GLOBAL PEPPER OUTLOOK 2021

 

On May 13, 2021 IPC published a report called " GLOBAL PEPPER OUTPUT of which we present the most important points about the close future os this market

 

Global Pepper Export 2017 – 2020

Global pepper export in 2020 recorded slight increase by 2% at 481 KMT only taking into account major exporting countries. Top three exporters were Viet Nam, Brazil and Indonesia with a total share of 89%.

- Viet Nam exported 282 KMT in 2020. Recording 2% dip due to aggressive buying in the end of 2019 as well as the Covid-19 lockdown in 2020.

- Having the most competitive price,Brazil recorded an all time high for pepper export in 2020 with 89 KMT which was a 6% increase.

- Despite the Covid-19 lockdown, Indonesia recorded a 13% increase of export in 2020 at 58 KMT. Second semester of 2020, Indonesia recorded much higher export figures, reaching 64%.



Global Pepper Import 2019 - 2020

Top five importers of pepper in 2020 were United States of America, China, Viet Nam, Germany and India which accumulated to 243 KMT, a drop of 2% as compared to the accumulated import figures of the same 5 countries in 2019.

- United States of America recorded an increase by 3% of the pepper import in 2020 at 86 KMT with around K57 MT came from Viet Nam.

- Following the complete 2-months lockdown in 2020, China recorded a 3% dip in pepper import from Viet Nam at 56 KMT.

- As result of Covid-19 lockdown, Viet Nam import in 2020 recorded an 8% drop to 39 KMT in which around 20 KMT came from Indonesia

- Germany import in 2020 dropped by 4% to 32 KMT in which 14 KMT came from Brazil while another 12 KMT from VietNam.

-  Being the third most affected country by Covid-19, India import of pepper dropped by 7% in 2020 to 27 KMT in which 10 KMT came from Viet Nam.


Long-Term New York Pepper Price

Reaching its all time peak in July 2015, price of pepper has been declining ever since.
The decrease was mainly due to significant increase of supply from Viet Nam and Brazil over the past three years. In the past three, the price has been relatively stable with a slight tendency of decreasing.

Despite the Covid-19 lockdown and the economy shut-in major countries for several months, pepper price started to climb up in the second quarter of 2020 which has continued up to the beginning of 2021

Starting 2020, an increasing trend of pepper price has been apparent, albeit slightly.
On average in the course of 15 month since the beginning of 2020, pepper price increased by 5% for black pepper and 3% for white pepper. Furthermore, pepper prices in March 2021 were reported with an increase by 80% for black pepper and 48% for white pepper as compared with January 2020.

Summary

Fundamentally, we are entering in a phase where supply growth remains negative and demand continues to grow.

Supply growth is negative due to the non-existence of new plantations and falling yield due to poor upkeep.

Farmers/growers may start planting if prices rise to level that may justify planting.

The impact of the additional supply however will come only after 3-4 years from now.

One can expect prices to rise further.

ASTA Online 2021, May 11 – 13, 2021

 

 

 

 

IPC PEPPER MKT REPORT No. 20/21, 10 - 14 May 2021

 

LOCAL MARKET REPORT

As the Moslem around the world celebrates the Eid Fitr Mubarak 1442H amid the global pandemic of the Corona Virus, market this week showed mixed response. Malabar black pepper was reported stable, averaging at USD 5,037 per Mt. Indonesia black pepper was reported with an increase of 1% when compared to the previous week, averaging at USD 3,345 per Mt. Whilst, Indonesia white pepper was reported with 1% deficit as opposed to the previous week, averaging at USD 6,021 per Mt. Malaysia black and white peppers were reported with an increase of 1% and 2% respectively when compared to the previous week, averaging at USD 3,333 per Mt for black pepper and USD 5,027 per Mt for white pepper. Furthermore, Viet Nam farm gate price of black and white pepper were reported with 1% and 2% deficit respectively as co mpared to the previous week, averaging at USD 2,651 per Mt for black pepper and USD 4,222 per Mt for white pepper. Sri Lanka black pepper was reported with 1% deficit as compared to the previous week and was traded at an average of USD 3,330 per Mt. China white pepper was traded at an average of USD 6,000 per Mt locally.

INTERNATIONAL MARKET REPORT

International market also showed a mixed response as India black pepper was reported stable, averaging at USD 5,309 per Mt. Indonesia black pepper was reported with an increase of 1% as compared to the previous week, averaging at USD 3,984 per Mt. Whilst, Indonesia white pepper was reported with 1% deficit when compared to the previous week, averaging at USD 6,946 per Mt. Malaysia black and white peppers were reported with an increase of 2% and 5% respectively as compared to the previous week, averaging at USD 4,800 per Mt for black pepper and USD 6,500 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged. China white pepper was traded at an average of USD 6,200 per Mt.

 

 

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*BRAZILIAN PINK PEPPER SEASON IS SHORT !
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IMPORT OF PEPPER BY TURKEY - IPC MKT REPORTS

 

IMPORT OF PEPPER BY TURKEY

The Republic of Turkey is a country that occupies a unique geographical position, lying partly in Asia and partly in the Europe. Turkey is bordered by Greece, Bulgaria, Georgia, Armenia, Iran, Iraq and Syria. Turkey actively imports pepper from various pepper producing countries for its domestic consumption.

In 2019, Turkey was reported to have imported a total 6,249 Mt of pepper which 96% or 5,988 Mt of it comprised of whole pepper while 4% or 260 Mt of it was ground pepper. The average import of pepper by Turkey in 2019 was reported to be 521 Mt per month with the highest quantity recorded in May with 828 Mt. The total expenditure of the pepper import by Turkey in 2019 was reported to be as high as USD 11.3 Million, recording an average price of the total pepper imported by Turkey at USD 1,870 per Mt for whole pepper and USD 606 Per Mt for ground pepper.

