Monthly Publication

PRICE HISTORY

Entering the second month of 2021, the price index of pepper was reported with a positive outlook. The price index of black pepper for February 2021 was reported with an increase by 2.2% at 41.63 points as compared to the previous month. Furthermore, the increase was reported even higher by 41% when compared with price index of black pepper in February 2020. Similar to black pepper, the price index of white pepper was reported with an increase by 3.9% to 44.54 points (Table 1) as compared to the previous month and recorded an increase by 39% when compared with the same month in 2020.

Composite prices of pepper in the second month of 2020 were also reported with a positive outlook as composite price of black pepper was reported with an increase by USD 68 per Mt to an average of USD 3,096 per Mt as compared to January 2021. Composite price of white pepper for February 2021 was reported with an even bigger increase of USD 171 per Mt when compared with January to an average of USD 4,608 per Mt (Table 2).

Pepper prices in the second month of 2021 showed a mixed response. The farm gate price of black pepper in India was reported stable, averaging at USD 4,483 per Mt (Table 3). In the local currency farm gate price of India (Malabar black pepper) was reported at an average of INR 326 per Kg or a slight increase of INR 22 as compared to the previous month.

The farm gate price of black pepper in Indonesia (Lampung black pepper) was reported with a decrease of 2% as opposed to January to an average of USD 2,440 per Mt. The price of Indonesia black pepper in local currency decreased to an average of IDR 34,263 per Kg from IDR 35,000 per Kg in January.

The farm gate price of Malaysia's black pepper for the 2nd month of 2021 was reported with an increase of 4% when compared to January, averaging at USD 2,482 per Mt. In local currency, the price of Malaysia black pepper increased to an average of MYR 10.0 per Kg from MYR 9.6 per Kg in January.

Farm gate price of black pepper in Viet Nam was reported with a slight decrease by 1% as compared to January, averaging at USD 2,201 per Mt. In local currency, the price of Viet Nam black pepper decreased to an average of VND 52,467 per Kg or a decrease of VND 57 per Kg when compared to the previous month.

The farm gate price of Sri Lankan black pepper was reported with 4% deficit as opposed to January and was reported at an average of USD 2,634 per Mt. The decrease of Sri Lanka price could partially be contributed to the 2% depreciation of Sri Lankan LKR towards US Dollar (LKR 194.07 @ US 1). Furthermore, Sri Lanka black pepper in local currency decreased to an average of LKR 510.69 per Kg from LKR 520.84 per Kg in January.

FOB price of black pepper for February 2021 showed a rather positive outlook with only Indonesian origin was reported with a decrease. The FOB price of Malabar black pepper from India was reported stable, averaging at USD 4,758 per Mt (Table 4). Furthermore, the FOB price of Indonesian black pepper was reported with the same decrease by 2% as opposed to January, averaging at USD 2,953 per Mt. FOB price of Malaysian black pepper was reported with an increase of 4% as compared to previous month, averaging at USD 3,815 per Mt. Furthermore, FOB price of Viet Nam black pepper 500 g/l and 550 g/l were reported with an increase of 3% respectively as compared to the previous month, averaging at USD 2,948 per Mt and USD 3,029 per Mt respectively.

Farm gate prices of white pepper in February 2021 showed a rather positive outlook with only China recording a decrease (Table 5). Contrary to black pepper, Indonesian Muntok white pepper was reported with an increase of 5% as compared to the previous month to an average of USD 4,434 per Mt. The increase of Indonesia white pepper could be contributed to the depleted stock in local market. In local currency, the price of Muntok white pepper was reported at an average of IDR 62,263 per Kg from IDR 59,500 per Kg in January. Farm gate price of Malaysia white pepper was reported with an increase of 2% as opposed to January at an average of USD 3,950 per Mt. Furthermore, Viet Nam white pepper was also reported with an increase of 2% when compared to the previous month, averaging at USD 3,112 per Mt. In local currency, the price of Viet Nam white pepper was reported at an average of VND 74,500 per Kg, an increase of VND 2,000 per Kg when compared to the previous month. China white pepper was reported with 2% deficit as compared to January and was traded at an average of USD 4,875 per Mt in domestic market.

Similar to local market, FOB price of white pepper showed a rather positive outlook with the exception of China. FOB price of Indonesian white pepper for February was reported with an increase of 5% when compared to the previous month, averaging at USD 5,177 per Mt. FOB price of Malaysian white pepper was also reported with an increase of 5% when compared to January and was traded at an average of USD 5,205 per Mt. Furthermore, FOB price of Viet Nam white pepper was reported with an increase of 3% when compared to the previous month at an average of USD 4,553 per Mt. China white pepper was reported with the same 2% deficit when compared to January and was traded at an average of USD 5,075 per Mt internationally (Table 6).

