R&G Monthly Pepper Market Updates W31

Vietnam seen firmer today as market opened with raw material price at 72,5 VND/kg an uptrend by about 3,5% from opening week 30  level.
Small demand was mostly seen from Asian importers specifically from China and Pakistan buyers, while USA and EU are still on a look out for Q4/Q1-2024.
Covering from some shippers were also reported with few to no offers of raw materials from local suppliers which prompted shippers to also be inactive last week. 

Indonesia still stable with few demands, mostly for forward positions. Speculators were also seen buying.

Brazil facing difficulty in buying raw materials from the field amid harvest seasons.
Offers are very limited from shippers who are still trying to cover their earlier booked contracts while farmers are holding their offers prompting shippers to stop offering ending week 30.

Although good production is expected, harvest is slow and delayed due to coffee crop that is being prioritized.
Market is showing firmness, but we could expect it to cool down later on (also if forex rates cooperate) due to good crop size in this region and as well as Para region that is also on going. 

From this origin, specifically from Vitoria port where most cargoes are loaded, apparently having serious issue with lack of containers and limited vessel availability.
This is now causing dilemma with both coffee and pepper exporters. 

Another issue that is brewing is climate change that could cost a potent economic storm. 
Reports of extreme weather condition in southern Europe and North Africa this month suffering from sweltering heat while in some countries, thunderous storms leading to flooding in others. 
Further consequence to negatively impact the crop that may lead to further food inflation  worldwide

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Vietnam pepper market update 31st July 2023 – Week 30

 

The price of pepper from India increased by 20% in the past week. The main reason is the sudden increase in demand from the domestic market. Besides, the Kerala region is the main pepper production area of India, the heavy rain has made the crop forecast to decrease by 30-32%.

Besides, the price of pepper in Brazil also increased by 10% in the past 2 weeks. Many information forecast that Brazil's crop will be reduced by 15-20% compared to the 2022 crop. This has caused farmers/dealers to increase hoarding and less offer to sell to the market.

This is why green cardamon is so expensive

 

Caviar, Champagne…cardamom? While it may not be the first thing that comes to mind when we think about culinary delicacies, the latter certainly carries its weight in the luxury category. Prices for green cardamom are known to rise up to $90 per kilo, ranking it No. 3 on the list of the most expensive spices in the world, following saffron and vanilla.

For those who are new to the spice, you can find its sweet, citrus-like flavor peeking through many Indian and Middle Eastern dishes both sweet and savory. It’s grown in tropical regions which include India and Costa Rica, and is a member of the ginger family. It’s available in both black and green varieties and can either be used in its pod form or as a ground powder derived from the seeds of the pod. Green cardamom — the focus of this article — is significantly more expensive than black cardamom and is also more difficult to find.

So why is green cardamom so expensive, exactly?

How Green Cardamom is Harvested and Grown

To understand why it can fetch such high prices in the market, we have to dig deeper into its inception from start to finish. As with many expensive ingredients, a lengthy and involved production process is behind green cardamom’s high price tag.

After farmers plant the cardamom seeds, they need to wait a grand total of three years before the crop is mature. After plants mature, the harvesting window lasts from July to February, which is relatively long. Despite the advantage of a long harvesting cycle, not all cardamon pods mature at exactly the same time, and only highly-skilled harvesters can determine which pods are ready to be picked at peak ripeness.

To reach this level of skill, harvesters must train for six months with farmers so they can discern which pods are ripe or raw. And even after all that work, only a total of approximately 10 pods can be harvested from each plant. To make matters more stressful, the stakes are quite high if mistakes are made. If the pods are collected too early, they won’t be aromatic and fetch a fair price in the market. If they are collected too late, they simply go to waste.

Weather conditions may also affect how much cardamom costs. If production is impacted negatively by rain or inclement weather, crops may be destroyed, which limits availability and drives up prices overall.

The Post-Harvest Process

Within 24 hours of harvesting, the perfectly ripe cardamom pods are ushered into a space where they must sit to dry for 18 hours. (And if they sit any longer than a day after being harvested, they risk decay.)

The drying process also impacts the green color of the pods, which is an important factor in determining their price in the marketplace. The machines that dry the pods use heat, and if the heat isn’t released perfectly it can negatively affect their color.

After drying comes sorting. A team of workers is tasked with the arduous job of sorting the smaller pods from the larger pods (which are more valuable) by hand. Ultimately, after it’s all said and done, only one-sixth of the pods harvested can be marketed as good-quality cardamom.

