental and technical and speculative factors. Present market position is FIRM , but future directions cannot be derived from the present firmness ! Because, new season in three countries are very near, and one major country is not much far. There is already market reports saying, 2023 Season Crop size is small, and there would be shortage of Clove, and DEMAND would exceed SUPPLY EQUATIONS and thereby price can further firm up. Crop size is reported to be LESS based on reports from Comoros that Comor crop is already delayed, and instead of July, it will come only by mid August, and crop size is lesser by almost 500 Mt compared to previous years. Traders from Moroni, Mutsamudu and Anjouan says, 2023 crop would be around 2000 ++ only compared to normal 2500 to 3000 Mt.

Indonesia already reported its crop size down by almost 40% and they expect only around 70,000 Mt this year from all islands. 2022 season also Indonesian crop was less, and the cigarette industry already imported huge quantity from Africa, which is still continuing. And reports from Indonesia says, the cigarette industry would continue import in 2023 season also. Indonesian cigarette industries average yearly demand of clove is estimated at 120,000 Mt and their production in 2022 was only 80,000 Mt and in 2023 estimated at 70,000 Mt. The shortage in Indonesia alone is huge. Coupled with this shortage reported from Comoros and Zanzibar.

Zanzibar crop is estimated much lower than their usual quantity because of UNKNOWN disease affected to the Clove plants. Zanzibar Govt investigation and research is in progress to identify and resolve the disease. Zanzibar Minister for Trade and Commerce said, after his visit to the disease affected area, that almost 500,000 clove trees are affected, and this can reduce the crop size considerably.

How is the future of CLOVE industry ? CLOVE demand ? In spite of the crop shortage, demand for Clove is on the increase, and every year it is growing. The increased use of clove in culinery usages to spice up savory dishes, desserts, and drinks and also its use in , manufacturing toothpaste, soaps, cosmetics, perfumes, and cigarettes - all are increasing year by year. Essential oil industry is also using clove and its various parts in large quantities because of huge deman+d of clove essential oil and oleoresin. These are the main reason keeping Clove demand very high.

Recently in the last one month period, Clove price in local market of India [wholesale market] increased almost INR 200 per Kg which is considerably abnormal increase even when India has enough carry over stock in the market. This increase was just because of local demand.

Coupled with this, we must also look at changes in the origin countries. In Madagascar, local market in local currency Ariary per kg, increased from average Ariary 33000 per kg to 40,000 ariary a kg in a span of one month !! International offers increased from USD 8300 per Mt to USD 9500 per Mt during the same one month span. Indonesia followed this trend. Now it is off season in Madagascar, and other African origins. Madagascar season would start [main season] only in November, even though South Madagascar Clove might start in September. Quantity estimates are still awaited, and we have to wait to September to know Madagascar crop size. However, based on climatic situation and growth pattern, no reason to expect any shortage from Madagascar.

Let us wait July for further updates from all origins.

GIRISH KUMAR K S

Gently offered by Ms Sandra Braz from Braco Trade Ltda

The 51st Annual Session and Meetings of the International Pepper Community

 

Online Registration is Now Open -
The 51st Annual Session and Meetings of the International Pepper Community and International Spice Exhibition
(51st IPC ASM ISE)

 Assalammualaikumwarahmatullahiwabarakatuh and Greetings from the IPC Secretariat!

Dear International Pepper Community Family,

The International Pepper Community (IPC) holds regular Session and Meetings yearly which is hosted by the IPC member country on a rotation basis. Each member country is represented by a delegate with plenipotentiary authority to the Session. This year, the 51st Annual Session and Meetings of IPC and International Spice Exhibition (51st IPC ASM ISE) will be hosted by the Government of Malaysia and jointly organized by the Ministry of Plantation and Commodities (MPC), Malaysian Pepper Board (MPB) and IPC at Pullman Hotel Kuching, Sarawak, Malaysia from 6 - 9 November 2023. 

