IPC PEPPER MKT REPORT No. 09/21, 22 - 26 February 2021

 

LOCAL MARKET REPORT

Market this week showed a mixed response with only Indonesia was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 2% when compared to the previous week, averaging at USD 4,545 per Mt. Indonesia black and white pepper were reported with 1% deficit respectively when compared to the previous week, averaging at USD 2,442 per Mt for black pepper and USD 4,424 per Mt for white pepper. The decrease of Indonesia's pepper could be contributed to the weakening of Indonesia Rupiah against the US Dollar (IDR 14,129 @ USD 1), recording a 1% depreciation. Malaysia black and white pepper were reported stable, averaging at USD 2,492 per Mt for black pepper and USD 3,962 per Mt for white pepper. As market resume after T?t Holiday, Viet Nam black and white pepper were reported with an increase of 3% and 8% respectively as compared to the previous week, averaging at USD 2,246 per Mt for black pepper and USD 3,302 per Mt for white pepper. Sri Lanka black p epper was reported with an increase of 2% as compared to the previous week and was traded at an average of USD 2,682 per Mt.

INTERNATIONAL MARKET REPORT

International market was also reported with a mixed response as India black pepper was reported with the same increase of 2% when compared to the previous week, averaging at USD 4,822 per Mt. Indonesia black and white pepper were reported with 1% deficit respectively when compared to the previous week, averaging at USD 2,955 per Mt for black pepper and USD 5,164 per Mt for white pepper. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 6%, 6% and 5% respectively as opposed to the previous week, averaging at USD 3,075 per Mt, USD 3,156 per Mt and USD 4,170 per Mt respectively.

VIETNAM PEPPER MARKET UPDATE 22ND 2021 – WEEK 8

 

 

 

Vietnam exported 16.896 tons in January 2021 with a turnover of 48.72 million $, down 18.54% in volume and 8.67% in value compared to the previous month, but up 14.43 % in volume and 35.38% in value compared with the same period last year. Average export price in the at 2,884 USD/ton, up 4.23% compared to the average export price of December 2020. Due to the Lunar New Year in February, the number of exports is forecast to decrease compared to January 2021 and reach around 13.500 tons.

Last week the prices have seen an impressive increase from 53,000 VND and reach 55,500 VND today, equivalent to a 4.5% increase within a week. Due to the delivery deadline in Feb, processors and exporters are increasing buying to ensure shipment on time. Currently, the higher demand than before last 2 week, pushing the market prices up slightly in many different areas in Vietnam.

Meanwhile, many agents/collectors have not reopened after Lunar New Year, so the business in domestic markets is still very slow, raw material not profuse on the market.

The weather in key pepper areas is quite favorable, so it is expected that farmers will focus their harvest and plentiful supply in the next few weeks.

The situation of freight rates from Vietnam to EU/US/ASIA/AFRICA is forecast to continue to be tense and there is still no sign of a discount from shipping lines, freight rate is unlikely to decrease as expected in March.

 

 

IPC REPORT - EXPORT OF PEPPER BY MADAGASCAR

 

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 2018, Madagascar was reported to have exported a total of 3,313 Mt of pepper which 90% or 2,986 Mt of it comprised of whole pepper and 10% or 328 Mt of it ground pepper. Madagascar on average exported a total of 276 Mt per month in 2018 which peaked in January with 538 Mt. The total revenue of Madagascar's export of pepper in 2018 was reported to be as high as 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 2,467 per Mt for ground pepper.

Year 2019 saw an increase in term of quantity of pepper exported by Madagascar. 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, recording an increase of 12% when compared to 2018. The average export of pepper by Madagascar in 2019 was reported to be 308 Mt per month which peaked in October with 620 Mt. Although increasing in term of quantity, Madagascar's revenue from pepper export was reported with a decrease of 23% as compared to the previous year to a total of USD 7.1 Million. Thus, recording an average price of the total pepper exported by Madagascar at USD 1,919 per Mt for whole pepper and USD 2,079 per Mt for ground pepper or a decrease of 32% and 16% respectively as compared to 2018.

As of December 2020, Madagascar was reported to have exported a total of 4,578 Mt which 95% or 4,344 Mt of it comprised of whole pepper and 5% or 234 Mt of it ground pepper. Thus, recording an increase of 24% when compared to the same period in 2019. As of December 2020, the total revenue of pepper export by Madagascar was reported to have reached USD 8.6 Million, recording an increase of 22% as compared to the same period in 2019. The average price of the total pepper exported by Madagascar as of December 2020 was reported to be USD 1,961 per Mt for whole pepper and USD 670 per Mt for ground pepper or an increase of 2% for whole pepper and a decrease of 68% for ground pepper as compared to 2019.

Pepper from Madagascar is traded worldwide with most of them being Asian countries. As of December 2020, Madagascar's top 5 country destinations for its pepper were reported to be United Arab Emirates with 576 Mt (an increase of 31% as compared to the same period in 2019), Pakistan with 558 Mt (an increase of 77%), India with 459 Mt (an increase of 353 Mt), France with 389 Mt (stable and unchanged) and Egypt with 290 Mt (an increase of 4%)