VIETNAM -PEPPER MARKET UPDATE 6TH APRIL 2020 – WEEK 15

First half of March 2020, Vietnam has exported pepper reached 16,689 tons with a turnover 35.21 million USD. Pepper exported in the first 2.5 months reach 57,128 tons, up 5.75% in quantity but down 11.24% in value over the same period last year. The average export price reached 2,110 USD/ton, down 5.25% compared to the average export price of February 2020.

In March, export reached 34,000 tons, bringing the total export volume in the first 3 months of 2020 to approximately 75,000 tons (same period in 2019 was 72,726 ton). This is very impressive record of Vietnam's pepper exports although the export volume to China decreased by over 10,000 tons in the first 3 months because influence of Covid 19. Details of export/import data each country, we will update and send you in the coming week.

At present, Vietnam has basically finished harvested 2020 pepper crop. Farmers/domestic agents only offer a very small quantity to cover temporary costs and continue storage due to low prices. The price is attractive so many customer/exporters… considering to stockpile.

China has better control of Covid, so it has been actively buying large quantity from last week especially white pepper. In addition, the market continues to receive great demand from the USA/UAE for both prompt and further shipment that make market stable and uptrend. Vietnam's currency last week slightly stronger compared to USD but not stability.

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# CARDAMOM INDIA - Kerala With no auction, cardamom piles up

IDUKKI, April 03, 2020 23:23 IS

 

Sector faces uncertainty as crop prices are decided at auctions

The cardamom sector is facing a deadlock in the absence of auctions, with the main buyers in Mumbai abstaining from taking new orders for nearly a month. The produce is held up with farmers and small-scale traders, K.S. Mathew, director, Vandanmedu Green Gold Cardamom Producer Co. Ltd., told The Hindu on Friday.

There are 12 auctioneers at the Spices Park at Puttady under the Spices Board of India. As per the licensing agreement, the auctioneer has to pay the farmer the price of cardamom within 10 days of the auction. The traders and industrial units that purchase the produce have to pay the auctioneer the price within 21 days. The mechanism was going on unhindered with the daily auctions, he said.

Cardamom’s price is decided at the auctions, without which there is total uncertainty. The price would be known only when the auctions restart, Mr. Mathew said.

Last price

It is estimated that the traders have to pay the auctioneers more than ₹200 crore for the last two to four consignments in the auctions. When the auctions were stopped following the COVID-19 scare the price was at ₹3,500 per kg.

Marketing sources said prices could dip as the next crop, predicted to be a bumper one, is set to arrive in the market by June/July, and a major quantity produced in the last season has remained unsold. Moreover, the crop’s export prospects will depend on the stance of Saudi Arabia, the main buyer, sources said.

No buyers

The last harvesting season witnessed the highest ever prices quoted in the auctions, reaching up to ₹9,000 per kg.

The absence of trading has affected not only the plantations but also small-scale farmers. Lalichan, a farmer in Peerumade, said there were no buyers with small-scale hill produce merchants ceasing to buy cardamom. A trader had agreed to take the produce without making payment now. A meagre price was offered.
“How can one sell the produce without knowing the price and without being paid,” he added.

Giji K. Raman for
https://www.thehindu.com/news/national/kerala

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EXPORT OF PEPPER BY SINGAPORE

Singapore, officially the Republic of Singapore, is an island city-state in Southeast Asia. Although Singapore is not part of pepper producing country, Singapore exported a significant amount of pepper to the rest of the world.

In 2018, Singaporewas reported to have exported a total of 4,807 Mt of pepper from which 84% or 4,024 Mt of it comprised of whole pepper and 16% or 783 Mt of it ground pepper. Singapore on average exported a total of 401 Mt per month in 2018 which peaked in May with 699 per Mt. The total revenue of Singapore's export of pepper in 2018 was reported to be as high as USD 21.9 Million. Thus, recording an average price of the total pepper exported by Singapore at USD 3,698 per Mt for whole pepper and USD 9,052 per Mt for ground pepper.

Year 2019 saw a decrease in term of quantity of pepper exported by Singapore. Singapore was reported to have exported a total of 2,023 Mt of which 97% or 1,963 Mt of it comprised of whole pepper and 3% or 60 Mt of it ground pepper, recording a decrease of 58% when compared with 2018. The average export of pepper by Singapore in 2019 was reported to be at 169 Mt per month which also peaked in May with 287 per Mt. In accordance with decreasing in terms of quantity, Singapore's revenue from pepper export was also reported to have decreased by 71% as compared to the previous yearto a total of USD 6.3 Million. Thus, recording an average price of the total pepper exported by Singapore at USD 3,092 per Mt for whole pepper and USD 4,935 per Mt for ground pepper or a decrease by 16% and 45% respectively as compared with 2018.

As of January 2020, Singapore was reported to have exported a total of 126 Mt which 124 Mt of it comprised of whole pepper and or 2 Mt of it ground pepper. Thus, recording a decrease of 53% when compared to same period in 2019. The total revenue of pepper export by Singapore was reported to have reached USD 476,000, recording a decrease by 49% as compared to the same period in 2019. The average price of the total pepper exported by Singapore as of January2020 was reported at USD 3,760 per Mt for whole pepper and 5,000 per Mt for ground pepper.