Following the peak of pepper price in 2015/2016, the global pepper production has continuously reported with a steady increasing trend which has caused the scale to greatly tip to one side. On average, in the past 5 years, the global pepper production has exceeded 500 KMT while the excess stock brought over balance for a 5-year calculation (2017 - 2021) averaging around 175 KMT. As result of the global oversupply of pepper, pepper price has fluctuated with a tendency of decreasing and has prolonged the unfavourable low prices of pepper. The imbalance of global pepper supply and demand has put pressure to the economy of the stakeholder of the pepper industry, especially pepper smallholders as they are burdened with a significant high cost of production and relatively low selling prices. In this regard, the need for increasing the global demand of pepper has been of great importance and ought to be seriously taken up by all the stakeholders of the pepper industry by encouraging more pr omotional campaign to increase the consumption of pepper both domestically and internationally as well as penetrating more unconventional consuming market to expand the pepper market. Thus, creating more opportunities for the advancement and sustainability of the global pepper industry.

As such, IPC take upon the theme of "Balancing the Global Pepper Supply and Demand - Alleviating Pressure on Prices" for the 51st Annual Sessions and Meetings of the International Pepper Community. The 51st ASM ISE is expected to be one of the largest ever conferences of the International Pepper Community.

Don't miss out this opportunity and I hope to see you in Kuching, Sarawak soon!

#togetherwearestronger  

REGISTER NOW

 Thank you and kind regards.

Salam hormat,
Firna Azura Ekaputri Hj. Marzuki
Executive Director of IPC

Vietnam exports nearly 131,777 tonnes of pepper Jan - May 2023

Vietnam exported nearly 131,777 tonnes of pepper worth 408.9 million USD in the first five months of this year, up 30% in volume but down 12.7 in value over the same period last year, according to the Vietnam Pepper Association (VPA).

Of the figures, black pepper was 119,832 tonnes and white pepper, the rest.

Pepper exports to Asian market remained a bright sport, reaching 78,907 tonnes, skyrocketing 77.2% and accounting for nearly 60% of the country's total export turnover of this kind of spice. China was the key market as the neighbour imported 46,169 tonnes of pepper, taking up 35% and soared 1,668.9% year-on-year, while the exports to the Philippines was 3,305 tonnes, a hike of 26.1%.

Notably, exports to African market experienced a surge of 38.9%, of which those to Egypt and Senegal shot up 140% and 104.4% year on year, respectively.

The American market recorded a fall of 13.1% in the reviewed period, accounting for 18% of the market share, of which exports to the US decreased 15.5%, picking up for 21,093 tonnes.

Occupying 16.8% of Vietnam’s total pepper export turnover, the EU market fell 9.4% year-on-year in the first five months of this year.

 https://vietnamnet.vn/en/vietnam-business-news-june-13-2023-2152938.html

============================================

JUST A REMINDER
PINK PEPPER HARVEST STARTED END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS

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PEPPER MARKET REPORT FROM PEARL GROUP

Indonesia is in the period of pepper decline,it is estimated the crop size for 2023 will be around 55000 tons , 10000tons less than the 2022 crop(65000 tons). because people in Indonesia are not interested in pepper in the context of competition with coffee trees due to better coffee prices. At the same time there was a more widespread shift to palm trees. Subjectively, the output figure given by the Indonesian Ministry of Agriculture is always much higher than the actual figure to receive the government's annual support budget. It is expected that Indonesia will harvest in July-August.

Brazilian pepper has always been more competitive in price than Vietnamese pepper, but because Brazil is facing difficulties and is controlled by the problem of Salmonella infection in the EU market, Vietnamese products are relatively competitive in the EU. Recently, to diversify markets, Brazil has also gradually appeared in the Middle East and Africa with lower asking prices than Vietnam due to advantages in transportation costs and geographical location.

Why Production of cloves has plunged in Zanzibar

 

Pemba, Monday, June 12, 2023

Opposition ACT-Wazalendo is blaming the fall of clove production in Zanzibar on the current payment system.

Under the system, a farmer is paid 80 percent of the world market price.  ACT-Wazalendo says this was a disincentive.

Speaking at their first rally in Jadida Ward, Wete District in Pemba, the party’s vice chairman, Mr Othman Masoud Othman, said it was unfortunate that Zanzibar, which was once the leading grower of cloves is witnessing a drastic fall in production.

Mr Othman who is also the Isle’s First Vice President said Zanzibar can produce up to 20,000 metric tons of cloves, but the government has put its hands on the issue, taking away the incentives from the farmers.

“The production of cloves has dropped because the government wanted to run the business. We in ACT say the production and operation of the business should remain in the hands of farmers,” said Othman.

