VIETNAM PEPPER SITUATION AUGUST 2020

 

17^TH AUGUST 2020

In the first 7 months, Vietnam exported 186,160 tons of pepper (166,669 tons of black pepper, 19,491 tons of white pepper).

First half of August, Vietnam exported 7,215 tons of pepper and is forecast to reach at least 15,000 tons in August bringing the total pepper exports to 201,160 tons (180,169 tons of black pepper and 20,991 tons of white pepper).

Thus, we can have a rough look at the export pepper data of 8 months of 2020 as follows;

 

- Exported 180,169 tons of black pepper (1)

- Exported 20,991 tons of white pepper (2)

- Loss weight when processing white pepper 25%; 6,997 tons (3)

- Domestic consumption; 8 - 10,000 tons annually (4)

- Loss weight when processing ground pepper is about 5%; 1,000 tons (5)

 

Total exported and domestic consumption… in the first 8 months 2020 as;

 

(1) + (2) + (3) + (4) + (5) = 219,157 tons (X)

 

As many source and reports from the beginning/middle of this year from Exporter/Processor/IPC/VPA…;

 

- Carry over 2020 is about 20%. Estimated at 80,000 tons (a)

- Crop size 2020; from 230 - 245,000 tons (b)

- Imported from Brazil/Indonesia/Cambodia; 30,000 tons (c)

 

Therefore, the total quantity expected to be used for export 2020 remains;

 

(a) + (b) + (c) = 355,000 tons (Y)

 

So in theory, then;

 

1.      Quantity of pepper used for export for next 4 months from September to December (excluding carry over last year (a) 80,000 tons) as below;

 

(b) + (c) - X = 245,000 + 30,000 - 219,157 = 55,843 tons.

 

This number is easily achieved in the last 4 months of 2020 and certainly the inventories of the previous years will gradually reduce. The total crop size of Vietnam pepper 2020 is not enough for export. It’s quite reflective upon the situation after 5 years back as from 2016.

 

2.      However, if including inventory of 80,000 tons (a), the total quantity will be used for export for next 4 months from September to December as below;

 

(Y) - (X) = 355,000 - 219,157 = 135,843 tons.

 

Thus, the total quantity used for export is plentiful because next 4 months definitely the total quantity to export can not exceed 70.000 tons . However, please note; the inventory for pepper in Vietnam is at 15 - 20% in every year. It is considered to be largely frozen inventory and its concentrate to exporters, middleman and rich farmers stock. These inventories are less pressured to sell if the price is not attractive enough (lower than inventory price – maybe very high).

 

Note; The data above is our research and it’s for reference only because the statistical tool has many shortcomings and limitations.

*This report made and presented by the

 

IPC PEPPER REPORT No. 33/20, 10 - 14 August 2020

 

LOCAL MARKET

Market this week showed a mixed response with only Indonesia black pepper was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to previous week at an average of USD 4,199 per Mt. Indonesia black pepper was reported with 4% deficit as compared to the previous week at an average of USD 2,026 per Mt whilst Indonesia white pepper was reported stable averaging at USD 3,478 per Mt. The decrease of Indonesia black pepper price could be contributed to the harvest season currently ongoing, thus, pushing down the local price. Malaysia black and white peppers in local market were reported stable with a marginal increase at an average of USD 2,387 per Mt for black pepper and USD 3,754 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with an increase of 2% and 5% respectively when compared to the previous week averaging at USD 1,995 per Mt for black pepper and USD 2,829 per Mt for white pepper. Sr i Lanka black pepper was reported with an increase of 1% as compared to the previous week and was traded at an average of USD 2,864 per Mt.

INTERNATIONAL MARKET

International market also showed a mixed response as only India origin was reported with an increase. India black pepper was reported with the same increase of 1% when compared to the previous week at an average of USD 4,466 per Mt. Indonesia black pepper was reported with 4% deficit when compared to the previous week at an average of USD 2,472 per Mt whilst Indonesia white pepper was reported steady averaging at USD 4,098 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable with a marginal increase averaging at USD 2,430 per Mt, USD 2,511 per Mt and USD 3,950 per Mt respectively. 

 

 

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GLOBAL PEPPER PRICES ON AN UPWARD TREND

 
Kochi  August 12, 2020

Pepper prices have started moving up globally, thanks to increased buying activities in the international markets.

