#CARDAMOM - India - Cardamom exporters looking to tap Gulf markets

February 26, 2020

The subdued demand for Indian cardamom in the just concluded Gulf Food Expo has not deterred exporters from trying to tap the burgeoning Gulf markets. They are pinning hopes on the ensuing Ramadan festival season in April, which they expect to perk up demand.

However, the higher price of Indian cardamom over the Guatemalan varieties is causing concern among exporters. Though the price of export grade Indian cardamom has started receding from $58-$60 to $50-52 per kg, the Guatemalan crop is available in the range of $38-42, said Dhanavanthan Murugesan, Mercariex Worldwide, a cardamom exporting firm based in Bodinayakanur.

He pointed out that the export price in the last 10 days has remained stable and importers are waiting for a further decline in domestic price. The Indian commodity can take advantage of the anticipated shortfall of Guatemalan cardamom in the September 2020 harvest.

Indian cardamom is the most preferred variety in the Gulf markets and the active overseas markets are Dubai, Kuwait, Iran, Iraq, Jordan, Bahrain, Turkey, Canada and some European countries. However, the higher prices due to lower domestic production have given a competitive advantage to the Guatemalan crop. Many Gulf importers prefer Indian cardamom because of its quality, Murugesan said.

Saudi Arabia is a major buyer of Indian cardamom, but restrictions over pesticide residues have impacted export to that country in the last two years.

S.B.Prabhakar, a leading planter in Kerala’s Idukki district, said the Guatemalan crop shortfall is around 40 per cent this season due to drought. Moreover, the prices have doubled there and it will remain firm to bullish in the short term.

According to traders, only 10 per cent of the total production is exported now as against 15-20 per cent a few years ago. In value terms, cardamom exports have halved to ?500 crore this year from ?1,000 crore last year.

However, traders expressed the hope that the control on pesticides residues in several plantations would help achieve a good crop in the coming season. Farmers are now adopting better agricultural practices.


Ajith BK, Secretary, Association of Planters of Kerala, said large growers have already taken precautions on the usage of pesticides. Prices in the domestic market have been showing a declining trend for the last two months.

V Sajeev Kumar  Kochi | Published on February 26, 2020

https://www.thehindubusinessline.com/

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#Cardamom -Cardamom prices stable at Bodinayakanur auctions

Published on February 25, 2020

Cardamom prices remained stable on Tuesday at Bodinayakanur because of more active participation.

According to traders, upcountry buyers are keenly assessing market sentiments even though they have not yet started procurement in a big way. Liquidation of some of the high-priced inventory also helped bring stability to the market.

Contrary to weather forecasts, plantations have not received any showers in the last few months. Small and marginal farmers are facing acute water shortage in the region, traders said.

Any rise in prices is likely to depend on the summer rains. Delay in summer showers and the intensity of the summer will drive up prices, traders said.

The total quantity offered in the auction was 43.5 tonnes, which recorded a combined average price of R$2,745. In the morning session, Cardamom Growers Federation offered seven tonnes, in which 6.3 tonnes realised an average price of R$2,720.68. The highest price quoted for selected lots was R$3,276.

The offer made by KCPMC in the afternoon trading session was 36.5 tonnes, in which 35.9 tonnes realised an average price of R$2,769.32. The highest price quoted for selected lots was R$3.266.


According to trade analysts Acumen Capital Markets, the March futures fell by 3 per cent or R$89 to R$2,879.30 when last traded on Monday.

V Sajeev Kumar  Kochi | Published on February 25, 2020

https://www.thehindubusinessline.com/

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IPC SPECIAL ISSUE ON CLOVES - FEBRUARY, 2020 -FINAL

PART 2 - FINAL

#CLOVES #INDONESIA EXPORT FIGURES, PRICES


As the top producers of cloves in the world, Indonesia actively exports cloves to various countries. In 2017, Indonesia was reported to have exported a total of 9,089 Mt of cloves from which 95% or 8,675 Mt of it comprised of whole cloves and 5% or 414 Mt of it ground cloves. Indonesia on average exported a total of 757 Mt per month which peaked in February with 1,484 Mt. The total revenue of Indonesia’s export of cloves in 2017 was reported to be as high as USD 28.9 Million. Thus, recording an average price of the total cloves exported by Indonesia at USD 3,104 per Mt for whole cloves and USD 4,823 per Mt for ground cloves.
Year 2018 saw an increase in term of quantity of cloves exported by Indonesia. Indonesia was reported to have exported a total of 20,246 Mt of which 95% or 19,183 Mt of it comprised of whole cloves and 5% or 1,063 Mt of it ground cloves, recording a total increase of 123% when compared with 2017. The average export of cloves by Indonesia in 2018 was reported to be at 1,687 Mt per month which peaked in November with 5,132 Mt. In accordance with increasing in terms of quantity, Indonesia’s revenue from cloves export was reported to have increased by 252% to a total of USD 101.7 Million as compared to the previous year. Thus, recording an average price of the total cloves exported by Indonesia at USD 4,995 per Mt for whole cloves and USD 5,581 per Mt for ground cloves or an increase of 61% and 16% respectively as compared with 2017.

