VIETNAM PEPPER MARKET UPDATE 5TH OCT 2020 – WEEK 41

 

Vietnam; Exported roughly 19,120 tons of pepper in September bringing the total first 9 months of 2020 to 221,036 tons. Compared to the same period in 2019, the quantity of exports has decreased by 12.370 tons, equivalent to a decrease of 5.3%, the price today is 20% higher compared with the same time in 2019.

However, the prices, still much lower than farmer expectations while labor cost/interest rate is increasing yearly, have put pressure on increased credit debt, which has pushed most farmers in key growing areas of Vietnam into a difficult situation. In the past few years, pepper prices have been low, many farmers no longer invest in and take care of pepper plantations as before. As a result, although the acreage of pepper has decreased only around 10 - 15% but many pepper plantations have been exhausted make decline in overall productivity. A significant decrease in output from Vietnam starting this year and continuing to happen next few more years could contribute to a sharp decrease in the global supply of pepper even crop size may increase in Brazil/India next year..

Last week, pepper demand globally was low, but the Vietnam pepper pricing continued to move sideways with little change. After a long holiday in the first week of October in China, we expect global demand to increase in the next 1 or 2 weeks for 4th quarter shipment.

Cambodia; According to statistics, pepper prices decreased from 9-10 USD/kg in 2016 to 2.5-3USD/kg in 2018 and only 1.5-2 USD/kg in 2019-2020. However, production cost is still at 2.59 USD/kg. For this reason, many pepper growers and pepper processors have cut down on labor, limited maintenance on farms and some have even given up growing pepper to switch to other products.

Indonesia; continued to offer black pepper at quite competitive prices, but the price of white pepper was still very high compared to the whole market at 4,100$ - 4,250$/MT despite some downward trend due to low demand.

 

Brazil; Still continuing to offer in line, the density of pepper lower than expected were reported from many different importers in Vietnam and not easy to offer BASTA quality at the moment.

 

Malaysia; black and white pepper recorded stability with a slight decrease, averaging at USD 2,418$/ton and 3,802$/ton, respectively

Sri Lanka; black pepper recorded an increase of 1% compared to last week, averaging at 3,140$/ton

Chinese; white pepper was stable with a slight increase and traded at an average rate of 4,100 USD/ton.

India; black pepper was reported with an increase of 2% compared to last week, averaging at 4,776 USD/ton. New crop 2021 we heard maybe better than 2020.

 

CHECK OUR OFFERS @
https://offers-peppertrade.blogspot.com/2020/10/vietnam-pepper-offer-october-2020.html

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.

 

MALAYSIA : Lower pepper production expected this year

 

KUCHING Monday, 28 Sep 2020

Malaysia’s pepper production is expected to drop by between 10% and 20% this year due mainly to poor farm maintenance.

Malaysian Pepper Board (MPB) director-general Stanley Liew anticipates the country’s 2020 production volume to fall to about 30,000 tonnes from between the 34,000 and 35,000 tonnes a year recorded previously.

“The lower production volume is because of poor farm maintenance.
“If you do not fertilise your pepper vines, this will affect productivity (yield) and the berries will not be good, ” he told StarBiz.

Pepper farmers in Sarawak, who contribute more than 95% of Malaysia’s production output, are currently into the tail-end of harvesting their new crop.
Also producing pepper are Johor and Sabah.

The harvesting activities, according to Liew, has been delayed this year due to the enforcement of the movement control order (MCO) to contain the spread of the Covid-19 pandemic in Malaysia.

Smallholders are reported to have reduced fertiliser input for their pepper gardens due to the prolonged depressed global pepper prices.

Kuching Grade 1 white pepper plunged to a recent low of about RM13,500 per tonne from a historical high of RM50,000 per tonne in 2016, while Grade 1 black pepper was down to RM7,500 per tonne from an all-time high of RM30,000 per tonne.

However, the prices have since recovered to RM14,700 per tonne for white pepper and RM8,250 per tonne for black pepper due to increasing demand.

The MPB, according to Liew, is paying about RM10 per kg (RM1,000 per tonne) ex-farm to purchase special grade black pepper from the planters.

Liew attributed the rebound in domestic prices to a recovery in the global market due to increased buying activities post-MCO.

To help smallholder pepper farmers, the government has approved RM16.11mil under its stimulus package for farm maintenance support.

The aid is disbursed via vouchers to farmers to buy fertiliser and farm tools.

Liew said the MPB is in the midst of distributing the vouchers nationwide to eligible farmers who together own about 5,370ha of pepper gardens.

To boost new planting, he said, MPB provides subsidies of RM26,000 per ha for two years to help smallholders to expand their farms.

Last year, the subsidy was for the establishment of 350ha of new planting, and for 2020, it is for 115ha.