Pepper from Singapore is widely traded in Asia, America, Europe and Africa. As of January 2020, Singapore's top 5 Country of destinations for its pepper were reported to be Nepal with 25 Mt (a decrease of 50% as compared to the same period in 2019), United States of America with 25 Mt (a decrease of 50%), Viet Nam with 17 Mt (2019 NA), Spain with 15 Mt (2019 NA) and Bangladesh with 10Mt (2019 NA). The significant decrease of export to United States of America was the result of United States of America starting to shift importing pepper from pepper origins countries such as Viet Nam (an increase by55 Mt or 2% as compared to the same period in 2019) and India (an increase by 42 Mt or 11%).

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#PEPPER - IPC MARKET REPORT No. 14/20, 30 March - 3 April 2020

As Viet Nam reportedly implemented a total nation-wide lockdown, starting 1 April 2020, in response of trying to flatten the curve of Corona Virus spreading, market this week showed a mixed response as only Viet Nam was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to the previous week averaging at USD 4,219 per Mt. The increase of Malabar black pepper price could be contributed to the slight strengthening of Indian Rupee against US Dollar. Following the social distancing policy implemented in Indonesia some major markets in Lampung and Bangka, two major producing area of black and white pepper, are closed. Consequently, Indonesia black pepper was reported with a slight increase of 2% as opposed to the previous week averaging at USD 1,458 per Mt whilst Indonesia white pepper was reported stable at an average of USD 2,612 per Mt. Malaysia black and white pepper were reported with an increase of 1% respectively as comp ared to the previous week averaging at USD 1,703 per Mt for black pepper and USD 3,056 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with 2% deficit respectively when compared to the previous week and was traded at an average of USD 1,577 per Mt for black pepper and USD 2,381 per Mt for white pepper. Sri Lanka black pepper was traded with 1% deficit as opposed to the previous week at an average of USD 2,766 per Mt which could be contributed to the weakening of Sri Lankan Rupee against US Dollar. China white pepper was reported stable and was traded at an average of USD 4,214 per Mt locally.
International market showed a rather stable outlook with only Indonesia origin recorded an increase. India black pepper was reported stable at an average of USD 4,484 per Mt. Indonesia black pepper was reported with an increase of 2% as compared to the previous week averaging at USD 1,808 per Mt whilst Indonesia white pepper was reported stable averaging at USD 3,110 per Mt. 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 also reported stable and unchanged. China white pepper was reported steady and was traded at an average of USD 4,414 per Mt.
Prices at US market this week was reported quite stable, though business had become slightly unpredictable and slow due to the nation-wide lockdown as US became country with the most active cases of Corona Virus with 228,874 (as of 3 April 2020) and 6,095 total death. Many pepper origins were still very cautious when prices were already at very low levels and unlikely to fall further when US Dollar strong against International local currencies. 

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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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VIETNAM - PEPPER MARKET UPDATE 25TH MARCH 2020 – WEEK 13

Vietnam As the outbreak of Corona Virus continued to widely spreading, global pepper & spices business has continued to slow down. Market this week showed with no origins reported an increase.

Vietnam's pepper market had mixed movements throughout the week with a negligible price decrease as almost exporters continued to have to participate to cover raw material for all shipment in March and April. We would not be surprised if Vietnam's exports would reach over 35,000 tons pepper this month.

As many countries have closed and difficulties in customs clearance due to Coronavirus, pepper is also an agricultural food product so basic consumption is still a priority. In addition, the current price is very low, below the production cost of most farmers so the pepper price has almost not decreased. However, as many countries, the Vietnam currency has been weaker 1.5% than the US dollar last week make the price is more competitive compared to other countries.

China The government is in better control of the disease so demand from China has been increasing steadily and warm up over the past 2 weeks. It is forecast that China will have to buy a large amount of pepper when the disease situation is under controlled in the coming time because China only imported more than 2,000 tons of pepper in the first 3 months from Vietnam (While the first 3 month of 2019 imported 13,263 tons - a shortage of over 11,000 tons compare the same period).

USA Customers looking to cover whole year shipment but exporters/processor hesitating due to price does not meet and risky when market correction and rebound again.

India/Nepal has lockdown from yesterday and open next 3 weeks so no demand now.

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BLACK PEPPER REPORT - HIGHLIGHT ON BRAZIL FEB 2020

Production and Productivity

Brazil, known as one of the major pepper producing countries which is famous for its Black Pepper, is known to have a more competitive price as opposed to other origins. In recent year, Brazil has also surpassed Indonesia as the second largest pepper producer in the world with estimated quantity of 80,000 Mt in 2019. Brazil's increase of production could be contributed to the output of the first harvest of new plantation planted in 2017.