In 2019, Indonesia was reported to have exported a total of 25,990 Mt of which 96% or 24,971 Mt of it comprised of whole cloves and 4% or 1,019 Mt of it ground cloves. Thus, recording a total increase of 28% when compared to 2018. By the end of 2019, the total revenue of cloves export by Indonesia was reported to have reached USD 111.5 Million, recording an increase of 10% as compared to 2018. The average price of the total cloves exported by Indonesia in 2019 was reported at USD 4,289 per Mt for whole cloves and 4,346 per Mt for ground clovesor a decrease by 14% and 22% respectively as compared with 2018.

Furthermore, in the past three years export of cloves and pepper by Indonesia had been reported with an increase. Although Indonesia is the world largest cloves producer in the world, export quantity and value of cloves from Indonesia was reported to be inferior to pepper export. The total quantity of cloves export in the past three years was reported at 55,326 Mt whilst the total quantity of pepper export was reported with 142,082 Mt. Thus, recording the annual ratio quantity of Indonesia export between cloves and pepper during 2017-2019 at 1:5, 1:2 and 1:2 respectively. The total value of cloves export in the past three years was reported as high as USD 242.2 Million whilst the total value of pepper export was reported as high as USD 535.7 Million. Thus, recording the annual ratio value of Indonesia export between cloves and pepper during 2017-2019 at 1:8, 1:1 and 1:1 per year respectively

During 2017-2019, the average export price of cloves for both whole and ground by Indonesia had fluctuated (Table 8). In 2017, the average export prices of cloves by Indonesia was recorded at USD 3,263 per Mt for whole cloves and USD 6,780 per Mt for ground cloves. The highest average export price of cloves from Indonesia in 2017 was recorded in September with USD 5,439 per Mt for whole cloves and in November with USD 15,452 per Mt for ground cloves whilst the lowest average export price was recorded in June with USD 1,635 per Mt for whole cloves and in March with only USD 922 per Mt for ground cloves.

Year 2018, saw an increase in the average export price for both whole and ground cloves by Indonesia, the average export prices of whole cloves by Indonesia was reported at USD 5,062 per Mt for whole cloves and USD 9,008 per Mt for ground cloves. Thus, recording an increase of 55% and 33% respectively when compared to 2017. The highest average export price of cloves from Indonesia in 2018 was recorded in February with USD 6,256 per Mt for whole cloves and USD 28,845 per Mt for ground cloves which also occurred in the same month. Whilst, the lowest average export price was recorded in May with USD 3,506 per Mt for whole cloves and in April with USD 2,080 per Mt for ground cloves.

Contrary with 2018, the average export prices of cloves by Indonesia in 2019 saw a decreasing trend. The average export prices of whole cloves by Indonesia was reported at USD 4,333 per Mt for whole cloves and USD 4,526 per Mt for ground cloves.Thus, recording a decrease by 14% and 50% respectively when compared to 2018. The highest average export price of cloves by Indonesia in 2019 was recorded in June with USD 5,248 per Mt for whole cloves and in December with USD 10,714 per Mt for ground cloves. Whilst, the lowest average export price of cloves was recorded in December with USD 3,538 per Mt for whole cloves and in November with only USD 975 per Mt for ground cloves

Cloves export by Indonesia was reported to be shipped through ports and airports all over the Indonesia such as Java, Sumatera, Sulawesi and Bali (Table 9). Based on the port of origin, the top five origins for cloves export by Indonesia in 2019 were reported to be Port of Tanjung Perak, Surabaya with 23,108 Mt (contributed to 89% of the total export from Indonesia), Port of Tanjung Priok, Jakarta with 1,204 Mt (5%), Port of Tanjung Emas, Semarang with 985 Mt (4%), Port of Belawan, Medan with 304 Mt (1%) and Port of Panjang, Lampung with 232 Mt (1%). Furthermore, cloves export from Indonesia was also reported to be flown through airport such as Juanda (Surabaya), Ngurah Rai (Bali), Soekarno-Hatta (Jakarta) and Kuala Namu (Medan) though its quantity was insignificant when compared to quantity of cloves export through the ports.