“We encourage investors to venture into large-scale pepper planting.

“There are now two potential investors, including one from Japan, who are in several rounds of serious discussions on commercial planting with the pepper board, ” said Liew.

He said the MPB is currently drafting licensing and enforcement regulations to regulate, among others, the import and export of pepper to check abuse by unscrupulous businessmen.

“We will be guided by the Federal Attorney General Chamber in the draft of the licensing and enforcement regulations which only require the approval of the Plantation Industries and Commodities Minister as stipulated in the Malaysian Pepper Board Act 656. We are proposing penalties for the offenders, ” he added.

With gazetting expected early next year, the new regulations make it compulsory for companies to obtain a licence and report the import or export volumes of pepper and related matters to the MPB.

Sarawak Deputy Chief Minister and Minister of Modernisation of Agriculture, Native Land and Regional Development Datuk Amar Douglos Uggah Embas claimed last week that there were some unscrupulous traders who have of late been importing pepper from Vietnam and Indonesia and mixing them with the Sarawak Pepper brand and selling them as premium pepper for higher profits.

Uggah asked the MPB to be stringent to check such malpractices to ensure Sarawak Pepper remains a premium product.

Sarawak Pepper is known for its high quality globally and commands a premium price. There are a dozen pepper exporters in Sarawak.

Liew said there were more than 40 pepper agropreneurs in Sarawak who were involved in downstream activities, such as producing pepper powder, pepper packets as well as pepper soap and hand sanitisers.

Some of these value-added products are for the export market.

by JACK WONG
For https://www.thestar.com.my

 

   



 

INDIA:Subdued buying dampens festive spirit in cardamom trade

 



Kochi September 22, 2020

Restrictions on weddings and public events, dwindling demand in the north Indian markets, stagnant export markets hit traders

Despite the ensuing festival season, subdued buying of cardamom from upcountry markets has pushed the trading community in a precarious situation.
“What is happening now is only minimal trade with some specific orders which is not enough to tide over the crisis triggered by the pandemic,” sources in the sector told BusinessLine. The high labour cost and shortage of migrant labour from Theni due to Covid-19 restrictions has forced growers in Idukki to depend on labour that’s available in Kerala, which has increased costs by around 30 per cent, the sources said.

“September and October are considered a good time for a demand boost for cardamom from North Indian consuming markets. But the spread of Covid-19 has hit consumption due to restrictions on weddings, events, etc. Traders are in a dilemma on the dwindling demand, coupled with a stagnant export market due to the pesticide issue in Saudi Arabia,” PC Punnoose, CEO, CPMCS Ltd, said.
The labour shortage is affecting the harvest in Idukki, where 90 per cent of the country’s cardamom is grown. The delay is impacting the quality of capsules which now looks pale yellow in colour instead of flush green. Moreover, movement restrictions on labour affected the upkeep of plantations, as 40 per cent of cardamom plantations in Idukki are owned by farmers from the neighbouring state, he said.

As cardamom plantations are labour intensive, C Sadasivasubramaniam, Secretary, Kerala Cardamom Growers Association, urged the district administration to permit workers to travel from the borders to Idukki. The major threat to plants is the Azhukal disease that requires anti-fungal treatment. “When Kerala government permits free movement of workers through other district borders, why is the district administration in Idukki so adamant in denying such benefits here?” he asked.
“Cardamom capsules has to be plucked at 40-day intervals and any delay can lead to quality reduction, breaking of capsules and less setting for future rounds,” SB Prabhakar, cardamom planter, Pambadampara Estate, said.

The reduced demand in north Indian markets is contributing to a fall in prices; it dropped to ₹1,460 per kg, half of the previous year’s average. Copious amounts of rains in September in growing areas added to the bearish sentiment, he added.

Guatemala is expecting a good crop this season due to ideal weather and the prices are hovering at around $17. As prices in India have come down, the sector could export more to the Gulf nations, including Saudi, after resolving the pending issues, he said.
The auctioneers pointed out that the market is witnessing selling pressure as farmers are liquidating their stocks at auctions fearing a further price drop.

V Sajeev Kuma for:
www.thehindubusinessline.com

VIETNAM PEPPER MARKET UPDATE 21ST SEPTEMBER 2020 – WEEK 39

 

 

PEPPER;  Regarding to data of Vietnam Pepper Association, In August, Vietnam imported 2,550 tons pepper, valued at 4.5 million USD. Imports mainly come from Brazil, Indonesia and Cambodia.  In The first 8 months Vietnam imported 19,321 tons (black pepper reached 14,849 tons, white pepper reached 4,472 tons), the total import turnover reached 36.8 million USD, compared to the same period in 2019, the import volume decreased by 33.5%.