Sri Lankan pepper prices was up by $400 per tonne, touching $3300-3500, while the rates of Vietnam, Indonesia and Brazil are also reporting an increase of $300-400 per tonne. Overall, there is a surge in procurement globally, said Kishore Shamji of Kishor Spices.
The Indian domestic market is also reported to be active in view of the ensuing festival demand. All sections of the trade are in a mood to cover their requirements as they are not expecting any downward price trend in the near future, he said.

The Kochi market was up by ₹1 per kg at Rs315 per kg for ungarbled on Wednesday and the farming community appears to be holding the crop, anticipating a further rise in prices, Shamji said. This is evident from the arrivals in the market, which was only at seven tonnes. The prices of Karnataka pepper are reported to be higher than Kerala due to good demand for bolder berries.

Moreover, heavy rains and landslides in the high ranges has hampered truck movement, bringing pepper to the market. Since the market is witnessing a good demand, he said the prices are expected to go up.

IPSTA Black pepper rates.
MG1 – ₹335 ; UNG-₹315 ; 500 G/L – ₹305 ; Arrival/Off-take – 7 tonnes

* Today:
1 USD = 74.8315 INR


V.Sajeev Kumar  for
Thehindubusinessline.com

 

 

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IPC PEPPER REPORT No. 31/20, 27 - 31 July 2020

LOCAL MARKET 

As the Moslem around the world celebrates the Eid Al-Adha Mubarak 1441 H amid the global pandemic of Corona Virus, Market this week showed mixed response with a rather positive outlook as only Viet Nam origin recording a decrease. In local market, Malabar black pepper was reported with an increase of 1% as compared to the previous week at an average of USD 4,122 per Mt. Indonesia black and white pepper were reported with an increase of 8% and 5% respectively as opposed to the previous week averaging at USD 2,193 per Mt for black pepper and USD 3,426 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the increase of demand as well as the strengthening of Indonesian Rupiah against US Dollar (IDR 14,593 @ USD 1), an appreciation by 1% recorded. Malaysia black and white peppers in local market were reported with an increase of 1% respectively when compared to the previous week at an average of USD 2,301 per Mt for black pepper and USD 3,655 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with 3% deficit respectively when compared to the previous week averaging at USD 1,970 per Mt for black pepper and USD 2,745 per Mt for white pepper. Sri Lanka black pepper was reported with a significant increase of 8% as compared to the previous week and was traded at an average of USD 2,858 per Mt. China white pepper was reported stable and unchanged.

INTERNATIONAL  MARKET

International market was reported with a more positive outlook. India black pepper was reported with the same increase of 1% as compared to the previous week at an average of USD 4,390 per Mt. Indonesia black and white pepper were reported with an increase of 7% and 5% respectively as compared to the previous week averaging at USD 2,665 per Mt for black pepper and USD 4,044 per Mt for white pepper. Malaysia black pepper was reported with an increase of 2% when compared to the previous week at an average of USD 3,609 per Mt whilst Malaysia white pepper was reported stable. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper as well as China white pepper continued to be reported stable and unchanged.

US market this week was reported with the increase of price of black as well as white pepper nevertheless buyers held on to source from producing origins. Muntok white pepper for CF August/September was reported at USD 4.600 per Mt.

IPC SPECIAL ISSUE ON GUATELAMA CARDAMOM - JULY, 2020

Guatemala Cardamom Report

In Guatemala, cardamom is known as Green Gold of Guatemala as they are the world's largest exporter and producer of cardamom in the world. Since 2008 to 2019, Guatemala produced cardamom on average of 32,000 Mt annually. Furthermore, Cardamom is the fourth largest agricultural product to be exported out of Guatemala by value. The national producers of cardamom in Guatemala are distributed to several departments (regions) as follow: Alta Verapaz Department (68%), Quiché Department (14%), Huehuetenango Department (8%), Izabal Department (4%), Baja Verapaz Department (2%) and the other departments of the Republic add up to (4%) (Chart 1). Furthermore, a total of 84% of the harvested area is concentrated in 2 Departments: Alta Verapaz Department (68%) and Quiché Department (16%).

Harvesting and processing

Cardamom plants normally start bearing two years after planting. In most of the areas in Guatemala, the seedtime for cardamom performs during the rain and summer season which occurred in May-September. The high peak period of harvest also occurred during the rain and summer season around July-October (Table 1).