It’s because of all this extensive labor and attention to detail that some companies can charge a premium of $90 per kilogram of green cardamom.

The Economic Sustainability of Cardamom Production

While cardamom can sell for a lot in the marketplace, not all of that money is going directly into the pockets of its producers. Farming cardamom can be a costly endeavor, and up to 10% to 15% of the profits end up being re-invested in each acre on fertilizer alone. Add to that the losses due to weather, and producers may sometimes end up investing their own money out of pocket to keep production up.

Luckily, things are looking up for the industry, as it is projected to increase by $1,690,000 by 2025. The hope here is that farmers can keep up with demand and continue to supply the world with the spice.

By: Lauren Alexander
Posted at 6:30 AM, Jul 30, 2023 and last updated 1:58 PM, Jul 28, 2023

This story originally appeared on Simplemost. Check out Simplemost for additional stories.

https://www.simplemost.com/this-is-why-green-cardamon-is-so-expensive/

Dubai: Scammers con merchants out of tonnes of avocados, beef, onions

 

Victims — some of whom had to close their shops because of the losses — say the heists were executed with such meticulous planning and finesse that they didn’t see any red flags

by Mazhar Farooqui

Published: Wed 26 Jul 2023, 1:17 PM

Late last year, Johnny Smith closed applications for the 150 packaging helper positions he advertised for on LinkedIn.

The unsuspecting recruits hired for Max Star Trading LLC had served their purpose: Pack, weigh and load millions of dirhams worth of stolen goods into containers that have since disappeared, along with Smith and the entire staff of the Dubai-based company. That’s because Johnny Smith wasn’t a real person. Nor were Ahmed Ali, Javed Malik, Rana Khaleel and Yaswant. The names were just some of the many aliases used by the conmen.

Adopting a familiar modus operandi, the fraudsters contacted dozens of UAE and overseas firms, offering to buy everything from foodstuff and electronics to industrial equipment and construction material.

The initial orders were small and readily settled in cash. Once trust was gained, Max Star then made bulk purchases via post-dated cheques. All of them turned out to be duds.

When their cheques began to bounce, the traders rushed to Max Star's office in UBL Building on the Khalid Bin Waleed Road. It was too late. A visit to their warehouse also drew a blank. The goods had been either sold to third parties for cash or moved elsewhere.

Not a lone case

Max Star is not the only such company preying on unsuspecting traders. Two other dodgy firms, Seven Emirates Spices and Ultimate General Trading, have also shut shop after pulling a similar scam — the former as recently as last month.

Only this time, the loot haul is bigger: Avocados worth half a million dirhams from Colombia, Ethiopia and Tanzania; cherries worth nearly Dh92,000 from Turkey; onions worth Dh210,000 from India; coconut husks worth Dh62,000 from Indonesia; palm oil worth Dh78,000 from Malaysia… It’s a long list and it keeps getting longer as more victims come forward.

Many UAE-based companies have been left reeling by the scam. Among them are Sharjah’s Globus Overseas who were conned out of Pakistani beef shipments worth Dh45,000; Abu Dhabi’s New Al Katef Electronic (printers worth Dh15,000); and Dubai’s PBS International (flexi bags worth Dh150,000).

Some, like Dubai-based Al Bizra General Trading, have been conned twice in a matter of days. The company’s Sri Lankan owner Imran Marikar told Khaleej Times they lost 500 litres of palm oil and 1,500kg of tea worth nearly Dh62,000 to Ultimate General Trading, besides two metric tonnes of cardamom worth Dh108,000 to Max Star.

Shahina of Penpal Trading lost disposable bags worth Dh37,000 to Seven Emirates Spices. “I had barely started business,” she told Khaleej Times on Monday.

Victims recount anguish

Unable to bear losses, at least one company is winding up. “I see no other way,” said Kaleab Getaneh of Ethiopia’s Ethio Fresh Export that shipped 22 tonnes of Hass avocados.

“I thought we could support smallholder farmers, but now we have to close down,” Getaneh told Khaleej Times from Addis Ababa. He was sent screenshots of wire transfers as proof of payment. It was a sham. The transactions were never completed.

Another victim, Daissy Amarillo from Columbia, said: “I am not going to deny that these have been very difficult days behind our business… There are many peasants from our country and cheating is a very frustrating situation.”

Her company, ASI Representacuines LTDA, exported 7,200kg of avocados worth Dh227,000. Ashraf Issac of Omros Food in Dar es Salam, Tanzania, who also sent a shipment of avocados, pegged his losses at nearly Dh60,000. “I am aghast. I feel wrecked,” he said.

