REPORTED JUNE 2, 2024 - CLOVE - 2024 - NEW SEASON UPDATE

Madagascar Cloves season is about to begin and so is Brazil.
Therefore we find it very usefull to recall this report below, written in June but still very valid.

CLOVE - 2024 - NEW SEASON UPDATE.

Mutsamudu, Anjouan, Comoros, 1st June, 2024:-

The new season of Clove 2024 is about to begin.
Starting with Comoros Islands in June 2024, [June, July, August is the prime season in Comor Islands, shipment might continue up to October-November] followed by Indonesia in July & August 2024, continued with Zanzibar also in July and August, and Tanzania [Tanzania is not a big name internationally] in August September, and in Madagascar harvest starting in August and trade season in October-November - so the 2024 Clove season is on the verge.

So what is in the basket this year ? Quantity estimation and price expectation ? And how would be the demand ?

Even now, isolated enquiries and demands are in the market. Buyers in India and few Arab countries waiting to buy at around USD 8400-8600 levels ! Meaning there by, demand is still there - but just waiting for price suitability. Even though the historic concept of DEMAND AND SUPPLY should be the main factors to decide price, Clove has grown a step ahead, and only this economic factor cannot fix Clove price anymore. Clove market is witnessing too much of speculation, too much of forward selling, and equal size of market making and cycle trading as well.
Meaning thereby, price levels are created manually by these market phenomena.

Comoros, and Zanzibar, are estimated to be at normal and regular quantity in this season also ranging between 2500 Mt to 3500 Mt. Both these countries together would have roughly 6000 to 6500 [anyway less than 7000 Mt] only. And Comoros domestic market just started with a reasonably good average price level - not much below nor above the expected levels ! It is good for the market as well. I will comment on the existing price levels in origin countries in my next blog by mid of June. It is too early to declare the origin price levels.

Indonesia started at USD 9200 level, but now eased down to USD 8700-8800 level on forward offers for July shipment. Indonesia is expecting a crop size of 80,000 Mt in June to August harvest ! which is not a big crop for Indonesia. However, the slow pace of intake by the cigarette industries and very cool demand in the domestic market in Indonesia points to a lower priced market only to come up. Even if Indonesia enters the international market to import, [if so happens], there is enough stock ready available waiting Indonesia orders in Singapore and Dubai. No shortage of stock even if Indonesia imports now. Therefore, we cannot expect any surge in price even if Indonesia imports.

This year Madagascar would have good crop, a size better than last year, because of good weather, and more trees for first harvest. Cultivation is increasing in Madagascar year on year, and new area is becoming ready for first harvest every year. This would keep on Madagascar crop size in normal terms. New Season harvest would start from South Madagascar during first half of August, however, trading would begin only by end September-October. And in Madagascar, issue of Clove Export Permit to be waited to commence the trading and export season.

Based on present market intelligence and information, more than 6000 Mt Clove available in Singapore and Dubai; and roughly 3000+ Mt is available in India, which is ample to meet any demand during this off season. And new crop shipment would start with Comoros by end June or July.

TAIL END:- During March 2024, there was too much expectation around the world that after Ramdan, Clove price would shoot up to USD 10,000 level and many sellers stayed back with their stock to see these price to come. Sellers and exporters in Madagascar also spread domestically that farmers would get better price after Ramdan. My readers would recollect that in my March and April blogs, I wrote without doubt that, fundamentally and technically no chances for price to move high; there was no basic reason to expect such increase in price.

Today also my view is that clove price would continue at the average level only; no reason to go do
n much; nor any chances to move very high. Historic levels cannot repeat this year. No ground for that. Ideally one should anticipate USD 7000 to USD 9000 is the range where Clove would be traded.
Any market making or speculative market creation can make some impact for a short period, but that cannot take on the market price for very long time. It would be only a temporary phenomenon, which is now common in the commodity market.
Wish you all a happy reading and wait for next blog by mid June with price indications.

