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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CARDAMOM - INDIA -Lower arrivals continue to hit cardamom auctions

Kochi | Updated on February 11, 2020 Published on February 11, 2020

 Lower arrivals continue to witness cardamom auctions, even as the market has started witnessing a positive sentiment thanks to the upcoming Holi festival season.

This was evident in Monday’s auction when prices advanced further by Rs 70/kg across all categories following a revival of upcountry demand.

However, the quantity offered on Tuesday at Bodinayakanur was only 50 tonnes and traders hope that the market is likely to be stable especially with the surge in upcountry buyer participation.

They pointed out that January was considered as a lean month for cardamom demand in many upcountry markets following the extreme climatic conditions in North India. But relief from that severe weather conditions in many parts of the country is a contributing factor for reviving the demand, which is expected to continue in the coming days as well.

There is a positive movement after a month-long sluggishness. The sentiments so far were good, which is evident in cardamom movements in the wholesale markets of Delhi and surrounding areas, traders said.

In the morning session, the auctioneers Cardamom Growers Federation has offered 14 tonnes, while the offer made by KCPMC was 36 tonnes.
Trade analysts Acumen Capital Markets said that cardamom March futures gained by 1.67 per cent or Rs 60.80 to Rs 3697.50 per kg when closed on Monday.
The March futures price is showing some weakness on the daily chart.

REFERENCES
1 U$D =71,35 INDIAN RUPEES

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