Cloves from Indonesia are globally traded in Asia, America, Africa and European Countries (Table 10). In 2019, Indonesia’s top 5 Country of destinations for its cloves were reported to be India with 9,638 Mt (an increase of 115% as compared with 2018), Viet Nam with 2,158 Mt (a decrease of 59%), Saudi Arabia with 2,100 Mt (an increase of 17%), United Arab Emirates with 1,820 Mt (an increase of 125%) and Pakistan with 1,559 Mt (an increase of 2%). In terms of value, Indonesia’s top 5 contributors for its cloves export revenue were reported to be India with USD 34.8 Million, Saudi Arabia with 12.3 Million,United Arab Emirates with 8.6 Million, Singapore with USD 8.2 Million and Pakistan with 7.0 Million

Farm gate price of cloves in Indonesia in the first quarter of 2019 fluctuated with a rather negatively outlook (Table 12). During that period, in several regency of cloves producer, clove farm gate price was reported to have recorded the highest price with IDR 100,000 per Kg (USD 7.0 per Kg) in January and February at Bima Regency and in January at Cianjur Regency, whilst the lowest price occurred in February at Ende Regency with only IDR 79,000 per Kg (USD 5.6 per Kg). Furthermore, the average farm gate price of cloves in most regions in Indonesia during January-April 2019 was recorded at IDR 85,139 per Kg (USD 6.02 per Kg).

This report was elaborated under the supervision of International Pepper Community and information provided by the sources below:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia

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IPC SPECIAL ISSUE ON CLOVES - FEBRUARY, 2020 PART 1

#CLOVES #INDONESIA

A little bit of History


The distribution of clove plants out of the Moluccas began in 1769. The spread of clove plants to regions of Indonesia such as Java, Sumatra and Kalimantan began in 1870. Today, clove plants have spread throughout the world.

Producing Areas

In 2019, the top 10 largest area of cloves cultivation were estimated to be North Sulawesi Province with 74,940 Ha, Central Sulawesi Province with 71,704 Ha, South Sulawesi Province with 63,136 Ha, East Java Province with 46,043 Ha, Maluku Province with 44,161 Ha, Central Java Province with 42,037 Ha, West Java Province with 35,697 Ha, South East Sulawesi with 31,388 Ha, Aceh Province with 25,530 Ha and North Maluku Province with 21,157 Ha.

Harvest in Indonesia

Harvest season in various producing area in Indonesia varied depending on the local climatic conditions. In Sumatra Island: flower buds grow between October - November and the harvest season is around April - June. Whilst, in Java Island: flower buds grow from November to January, so the harvest falls in May - July. In Maluku Island: flower buds grow between May - July and harvest season is between October - January. Whilst, in other areas the harvest occurred between July - October. Though, generally clove flowering and harvesting in Indonesia occur once a year, the harvest lasts a minimum of three months. Normally, cloves planting at 15 - 20 years of age would be able to produce around 3 kg per tree.

Uses of Cloves in Indonesia

In 2018, Indonesia as the largest producer of cloves in the world contributed to 74% or 123,399 Mt of global production and followed by Madagascar with 14% or 23,325 Mt. Since the 21st century, Indonesia became the largest cloves producer and consumer countries. Cloves in Indonesia are mostly used to supply the cigarette factories. Therefore, from the industrial side, Indonesia domestic production has met the needs of the processing sector. Furthermore, in 2019 the need for processing sector was estimated at 110,000 Mt which was around 83% of the total production and was fully absorbed by cigarette companies such as PT. Djarum Kudus, PT. Gudang Garam, PT. Sampoerna, etc.

Area of Production

The area under cloves cultivation in Indonesia fluctuated with a rather increasing trend. During 1961-2018 Indonesia area of plantation was reported with significant increase of 541,212 Ha. The average increase of cloves area of plantation in the course of half century was recorded 9% per year with the highest increase recorded in 1968 with an increase of 96% as compared with the previous year. In 2018, the area under cloves cultivation in Indonesia recorded the largest ever in the history with a total of 561,212 Ha, recording an increase of 2% when compared to 2017. Furthermore, for the year 2019 the area under cloves cultivation was estimated to increase by 2% to 571,305 Ha. The increase in the area of cloves plantation could be contributed to the massive cloves demand from domestic and international cloves market (Table 2).

