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Thursday, January 18, 2024
2024 starts with plenty of holidays
Vietnam - Lunar new year TET -from February 9th (Tet Eve) to February 14th, 2024.
Pepper exports rise in volume, fall in value
Pepper exports rise in volume, fall in value
While Vietnam's pepper export volumes soared by 16.6% to 267,000 tons in 2023, the value dropped by 6% to US$912 million, according to the Vietnam Customs.
The average export price of Vietnamese pepper, which constitutes 60% of global supply, dropped by 19.4% from the previous year, to US$3,420 per ton.
Black pepper made up 71.2% of Vietnam's exports, and white pepper comprised the remainder.
The U.S. remained the top purchaser of Vietnamese pepper, accounting for 23.5% of the total export value, followed by China 14.1%, India 5.4% and Germany 4.3%.
The U.S. decreased its pepper imports from India in favor of Vietnamese pepper, which is recognized for its favorable pricing and improving quality.
The Vietnam Pepper and Spice Association notes that Vietnamese pepper holds a competitive edge over other pepper-exporting nations such as Indonesia and India, bolstered by the European Union-Vietnam Free Trade Agreement, which has slashed the import tax on ground and crushed pepper to the EU to zero.
It is forecast Vietnam's pepper export will slow down because domestic supply is no longer abundant. The pepper inventory in 2024 will be at its lowest in many years.
This year’s pepper crop is projected to decrease by 10-15% to around 165,000 tons due to smaller cultivation areas and unfavorable weather conditions.
The average export price of Vietnamese pepper, which constitutes 60% of global supply, dropped by 19.4% from the previous year, to US$3,420 per ton.
Black pepper made up 71.2% of Vietnam's exports, and white pepper comprised the remainder.
The U.S. remained the top purchaser of Vietnamese pepper, accounting for 23.5% of the total export value, followed by China 14.1%, India 5.4% and Germany 4.3%.
The U.S. decreased its pepper imports from India in favor of Vietnamese pepper, which is recognized for its favorable pricing and improving quality.
The Vietnam Pepper and Spice Association notes that Vietnamese pepper holds a competitive edge over other pepper-exporting nations such as Indonesia and India, bolstered by the European Union-Vietnam Free Trade Agreement, which has slashed the import tax on ground and crushed pepper to the EU to zero.
It is forecast Vietnam's pepper export will slow down because domestic supply is no longer abundant. The pepper inventory in 2024 will be at its lowest in many years.
This year’s pepper crop is projected to decrease by 10-15% to around 165,000 tons due to smaller cultivation areas and unfavorable weather conditions.
By Hong Chau January 8, 2024 | 04:59 pm PT
IPC EXECUTIVE DIRECTOR'S MESSAGE FOR 2024
EXECUTIVE DIRECTOR'S MESSAGE
Bismillahirrahmanirrahim
My dearest International Pepper Community Friends and Family,
Assalammualaikum and Greetings from the IPC Secretariat!
As we have left behind another significant year of 2023 and welcome a new one with brand new hopes and goals, I am happy to extend my best wishes for the New Year. The arrival of a new year is always a time for reflection and anticipation with hope and excitement. 2023 was a year of reconnection and renewed collaboration.
I strongly believe that the coming year holds greater opportunities in terms of closer cooperation and deeper integration within the global pepper industry with a mounting role for our organization in light of changing international parameters. Thus, we express our deep gratitude to our Member Countries, Associate Members and stakeholders for their constant support and assistance to the activities of the International Pepper Community.
Taking this opportunity, together with all my colleagues at the IPC Secretariat, I sincerely wish for a happy and prosperous New Year for everyone across the globe. Having overcome the test of time over more than five decades of its establishment, IPC has become a dynamic organization and a force for good to be reckoned with in ensuring the sustainability of the global pepper industry.
