PEPPER MARKET UPDATE 2ND MARCH 2020 – WEEK 10

Vietnam pepper price has increased by 10% in the past two weeks. The price of material from the VND 36,500 has increased to VND 40,000 today. Despite being in the harvest season, raw material prices continue to rise steadily due to the following main reasons;

- At these level, many farmers are at a loss, almost all consider storing pepper. Farmers and domestic agent prefer to sell other agricultural products like Coffee to cover temporary costs and store as much pepper as possible. As their perspective, pepper is the most attractive to invest compared to other agricultural products.

- Pepper price is at low level, it has stimulated many exporters/agents to buy stocks. Especially, there are large enterprises with FDI capital actively participating and pushing the market up sharply in the past week. Pepper harvesting fully swing in all area in Vietnam however it is not easy to buy large quantities from last week.

- Although cross-border transactions with China are still very difficult and costly, there have been some Chinese businessmen buying and stockpiling in Vietnam. They feeling pepper price was good and waiting for better clearance opportunities. It’s stimulated the market to increased until now.

- Several exporters are big short and have to buying raw material in secret for the ordered in the first quarter 2020.

China The situation of Corona Virus has been better controlled and real demand is gradually returning to the border. However, customs clearance is still slow due to many procedures and costs.

India In local market, Malabar black pepper was traded with a 2% deficit as compared to the previous week, averaging at USD 4,372 per Mt.

Indonesia black and white pepper were reported with a 2% deficit respectively when compared to the previous week.

Malaysian black and white pepper were also traded domestically with a 2% and 1% deficit respectively as opposed to the previous week.

Sri Lanka black pepper was reported steady at an average of USD 2,929 per Mt.

Brazil  Continue to offer competitive prices but not much quantity. The Brazilian currency, which has depreciated against the US dollar by more than 10% since january, has also kept Brazil pepper prices at low level. However, we would not be surprised if the Brazilian market continues to increase follow Vietnam.

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#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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Spice purveyor Schiff acquires Golombeck in expansion move

By Emily Bader
Totowa | Sep 5, 2019 at 5:00 am


Schiff Foods, a Totowa-based purveyor of whole spices, ground spices and seasonings, announced Wednesday it has acquired Morris J. Golombeck, a Brooklyn-based importer and exporter of high-quality spices and herbs.

Schiff, which was founded in 1949 selling food condiments in Brooklyn, moved to Totowa in 1998 to expand its business to include seeds, herbs, dehydrated vegetables, onion and garlic, seasoning blends, and more. It currently has a 300,000-square-foot warehouse with 30,000 square feet of cold storage dedicated to delicate spices and 15,000 square feet for production.

The combined companies will increase Schiff’s capacity, flexibility and technology, it said.

“The shared values and common goals of Schiff and Golombeck makes this alliance a formidable entity that will anchor our position as a major source for quality spices,” a spokesperson for Schiff Foods said. “The Golombeck team will continue to be an integral part of the Schiff management team, assuring customers that they will continue to enjoy the same personal relationships they have come to expect from an industry leader.”

The main warehouse in Totowa will be expanded and upgraded further to streamline production and distribution, the spokesperson said.

Financial terms were not disclosed.

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