Production of Cloves

Indonesian production of cloves during 1961-2018 was also fluctuated with a rather positive trend, recording an increase of 116,399 Mt to a total of 123,399 Mt in 2018. The average increase of cloves production in the past 58 year was reported by 11% per year with the highest increase recorded in 1966 with an increase of 103% as compared to the previous year. Furthermore, the highest production of Indonesia cloves was reported in 2015 with 139,641 Mt whilst the lowest occurred in 1962 with only 6,600 Mt. In addition, production of Indonesia cloves in 2019 was estimated to decrease by 3% when compared to 2018 to a total of 120,000 Mt.

Productivity

Cloves productivity in Indonesia during 1961-2018 was reported to be fluctuated with a rather stable trend. In the past 3 years cloves productivity in Indonesia saw decreasing trend to a total of 220 Kg per Ha in 2018. Since 1961 to 2018, cloves productivity in Indonesia was reported with a decrease by 37%. The average increase of cloves productivity in Indonesia was reported at 2% per year and the highest was reported in 1973 with 483 Kg per Ha whilst the lowest occurred in 1985 with only 144 Kg per Ha (Table 3). Furthermore, in 2019, Indonesia cloves productivity was estimated at 210 Kg per Ha or a decrease of 4% as compared to 2018. Despite Indonesian Government efforts in recent years developing a superior seed of clove which could be used by planters to replanting old or damaged plants andalso to boost the productivity of cloves plantations as well as the Directorate General of Plantations of Indonesia application of good agricultural practices (GAP) to clove plantation in vario us clove producing area, Indonesia's clove productivity was yet to show an increase trend following a decreasing streak which started in 2016.

SEE NEXT TOMORROW - EXPORTS & PRICES

This report was elaborated under the supervision of International Pepper Community and information provided by the sources below:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia

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VIETNAM - #PEPPER MARKET UPDATE 25TH FEB 2020 – WEEK 9;

#PEPPER:

Vietnam;
Pepper market firmer and increasing tone around 100$ from last week. Exporters have been covering short position for Feb/First Half March shipment beside some middleman/collectors buying huge quantity to keep stock. We heard some demand coming from China (Pay Full Tax) for prompt shipment that encourage farmers hold on and not offer in bulk. Good demand coming from Middle East/Nepal/India for March/April shipment especially black pepper 5mm bold cause shortage BOLD raw material in this time. USA customer more interesting to cover full year shipment but processor/exporters hesitate to offer long shipment. 

China;
The borderline start opening but not easy to clear cargo from trucking like before. The business in border trade maybe continue very tight until second quarter.

Brazil
Market uptrend continue and stock limited. Exporters cautious to offer second quarters shipment.

IPC- SPECIAL ISSUE ON CLOVE - FEBRUARY, 2020 EXTRACT

Starting this week we´ll be publishing a comprehensive report about Cloves Market, docused on Indonesia.
Due to extension of the information we are publishing extracts with important information.
Follow us next week to get a comprehensive picture of present days Cloves Situation.

This report was elaborated under the supervision of International Pepper Community and information provided by the sources below:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia


SUMMARIZING

Farm gate price of cloves in Indonesia in the first quarter of 2019 fluctuated with a rather negatively outlook (Table 12). During that period, in several regency of cloves producer, clove farm gate price was reported to have recorded the highest price with IDR 100,000 per Kg (USD 7.0 per Kg) in January and February at Bima Regency and in January at Cianjur Regency, whilst the lowest price occurred in February at Ende Regency with only IDR 79,000 per Kg (USD 5.6 per Kg). Furthermore, the average farm gate price of cloves in most regions in Indonesia during January-April 2019 was recorded at IDR 85,139 per Kg (USD 6.02 per Kg).

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CHECK NEXT WEEK FOR THE FULL REPORT

#PEPPER - SPICES MARKET UPDATE 21ST FEB 2020 – WEEK 8

Vietnam; Pepper market after being stable for 2 weeks, has shown more signs of bullish trend when prices have increased by about 40 - 50$/MT in the past 2 days.

Currently, the pepper harvesting spread all area in Vietnam, but it is expected to peak season arriving in next 2-3 weeks. However, Due to the low price of pepper, many farmers have lost money, they do not take well care and focus on harvesting as in previous years.

Many farmers harvesting by themselves instead of hire worker to reduce their labor costs. This will take to longer harvesting times than before and raw material of new crop to the market is very slow.