Dubai businesswoman Lata Sachdev of PBS International is no less distraught.

In 2018, the Indian expatriate donated a part of her liver to save her husband’s life. Since then, she has been running the house as well as the business. “The scam has hurt us badly. We lost Dh150,000,” said the 50-year-old. She has started legal proceedings against the runaway firm that operated from the Bushaquer buillding near the GGICO Metro Station in Al Garhoud.

Lata has also recounted her ordeal in a series of heartfelt LinkedIn posts, urging traders to stop accepting post-dated cheques to avoid being cheated.

Meticulous planning

Victims said the heists were executed with such meticulous planning and finesse that they didn’t see any red flags.

“Both Ultimate and Max Star were legitimate companies with valid trade licences, proper offices, staff and warehouses. How could we have possibly known that everything was a charade?” rued Marikar.

“Ultimate asked for 300 tins of palm oil and gave us a current-dated cheque for the full amount as soon as we delivered the goods to their Al Qusais warehouse. We were happy. The following day, they collected another 200 tins of palm oil and 300 tonnes of loose tea from our warehouse in Al Kabaisi and gave us two more cheques,” he recalled.

In the mistaken belief that all cheques were for the same day, Marikar dispatched the new orders. He also deposited the cheques, hoping the payments would soon be reflected in his bank account.

No money ever came. What came instead was an SMS notification from the bank that said the cheques had been returned due to insufficient funds.

“I immediately rang up Ultimate’s office,” said Marikar. “I was assured that I would be reimbursed in cash as the company’s owner Sachin Sharma had to rush to India to attend his brother’s funeral."

As it turns out, many local traders were sold the same story. Those abroad were tricked into shipping goods after being sent bogus wire transfer receipts.

Kaleab Getaneh said he was impressed when Ultimate paid him 50 per cent of the total invoice ($4,500) within days of receiving a shipment of avocados.

“They won our trust with the smaller invoice but betrayed it with the bigger ones,” said Getaneh, sharing a copy of purported wire transfer receipts.

The same ploy was used against Naresh Patel of Shiv Industries in Gujarat, who shipped 29 tonnes of onions.

All cellphone numbers associated with Max Star and Ultimate are switched off and none of their owners or staff can be traced. The websites of the companies have ceased to exist.

In a related development, four Vietnamese companies face the prospect of losing five containers of spices and cashew nuts worth $517,000 that they’d shipped to Dubai.

Vietnamese media, citing the Vietnam Pepper Association, said the containers were sent to a foodstuff company, but were claimed by unidentified parties at Jebel Ali Dubai Port without paying the Vietnamese companies.

Earlier, an exporter from Vietnam lost a container of pepper worth more than Dh400,000 to a fraudulent firm that operated from Business Bay.

The victim managed to register a criminal case through a law firm. An arrest warrant is now out against the key suspect who has a verified Instagram account with a tagline that reads, “I never dreamed about success. I worked for it.”

Lawyer Jihad El Haddad of Al Jazera Advocate said the man approached their client using a fake identity. “We found him out,” said El Haddad.

But traders hit by Ultimate, Seven Emirates Spices, and Max Star are still groping in the dark. “There has been no headway,” said Marikar.

El Haddad said scam victims often don’t know how to present a case before the prosecution. “If you do it the way we have, you could initiate criminal proceedings."

The Indian Consulate in Dubai has repeatedly urged exporters from India to exercise caution and not fall victim to such scams. Of late, there has been a spate of heists along similar lines. Last year, two other companies — Spicy Dine Public Kitchen and MEP Gulf Electromechanical Works — suddenly pulled down their shutters after buying anything they could get their hands using post-dated dud cheques.

Between them, they scooted away with an estimated Dh20 million worth of goods. Many of their victims have had their lives torn apart.

Mustafa Kusgoz from Turkey’s Kugoz Agriculture — which supplied 3,300kg of cherries to Ultimate — also faces an uncertain future. In a text message, he said: “They stole my bread. They broke my home. I am breaking up with my wife.”

https://www.khaleejtimes.com/life-and-living/dubai-scammers-con-merchants-out-of-millions-of-dirhams-of-foodstuff-electronics?_refresh=true

KERALA - Market in stupor as pepper prices rise; Indian variety most expensive

 

Kochi: The price of pepper increased by Rs 30 per kilo within a day. In other words, the price per quintal went up by Rs 3000. 