Indonesian Spices January 2024

Friday 26 th Jan 2024
General: IDR has weakened considerably this week and made exports more viable. But the disparity continues. How long will this last is anybody’s guess. It is raining heavily at the origins. We will gradually get more clarity on the crop situation and keep updating you accordingly.

Cloves: Indonesian Clove is gradually taking the centerstage while Madagascar offers are getting fewer by the day. After three years of crop failure, it looks like this year we should witness a reasonably good crop. There were about 4 months of extreme summer, with temperature touching almost 40 degrees Celsius. Thereafter, rains have started past one month. This could be an ideal situation for a good crop. In a month or so, we should start getting fresh arrivals. Crop is localized, to the extent that while one village has harvest, the adjacent one does not have one. Hence, it is difficult to say at this point what will be the total crop. And for sure the levels will not go down to that of 2020.

Price indication U$ 9,500

 Mace: Demand is rising, and so is the local price. A harvest is expected now, but heavy rains and poor weather conditions have made picking and drying more difficult. If rain continues for long, we will witness too many Brokens and Off Grades. In addition to that, movement of cargo from origin to destination has become very difficult. Vessel delays are common.

Price indications:
Mace Grade A: $18,500/MT (PP)
Mace Grade B: $18,000/MT (PP)
Mace Papua HPS: $18,000/MT (PP)
Mace Off Grades: $13,000/MT (PP)

 Nutmegs: Same as Mace.

Price Indications:
Nutmegs ABCD: $7900/MT (Jute)
Nutmegs SS (EU): $9000/MT (PP)
Nutmegs BWP (No Guarantees): $5000/MT (PP) 


 Long Pepper: Past two months, there was an acute shortage. Now that rains have arrived, there will be fruiting, but maturity will come only after about 2 months.

Price Indications:
Long Pepper A: $5750/MT (Jute)
Long Pepper B: $5500/MT (Jute) 

 Turmeric & Cubebs: Season is over, and old stocks are coming out now which are high in price.



Soumen Pt. Mahalaya Agri Corp Surabaya, Indonesia

Upturn in Indonesian cloves price reflects global firmness

 

INTERNATIONAL cloves prices have held mostly firm in recent weeks as farmers at origin remain reluctant to lower their pricing ambitions and exporters appear confident of maintaining demand at high levels.

Indonesian cloves prices had moved particularly high, being above $10,000 a tonne cif.

“Our agent in Surabaya says that now that the crop is almost done, stocks are in the hand of farmers and they are not ready to give cloves at low prices especially knowing that kretek manufacturers are on the market looking forward to receiving what they have ordered already,” he said.

Mr Nee added that contrary to buyers’ hopes for lower prices, Indonesian farmers were speculating and pushing traders to pay a higher price on a daily basis. “They all know that the crop is sold to industries already and also that the next crop could be much lower than this one due to very dry weather in Indonesia when cloves (stems) should be starting to come on trees,” he remarked.

Hence, Mr Nee said he was not overly confident of the possibility for a price decrease.

Gregoire Courme, head of the spice trade department at Herbs International Service, commented: “The prices are still high, because the Indonesian market is firmer after the Ramadan. The current prices are between $10,500 to $11,000 a tonne fob.”

Mr Courme added that some local traders had sold short at levels of around $8,500 a tonne to cigarette firms before Ramadan, anticipating a fall during the festival. “Unfortunately the farmers did not deliver the goods and the cigarette manufacturers put the pressure on the sellers to get their contracts. So the local market is high now and the traders are running the market to find cloves. Moreover, the latest figures show that the crop is from 60,000 to 70,000 tonnes and not above 80,000 tonnes as initially predicted,” he said.

Mr Nee explained that in Comoros a lot of buyers had been visiting from Pakistan, the Middle East and China. These individuals would purchase “one or two boxes” of cloves and then leave the country, leaving scope for others to visit and take similar coverage.