Most of the farmers only sell raw material as little as possible and this year's storage trend is much bigger than before. Although it is in pepper season that not easy to buy large quantities like before.

Exporters still have to covering raw material for February/FH March shipment so the price trend maybe stable in the next 1-2 weeks is foreseen.

The low price has also stimulated several agents, collectors as well as traders to buy more and stockpiling.

China; The borderline continues to close, but both governments Vietnam and China have regulations to make goods exchange and trading more favorable than before. We hope the Corona Virus will be shut down soon and the border trade will going smoothly in the next weeks.

India; We heard market firmer, Malabar black pepper an increase of 1% as compared to the previous week.

Indonesia;  Black and white pepper was reported stable.

Malaysia/Srilanka;  Black and white pepper with a 2% and 1% easier to the previous week

Brazil; Market uptrend, farmer/exporters hesitate to offer with discounting on the price. Stock we heard less and limited to offer March/April shipment.

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GULFOOD 2020 - IS CLOSING TODAY

See you all again next year from 21 - 25 February 2021.

Today, the sun sets on Gulfood’s silver jubilee, but the wow moments enclosed are as good as gold!

As Gulfood 2020 bids adieu today, we want to take the chance to extend a huge thanks to all our enthusiastic visitors, dedicated exhibitors, influential speakers, celebrity guest stars, sponsors and supportive partners for helping us to make our 25th anniversary edition a celebration to be remembered and playing a vital role in enticing the public to Rethink Food for a brighter and more sustainable future.

As we close doors, we wanted to leave you with a short recap of wow moments, innovative breakthroughs, and inspirational food lessons.  

See you all again next year from 21 - 25 February 2021.

VIEW SHOW PHOTOS

#FEDECOVERA #CHOCOA AD

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.


Source:
- Brazil, Unofficial source (Coreimex, CSG Trade)
- India: AISEF, NCDEX, Indian Chamber of Commerce & Industry, Spices Board India
- Indonesia: Unofficial source
- Malaysia: Malaysian Pepper Board
- Sri Lanka: Department of Export Agriculture
- Viet Nam : Viet Nam Pepper Association, HCMC
- China: Hainan Pepper Association, China Spice Association
- Office of Agricultural Economics of Thailand
- A.A. SAYIA & Company
- International Trade Centre (ITC) - Geneva

Note: Some of the data in this publication are from the IPC database. The data are obtained from official reports and correspondence between the IPC and Sri Lanka and have been processed based on statistical norms that can be accounted for. 

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EU Countries Voted to Ban Chlorpyrifos and Chlorpyrifos-methyl

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

#BLACKPEPPER - 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 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). 

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#BLACKPEPPER -IPC MARKET REPORT

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.

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Gulfood 2020: Coronavirus outbreak impacting food imports, say traders

Freight tariffs going up as are wholesale prices

Dubai: Food imports of specific items coming from China have been affected in the aftermath of the outbreak of novel coronavirus infection, food traders revealed at the 25th edition of Gulfood 2020 that opened in Dubai on Sunday.

Freight tariffs going up

Amit Sethi, managing director of Asia and Africa Food Trading, cautioned that if the status quo on the virus outbreak continued, bilateral trade between continents would be affected and consumers could expect a hike in food prices in the next six months.

“We as re-exporters to various countries from the UAE will be impacted. China was a major exporter to Africa. If we have 100 containers of food items we imported from China, in return there were limited amounts of agro items such as soya beans, raw almonds, beans and legumes coming in from Africa. So now freight tariffs have gone up as there are few containers coming from China. We are able to negotiate good rates in exchange for the few containers coming in from Africa. This is becoming difficult. If things continue this way for six months and the wholesale prices as well as freight tariffs continue to go up, it will impact food prices.”

Lower imports from China

Major wholesale and retail food trading companies in the UAE have shifted the major traditional imports from China to neighbouring countries and are absorbing the impact of spiked up food pricing in the aftermath.

Dhananjay Datar, owner of Al Adil Food Stuff Trading, said: “The impact of coronavirus on my line of business is negligible. But as I understand from the market sources here, those who have been dependent on products from China as well as the markets that are in proximity to China have been deeply affected and they may take time to recover. It is a known fact that food traders here in the UAE are more dependant on food stuff import from Thailand and Malaysia rather than China. So those companies may not be affected.”