After a lengthy period of virtual interactions, we joyfully resumed in-person meetings, a mode of engagement we all cherish. These include key IPC committee meetings, annual session and meetings and International Spice Exhibition, 51st IPC ASM ISE hosted by Malaysia. At the same time, we welcome our IPC Chairman for 2024, Sri Lanka and we will continue to embrace digitalization, with IPC projects offered in the online and hybrid modalities, reflecting our commitment to adaptability and inclusiveness.
Throughout my official meetings, visits and interactions with the pepper stakeholders, and high-level officials, I have been deeply inspired by numerous stories of progress. Those narratives are a compelling testament to the strength and vitality of the development of the global pepper industry. As we have entered 2024, I hope to build upon those achievements with a steadfast commitment to making our journey towards enhanced pepper supply and demand, prices, productivity, consumption, which are sustainable and accessible.
We have a lot of works ahead, but we also have an important opportunity here to choose a path for inclusive, equitable growth and forge a new tomorrow for the sustainability of global the pepper industry, wellbeing of our pepper smallholders and for our future generation. To seize this opportunity, we must continue to work together in solidarity or moving as one to bring the global pepper industry to greater heights, prosperous future for all. We at the IPC Secretariat look forward to working with all IPC Member Countries, Associate Members, other pepper producing countries and relevant internationals organizations and associations to do just that.
With the insightful words of Henry Ford, "Coming together is a beginning; keeping together is progress; working together is success", I extend my best wishes as we continue our global pepper industry journey, bringing greater prosperity to all in 2024! #togetherwearestronger
We truly appreciate your support to IPC and look forward to seeing you at IPC future events and programmes. Stay tuned, stay in touch, stay safe and take care!
Happy New Year!
Yours sincerely,
Ms. Firna Azura Ekaputri binti Haji Marzuki
Executive Director of IPC
Thursday, January 04, 2024
Pepper Vietnam: First sight of 2024 trend - UP !
The first glance at the 23/24 crop in Vietnam suggest a 10-15°/o smaller yield
Pepper prices continued to rocket over the past few weeks on speculation that new harvest yield will stumble.
Experts say that the source of goods for export is running out, along with forecasts of crop failure, pushing up pepper prices recently. Along with that, the weakening USD helps pepper prices increase.
Inventory and crop
As per our investigation in the pepper supply in Vietnam, one of the world's largest producers, it is dwindling due to low crop yields and reduced farming interest.
The current stock is estimated at only 6,000 to 10,000 tonnes, and the next harvest is expected to be around 140,000 - 150,000 metric tonnes, a significant drop from previous years.
Many farmers have shifted to other crops that offer more frequent and higher income, such as durians.
Other remaining plantation areas consist of many old trees which do not provide good yield. Another factor constituting to the lack of interest in pepper farming is the cost of fertilizers and labour.
Not only Vietnam but also the output of many pepper growing countries such as India and Brazil is forecast to be unfavorable due to the impact of the bad weather El Nino.
Meanwhile, in the first quarter of 2024, purchases from Western countries may accumulate at the same time due to depleted inventories. This will help push domestic pepper prices to continue to increase.
Export
According to preliminary statistics of VPA, in No vember 2023, Vietnam exported 20,273 tons, an in crease of 5.6% compared to October. In which, black pepper reached 17,641 tons, white pepper reached 2,545 tons. Total export turnover reached 78.1 mil- lion USD, black pepper reached 64.9 million USD, white pepper reached 12.8 million USD
Progressively from January 1, 2023 to November 30, 2023, Vietnam has exported 243,851 tons of pepper of all kinds, of which black pepper reached 218,299 tons, white pepper reached 25,552 tons. Total export turnover reached 828.9 million USD, black pepper reached 705.4 million USD, white pepper reached 123.5 million USD. Compared to the same period last year, export volume increased by 14.6%, but export turnover decreased by 11.7%. The average export price of black pepper in 11 months reached 3,571 USD/ton, white pepper reached 5,081 USD/ton.