Currently there were at least 16 buyers in Mutsamudu compared with only four recently. “Over this, the crop is much shorter than expected, maybe only 2,000 tonnes,” Mr Nee said.

As a result, Comoros cloves prices looked unlikely to decrease and the domestic market was holding firm.

Mr Nee said Comoros was offering at $9,400 a tonne cif Singapore, $9,950 a tonne cif US and €7,750 ($9,748) a tonne cif main European ports.

Mr Courme said that he could not find any sellers of Comoros cloves offering competitive prices.

He added that in Madagascar old crop prices had decreased a little bit since the end of July and were now around $9,700 a tonne c&f Europe.

Mr Nee viewed Madagascar old crop offers as still being “rather high” and he was advising extra care in making sure purchases were of a suitable quality.

The country has been pegged to have a favourable 2012 crop of between 8,000 and 9,000 tonnes. Harvesting was expected to start in mid-October for shipment in November.

Mr Nee said that as yet there was no idea of what the opening prices would be, but based on current offers it was doubtful there would be a large cut in Madagascar cloves prices ahead, he claimed.

Contacts in Brazil had indicated they were expecting new crop prices in the South American country to open around $9 and $10 a kg fob.

https://www.spicefactors.com/upturn-in-indonesian-cloves-price-reflects-global-firmness/

A PRELUDE TO CLOVE MARKET 2023-2024

 July 16, 2023

TAMATAVE, Madagascar, 14 July 2023:-
The recent up & down swing in Clove price might have surprised many.
Not every one.
Clove has now become a complete industrial agri commodity. Even though its culinary uses everywhere increasing, but still, its consumption in the kitchen has a limit. Whereas industrial use is doubling up. It is not only Clove, but its various forms like Clove stem, Clove dust, Clove Oil, Clove leaf oil etc has very high industrial demand in the present day world.

A good % of global population use cigarettes; Smokers are not rare. But many smokers [and non-smokers also] may not be knowing the massive use of Clove in cigarettes. Of course, it is limited to Indonesia. Indonesian "Kretek" cigarettes [unfiltered cigarettes made of tobacco, clove and other flavours] uses more than 120,000 Mt clove every year - and thereby the world's biggest user of Clove.

Indian requirement - which is the single 2nd largest consumer in the world - after Indonesia - is yearly 26,000 Mt. See the difference of quantity consumed between the 1st biggest consumer and 2nd biggest consumer ! There is no other single country in this world consuming so much quantity of Clove.

Because of this, India and Indonesia are the two strong destinations who decide Clove price. Among this, Indonesia's role in price fixing is limited, as Indonesia is the world's largest producer of Clove with almost 140,000 Mt annually. Therefore, Indonesian cigarette companies gets their full requirement indigeniously - well from within Indonesia. Thereby, usually, there was no need for Indonesia to import cloves.

However, recently in last 2 years, scenario changed. Indonesian clove production declined, and it is reported last two years, its production was below 100,000 Mt, thereby making the cigarette companies to import clove from either Brazil or Africa. And in 2022 and 2023, again clove production declined in Indonesia, and it became inevitable for Indonesia to import around 25,000 Mt clove from Africa and Brazil. And it is reported from Indonesia that during 2023-2024, Indonesia cigarette companies might be forced to import 30,000 to 40,000 Mt for their use.