This sudden and unexpected rise has created a shock in the market. Last week, the price had increased by Rs 20 per kilo

The price of ungarbled pepper is Rs 550 per kilo on Monday while garbled pepper stands at Rs 570 per kilo.  

Traders in Kerala point out the intervention of North Indian lobby as the reason for this price hike. 

They say that this is the same trading lobby that intervened to increase the price of commodities like cumin and turmeric.

Unpredictable weather changes can detrimentally affect production. 

There were campaigns that claimed pepper production would drastically reduce next year. 

This is what prompted masala manufacturing companies to procure and horde large quantities of pepper.

Some prominent companies also invited tenders to meet the chilly requirement for the next few months. 

The lobby has anticipated a demand for pepper in the near future and this intervention led to a rise in prices, traders say.

Kerala farmers continue to maintain a distance from the market. 

Those who have pepper stock in hand are not bringing the goods into the market hoping the prices may increase even more. 

With festival season coming, they anticipate a further rise in price.

Presently, Indian pepper is the most expensive in the International market. 

As per latest records, the price of Indian pepper is at 7,300 dollars per ton. Meanwhile, the price of Brazilian pepper is only 3,500 dollars per ton.

Similarly, the Vietnamese and Indonesian peppers are priced at 3,600 and 2,800 dollars per ton respectively. 

Exports from India have been on the decline for some time now but imports from Brazil and Vietnam are subject to heavy tariffs. However, even after considering this tariff, pepper from other countries have a lower price in the market than Indian pepper. 

The trade community indicates that if prices continue to rise, it will pave the way for imports.

V.P Sreelan 25 July 2023, 12:10 PM IST.

Read more at: https://english.mathrubhumi.com/news/money/market-in-stupor-as-pepper-prices-rise-indian-pepper-the-most-expensive-in-international-market-1.8760376

Malaysia - Domestic pepper prices to continue rising

 

KUCHING, Monday, 24 Jul 2023

The price recovery in domestic pepper built up in the January to June 2023 period is expected to gather pace in the second half of 2023, predicts a leading local trader.

Nguong Aik (Kuching) Sdn Bhd director William S.C.Yii said it is likely that domestic pepper prices would continue their uptrend by another 10% from the current levels, adding “a 20% increase is possible” towards the end of the year.

Kuching Grade 1 black pepper’s price averaged RM14,000 per tonne on last Friday against RM12,900 per tonne at end-December 2022, an increase of RM1,100 per tonne or 8.5%, according to Malaysian Pepper Board’s daily published prices.

The price recovery for Kuching’s Grade 1 white pepper is, however, less significant. During the same period, white pepper gained RM600 per tonne to RM23,500 from RM22,900 per tonne.

In 2022, black pepper fared poorly, plunging RM4,430 per tonne or 25% from RM17,330 per tonne in 2021. Year-on-year, white pepper lost RM3,550 per tonne of 13.5% from RM26,430 per tonne.

At its peak, black and white pepper hit RM30,000 and RM50,000 per tonne respectively about eight years ago.

Yii said many traders, including those in Malaysia and Vietnam (worlds’ top pepper producer and exporter), have earlier predicted a robust pepper market in 2023 but based on the current market trend, they might be too bullish.

“At the beginning of the year, pepper prices have gone up quite a bit because of the re-opening of the borders (as the Covid pandemic started to ease).

“After China reopened its borders, pepper prices shot up as a result of the demand because for two years during the pandemic, China had not imported pepper.

“The prices, however, started to come down after the Lunar New Year celebrations.

“For other major pepper markets after the pandemic, major importers in pepper consuming countries (have changed their strategies) only buying hand-to-mouth instead of keeping large stocks of between 200 to 300 tonnes before. This has slowed down the demand,” he told StarBiz.

The strong US dollar and inflation are among the factors affecting pepper consumption.

Nguong Aik is Sarawak’s leading pepper exporter.

Vietnam’s General Department of Customs has reported that the country exported 131,500 tonnes of pepper worth US$406.5mil (RM1.85bil) in the first five months of 2023, which was a decrease of 11.6% in quantity and 33.2% in value as compared to the same period in 2022.

The average export price of the spice called “Vietnam’s black gold” was down by 33.2% to US$3,092 (RM14,069) per tonne during the same period.

In 2022, Vietnam exported 220,000 tonnes, accounting for 55% of the total pepper output in the globe.

The reason given for the sharp drop in export was that speculators reserved money to buy Robusta coffee as cocoa bean’s prices have surged.