He said: “We were importing spices like dehydrated garlic and onion powder, citric acid and lemon salt from China. We have stopped this temporarily and found substitute importers in India. Perceiving the demand, wholesale prices have gone up. For instance, dehydrated garlic powder which cost us Dh6 a kg from China is being obtained at Dh7.50 a kg. Similarly other prices are going up. But we are absorbing the price rise now and consumers will not be affected.”

Salim Musa Al Kandy, director of meat exports at Lulu Group, said: “All food stuff importers in the UAE will be able to absorb price increase at least for another six months. We have our stocks.”

The group has stopped exporting meats to China, which they were doing through Hai Phong port in Vietnam.

Kandy added: “Imports of certain items such as ajninomoto, China grass etc have been impacted while most others we are able to import from Turkey, India, Malaysia, Vietnam and other countries. The UAE ministry has taken all necessary precautions with recommendations from WHO and it’s not a cause for concern as of now. In fact, import of certain frozen items such as cabbage is still coming via seaports. We just got a container of frozen cabbage from China.”

Food security preparedness

Tariq Al Wahedi, CEO of Agthia Group, a semi-government enterprise that owns 40 per cent market share in flour, grains, animal feed and bottled water supply in the UAE, said: “As part of the nine member Food Security Alliance for the UAE food security initiative, we are well-prepared to be sustainable in the face of any such emergency such as national disaster or epidemic outbreak. We were able to help neighbouring countries such as Oman during cyclone Gonu.”

Al Wahedi added that in times of emergencies, there is a specific food protocol in place. “We take part in the alternative service where they train personnel so that they are capable of taking over the facility and production for our products on their own.

"The food security initiative has made sure we have enough supply to last us for a long time and the UAE is one of the most stable and sustainable countries with preparedness for any kind of natural or man-made disaster that can disrupt food imports," said Al Wahedi.

Published:  February 16, 2020 15:44 Suchitra Bajpai Chaudhary, Senior Reporter
https://gulfnews.com/uae/gulfood-2020-coronavirus-outbreak-impacting-food-imports-say-traders-1.69746636

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IMAGES FROM THE GULFOOD 2020 -I

His Highness Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, on Sunday opened Gulfood 2020, the landmark 25th edition of the region’s longest-running annual food and beverage (F&B) trade show at Dubai World Trade Centre (DWTC).
CREDITS : SOURCE - https://gulfnews.com/photos/business/in-pictures-25th-edition-of-gulfood-kicks-off-1-1

A general view of the exhibition area at the Dubai World Trade Center.
Image Credit: Atiq Ur Rehman /Gulf News

Minister of Food Processing Industries, Government of India Harsimrat Kaur Badal (centre) with Pavan Kapoor, Ambassador of India to UAE; Vipul, Consul General of India, Dubai; Kamal Vachani, Group Director, Al Maya Group; with other officials during the inauguration of India Pavilion at Gulfood 2020.

https://gulfnews.com/photos/business/in-pictures-25th-edition-of-gulfood-kicks-off-1.1581862700915?slide=10

Cardamom exporters stay off Gulf Food Festival

A lower production and absence of required quality seem to have prompted many cardamom exporters here to skip the ongoing Gulf Food Festival in the UAE.
Traders said an overall drop in production at the fag end of the current harvest season and the non-availability of quality capsules prompted them to stay off the overseas trade meet.
According to traders, higher prices limit the scope for exports. The availability of good quality capsules and price stability will encourage exports. However, both are missing now. Less than 10 per cent of production is exported now, compared with 15 to 20 per cent a few years ago. The restrictions imposed by Saudi Arabia on cardamom shipments have also impacted overseas trade in the last two years.

Market steady

Meanwhile, the cardamom market in Bodinayakanur remained steady on Monday with improved arrivals at 83 tonnes, thanks to active upcountry participation and local buyers’ support. The steady market indicates that buyers are ready to enter at the current rates, traders said.
The combined average price in the two trading session was ₹3,375.
In the morning session, the auctioneers Mas Enterprises Ltd offered 41.3 tonnes of 220 lots in which 38.6 tonnes realised an average price of ₹3,400.54. The highest price quoted for selected lots was ₹3,764.
The offer made by Header Systems India Ltd in the afternoon session was 42 tonnes of 220 lots in which 39.8 tonnes realised an average price of ₹3,349.75. The highest price quoted was ₹3,986.

Trade analysts Acumen Capital Markets Ltd said cardamom March futures fell by 1.02 per cent or ₹33.4 to ₹3,240 when last traded on Monday.

V Sajeev Kumar Kochi | Updated on February 17, 2020 Published on February 17, 2020
https://www.thehindubusinessline.com

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