IMPORTANT
In
response to the statement released by European Food Safety Authority
which elaborated that pesticide chlorpyrifos does not meet the approval
criteria applicable to human health following some concerns on the
epidemiological evidence related to developmental neurological outcomes
in children as well as the absence of toxicological reference values,
the EU countries had voted to ban pesticide containing active substance
chlorpyrifos entirely from European Markets. This historical move took
place in a meeting of the standing committee on plants, animals, food
and feed (SCOPAFF) on 6 December 2019.
Soon
after the meeting of the standing committee on plants, animals, food
and feed (SCOPAFF) on 6 December 2019, European Union Commission sent
out notification documents to the World Trade Organization (WTO) on 12
December 2019 which then recorded as WTO Notification No.
G/SPS/N/EU/360.
The WTO Notification contained the draft Commission
Regulation (EU) amending Annexes II and V to Regulation (EC) No.
396/2005 of the European Parliament and of the Council as regards
maximum residue levels (MRLs) for chlorpyrifos and chlorpyrifos-methyl
in or on certain product.
The proposed draft of the Commission
Regulation (EU) which regulated that the MRLs for chlorpyrifos and
chlorpyrifos-methyl on all product be lowered.
Furthermore,
following the voting to ban chlorpyrifos and the sending of
notification to WTO, European Union Commission through its official
journal of the European Union dated 13 January 2020 published Commission
Implementing Regulation EU 2020/17 and EU 2020/18 stipulating the
non-renewal of the approval of the active substance chlorpyrifos and
chlorpyrifos-methyl respectively.What's Next for Chlorpyrifos and Chlorpyrifos-methyl in Europe
With
Commission Implementation Regulation EU 2020/17 and EU 2020/18 which
came into force on 16 January 2020, European countries were required to
withdraw authorisations for pesticide containing chlorpyrifos and
chlorpyrifos-methyl by 16 February 2020 with grace period permitted
until 16 April 2020.
In
addition the Standing Committee on Plants, Animals, Food and Feed
section Phytopharmaceutical - Residues is scheduled to convene on a
meeting during 17 - 18 February 2020 in which one of the agenda of
discussion is exchange of views and possible opinion of the Committee on
a draft Commission Regulation EU amending Annexes II and V to
Regulation (EC) No. 396/2005 of the European Parliament and of the
Council as regards maximum residue levels for chlorpyrifos and
chlorpyrifos-methyl in and on certain products.
Upon the adoption of the
aforementioned draft Commission Regulation, the maximum residue levels
of all product for active substance chlorpyrifos and chlorpyrifos-methyl
will be lowered to 0.01 mg/kg and would come into force in October
2020.
With
the new MRLs coming into force in October 2020, the downstream
stakeholders of agricultural industry including the spice industry would
take a significant blow. As for spice the cycle of farming, harvesting,
exporting and trading would at least take a total of three years,
farmers would not only lose a significant tool in managing destructive
pests which could diminish their ability in obtaining sufficient yield,
they would also be unable to export product containing residues to the
EU which in worst case scenario would last for the next 2-3 years taking
into account the cycle of industry. Furthermore, in regards of pepper,
the new MRLs would give another blow to the ongoing downtrend of pepper
price as farmer have to start finding other biological pesticide to
replace chlorpyrifos at probably much higher cost in order to keep
yielding the same amount.
The
stream of commerce would take a massive hit, as the significantly short
transitional period for such widely used pesticide would mean that all
of already manufactured products as well as currently on store shelves
were rendered out of compliance with the new MRL requirement and needed
to be destroyed. Thus, resulting to a serious financial drawback of the
pepper commerce industry.
Furthermore,
with the implementation of the new MRLs in October 2020, it would mean a
significant disruption of spices supply to the European Countries in
particular pepper as most pepper producing countries like Indonesia,
Viet Nam and Brazil which supply most of European Countries pepper need,
are currently still regulated chlorpyrifos and chlorpyrifos-methyl for
agricultural use. With the prospect of consignment being turned down to
enter EU due to residue of chlorpyrifos, scarcity of pepper stock in the
European Countries is imminent.
THIS INFORMATION PROVIDED BY IPC MARKET REVIEW JANUARY 2020
EXPORT OF PEPPER BY MADAGASCAR
Madagascar,
officially the Republic of Madagascar is an island country in the
Indian Ocean, approximately 400 kilometers off the coast of East Africa.
Madagascar is one of the producers of pepper in the world and actively
export pepper to various countries.