Yii said due to weak pepper prices and the rising costs in pepper planting, some Vietnamese pepper farmers were reported to have switched to cultivating other crops,like durian.

He said Sarawak pepper market has stayed rather stable and quiet this year, with unprocessed black pepper trading between RM13.5 and RM16 per kilo while the white pepper trading between RM22.5 and RM26 per kg.

Sarawak has just completed its new crop’s harvesting, and Yii said the total production volume was similar to 2022, and not encouraging.

International Pepper Community (IPC) executive director Firna Azura Ekaputri Marzuki said global oversupply had put pressure on pepper prices in the past several years.

“Following the peak of pepper price in 2015 and 2016, the global pepper production has continuously reported a steady increasing trend which has caused the scale to greatly tip to one side.

“On average, in the past five years,the global pepper production has exceeded 500,000 tonne while the excess stock brought over balance for a five-year calculation (2017-2033) averaging around 175,000 tonnes.

“As a 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,” she added in a message to the international pepper community family.

Firna said the imbalance of global pepper supply and demand has put pressure on the economy of the stakeholder of the pepper industry, especially smallholders as they are burdened with a significant high cost of production and relatively low selling prices.

In this regard, she said the need for increasing the global demand for pepper has been of great importance and ought to be seriously taken up by all stakeholders of the pepper community by encouraging more promotional campaigns.

These promotional activities would help to increase pepper consumption both domestically and internationally as well as penetrating more unconventional consuming markets to expand the market.

She said such efforts would help create more opportunities for the advancement and sustainability of the global pepper industry.

Malaysia, the current IPC chair and which is among the top five pepper producer in the world, will host IPC’s 51st annual session and meetings and International Spice Exhibition in Kuching from Nov 6-9 this year.

Firna said the IPC’s 51st annual session has thus chosen “Balancing the global pepper supply and demand – alleviating pressure on prices” as its theme.

The annual session and exhibition will be jointly hosted by the Plantation and Commodities Ministry, Malaysian Pepper Board and IPC.

JACK WONG

https://www.thestar.com.my/business/business-news/2023/07/24/domestic-pepper-prices-to-continue-rising

Cambodian Pepper trade hit by global downturn

Van Socheata  20 July 2023 

In the first half of 2023, Cambodian pepper exports, encompassing all varieties, hit about 4,300 tonnes. This reflects a drop of over 31 per cent compared to the same period last year, according to the Ministry of Agriculture, Forestry and Fisheries.

Ministry spokeswoman Im Rachna attributes the decline to the global economic downturn which has led to a drop in orders for all goods, pepper included.

Market uncertainty, climate change impacting crop yields and quality, and unauthorised exports through Vietnamese and Thai corridors are other contributing factors, she added.

Mak Ny, president of the Cambodian Pepper and Spices Federation (CPSF), noted on July 18 that the decline is linked to the falling market price of pepper despite a normal level of pepper production. This has resulted in some farmers suspending sales and drying the pepper, awaiting a rise in price before selling.

“The challenge isn’t new. The price of pepper dropped post-harvest. As a result, some farmers dried it, anticipating a price increase,” he said.

He added that weather-related challenges have led some farmers to abandon their crops, which could trigger a decline in pepper production this year and the next.

New markets are crucial for Cambodian pepper as it would lure more investors to grow and export pepper to countries beyond Vietnam, he emphasised.

“In ASEAN, Vietnam is a major buyer of Cambodian pepper. However, despite various regional and bilateral free trade agreements, tariff barriers and phytosanitary issues persist,” added Mak Ny.

Nguon Lay, president of the Kampot Pepper Promotion Association, observed that although there’s no official data on pepper exports, he assesses that Kampot pepper exports haven’t fluctuated in the first half, mirroring last year’s trends.

Despite the global crisis, demand for Kampot pepper remains steady, particularly from European buyers.

“Kampot pepper has not encountered significant issues. We have contracts with purchasing companies and export approximately 70 to 80 tonnes annually. The weather did not diminish the quality of the pepper as our farmers are prepared, particularly in managing water supplies in response to climate change,” he said.

However, the high maintenance costs associated with growing Kampot pepper have forced some farmers out of business, reducing the association’s membership from 460 to just over 350 households.

Cambodia exports pepper to a wide range of countries, and pepper is grown in 18 provinces across the nation, including Mondulkiri, Ratanakkiri, Tbong Khmum and Kampot.

https://www.phnompenhpost.com/national/pepper-trade-hit-global-downturn-h1-ministry