He said what is required was to create an enabling environment for the clove business.

“Right now, we are being told that farmers get 80 percent of the market price, but in reality, after factoring in all the costs, the farmer only receives 38 percent.

He said it was due to that situation that most farmers have stopped taking care of the clover plantations because they no longer see the benefits.

“We at ACT say that production will increase and the people will see the true value of taking care of it,” said Mr Othman.

Bank of Tanzania (BoT) figures show that the value of goods exports in Zanzibar decreased by 25.9 percent to $64.8 million due to the decline in proceeds from the export of cloves and manufactured goods.

The BoT projects that actual export volumes may have fallen by 16.3 percent during the year to April, 2023 to only 7,000 tonnes from 8,400 tonnes of 8,400 tonnes during the preceding year.

This, along with a 19 percent fall in unit price, saw the amount earned through clove exports dropping by a cool 32.2 percent to only $42.5 million during the year ending April, 2023.

Regarding the spiralling poverty among the youth, the vice chairman said it was mainly due to the fact that most of the youth were not given employable skills to enable them take up jobs in industries such as hospitality.

 

  https://www.thecitizen.co.tz/tanzania/zanzibar/act-why-production-of-cloves-has-plunged-in-zanzibar-4267154

 

Vietnam does not face challenge from Cambodia pepper exports to China...

 

Vietnam's pepper exports are not challenged by Cambodia being issued a licence to export its pepper to China directly, according to experts.

05/06/2023

The Viet Nam Trade Office in Cambodia quoted Khmer Times sources saying that Cambodian pepper would be available in China directly after the General Administration of Customs of China (GACC) approved Cambodia’s export proposal.

Accordingly, the GACC approved seven packaging factories and 28 growing facilities for pepper exports in Cambodia.

Le Viet Anh, head of the Viet Nam Pepper Association's office, Cambodia exporting pepper directly to China was not a challenge for Viet Nam's pepper exports immediately because the pepper volume exported from Cambodia to China was not much.

“About 90-95 per cent of Cambodia's pepper output have been exported to Viet Nam, then processors in Viet Nam have re-exported the volume to other countries, including China," said Anh. "Meanwhile, Cambodia has few trading companies, mainly FDI enterprises."

Hoang Phuoc Binh, vice chairman of Chu Se Pepper Association (Gia Lai), said this was normal. Cambodia's pepper had been mainly exported to Viet Nam and re-exported to China. The remaining 10-20 per cent had been shipped directly to China and Europe.

With this permission, the pepper volume exported directly from Cambodia to China could increase, Binh said.

Therefore, according to experts, it could increase competitive pressure on Vietnamese pepper exported to China in the future.

The Viet Nam Pepper Association said Cambodia had been the second largest pepper exporter to Viet Nam after Brazil. In the first four months of this year, Cambodia exported 1,715 tonnes of pepper to Viet Nam, down 64 per cent compared to the same period in 2022. However this was official export, not including several thousand tonnes of unofficial exports.

In the first quarter of 2023, China increased pepper imports from Indonesia, Malaysia and India. In contrast, China reduced pepper imports from Viet Nam. Viet Nam's pepper market share in China's total imports decreased from 39.36 per cent in the first quarter of 2022 to 29.75 per cent in the first quarter of 2023.

Regarding the reduction in Viet Nam's pepper exports to China, Binh said it was not a concern; Viet Nam had accounted for more than 50 per cent of the world's exports. The output of pepper in other markets, such as Cambodia and Malaysia, had been very small. So, China still had to import pepper mainly from Viet Nam.

China imports an average volume of about 50,000-60,000 tonnes of pepper from Viet Nam annually. The export volume of white pepper to this market will fluctuate occasionally.

In the first four months of 2023, China imported 35,000 tonnes of pepper from Viet Nam. In the next six months, Viet Nam will not have any difficulty exporting 20,000-25,000 tonnes of pepper, according to Binh.

The association estimates that Viet Nam's pepper output 2023 will increase by 5 per cent compared to 2022.

In 2022, Viet Nam exported more than 226,000 tonnes of pepper, earning nearly US$963 million, according to the Ministry of Industry and Trade. — VNS

https://vietnamnet.vn/en/vietnam-does-not-face-challenge-from-cambodia-pepper-exports-to-china-experts-2151258.html