In
2017, Madagascar was reported to have exported a total of 1,983 Mt of
pepper from which 95% or 1,889 Mt of it comprised of whole pepper and 5%
or 94 Mt of it ground pepper. Madagascar on average exported a total of
165 Mt per month in 2017 which peaked in December with 580 per Mt. The
total revenue of Madagascar's export of pepper in 2017 was reported to
be as high as USD 6.9 Million. Thus, recording an average price of the
total pepper exported by Madagascar at USD 3,462 per Mt for whole pepper
and USD 4,054 per Mt for ground pepper.
Year
2018 saw an increase in term of quantity of pepper exported by
Madagascar. Madagascar was reported to have exported a total of 3,313 Mt
of which 90% or 2,986 Mt of it comprised of whole pepper and 10% or 328
Mt of it ground pepper, recording an increase of 67% when compared with
2017. The average export of pepper by Madagascar in 2018 was reported
to be at 276 Mt per month which peaked in January with 538 per Mt. In
accordance with increasing in terms of quantity, Madagascar's revenue
from pepper export was also reported to have increased by 33% as
compared to the previous year to a total of USD 9.2 Million. Thus,
recording an average price of the total pepper exported by Madagascar at
USD 2,824 per Mt for whole pepper and USD 2,471 per Mt for ground
pepper or a decrease by 18% and 39% respectively as compared with 2017.
At
the end of 2019, Madagascar was reported to have exported a total of
3,696 Mt which 98% or 3,639 Mt of it comprised of whole pepper and 2% or
57 Mt of it ground pepper. Thus, recording an increase of 12% when
compared to 2018. The average export of pepper by Madagascar in 2019 was
reported to be at 308 Mt per month which peaked in October with 620 per
Mt. By the end of 2019, the total revenue of pepper export by
Madagascar was reported to have reached USD 7.1 Million, recording a
decrease by 23% as compared to 2018. The average price of the total
pepper exported by Madagascar in 2019 was reported at USD 1,919 per Mt
for whole pepper and 2,079 per Mt for ground pepper or a decrease by 32%
and 16% respectively as compared with 2018.
Pepper
from Madagascar is widely traded in Asia, Europe and Africa. In 2019,
Madagascar's top 5 Country of destinations for its pepper were reported
to be United Arab Emirates with 440 Mt (a decrease of 19% as compared to
2018), France with 389 Mt (an increase of 11%), Sudan with 384 Mt (an
increase of 75%), Pakistan with 316 Mt (a decrease of 30%) and Belgium
with 299 Mt (a decrease of 1%). The significant decrease of export to
Pakistan was the result of Pakistan starting to shift importing pepper
from Brazil instead of Madagascar (an increase of 1,629 Mt of Pakistan
import from Brazil).
WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade
No. 07/20, 10 - 14 February 2020
MARKET REPORT
Market
this week showed a mixed response with a rather negative outlook as
only India origin was reported with an increase. In local market,
Malabar black pepper was traded with an increase of 1% as compared to
the previous week with an average of USD 4,382 per Mt. Indonesia black
and white pepper was reported stable at an average of USD 1,753 per Mt
for black pepper and USD 3,141 per Mt for white pepper. Malaysian black
and white pepper were traded domestically with a 2% and 1% deficit
respectively as opposed to the previous week averaging at USD 1,820 per
Mt for black pepper and USD 3,239 per Mt for white pepper. Furthermore,
the ongoing harvest season in Viet Nam pushed Viet Nam black pepper to
be traded with a 2% deficit as compared to the previous week at an
average of USD 1,597 per Mt. Whilst, Viet Nam white pepper was reported
steady with an average of USD 2,410 per Mt. Sri Lanka black pepper was
traded with a 1% deficit as compared to the previous week at an average
of USD 2, 916 per Mt.
International
market followed similar trend in local market as only India recorded an
increase. India was reported trading its Malabar black pepper
internationally with the same increase of 1% as compared to the previous
week at an average of USD 4,662 per Mt. Indonesia black and white
pepper were reported stable with an average of USD 2,174 per Mt for
black pepper and USD 3,740 per Mt for white pepper. Malaysia black and
white pepper continued to be traded stable and unchanged. Furthermore,
Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were
reported with a greater loss in international market and were traded
with a 7%, 6% and 5% deficit respectively when compared to the previous
week at an average of USD 1,900 per Mt, USD 2,000 per Mt and USD 3,000
per Mt respectively. The decrease of FOB price in Viet Nam could be
contributed to China demand in recent week was static and it has an
impact due to Viet Nam was the biggest supplier for China pepper market.
The
Lunar New Year holiday which was followed immediately by the
devastating outbreak of the Corona Virus have china market in the past 5
weeks were reported inactive as no business took place. Reports coming
in from Hainan stating that people remain in their house and refraining
from going out.
WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade
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