During 2022 and early 2023, reports from Singapore Traders reveals that Indonesia imported full quantity of Clove from Zanzibar, and 40% of Comoros Clove, and more than 5000 Mt from Madagascar as well; and many traders in Singapore even now carrying stock with them on the hope of import by cigarette companies. The recent upside price movement in African origins and Indian market as well as Dubai market substantiate this reports, and the demand of Indonesia. In Madagascar, the local sale price moved from Ariary 30,000 per kg to Ariary 33,000 and then to 36,000 and further jumped to 38,000, and even people firmly asking for Ariary 40,000 per kg. This uptrend was followed in India also, where local whole sale market moved from INR 750 a Kg to 820 a kg and then to 860 a kg and finally reached INR 980 a Kg. Retail market [in grocery shops and super markets] in India jumped to even INR 2000 per kg ! In Dubai market, local whole sale marked moved from AED 33 to 36-38 level a kg. International market, which was around USD 8300 per MT on CNF basis, moved to USD 9800 per MT and crossed USD 10,000 also. Indonesia at a time quoted to the export market USD 10,400 also. But price above USD 10,000 could not sustain, and it dipped. On an average, one can see, international price was stable at around USD 9500 to USD 9800 per Mt.

However, in July 2023, surprising the whole market, the price line took a downside U Turn ! The cigarette companies in Indonesia stopped their purchase, and news came out that cigarette companies have enough stock in their custody for next six months consumption; and they are not in a hurry to import at higher price levels. Based on this news, Singapore traders, who were holding stock for the cigarette companies demand, started selling off their stock to Indian market, and they sold to Mumbai Vashi market even at USD 9600--9650 per MT, when international market was at a level of USD 9800 per MT !! Similar reduced offers were given to Dubai market as well. This reduced price offer by singapore traders to India created a panic in local Indian market also. In Indian local market, price dipped by INR 80 to 120 on a Kg. Dubai market witnessed dip of AED 1 to 1.5 on a kg. And whole sale market - from Indonesia offers came down to USD 9300 and USD 9000 also [but only one or two isolated offer at 9000 level] Madagascar offered USD 8900 -8800 on the down side; but in Madagascar majority of sellers kept away from the market. This was because of resistance from Farmers and Collectors in selling their stock to exporters. Both farmers and collectors/ stockists after tasting the higher price level, were holding back to demanding those higher levels and availability in the terminal market was low.

What could be possibilities in the new harvest season in 2023 ? All origins - Africa and Indonesia - crop is delayed. Comoros - the first harvest to come from Africa, normally in July, is delayed and now expected only by mid August. In Indonesia, July-August harvest is reported only half of normal harvest. Reports from farmers in growing islands says, many clove trees have no flower or buds, and no crop possible from such trees, thereby reducing total harvest quantity. Zanzibar is another African origin. As Zanzibar is monopoly by Govt Trading Corporation, and private exporters are not allowed there, we need to depend on Govt reports only. Like in 2022-2023 happened, this year - 2023-2024 also, Zanzibar State Trading Corporation is looking to make contract with single party for its whole quantity ! thereby restricting other buyers to enter. [In 2022-2023, Zanzibar Corporation sold its full quantity to a single trader from Singapore in one shot through a single sales contract.] From these, what we could derive ? what we could read for future? What would be guiding lines for the future market ?

Yes of course, as in the case of any industrial commodity, Clove also follows both fundamental and technical market equations. Clove price is also judged from both fundamental and technical factors. These days, some technicial factors influence fundamental factors !! That is the worst scenario in Clove, because of its limited sources, but massive spread consumer market. Fundamental factors are normal economic indicators - supply and demand is the prime; and FOREX is the second; Mind set of buyers and consumers and/or Sentiments of importers and consumers are also becoming fundamental factors as mind set and sentiments determine demand. What are technical factors influencing the market? - Market making, Speculation and Cycle Trading - which is manipulated factors and man created factors. It becomes technical as it directs Price Curve. When you look at Price chart, you can see price movements, zig-zags all goes with man made market making and speculative purchase and sale and stock holding coupled with cycle trading.

Fundamentally, during harvest season price has to come down. Openings must happen at lower levels. No doubt about it. How far lower possible to open - that is the only question to look for answer !. Will it go down as low as in previous years harvest period ? or will it remain in mid point considering the speculative demand ?