During 2008-2020 the area under pepper cultivation in Brazil had fluctuated. Between 2008-2013, area under pepper cultivation in Brazil saw a decrease by 37% to a total of 18,472 Ha from 29,549 Ha in 2008. The area under pepper cultivation in Brazil saw an increasing trend during 2013-2018 with an increase of 65% to a total of 30,503 Ha. In the course of 11 years between 2008-2018 total area under pepper cultivation in Brazil recorded an increase by 3% (Table 7). Furthermore, in 2019 the area under pepper cultivation in Brazil was estimated to increase by 2% as compared to 2018 to a total of 31,040 Ha. Whilst, for the year 2020 the area of pepper cultivation was projected to decrease by 1% as compared to 2019. The decrease of area under pepper cultivation in Brazil could be contributed to farmers in the last two years have stopped expanding new plantation in Para Region and Espirito Santos Region which are the main producer of pepper in Brazil.

Brazil production of pepper during 2008-2020 was reported fluctuating with a rather positive trend. In the course 11 years since 2008 pepper production in Brazil was reported to have recorded an increase of 76% as it recorded a total of 72,000 Mt in 2018 which comprised of 68,500 Mt of black pepper and 3,500 Mt of white pepper. The highest production of Brazil pepper In the course of 11 years between 2008-2018 was reported in 2018 with 72,000 Mt whilst the lowest production occurred in 2012 with 32,000 Mt. However, in the year 2019 production of Brazil pepper was estimated to increase by 11% when compared with 2018 to a total of 80,000 Mt which comprised of 76,000 Mt of black pepper and 4,000 Mt of white pepper. Furthermore, in relation to the decrease of the area under pepper cultivation as well as the lack of care for pepper plantation by farmers, in 2020 Brazilian pepper production was projected to decrease by 3% when compared to 2019 to a total of 78,000 Mt.

Pepper productivity in Brazil In the course of 13 years between 2008-2020 was reported to be fluctuated with a rather positive trend. During 2008-2020, the lowest pepper productivity in Brazil was reported in 2008 with 1,388 Kg per Ha while the highest productivity was reported in 2019 which was estimated at 2,577 Kg per Mt. The lowest decrease of pepper productivity in Brazil was reported to occur in 2016 as it recorded a 19% loss when compared with the previous year. Whilst the highest increase of pepper productivity was reported in 2017 which recorded a 45% increase as opposed to the previous year. For the year 2019, Brazil pepper productivity was estimated with an increase of 9% to 2,577 Kg per Ha whilst in 2020 Brazil pepper productivity was projected with a slight decrease by 1% to 2,541 Kg per Ha .


Pepper Export from Brazil

Brazil, known as the second largest pepper producer in the world, had managed to take the second largest pepper exporter position from Indonesia in 2017. Since 2008 until 2019 there had been a significant increase of 131% or 48,091 Mt in the quantity of pepper export from Brazil which was mainly dominated with black pepper as it contributed to 94% of the total export figures (Table 8). The highest pepper export occurred in 2019 with 84,676 Mt whilst the lowest export occurred in 2012 with 29,129 Mt. In 2019, pepper export from Brazil was reported at 84,676 Mt, an increase by 17% as opposed to the previous year. Furthermore, as of February 2020, pepper export from Brazil was reported at 15,922 Mt which comprised of 15,285 Mt of black pepper and 637 Mt of white pepper, thus, recording a decrease of 8% as compared to the same period in 2019.

The number of pepper exports from Brazil had reportedly fluctuated in the last 14 months. The total export by Brazil in the past 14 months was reported at 100,597 Mt with total value as high as USD 210.4 Million. The average pepper export from Brazil was reported to be 7,186 Mt per month. The highest pepper export of Brazil occurred in October 2019 which reached 11,119 Mt whilst the lowest was reported in July 2019 with 3,046 Mt . The high level of exports during that period (October) correlated closely to Brazil harvest season.

Pepper from Brazil is exported to various countries in Asia, Europe, America and Africa (Table 10). During January 2019-February 2020, the top 10 country of destinations for Brazilian pepper were reported to be Viet Nam with 17,517 Mt (Contributed to 17% of the total pepper export during January 2019-February 2020), Germany with 13,127 Mt (13%), United States of America with 10,294 Mt (10%), Morocco with 7,817 Mt (8%), Egypt with 6,581 Mt (7%), India with 5,791 (6%), Mexico with 4,554 Mt (5%), Pakistan with 4,301 Mt (4%), United Arab Emirates with 3,779 Mt (4%) and France with 3,272 (3%).


Pepper Export Price

Brazil pepper export price had fluctuated significantly in the past three years which could be attributed to the world supply of pepper significantly exceeding the global demand. In 2018, the average pepper export price for Brazil was reported at USD 2,835 per Mt with the highest prices recorded in January with USD 3,509 per Mt whilst the lowest price was reported in November with USD 2,195 per Mt. In 2019, Brazilian average pepper export price was reported at USD 2,148 per Mt, recording a decreased of 24% as compared to 2018. In 2019, the highest average price was reported to have reached USD 2,316 per Mt (July 2019) whilst the lowest average price was reported in November with USD 2,002 per Mt. As of February 2020, the average pepper export price for Brazil was reported at USD 1,940 per Mt, recording a 12% decreased as compared to the same period in 2019


THIS REPORT PUBLISHED BY IPC
Basic information provided by Coreimex and CSG Trade

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