Cloves Indonesian Crop

Indonesian Clove is gradually taking the centerstage while Madagascar offers are getting fewer by the day.
After three years of crop failure, it looks like this year we should witness a reasonably good crop.
There were about 4 months of extreme summer, with temperature touching almost 40 degrees Celsius. Thereafter, rains have started past one month. This could be an ideal situation for a good crop.
In a month or so, we should start getting fresh arrivals.
Crop is localized, to the extent that while one village has harvest, the adjacent one does not have one. Hence, it is difficult to say at this point what will be the total crop. And for sure the levels will not go down to that of 2020.

Price indication around U$ 9,500

Soumen Pt. Mahalaya Agri Corp Surabaya, Indonesia 

Brazilian Pepper - Super Hot weather treaten Espirito Santo production

 

Pepper behemoth Phuc Sinh valued at $320M by European fund

Phuc Sinh, Vietnam’s largest pepper exporter, has been valued at US$320 million and will receive funding from a European investor this month to build two large coffee processing plants.

Its chairman, Phan Minh Thong, said late last year his company signed a deal for the investment from the fund.

The fund will also help the corporation achieve sustainable agriculture and enhance brand recognition, creating a premise for an overseas IPO. Thong said Phuc Sinh has an annual turnover of around $300 million and over 100 export markets.

Phuc Sinh said it has had an 8% share of the world pepper market since 2007.

Recently the firm entered the coffee industry with exports mainly to Europe. It has a coffee plant each in the Central Highlands province of Dak Lak and northern Son La Province with a total capacity of 30,000 tons per year.

Phuc Sinh also runs the K Coffee cafe chain, which it opened with 10 stores in 2023.

According to agricultural export support portal SFV-Export, Phuc Sinh remained to lead Vietnam’s leading spice exporter with a growth rate of 18% in 2023.

2024 starts with plenty of holidays

 

|See the holidays to plan your agenda:

Vietnam - Lunar new year TET -from February 9th (Tet Eve) to February 14th, 2024.

Brazil - Carnival festival Feb 9th - Feb 14th

Muslim RAMADAN March 11th

Muslim Eid April 9th

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.

By Hong Chau January 8, 2024 | 04:59 pm PT

Pepper exports rise in volume, fall in value - VnExpress International

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

Pepper Vietnam: First sight of 2024 trend - UP !

 

Pepper price and export volume increase in the last month sug­gests a potential shortage of sup­ply.

.
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.