Wednesday, November 13, 2019

SAFRON - USA TESTS GROWING POSSIBILITY

Researchers in Rhode Island have been growing test plots of the pricey plant—and it's thriving. Some think this could disrupt the global saffron economy.

 Jessica Fu








Dr. Rebecca Brown thought that the sun had set on this year’s saffron harvest. The autumn-blooming plants—which she and her colleague had planted in the University of Rhode Island’s agronomy farm to the northwest of campus—hadn’t produced flowers in days, and winter was imminent.

“We were already a couple of weeks into harvest,” she says. “We thought it was finished.”

Then on Thursday morning, Brown discovered that, unexpectedly, fresh flowers had sprung out from the soil overnight—a sign of just how suitable growing conditions on the Northeast could now be for a lucrative plant that Americans have traditionally imported.

This is the third year that Brown and her colleague, Dr. Rahmatallah Gheshm, have harvested saffron in Rhode Island. Brown is an associate professor of plant sciences, and Gheshm is a postdoctoral fellow in agro-ecology. Their harvests are part of an ongoing research project aimed at assessing how viable commercial farming of the crop could be in the Northeast.

Saffron flower in handRahmatallah Gheshm   

The disproportionate amount of work that goes into producing each strand makes saffron the most expensive spice in the world, commanding up to $10,000 per pound

“We’re just trying to answer some very basic questions starting with: Can we grow saffron outdoors in Rhode Island?” Brown says. “[We’re] looking at whether we needed to provide winter protection or not, and what sort of planting density would be best here.”

At the center of every saffron flower are three thin, red threads, called stigma. Once extracted, producers sell these stigma as a valuable and aromatic spice, also called saffron, a coveted ingredient in Middle Eastern, South Asian, and European cooking. Its labor-intensive production and the disproportionate amount of work that goes into producing each strand makes saffron the most expensive spice in the world, commanding up to $10,000 per pound. This means that farmers in the Northeast stand to make a lot of money if commercial saffron harvesting could be incorporated into their production schedule.

Saffron plants in Rhode Island don’t appear to need the protection of hoop houses during the winter, when the leaves sprout in scallion-like grasses.

To conduct their research, the scientists planted 6,000 corms—the bulbous beginnings of every saffron flower—into a field measuring approximately 158 square feet. The land was divided into 16 separate plots, each measuring about 13 by 2.5 feet. To find saffron’s optimal growth conditions, Brown and Gheshm varied density among the plots, protected some with hoop houses during the winter, and left others uncovered year-round.

The idea to grow saffron in Rhode Island came to Gheshm after he was inspired by the Vermont-based saffron research of a friend and former classmate he’d met in their shared home country, Iran. He was curious about how harvest of the spice could be transferred to the particular climate of the Ocean State.

“The milder winters encouraged us to try planting saffron outdoors in Rhode Island, in southern New England,” Gheshm says. In Vermont, researchers needed to transfer their saffron plants into hoop houses during the winter to protect them from the cold.

The study’s results won’t be final until after this season’s harvest is over, but Brown and Gheshm tell me that they’ve already gleaned some preliminary findings. For one, saffron plants in Rhode Island don’t appear to need the protection of hoop houses during the winter, when the leaves sprout in scallion-like grasses. After this year’s harvest, Brown and Gheshm plan to conduct a follow-up experiment, looking at how saffron farming might be able to co-exist—particularly in the summer when saffron plants are dormant—with other crops that local farmers already grow. The project has secured funding from the Department of Agriculture’s Specialty Crop Block Grant Program.
Saffron samplesRahmatallah Gheshm   

At the center of every saffron flower are three thin, red threads, called stigma. Once extracted, producers sell these stigma as a valuable and aromatic spice

“Could we grow something else like basil or lettuce on that land while the saffron is sleeping underneath?” Brown asks. If so, farmers “could make more money off the space.”

Right now, Iran is the highest saffron-producing country in the world, exporting nearly half of the world’s market, according to UN trade data. However, compared to the sunny, dry conditions in Iran, Rhode Island has a much higher humidity level—the impact of which Brown and Gheshm wanted to observe in their study. So far, however, it appears that the humidity might not be a problem. U.S. is a major saffron buyer, and its demand has never been higher. In 1992, the U.S. imported $3.17 million worth of the spice, a value that has since risen steadily to $16 million last year, according to Census data.