 

Market opening today slightly firmer from last week. Have inquiries from Middle East/ASIA/USA/EU covering fourth quarter 2020 both prompt & further shipment. The USA more interesting full year 2021 shipment but we heard processors hesitate and ask much higher than market price due to adding more interest rate, storage cost. Chinese slowly buying again but they will be starting a long holiday from 1st to 7th Oct. During second half Oct might be more demand from China to cover 4^th quarter shipment.​

 

 

 

 

 

IMPORT OF PEPPER BY SPAIN

 

IMPORT OF PEPPER BY SPAIN

Spain, officially the Kingdom of Spain, is located in Europe with its continental European territory situated on the Iberian Peninsula. Its territory also includes two archipelagoes: the Canary Islands off the coast of Africa, and the Balearic Islands in the Mediterranean Sea. Thus, making Spain the only European country to have a physical border with an African country (Morocco). Furthermore, Spain actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In 2018, Spain was reported to have imported a total 5,275 Mt of pepper which 90% or 4,753 Mt of it comprised of whole pepper while 10% or 523 Mt of it was ground pepper. The average import of pepper by Spain in 2018 was reported to be 440 Mt per month with the highest quantity recorded in April with 580 Mt. The total expenditure of pepper import by Spain was reported to be as high as USD 21.3 Million, recording an average price of the total pepper imported by Spain at USD 3,865 per Mt for whole pepper and USD 5,654 Per Mt for ground pepper.

Year 2019 saw an increasing trend in term of quantity of pepper imported by Spain. Spain was reported to have imported a total of 5,789 Mt which 80% or 4,628 Mt of it comprised of whole pepper and 20% or 1,161 Mt of it was ground pepper. Thus, recording an increase of 10% when compared to the same period in 2018. The average pepper imported by Spain was reported at 482 Mt per month which peaked in January with 566 Mt. Although increasing in terms of quantity, Spain's expenditure of pepper import was reported with a decrease of 15% to a total of USD 18.1 Million. Thus, recording an average price of the total pepper imported by Spain at USD 3,276 per Mt for whole pepper and USD 2,587 per Mt for ground pepper or a decrease by 15% and 54% respectively as compared to 2018.

As of May 2020, Pepper import by Spain was reported with an increase of 7% as compared to the same period in 2019, totaling at 2,708 Mt which comprised of 82% or 2,233 Mt of whole pepper and 18% or 474 Mt of ground pepper. The total expenditure of pepper import by Spain as of May 2020 was reported with a decrease of 7% when compared to the same period in the previous year, totaling at USD 7.5 Million. Thus, recording an average price of the total pepper imported by Spain at USD 2,694 per Mt for whole pepper and USD 3,169 per Mt for ground pepper.

The top five countries of origins of Spain's pepper as of May 2020 were reported to be Viet Nam with 1,085 Mt (an increase of 33% as compared to the same period in 2019), Brazil with 656 Mt (an increase of 56%), Indonesia with 207 Mt (an increase of 31%), Netherlands with 140 Mt (a decrease of 35%) and Belgium with 136 Mt (a decrease of 23%). The decreased of Spain import from Netherlands and Belgium could be contributed to Spain preference of importing from origins countries which offered more competitive price such as Viet Nam (an increase by 266 Mt as compared to the same period in 2019), Brazil (236 Mt) and Indonesia (49 Mt).

IPC MKT REPORT No. 38/20, 14 - 18 September 2020

 

 

MARKET REPORT

Market this week was reported positively. In local market, Malabar black pepper was reported with an increase of 2% as compared to the previous week to an average of USD 4,428 per Mt. Indonesia black and white peppers were reported with an increase of 3% and 2% respectively when compared to the previous week at an average of USD 1,951 per Mt for black pepper and USD 3,800 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the increase of demand while the stock was limited despite new product coming to the market. Malaysia black and white pepper were reported with an increase of 1% respectively as opposed to the previous week averaging at USD 2,420 per Mt for black pepper and USD 3,807 per Mt for white pepper. Furthermore, Viet Nam black and white peppers in local market were reported stable with a marginal increase, averaging at USD 2,013 per Mt for black pepper and USD 2,831 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 2% as compared to the previous week and was traded at an average of USD 3,123 per Mt while China white pepper was reported stable and unchanged.

International market showed with a similar positive outlook. India black pepper was reported with the same 2% increase as compared to the previous week at an average of USD 4,700 per Mt. Indonesia black and white pepper were reported with an increase of 2% respectively as opposed to the previous week at an average of USD 2,386 per Mt for black pepper and USD 4,457 per Mt for white pepper. Malaysia black and white pepper continued to be reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white peppers were reported with an increase of 1% respectively when compared to the previous week averaging at USD 2,500 Per Mt, USD 2,581 per Mt, and USD 4,020 per Mt respectively. China white pepper was reported stable and unchanged.