Postharvest treatments for cardamom in Guatemala consist of washing, curing (drying), cleaning, polishing, sorting, grading and packing. There are several ways of drying the fruit (capsules recently harvested) to reduce moisture content which include sun-drying, solar drying and wood - fired drying.

Furthermore, cardamom in Guatemala must be harvested by hand, when ready, it can be easily detached from the stem and the colour is bright green. The following definitions refer to common Guatemalan cardamom grades:

·  Jumbo Green - extra-large green small cardamom pods

·  Imperial Best Green - large green pods

·  Fancy Green Extra - extra green pods

·  Fancy Green - medium sized green pods

·  Imperial Mixed Green - large pale green pods

·  Mixed Green - pods of assorted colours

·  Mixed Green Split - medium sized open green pods

·  Yellow Mixed - medium/large closed yellow pods

·  Mixed Yellow Quality (MYQ) -medium sized light brown cardamom for grinding

·  Seeds - cardamom with the husks removed

The output of cardamom is greatly influenced by climatic conditions. The cardamom plant requires a continuous rain interspersed with periods of good sunshine. Over the past two decades, the cardamom cultivation areas in Guatemala had faced severe ecological degradation due to diminishing forest cover which was caused by the weather disturbance of El Niño and La Niña climate phenomenon. The phenomenon had adversely affected Guatemala's 2010 production, causing the quality of cardamom to deteriorate. The plant is now abnormally susceptible from attacks by pests and diseases.

Area Plantation of Cardamom in Guatemala

Cultivation of cardamom was introduced to Guatemala before World War I by Oscar Majus Kloeffer; today Guatemala is the world's biggest producer and exporter, followed by India and Sri Lanka. Over 60% of the world's cardamom is grown in Guatemala, the crops contributes to between 0.8% and 1.5% of country's GDP.

During 2008-2015 the area under cardamom cultivation in Guatemala had shown an increasing trend, recording an increase of 19% when comparing 2008 and 2015. As from 2015, the area of cardamom cultivation in Guatemala had decreased to 2017. In 2017, Guatemala planted Cardamom on 72,593 Ha of area, recording a 2% decrease when compared to 2015. In 2018, the area under cardamom cultivation was reported with an increase of 4% as opposed to 2017 to an area of 75,399 Ha. In addition, the area of cardamom cultivation for 2019 was estimated to increase by 2% to 76,761 Ha. (Table 2). The increase of the area under cardamom cultivation could be contributed to the Guatemala government's along with the Cardamom Exporters' Association (ADECAR), the Guatemalan association of Exporters (AGEXPORT) and the Cardamom Producers Association of Guatemala (CARDEGUA) implementation strategies to improve the quality of cardamom and the economic condition of the farmers involved in the production. These strate gies were implemented through demonstration plots as well as training on how to implement good agricultural practises (GAP).

Cardamom production of Guatemala had fluctuated since 2008 with a rather positive trend. Cardamom production of Guatemala was reported to have recorded an increase of 78% in the past 11 years as it recorded to have produced a total of 38,163 Mt in 2018. The highest production of Guatemalan Cardamom in the past 11 years was reported in 2014 with 38,465 Mt whilst the lowest occurred in 2008 with only 21,414 Mt.

In addition, the production of Guatemalan Cardamom for 2019 was estimated to experience an 8% increase when compared to 2018 at 41,172 Mt as result of implementation strategies by Guatemala government to improve the quality of cardamom and the economic condition of the farmers involved in the production in the Department of Alta Verapaz which was the main cardamom producer in Guatemala.

Cardamom Productivity in Guatemala

Cardamom productivity in Guatemala for the past 11 years fluctuated with a positive trend (Chart 2). In the past 11 years cardamom productivity in Guatemala was reported to have increased by 47% to 506 Kg per Ha in 2018 and by 2019 the cardamom productivity was estimated at 536 Kg per Ha. Thus, recording an increase of 6% when compared with 2018. The highest cardamom productivity in Guatemala was reported in 2013 with 553 Kg per Ha whilst the lowest occurred in 2008 with only 344 Kg per Ha.