The main export markets of Vietnam Pepper include China: 59,073 tons, accounting for 24.2%; United States: 48,059 tons, accounting for 19.7%; India: 11,801 tons, accounting for 4.8%; UAE: 10,861 tons, accounting for 4.5% and Germany: 8,448 tons, accounting for 3.5%. Main white pepper export markets are United States: 3,433 tons, Germany: 3,117 tons, China: 2,796 tons, Netherlands: 2,379 tons and Thailand: 2,153 tons.
Thursday, December 28, 2023
Cardamom prices show an increase, average price touches ₹1,858 a kg
Daily arrival for auctions is nearly 2 lakh kg and the average price is expected to touch around ₹2,000 a kg soon
December 28, 2023 - IDUKKI
THE HINDU BUREAU
After a four-month gap, cardamom prices started showing a positive trend, providing hope to farmers and vendors. Cardamom recorded an average price of ₹1,858 a kg on Thursday.
In the morning auction held by Mass Enterprises Limited, Vandanmedu, of the 1,08,018 kg arrived in 302 lots, 1,07,145 kg was sold at a maximum price of ₹2,742 a kg and average price of ₹1,858. At the evening auction held by Spice More Trading Company, Kumily, of the 82,647 kg that arrived in 241 lots, 82,426 kg was sold at a maximum price of ₹2,280 a kg and an average price of ₹1,783.
Johny Vattathara, managing partner of Spice More Trading Company, said that local and outside orders were behind the sudden increase in cardamom price. “The daily arrival of cardamom for auctions is nearly 2 lakh kg. Now the market is showing a positive trend and the average price is likely to touch ₹2,000 a kg soon,” said Mr. Vattathara.
According to Spices Board sources “the cardamom price increased around ₹200 a kg in three days. The sudden increase in price will be helpful to farmers. We are not sure how many days the present trend will continue.”
According to farmers, normally the first crop arrives at the market in July last week. Due to the absence of proper southwest monsoon rain, the crop season was delayed and there was a fall in production. After the robust northeast monsoon, the farmers expect average production.
Shaji Thakidipurath, a cardamom farmer and vendor at Pathumury in Kumily, said the price increase was expected to continue in the coming days. “The price increase will be helpful to cardamom farmers who stocked the produce,” he said.
Cardamom Planters Federation chairman Stany Pothen Nedumpuram said that following inadequate southwest monsoon, a fall in cardamom production was expected and the average price crossed ₹2,200 in the first week of August. “The price fell following good northeast monsoon. Most plantations received average crops and the harvest season may last till February,” he said.
Tuesday, December 19, 2023
AGAIN ? - Supply Chain Management Crisis coming back ?
Swiss-based MSC Mediterranean Shipping Co, the world's largest container shipping company, will stop using the Suez Canal after an attack on one of its ships, it said in a statement Saturday.
Yemen's Iranian-backed Houthi movement has in recent weeks been attacking vessels in the Red Sea — a crucial route allowing East-West trade, especially oil, to use the Suez Canal to avoid the extra time and expense of circumnavigating Africa.
The Liberian-flagged MSC Palatium III was attacked on Friday with a drone in the Bab al-Mandab Strait at the southern end of the Red Sea, according to the Houthis.
The MAERSK shipping line the second largest shipping line from Denmark and the Hapag-Lyod, the german shipping company also stopping their container vessels through the Suez canal passage.
Means we can expect huge delay in shipping to and from Europe. This can increase the freight cost also. This will affect the income for Egypt as the big fee they are collecting from each container ships.
Soaring demand and falling yields propel large cardamom price to double
Nepali traders expect the spice to break price records in the upcoming months.
Large cardamom prices have more than doubled in the last six months due to a sharp drop in production and growing international appetite for the prized spice.
Traders say that the price of large cardamom, one of the most expensive spices in the world, is heading upward. If the current trend continues, it is expected to break the price record in the coming months, traders say.
This week, the price of the spice reached Rs1,875 per kg in the market in Birtamod, Jhapa. It was at Rs925 per kg in June.