My personal view is that, only a traders perspective, no claim on guarantee, Clove price has to come down in August, September, October months. All harvesting origin may open lower only. Might be possible to open in and around USD 7000 or bit lower. We could have a more firm view on price opening during second half of August 2023. We need to wait and see that time.

Singapore has good carry over stock now. In India also sufficient carry over stock remains in the hands of many traders and stockists. There is no shortage of crop in the market. In Dubai also more than 400 Mt stock available. In MAdagascar, old stock is available plenty. If one not looks at color of the stock, then enough quantity is available in Madagascar. However, when new crop comes to the market, definitely traders would book new crop quantity. Fundamentally, price would come down only. Market making and speculative activities can hold the market temporarily upside for a short period. I do not think, like in Steel industry, or in Sugar industry - in Clove industry, there is no that much money muscle power people to carry on the market on higher side for a longer period. Therefore, fundamental factors must rule over speculative technical factors, and market would come down to real market terms.

Let us wait for second half August 2023 to have more news and see market vibrants in more detail. Till then, I wish all my followers and readers and good time of trading, and healthy reading of the market. For any personalised advice, please free to reach me  email gkumarks@gmail.com

GIRISH KUMAR K S

Gently offered by Ms Sandra Braz from Braco Trade Ltda

JUST A REMINDER
WE STILL HAVE SOME LOTS OF PINK PEPPER 2023 TO OFFER
CALL US IN ORDER TO ASSURE YOURS !

CLOVE - A CURTAIN RAISER FOR 2023 SEASON

Tamatave, Madagascar, 18 June, 2023:-
Global Clove market is complexed with fundamental and technical and speculative factors. Present market position is FIRM , but future directions cannot be derived from the present firmness ! Because, new season in three countries are very near, and one major country is not much far. There is already market reports saying, 2023 Season Crop size is small, and there would be shortage of Clove, and DEMAND would exceed SUPPLY EQUATIONS and thereby price can further firm up. Crop size is reported to be LESS based on reports from Comoros that Comor crop is already delayed, and instead of July, it will come only by mid August, and crop size is lesser by almost 500 Mt compared to previous years. Traders from Moroni, Mutsamudu and Anjouan says, 2023 crop would be around 2000 ++ only compared to normal 2500 to 3000 Mt.

Indonesia already reported its crop size down by almost 40% and they expect only around 70,000 Mt this year from all islands. 2022 season also Indonesian crop was less, and the cigarette industry already imported huge quantity from Africa, which is still continuing. And reports from Indonesia says, the cigarette industry would continue import in 2023 season also. Indonesian cigarette industries average yearly demand of clove is estimated at 120,000 Mt and their production in 2022 was only 80,000 Mt and in 2023 estimated at 70,000 Mt. The shortage in Indonesia alone is huge. Coupled with this shortage reported from Comoros and Zanzibar.

Zanzibar crop is estimated much lower than their usual quantity because of UNKNOWN disease affected to the Clove plants. Zanzibar Govt investigation and research is in progress to identify and resolve the disease. Zanzibar Minister for Trade and Commerce said, after his visit to the disease affected area, that almost 500,000 clove trees are affected, and this can reduce the crop size considerably.

How is the future of CLOVE industry ? CLOVE demand ? In spite of the crop shortage, demand for Clove is on the increase, and every year it is growing. The increased use of clove in culinery usages to spice up savory dishes, desserts, and drinks and also its use in , manufacturing toothpaste, soaps, cosmetics, perfumes, and cigarettes - all are increasing year by year. Essential oil industry is also using clove and its various parts in large quantities because of huge deman+d of clove essential oil and oleoresin. These are the main reason keeping Clove demand very high.

Recently in the last one month period, Clove price in local market of India [wholesale market] increased almost INR 200 per Kg which is considerably abnormal increase even when India has enough carry over stock in the market. This increase was just because of local demand.