Year 2020 saw an increasing trend in terms of quantity of pepper imported by Turkey. Turkey was reported to have imported a total of 6,529 Mt which 99% or 6,489 Mt of it comprised of whole pepper and 1% or 40 Mt of it was ground pepper. Thus, recording an increase of 4% when compared to 2019. The average pepper import by Turkey in 2020 was reported at 544 Mt per month which peaked in June with 1,153 Mt. In accordance with increasing in terms of quantity, Turkey\'s expenditure of pepper import was reported with an increase of 8% to a total of USD 12.2 Million. Thus, recording an average price of the total pepper imported by Turkey at USD 1,871 per Mt for whole pepper and USD 3,820 per Mt for ground pepper or relative stable for whole pepper and an increase of USD 3,214 Mt for ground pepper as compared to 2019.

As of February 2021, pepper import by Turkey was reported with an increase of 54% as compared to the same period in 2020, totaling at 1,363 Mt with all of them was whole pepper. The total expenditure of pepper import by Turkey as of February 2021 was reported with an increase by 48% as compared to the same period in 2020, totaling at USD 2.6 Million. Thus, recording an average price of the total pepper imported by Turkey at USD 1,908 per Mt for whole pepper and USD 7,547 per Mt for ground pepper.

The top five countries of origins of Turkey\'s pepper as of February 2021 were reported to be Viet Nam with 674 Mt (an increase of 28% as compared to the same period in 2020), Brazil with 394 Mt (an increase of 36%), Iran with 108 Mt (2020 n.a), India with 86 Mt (an increase of 45 Mt) and Indonesia with 46 Mt (2020 n.a).

 

 

=========================================

*BRAZILIAN PINK PEPPER SEASON IS SHORT !
CALL US NOW TO GARANTEE YOUR NEEDS OF GOOD QUALITY LOT !

peppertrade@olcom.com.br

OUTLOOK ON NEW CROP INDONESIAN PEPPER

First reports tell us that the new crop pepper from Indonesia will start not earlier than the end of June, some 2 months from now.
The Lampung province will start with the harvest for black pepper.
A month later harvesting will be done on the islands of Bangka and Belitung for the famous Muntok white pepper.
As in the 2020 season, also the forecast for the upcoming season is not positive.
Neglectance of pepper gardens, due to low prices, and unfavourable weather conditions during berry setting will decrease the output again.
Exporters are already calculating a loss of yield by 40% for black pepper and even 50% for white pepper. Muntok and Lampung pepper have a vast fanbase of buyers that will support the product despite the surcharges pricewise compared to pepper from other countries of origin.
Looking for offers or more in-depth information, please do not hesitate to contact us.

 

 

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.

 

 

VIETNAM BLACK PEPPER CROP SURVEY 2020 & 2021 District 2, Hochiminh City, Vietnam.

 

PTEXIM CORP. made an extensive survey of the Vietnam Pepper production areas with the actual situation of the stocks,and plantatiom of cultivated areas foreseing the production and results of the new crop which will be harvested from the beginning of next year.
Below we post the consolidated data and main numbers.
You may get the full & detailed report (42 pages in PDF) by clicking the link at the end of our info

* CROP SIZE 2021 SMALLER BY 20% COMPARED TO 2020
* MAXIMUM ESTIMATED CARRY OVER FORCAST: 45,000 TON
* CARRY-OVER SMALLER BY 40-50% COMPARED TO LAST YEAR

TOTAL AVAILABLE QUANTITY IN VIETAM IN 2020 - 340,000 Mt

- CARRY-OVER FROM 2019 -75,000 Mt
-CROP SIZE 2020 - 225,000 Mt
-IMPORT FROM THIRD COUNTRIES - 40,000 Mt

2020 VIETNAM EXPORTS & CONSUMPTION -292,000 Mt

- DOMESTIC CONSUMPTION - 10,000 Mt
- WHITE PEPPER PROCESS - 8,000
- EXPORTS - 280,000 Mt

ESTIMATED TOTAL AVAILABLE PEPPER IN VIETNAM FOR 2021 - 242,000 Mt

- CARRY-OVER FROM 2020 - 42,000 Mt
- ESTIMATED CROP SIZE - 200,000 Mt
- MAXIMUM CARRY OVER THIS YEAR AS FORECAST 45.000 MTs
Carry over concentrate almost 80 – 90% in middle man and processor/exporters warehouse.
Almost farmer cleared stock already.

Pepper crop affected because farmers are less caring, less fertilizing than beforedue to low prices under cost, intercropping with other fruit trees... the string ofpeppercorn was sparse, the phenomenon of sparse string in pepper spreading fromalmost all key pepper areas of Vietnam.
In addition, the price was low while the labor cost increases steadily every year.
It will significantly affect the yield for the 2021 & 2022 crop.

Pepper prices are lower than production costs, so farmers neglect and do not take careas well as before

Pepper prices will continue to fluctuate at different times. However, the back bottom price will be higher than the previous one and the price increase trend will be about 10-25% next year as foreseen as the crop is severely affected in 2021.

If the price grows well next year, it will stimulate the farmers to re-care and the crop will gradually improve in 2022/2023


PHUC THINH EXPORT IMPORT INVESTMENT CORPORATION (PTEXIM CORP)

 

GET THE FULL REPORT, CLICK HERE
http://ptexim.com.vn/en/news/viet-nam-pepper-crop-survey-2020-2021/