Entering the second year and two months of the global pandemic, FOB price of peppers in comparison between February 2020 and February 2021 showed an increasing trend as only FOB price of Malaysia white pepper was reported with a decrease. India black pepper in February 2021 was reported with an increase of 2% as compared to the same period in 2020 to an average of USD 4,760 per Mt. Indonesia black and white pepper were reported with an increase of 37% and 39% respectively as compared to February 2020, averaging at USD 2,953 per Mt for black pepper and USD 5,177 per Mt for white pepper. Malaysia black pepper was reported with an increase of 3% as compared to February 2020, averaging at USD 3,813 per Mt. Whilst, Malaysia white pepper was reported with 1% deficit as compared to the same period in 2020 to an average of USD 5,203 per Mt. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 51%, 48% and 49% respectively as opposed to the same period in 2020 to an average of USD 2,962 per Mt, USD 3,043 per Mt and USD 4,570 per Mt respectively. FOB price of China white pepper was traded at an average of USD 5,075 per Mt (Table 7).

HIGHLIGHT ON VIET NAM

Production and Productivity

Viet Nam known as the number one producer and exporter of pepper in the world with pepper cultivation areas in Central Highland such as Dak Lak Province (Contributed to 26% of Viet Nam's total area under pepper cultivation), Dak Nong Provinces (23%) and Gia Lai Province (8%). Furthermore, pepper cultivation areas in Southern East of Viet Nam are Dong Nai Province (13%), Binh Phuoc Province (12%), and Ba Ria - Vung Tau Provinces (9%). Whilst, other provinces contribute to 9% for pepper cultivation area in Viet Nam.

During 2010-2020 the area under pepper cultivation in Viet Nam had increased gradually. Between 2010-2017, area under pepper cultivation in Viet Nam saw an increase of 116% to a total of 110,000 Ha from 51,000 Ha in 2010. The area under pepper cultivation in Viet Nam decreased from 2017 to 2018 by 9% to a total of 100,011 Ha. The area under pepper cultivation in Viet Nam in 2019 resumed its increasing trend by recording an increase of 15% to a total of 115,000 Ha (Table 1). Furthermore, in 2020 the area under pepper cultivation in Viet Nam was estimated to increase by 13% as compared to 2019 to total of 130,000 Ha. For 2021, the area under pepper cultivation in Viet Nam was projected to decrease by 4% as compared to the previous year to around 125,000 Ha.

Viet Nam production of pepper during 2010-2019 was reported fluctuating with a rather positive trend. In the course 10 years since 2010 pepper production in Viet Nam was reported to have recorded an increase of 136% as it recorded a total of 260,000 Mt in 2019 which comprised of 239,200 Mt of black pepper and 20,800 Mt of white pepper. The highest production of Viet Nam pepper in the course of 10 years between 2010-2019 was reported in 2019 with 260,000 Mt whilst the lowest production occurred in 2010 with 110,000 Mt. However, in the year 2020 production of Viet Nam pepper was estimated to decrease by 8% when compared with 2019 to a total of 240,000 Mt which comprised of 216,000 Mt of black pepper and 24,000 Mt of white pepper. Furthermore, in 2021 Viet Nam pepper production was projected to continue decreasing by 8% when compared to 2020 to a total of 220,000 Mt. The decrease of Viet Nam pepper production could be contributed to the unfavorable weather such as typhoon and flood in Viet Nam Central. Furthermore, the supply chain was disrupted because of lockdown due to Covid-19 Pandemic, high cost for pepper plantation and upkeep as well as low pepper price and other external variables.

Pepper productivity in Viet Nam in the course of 10 years between 2010-2019 was reported to fluctuate with a rather positive outlook. During 2010-2019, the lowest pepper productivity in Viet Nam was reported in 2015 with 1,251 Kg per Ha while the highest productivity was reported in 2018 with 2,300 Kg per Mt. The biggest decrease of pepper productivity in Viet Nam was reported to occur in 2015 as it recorded a 28% loss when compared with the previous year. Whilst, the biggest increase of pepper productivity was reported in 2018 which recorded a 26% increase as opposed to the previous year. For the year 2020, Viet Nam pepper productivity was estimated with a decrease by 18% as opposed to 2019 to 1,846 Kg per Ha. Whilst, in 2021 Viet Nam pepper productivity was projected with a decrease by 5% to 1,760 Kg per Ha (Chart 1) as compared with 2020.

Pepper Export from Viet Nam

Beside known as the largest pepper producer in the world, Viet Nam is also known as the largest pepper exporter in the world. Since 2010 until 2020 there had been a significant increase of 142% or 165,602 Mt in the quantity of pepper exported from Viet Nam which was mainly dominated with black pepper as it on average contributed to 86% of the total export figures (Table 9). In the course of 11 years, the highest pepper export occurred in 2019 with 287,003 Mt whilst the lowest export occurred in 2012 with 116,842 Mt. In 2020, pepper export from Viet Nam was reported at 282,474 Mt which comprised of 251,489 Mt of black pepper and 30,985 Mt of white pepper. Thus, recording a slight decrease of 2% as opposed to the previous year. As of February 2021, pepper export from Viet Nam was reported at 30,136 Mt which comprised of 26,102 Mt of black pepper and 4,034 Mt of white pepper. Thus recording a decrease of 26% as compared to the same period in 2020.