Coupled with this, we must also look at changes in the origin countries. In Madagascar, local market in local currency Ariary per kg, increased from average Ariary 33000 per kg to 40,000 ariary a kg in a span of one month !! International offers increased from USD 8300 per Mt to USD 9500 per Mt during the same one month span. Indonesia followed this trend. Now it is off season in Madagascar, and other African origins. Madagascar season would start [main season] only in November, even though South Madagascar Clove might start in September. Quantity estimates are still awaited, and we have to wait to September to know Madagascar crop size. However, based on climatic situation and growth pattern, no reason to expect any shortage from Madagascar.

Let us wait July for further updates from all origins.

GIRISH KUMAR K S

Gently offered by Ms Sandra Braz from Braco Trade Ltda

Cloves Prices in India Likely to Shoot up in 2023

 

According to recent reports, global demand for cloves has been strong, leading to sustained high prices despite some recent increases. While production levels have been mixed across different origins, favorable 2022-23 crops in some areas have been offset by disappointing harvests elsewhere. As a result, the underlying supply of cloves is expected to become increasingly limited by April due to estimated exports so far and dwindling carry-over stocks.

The latest price indications from European traders suggest that Indonesian cloves are currently trading around $8,750 per tonne cfr Singapore, while Madagascar cloves are in the range of $8,700/tonne cif Singapore. Just a few weeks ago, Madagascar cloves were indicated at $8,400/tonne cif Singapore.

The Comoros cloves crop was reported to be very good due to favorable weather, with an estimated production of 6,000 tonnes, compared to a “normal” crop of about 3,500-4,000 tonnes in previous years. Meanwhile, the Zanzibar crop was described as normal, with an estimated production of about 4,000 tonnes.

However, the Madagascar cloves crop fell short of expectations, with a production of only 11,000-12,000 tonnes, compared to 22,000-23,000 tonnes in the previous year. Additionally, for the third consecutive year, the Indonesian crop was very short, with an estimated production of only 55,000-60,000 tonnes, which is less than half of what this origin achieves during a good harvest.

Brazil’s contribution to the global supply of cloves is negligible, with its 2022-23 crop estimated at no more than 2,000 tonnes. Most of this was sold to the US and South America, mainly for the production of cloves powder. The quality of this year’s harvest is said to be very poor.

In conclusion, while demand for cloves remains strong, the limited supply of the spice, due to mixed production levels and poor harvests in certain origins, is expected to lead to sustained high prices in the coming months.

https://www.turkeydalal.com/

MARKET REPORT - CLOVES

Comoros small crop of about 1500-2000 mts is almost sold, indications from that origin at $ 4650
Madagascar new crop in October is likely to be much smaller than last year, around 8000 mts, price for the same will start by middle October, 2020.
Indonesia has a good crop and is having steady demand from Middle East and Africa. The colour this year is not as good as all years . Current price indication is USD $ 4500/- PMT
Brazil's last year cloves crop was big, hence we estimat this year's crop will be a small one.
 

Currently, India and Indonesian cigarette companies are not active in the market, which is reflecting the existing weak sentiment in the market. As and when either of these markets become active, we may see firm tendency.

Sri Lanka
Srilanka crop starting in November expected to be above average.from reports from farmers it's anticipated to be around 2500-3000 tons, if weather conditions are favourable till harvest.
Harvesting begins in mid November and offers expected in mid December.
Quantity of oven dry LAL PARI will exceed last year as more and more farmers and traders installing more ovens.
Current prices are high compared to other origins due to lack of materials or rather poor arrivals, therefore there is no selling pressure on the side of farmers and traders.
But once the new crop arrival starts we can expect the prices to match the demand.

 

INDIA - Spice industry faces huge crisis after suspension of exports in wake of COVID-19

While Gulf countries had already suspended cardamom import, the export of cardamom, pepper and other spices has now been temporarily suspended due to coronavirus fears.