Average Export Price of Cardamom in Guatemala

During 2017-2019, the average export price both whole and ground cardamom on Guatemala saw an increasing trend. In 2017, the average exports price of cardamom by Guatemala was reported at USD 10,350 per Mt for whole cardamom and USD 9,709 per Mt for ground cardamom. The highest average exports price of whole cardamom from Guatemala in 2017 occurred in May with USD 11,271 per Mt whilst the lowest price was reported in January with USD 9,202 per Mt. Furthermore, the highest average exports price of ground cardamom from Guatemala in 2017 was reported in June with USD 18,537 per Mt whilst the lowest price was reported in February with only USD 2,947 per Mt.

In 2018, the average exports price both whole and ground cardamom by Guatemala saw an increasing trend averaging at USD 11,784 per Mt for whole cardamom and USD 12,559 per Mt for ground cardamom. Thus, recording an increase of 14% and 29% respectively as compared with 2017. The highest average exports price of whole cardamom from Guatemala in 2018 occurred in December with USD 12,587 per Mt whilst the lowest price was reported in January with USD 10,163 per Mt. Furthermore, the highest average exports price of ground cardamom from Guatemala in 2018 occurred in April with USD 15,071 per Mt whilst the lowest price was reported in June with USD 9,668 per Mt.

The average exports price both whole and ground cardamom by Guatemala in 2019 continued the increasing trend with an increase of 47% and 15% respectively as compared to the previous year averaging at USD 17,370 per Mt for whole cardamom and USD 14,481 per Mt for ground cardamom. The highest average exports price of whole cardamom from Guatemala in 2019 occurred in December with USD 23,060 per Mt whilst the lowest price was reported in January with USD 13,595 per Mt (Table 3). Furthermore, the highest average exports price of ground cardamom from Guatemala in 2019 occurred in May with USD 27,159 per Mt whilst the lowest price was reported in December with only USD 1,437 per Mt (Table 4).

Export of Cardamom by Guatemala

As the top producers of cardamom in the world, Guatemala in the past 3 years actively exported cardamom to various countries with the major destination to Middle East countries. In 2017, Guatemala was reported to have exported a total of 35,814 Mt of cardamom from which 99.7% or 35,695 Mt of it comprised of whole cardamom and 0.3% or 119 Mt of it ground cardamom. Guatemala on average exported a total of 2,985 Mt per month in 2017 which peaked in December with 5,038 Mt. The total revenue of Guatemala's export of cardamom in 2017 was reported to be as high as USD 366.9 Million.

Year 2018 saw an increasing trend in term of quantity of cardamom exported by Guatemala. Guatemala was reported to have exported a total of 36,815 Mt of which 99.7% or 36,702 Mt of it comprised of whole cardamom and 0.3% or 113 Mt of it ground cardamom, recording an increase of 3% when compared with 2017. The average export of cardamom by Guatemala in 2018 was reported at 3,068 Mt per month which peaked in November with 5,220 Mt. In accordance with the increase of quantity, Guatemala's revenue from cardamom export was reported to have increased by 18% as compared to the previous year to a total of USD 433.7 Million.

2019 was reported with a decreasing trend in term of quantity of cardamom exported by Guatemala. Guatemala was reported to have exported a total of 36,323 Mt of which 99.7% or 36,209 Mt of it comprised of whole cardamom and 0.3% or 114 Mt of it ground cardamom, recording a slight decrease of 1% when compared with 2019. The average export of cardamom by Guatemala in 2019 was reported at 3,027 Mt per month which peaked in December with 5,816 Mt. Although decreasing in terms of quantity, Guatemala's revenue from cardamom export was reported to have increased by 49% as compared to the previous year to a total of USD 647.2 Million.

Cardamom from Guatemala are widely traded in Asia, Africa, Europe and America Countries (Table 7). In 2019, Guatemala's top 10 Country of destinations for its cardamom were reported to be Saudi Arabia with 10,107 Mt (an increase of 6% as compared with 2018), United Arab Emirates with 7,981 Mt (an increase of 10%), Bangladesh with 2,851 Mt (a decrease of 19%), Pakistan with 2,308 Mt (a decrease of 15%), Egypt with 1,386 Mt (a decrease of 0.3%), Jordan with 1,245 Mt (an increase of 1%), Netherlands with 1,127 Mt (an increase of 28%), Singapore 1,025 Mt (a decrease of 6%), Syrian Arab Republic with 958 Mt (a decrease of 29%) and Kuwait with 885 Mt (a decrease of 11%).