Khem Adhikari, a trader in Phidim of Panchthar, the eastern hill district, said that high-quality large cardamom is being traded at Rs1,875 per kg, while medium-quality spice is fetching Rs1,825 per kg.
The normal quality is being traded at Rs1,800 per kg.
Large cardamom is grown mainly in the eastern hills of Nepal, and Birtamod of Jhapa is a key trading town for the region's agricultural produce.
In 2014, large cardamom hit an all-time high of Rs2,500 per kg. Since then, prices had been going steadily downhill, sinking to a low of Rs700 per kg in mid-July.
Large cardamom is a high-value cash crop and a major source of income for farmers in the mountains and hills of eastern Nepal.
Despite the rise in prices, farmers, however, are not happy.
Madhu Raj Kurumbang, a large cardamom farmer in ward 8 of Phalelung rural municipality in Panchthar, said farmers are not getting fair prices for their produce. “Prices of the spice normally increase after farmers sell them.”
Large cardamom is harvested from mid-August to mid-November. At the start of the season this year, the spice was being traded at Rs1,250 per kg, according to the Federation of Large Cardamom Entrepreneurs Association of Nepal.
“The price of large cardamom has been soaring due to the decline in production in all three countries—Nepal, India and Bhutan,” said Nirmal Bhattarai, president of Large Cardamom Entrepreneurs’ Association of Nepal.
He said that Nepal’s large cardamom output has dropped by 60 percent year-on-year due to drought and pest problems.
“We expect that the price will reach Rs2,000 per kg within a few weeks.”
“There is a high demand in the international market following the low production,” said Bhattarai.
India is the biggest buyer of Nepal’s large cardamom, absorbing 99 percent of its exports. The spice is re-exported to Pakistan and the Middle East where it fetches high prices because of local preference for the Nepali product.
Pakistan is the largest importer of large cardamom, purchasing roughly 60 percent of India’s large cardamom exports. Large cardamom pods are used by the local Muslim community in biryani, a popular Pakistani dish, as a symbol of prosperity and wealth.
According to the Agriculture Ministry statistics, Nepal produced over 10,000 tonnes of large cardamom in the last fiscal year. In 2019-20, output was 9,545 tonnes, which dropped to 8,289 tonnes in 2020-21. In 2021-22, production rose slightly to 8,714 tonnes.
Nepal is the largest producer of large cardamom, accounting for 68 percent of the global production, followed by India and Bhutan.
Elsewhere in the region, the spice is grown in Sikkim, Darjeeling and Bhutan. Large cardamom was introduced in Ilam from Sikkim in 1865.
Ilam, Panchthar, Taplejung, Sankhuwasabha, Tehrathum, Bhojpur and Dhankuta districts are the major large cardamom-producing districts in Nepal.
Deepak Nepal, a large cardamom trader, said apart from India, demand from Bangladesh has been growing lately.
Nepali traders were also making efforts to export large cardamom to Bangladesh directly through the Kakarbhitta-Panitanki-Phulbari route. The three points are located in Nepal, India and the India-Bangladesh border respectively.
The 44-km route provides the shortest access to the Bangladeshi border point of Banglabandha for Nepal's trade with and through Bangladesh.
The large cardamom export increased by 71.94 percent year-on-year in the last fiscal year.
According to the Department of Customs, Nepal exported 9,990 tonnes of large cardamom worth Rs8.27 billion in the last fiscal year compared to 5,367 tonnes worth Rs4.81 billion in 2021-22.
Nepali large cardamom or black cardamom has a distinct flavour profile due to a specific method of postharvest drying in bhattis (ovens), which explains the roasted smell and taste.
The smoky flavour would overwhelm a sweet cake or pudding, but in a spice rub for roasted meat or a full-flavoured stew, it imparts a smouldering depth no other spice can, according to experts.
Laxmi Gautam
Published at : December 13, 2023
https://kathmandupost.com/money/2023/12/13/soaring-demand-and-falling-yields-propel-large-cardamom-price-to-double
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