Even as the COVID-19 pandemic spreads across the globe and India has announced a nation-wide lockdown, the spice industry is facing a huge setback. Farmers and traders are facing an enormous crisis after the export of cardamom, pepper and other spices was temporarily suspended due to coronavirus fears.

Last week the Spices Board suspended the cardamom e-auctions scheduled at e-auction centres at Bodinayakanur in Tamil Nadu and Puttady in Kerala with immediate effect until March 31. This has only added to the farmers’ woes. Within a week, the price of cardamom dropped by more than Rs 1,000 per kg. Till the last week of January, the price of cardamom was nearly Rs 4,000 to 4,500 per kg in the retail market. But now it fallen to Rs 2,000 to Rs 2,300. Pepper prices also fell to Rs 290 from Rs 330 per kg. Vendors are also not willing to buy spices such as cardamom, pepper and coffee from farmers.

Johny Joseph Vattathara, who runs Spice More Trading Company in Kumily in Kerala’s Idukki which trades in black pepper, cinnamon, cardamom and coffee, said that the COVID-19 pandemic has severely affected the spices trading and market. “Cardamom is mainly exported to Gulf countries. When COVID-19 started spreading across the world, the Gulf countries temporarily suspended cardamom import from other countries. We lost many export orders from the Gulf, presently we have no idea when the issue will be resolved,” he said.

Cardamom is firstly bought by vendors from Tamil Nadu and they export the product to other countries including the Gulf. But after the coronavirus scare, foreign countries stopped buying cardamom and the price continues to dip,” Johny added.

“Now the auctions have been suspended in Kerala and Tamil Nadu, so the movement of spices from Idukki district has stopped entirely. In the last cardamom auction, the average price quoted was only Rs 2,336 per kg,” Johny said.

Idukki district in Kerala is India’s largest producer of cardamom. Most of the natives in Idukki are farmers and live solely on income from agricultural produce. So when the traders stopped purchasing spices from them, the farmers are now in dire straits.

Small-scale traders are also upset over the present situation in the spices industry. “We vendors normally purchase spices from the farmers. But now we don’t know how to sell the products purchased through auction. With the lockdown in place, the market will also be suspended till April 14. We have already purchased and stored huge amounts of cardamom and pepper from the farmers. Now we don’t know when we’ll be able to sell it to wholesalers,” said MJ Joseph Mattapparampil, a spices vendor in Idukki.

AA George, a cardamom vendor, said, “In the present situation we can’t buy cardamom or other spices from the farmers. We don’t know when we can sell to wholesale vendors or through auction. The vendors have also stocked large quantities of cardamom and they are facing a big problem in selling their product.”

“Because of the COVID-19 pandemic, there is trade uncertainty in all countries and this will affect the import of cardamom and other spices. In the present situation, the vendors are not willing to purchase,” George added.

PM Thomas, a farmer, said, “Agriculture is my only source of income. But three days ago I tried to sell 10 kg of pepper but no vendor was ready to buy the product. I don’t know how to manage the situation.”

This report by
https://www.thenewsminute.com

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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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MAIL manager@peppertrade.com.br
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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).

WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

CHECK NEXT WEEK FOR THE FULL REPORT

Brazilian Cloves Crop & Market

New Cloves crop in Bahia is a step away of start harvesting

Prices are high at the moment for what is left from the last season - around R$ 24.00 per kilo small lots and weak quality sold to local consumption. If processed for export a loss of 30% should be considered for cleaning, selecting and packing.
In dolar terms it corresponds today to U$ 6.00/kg. (1U$ = 4R$)

Regarding international trade Brazilian cloves ever follows the price trend of MZC origin with some discount depending on the volumes offered and demanded.

The 2019/2020 crop forecast is estimated at a maximum of 5 thousand tons and if realized will be an average crop. Must be considered that some 700 to 800 tons are sold to the local consumption

The maximum harvested in Brazil was in 2013 and reached 9 thousand tons.

ORION FEITOSA