Because of issues like America’s economic sanctions against Iran, Gheshm explains, most of the U.S.’s saffron imports come from through Spain, which is both a major importer and exporter of the spice. Brown believes that local production of saffron can meet the rising demand from American consumers, which she attributes to an increasingly diverse population. What better way to get around a middle man than to grow it in our own backyards?

https://newfoodeconomy.org/saffron-northeast-university-of-rhode-island-iran/

Jessica is a reporter for The New Food Economy. Reach her by email at jessica.fu@newfoodeconomy.org and on Twitter @JessTiaFu.

Monday, November 04, 2019

IPC MARKET REPORT No. 44/19, 28 October - 1 November 2019



LOCAL MARKET
Market this week showed mixed response with a rather static outlook.
In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 4,202 per Mt.
Indonesia black and white pepper was reported stable with an average of USD 1,639 per Mt for black pepper and USD 3,313 per Mt for white pepper. Farmers in Lampung were reported to hold selling their pepper in the hope of better price.
Malaysian black and white pepper was also reported stable at an average of USD 1,993 per Mt and USD 3,505 per Mt respectively.
Furthermore, Viet Nam black and white pepper was also reported stable and unchanged.
Sri Lanka black pepper continuously moving up, in local market it recorded an increase by 2% as compared to the previous week and was traded at an average of USD 2,708 per Mt.
Whilst, China white pepper was reported stable with an average of USD 4,595 per Mt.

INTERNATIONAL MARKET
In international market, the trend also showed mixed response. FOB price of India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,484 per Mt. Indonesia black and white pepper was reported steady with an average of USD 2,040 per Mt for black pepper and USD 3,926 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 stable and unchanged averaging at USD 2,250 per Mt, USD 2,315 per Mt and USD 3,400 per Mt respectively. China reported a stable international trade for its white pepper with an average of USD 4,795 per Mt.






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Wednesday, October 30, 2019

In India, Black pepper prices lowest in a decade




https://economictimes.indiatimes.com/markets/commodities/news/black-pepper-prices-lowest-in-a-decade/articleshow/71799047.cms

By PK Krishnakumar


Kochi: Oversupply in the global market and rising imports have pushed Indian black pepper prices to the lowest in a decade.

The prices have dipped below Rs 300 per kg. “When we take the produce to the market, we get only Rs 280 per kg,’’ said a grower, Rajendra Prasad, based in Idukki in Kerala.

When the harvest of the new crop begins in December, the prices are expected to fall further. “We will not be surprised if the prices touch Rs 200 next year,’’ Prasad said.
Burdened by high wages and declining productivity, the growers have already started moving to other crops that give better prices like cardamom.Prasad has started growing cardamom in parts of his 10-acre pepper plantation. “Against 5 kg earlier, I am getting 2 kg from a pepper vine. Though cardamom productivity will be 70 per cent of that from regular growing areas in Idukki, it offers better remuneration.’’ Cardamom is priced around Rs 2,500 per kg.
Though cardamom productivity will be 70 per cent of that from regular growing areas in Idukki, it offers better remuneration.’’ Cardamom is priced around Rs 2,500 per kg.


The black pepper production in India has been stagnating between 50,000 to 60,000 tonnes in the past few years with Karnataka being the top producer followed by Kerala. Last year, heavy rains and flood led to poor output in Kerala and parts of Karnataka.

Even at this level, Indian pepper has the highest price in the global market. Pepper from major producer like Vietnam, Brazil and Indonesia are priced in the range of Rs 150 to 160 per kg while Malaysian pepper is available for around Rs 250 per kg .

As a result, there has been rising import of pepper to India flouting the minimum import price fixed by India atRs 500 per kg.

“Lots of pepper are reaching Indian shores via Mumbai, Chennai and Tuticorin ports. It is easy for the sellers to make an invoice of Rs 500 per kg to convince the Customs here,” said Jojan Malayil, CEO of Bafna Enterprises, an exporter.
This is happening despite an import duty of over 50 per cent for Asean countries. “Till October, Vietnam has exported 2.48 lakh tonnes of which includes pepper imported by the country from Indonesia and Brazil,” Malayil said.