The number of pepper exports from Viet Nam had reportedly fluctuated in the last 14 months. The total export by Viet Nam in the past 14 months was reported at 312,610 Mt with total value as high as USD 741.2 Million. The average pepper export from Viet Nam was reported to be 22,329 Mt per month. The highest pepper export of Viet Nam occurred in March 2020 which reached 40,179 Mt whilst the lowest was reported in February 2021 with only 13,376 Mt (Table 10). The high level of exports during March 2020 correlated to the significant increase of China's pepper demand after China's lockdown ended.

Pepper from Viet Nam is exported to various countries around the world (Table 11). During January 2020 - February 2021, the top 10 country of destinations for Viet Nam pepper were reported to be United States of America with 62,639 Mt (Contributed to 20% of Viet Nam's total pepper export During January 2020-February 2021), China with 60,209 Mt (19%), United Arab Emirates with 14,795 Mt (4.7%), India with 14,256 Mt (4.6%), Germany with 11,993 Mt (4%), Pakistan with 10,997 Mt (3.5%), Egypt with 9,493 Mt (3%), Netherlands with 8,893 Mt (2.8%), Philipiness with 7,741 Mt (2.5%) and United Kingdom with 6,460 (2%).

Pepper Import by Viet Nam

Besides known as the largest pepper exporter in the world, Viet Nam also imports pepper from other origins. In 2020, Viet Nam was reported to have imported a total 39,846 Mt of pepper which 81% or 32,134 Mt of it comprised of black pepper while 19% or 7,712 Mt of it was white pepper. The average import of pepper by Viet Nam in 2020 was reported to be 3,321 Mt per month with the highest quantity recorded in October with 6,170 Mt (table 12).

As of February 2021, pepper import by Viet Nam was reported with an increase of 14% as compared to the same period in 2020, totaling at 5,313 Mt which comprised of 66% or 3,521 Mt of black pepper and 34% or 1,792 Mt of white pepper (table 13).

The top five countries of origins of Viet Nam's pepper as of February 2021 were reported to be Brazil with 2,299 Mt (a decrease of 11% as compared to the same period in 2020), Indonesia with 2,243 Mt (an increase of 48%), Malaysia with 142 Mt (a decrease of 25%), Cambodia with 126 Mt (2020 n.a) and Spain with 108 Mt (2020 n.a).

Pepper Price

FOB price of Viet Nam pepper showed an increasing trend in the past three years. In 2019, the average FOB price for Viet Nam black pepper 500 g/l was reported at USD 2,253 per Mt with the highest price recorded in January with USD 2,393 per Mt whilst the lowest price was reported in February with USD 2,148 per Mt. Whilst, the average FOB price for Viet Nam black pepper 550 g/l was reported at USD 2,341 per Mt with the highest prices recorded in January with USD 2,613 per Mt whilst the lowest price was reported in May with USD 2,232 per Mt. Furthermore, the average FOB price for Viet Nam white pepper was reported at USD 3,361 per Mt with the highest prices recorded in January with USD 3,783 per Mt whilst the lowest price was reported in August with USD 2,842 per Mt.

In 2020, the average FOB price of Viet Nam black pepper 500 g/l, 500 g/l and Viet Nam white pepper were reported with an increase of 6%, 5% and 10% respectively when compared to the previous year. The average FOB price of Viet Nam black pepper 500 g/l was reported at USD 2,397 per Mt with the highest price recorded in December with USD 2,838 per Mt whilst the lowest price occurred in February with USD 1,964 per Mt. Furthermore, the average FOB price of Viet Nam black pepper 550 g/l was reported at USD 2,468 per Mt with the highest price recorded in December with USD 2,919 per Mt whilst the lowest price occurred in February with USD 2,060 per Mt. In addition, the average FOB price of Viet Nam white pepper was reported at USD 3,708 per Mt with the highest price recorded in December with USD 4,408 per Mt whilst the lowest occurred in April with USD 3,010 per Mt.

As of February 2021, the average FOB price of Viet Nam black pepper 500 g/l, 550 g/l and Viet white pepper was reported at USD 2,905 per Mt, USD 2,986 per Mt and USD 4,498 per Mt respectively, thus recording an increase of 35%, 34% and 37% respectively as compared to the same period in 2020 (Table 14).

Source:
• Brazil, Unofficial source (Coreimex, CSG Trade)
• India: AISEF, NCDEX, Indian Chamber of Commerce & Industry
• Indonesia: Unofficial source
• Sri Lanka: Sri Lankan Pepper Board
• Sri Lanka: Department of Export Agriculture
• Viet Nam : Viet Nam Pepper Association, HCMC
• China: Hainan Pepper Association, China Spice Association
• International Trade Centre (ITC) - Geneva

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 have been processed based on statistical norms that can be accounted for.