Source:

·  Ministerio de Agricultura Ganaderia y Alimentacion Guatemala (Ministry of Agriculture, Livestock and Food Guatemala) - MAGA

·  International Trade Centre (ITC) - Geneva

·  Food and Agricultural Organization (FAO)

·  US Food and Drug Administration (USFDA)


Note: Some of the data in this publication are from the IPC database. The data are obtained from official reports and correspondence between the IPC and relevant partiesand have been processed based on statistical norms that can be accounted for.

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VIETNAM PEPPER MARKET UPDATE 27TH JULY 2020 – WEEK 31

 

 

Viet Nam
According to preliminary data of Vietnam Customs, pepper exports in June 2020 reached only 20,449 tons, less 9,902 tons, a sharp decrease of 32.62% compared to the previous month and down 10,236 tons, or 33.36% less than the same period last year 2019. The pepper export turnover in June reached $47.17 million, down $13.74 million, or 22.55% down from the May 2020 and down $28.04 million, or 37.28% compared to the same period last year.

Accumulated export volume of pepper in the first 6 months of 2020 reached 166,812 tons, down 10,046 tons, or 5.68% compared to the export volume in the first 6 months of 2019.

The average export price in June 2020 reached $2,306/ton, up 14.95% compared to the average export price of May 2020.

The same export, Vietnam imported a sharp decrease compared with 2019 when total quantity only 14,899 tons of pepper, including 11,283 tons of black pepper and 3,616 tons of white pepper. Compared to the same period in 2019, import volume decreased by 34.3%. Vietnam imports pepper mainly from Brazil, Indonesia and Cambodia. In which, the import from Brazil was 100% black pepper with 5,802 tons, down 34.9%; imports from Indonesia reached 5,528 tons (of which 2,057 tons were black pepper and 3,471 tons were white pepper), down 50.4% over the same period.

Until July 20th, 2020, Vietnam exported 9,942 tons of pepper and is forecast to export 16 - 17,000 tons in this month, bringing the total export volume in the first 7 months reached 183,812 tons (first 7 month 2019 exported 203.737 tons).

Pepper market in week 30^th 2020 has increased slightly by 2% compared to week 29. The main reason is that exporters focus on covering raw material to ensure time shipment has been done before.

In general, demand in week 30^th more than week 29^th when many different countries have gradually increased production again after a long time restrained due to Covid 19 (especially EU/India). Demand is still quite slow but many requests from the EU/US for long shipment orders from Q4/2020 until the end of 2021.

The market is still quite sensitive and the price trend is likely to be quite stable in the near future.

 Brazil
Almost the same previous week when only possible to offer very limited quantities but not for prompt shipment. Delivery time is mostly in September/October as a seller option. We can foresee Vietnam exporters will not be hedging raw material from Brazil from now.

 Indonesia
Currently harvesting but less offered. Prices are still higher than Vietnam both black and white pepper especially muntok white pepper.

IPC PEPPER MKT REPORT No. 30/20, 20 - 24 July 2020

MARKET REPORT
Market this week showed mixed response with Indonesia and Viet Nam origin recording a decrease.
In local market, Malabar black pepper was reported with an increase of 2% as compared to the previous week at an average of USD 4,088 per Mt.
Entering the harvest season as well as the slow demand, Indonesia black and white pepper were reported with 12% and 5% deficit respectively as opposed to the previous week averaging at USD 2,039 per Mt for black pepper and USD 3,262 per Mt for white pepper.
Malaysia black and white peppers in local market were reported with an increase of 4% and 2% respectively when compared to the previous week at an average of USD 2,275 per Mt for black pepper and USD 3,626 per Mt for white pepper.
Furthermore, Viet Nam black pepper was reported with 1% deficit when compared to the previous week averaging at USD 2,040 per Mt whilst Viet Nam white pepper remained stable and unchanged.
Sri Lanka black pepper was reported with an increase of 4% as compared to the prev ious week and was traded at an average of USD 2,644 per Mt.
China white pepper was reported stable and unchanged. 

INTERNATIONAL MARKET
International market showed a similar trend as the local market. India black pepper was reported with the same increase of 2% as compared to the previous week at an average of USD 4,355 per Mt.
Indonesia black and white pepper were reported with 12% and 5% deficit respectively as compared to the previous week averaging at USD 2,488 per Mt for black pepper and USD 3,858 per Mt for white pepper. Malaysia black and white peppers were reported stable and unchanged.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper as well as China white pepper continued to be reported stable and unchanged.

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