The International Pepper Community, the inter-governmental organisation of pepper producing countries, is likely to come out with global production estimate for 2020 next month. “It will be a surplus with good carryover from the current year which will keep the prices subdued,” said Rajiv Palicha, chairman, All India Spices Exporters Forum.




Read more at:
//economictimes.indiatimes.com/articleshow/71799047.cms

Tuesday, October 15, 2019

Brazilian Pepper Exports 2019

From the IPC 3rd Quarterly Report:

Shipments from Brazil to top 5 Destinations Jan - Aug 2019
1 Germany 6,314 Ton
2 Viet Nam 5,977 Ton
3 United States of America 5,310 Ton
4 Morocco 4,387 Ton
5 Egypt 3,352 Ton

Quality levels from Brazil seem to have improved significantly over the past few years
Be it B2, B1 or ASTA etc. Customers reported globally that cargo from Brazil has bolder berries, cleanercargo and higher density.
This has helped uplift the image of the origin. This has certainly helped theorigin to get far better market access.











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INDIA: Pepper growers expect a good crop this year despite weather woes





V Sajeev Kumar Kochi Published on October 14, 2019

Changes in weather pattern have not dampened the hopes of pepper growers in getting better yields this season. They say that production for the 2019-20 crop season would be in the range of 50,000-55,000 tonnes. Last year’s estimated projection was 48,000 tonnes, but the final figure touched 52,000 tonnes.

“We were expecting a good crop in 2019-20 at more than 60,000 tonnes in the wake of growth spike during November and December in the previous year. However, drought-like conditions in March and April, followed by heavy rain and floods, shattered our expectations,” said Kishore Shamji of Kochi-based Kishor Spices.

He also differed with the projections made by the International Pepper Community for the 2019-20 crop season at 47,000 tonnes, saying that the figure could be higher at between 50,000 tonnes and 55,000 tonnes, almost at the same level as last year.

KK Vishwanath, Coordinator, Consortium of Black Pepper Growers Organisation, told BusinessLine that the final figure for the 2019-20 crop season would be available in a month, when the consultative meeting of the Spices Board with all stakeholders to decide on the crop estimate for 2020 is scheduled. “The production figure is likely to be flat this year, but there will be price variations for the crop,” he said.

Official sources said that the Spices Board is awaiting the figure for the 2019-20 crop from the Directorate of Arecanut and Spices Development, Kozhikode, and the report would be placed before the meeting of the Pepper Task Force scheduled to be held in October-end or November first week. In the 2018-19 season, according to DASD figures, black pepper production was around 62,400 tonnes spread over 1.38 lakh hectares.

Rajiv Palicha, Chairman, All India Spices Exporters Forum, said that the overall production in the domestic market this year is likely to be lower due to changes in weather pattern; it may range between 52,000 tonnes and 55,000 tonnes. “It is too early to say anything about the 2020 crop. We may be in a position to get a final figure by November or December,” Palicha said. Referring to rising pepper imports, he said, “We need it for value addition and the prices are also lower.”


According to Shamji, production both in Kerala and Karnataka last year had suffered due to the heavy rain, floods and landslides that destroyed many standing pepper vines.

Domestic prices are currently hovering around R$300-325 a kg, while the price in Sri Lanka is around R$200/kg ($2,800/tonne). This has forced exporters to look at imports rather than depend on the domestic market.
Quoting figures of August, Shamji said India is the second-largest importer of Vietnamese pepper, after the US, shipping in 16,600 tonnes, compared to 35,000 tonnes by the US.

If Sri Lankan pepper imports continue without any restrictions being imposed by the government, he anticipates a further decline in domestic prices, to R$250 per kg.

Even the minimum import price of R$500 per kg imposed by the government to restrict imports and save the domestic pepper growers has not yielded the desired result, as large volume of Vietnamese black pepper routed through Sri Lanka under SAFTA continues to reach Indian shores, flouting all rules, he alleged.

Published on October 14, 2019
https://www.thehindubusinessline.com/economy/agri-business/pepper-growers-expect-a-good-crop-this-year-despite-weather-woes/article29680611.ece







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Friday, October 11, 2019

IPC REPORT - EXPORT OF PEPPER BY CHINA



China officially the People's Republic of China (PRC or PR China), is a country in East Asia and the world's most populous country with a population of around 1.44 billion as per October 2019 (source : population.un.org). China is one of the producers of white pepper in the world with cultivation area concentrated in the peninsula of Hainan. As majority of the pepper product in China does not leave the country, China is considered as one of the highest consumers of pepper among pepper producing countries. However, China also exports pepper to various countries in the world.

In 2017, China was reported to have exported a total of 1,311 Mt of pepper from which 43% or 563 Mt of it comprised of whole pepper and 57% or 749 Mt of it ground pepper. China on average exported a total of 109 Mt per month in 2017. The total revenue of China export in 2017 was reported to be as high as USD 14.8 Million, Thus, recording an average price of the total pepper exported by China at USD 9,831 per Mt for whole pepper and USD 12,496 per Mt for ground pepper.


Year 2018 saw an increasing trend in term of quantity of pepper exported by China. China was reported to have exported a total of 2,523 Mt of pepper of which 64% or 1,606 Mt of it comprised of whole pepper and 36% or 916 Mt of it ground pepper. Thus, recording a significant 92% increase in term of quantity as compared to the same period in 2017. The average export of pepper by China was reported to be at 210 Mt per month. In accordance with increasing in terms of quantity, China's revenue from pepper export was reported to have increased by 34% to a total of USD 19.9 Million, recording an average price of the total pepper exported by China at USD 6,046 per Mt for whole pepper and USD 11,158 per Mt for ground pepper or a decrease by 38% and 11% respectively as compared with 2017.


As of July 2019, China was reported to have exported a total of 1,081 Mt which comprised of 692 Mt of whole pepper and 388 Mt of ground pepper. Thus, recording a loss of 23% when compared to the same period in 2018. By the end of July 2019, the total revenue of pepper export by China was reported to have reached USD 7.2 Million, recording a decrease by 41% as compared to the same period in 2018. The average price of the total pepper exported by China as of July 2019 was reported at USD 6,017 per Mt for whole pepper and 7,891 per Mt for ground pepper. Furthermore, as of July 2019, China's top 5 country destinations for its pepper were reported to be North Korea with 343 Mt (a decrease of 35% as compared with the same period in 2018), Hong Kong with 160 Mt (an increase of 37%), United States of America with 153 Mt (an increase of 19%), Germany with 115 Mt (an increase of 92%) and Thailand with 49 Mt (an increase of 12%). 











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IPC Market Report No. 41/19, 7 - 11 October 2019


LOCAL MARKET 
Market this week showed mixed response with Sri Lanka recorded the highest increase for its local market price and Viet Nam for its International market price.
In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 4,516 per Mt.
Indonesia black and white pepper were reported stable and relatively unchanged at an average of USD 1,624 per Mt and USD 3,284 per Mt respectively.
Malaysian black and white pepper were also reported stable with an average of USD 2,000 per Mt for black pepper and USD 3,513 per Mt for white pepper.
Furthermore, Viet Nam black pepper was reported with a decrease by 1% as compared to the previous week averaging at USD 1,702 per Mt. Viet Nam white pepper was reported to be traded stable with an average of USD 2,626 per Mt.
Recording a 7% spike as opposed to the previous week, Sri Lanka black pepper became the only product which recorded an increase in local market and was traded at an average of USD 2,570 per Mt.
Whilst, China white pepper was reported to be traded with an average of USD 4,635 per Mt.


INTERNATIONAL MARKETIn international market, the trend also showed mixed response as only Viet Nam reported an increase.
FOB price of India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,797 per Mt.
Indonesia black and white pepper was reported steady with at an average of USD 2,021 per Mt for black pepper and USD 3,891 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 and 550 g/l were reported with an increase by 6% respectively as opposed to the previous week averaging at USD 2,345 per Mt and USD 2,410 per Mt respectively.
Viet Nam white pepper was also reported with an increase by 4% when compared to the previous week averaging at USD 3,495 per Mt.
The increase of Viet Nam prices in international market could be contributed to China buying significant amount of pepper from Viet Nam. As of August 2019, Viet Nam's top country of destination is China.
China traded its white pepper in the international level with an average of USD 4,835 per Mt. 











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