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PRICE HISTORY

In November 2019, price index was reported negative. Price index for black pepper was reported with a marginal decrease of 0.1% as compared to the previous month at 33.48 point (Table 1). When comparing with the same period in 2018, price index for black pepper experienced 12% loss. Price index for white pepper was reported with bigger loss of 1.6% as compared to October 2019. Reported at 34.97, price index for white pepper experienced a 14% loss when compared with the same period in 2018.

Table 1. IPC Price Index (Base price: Average 2011-2015)

The 11th month of 2019 showed a negative outlook for composited price of black and white pepper. Though seems relatively stable composite price of black pepper was reported marginally lower by 0.1% as compared with the previous month and was reported at USD 2, 491 per Mt (Table 2). Losing USD 60 per Mt, composite price of white pepper was reported with 1.6% lower when compared with the previous month at USD 3,619 per Mt.

Table 2. Composite Price of Black and White Pepper (US$/Mt)

Pepper prices in 11th month of 2019, showed a mixed response with Sri Lanka origin recorded the highest increase as opposed to the previous month. The farm gate of black pepper in India was reported stable at an average of USD 4,427 per Mt (Table 3). In the local currency farm gate price of India black pepper was traded at an average of INR 320 per Kg. The price of black pepper in Indonesia (Lampung black pepper) was also reported steady and unchanged as farmers continued to hold on to their product waiting for a higher price, in local currency farm gate price of Indonesia black pepper was at an average of IDR 23,000 per Kg.

In November 2019 tough the Malaysian Ringgit strengthened against US Dollar, the farm gate price of black pepper in Malaysia was reported with a deficit at an average of USD 1,948 per Mt which was the lowest ever in 2019, recording a deficit by 3% as compared to October 2019. The farm gate price of black pepper Malaysia in the local currency dropped to an average of MYR 8.0 per Kg from MYR 8.3 per Kg in October 2019.

Farm gate price of black pepper in Viet Nam for November 2019 was reported to have increased by 1% as opposed to previous month averaging at USD 1,718 per Mt. Whilst, Sri Lanka black pepper was reported to climb back up with a significant increase by 17% as opposed to the previous month and was reported at an average of USD 2,992 per Mt.

Table 3. Farm Gate Prices of Black Pepper (US$ per Mt)

FOB price of black pepper showed relatively no movement as all origins were reported stable. India was reported stable at an average of USD of 4,707 per Mt (Table 4). Furthermore, the FOB price of black pepper in Indonesia was also reported stable averaging at USD 2,036 per Mt. Contrary to the farm gate level, FOB price of Malaysian black pepper was reported stable at an average of USD 3,685 per Mt. furthermore, FOB price of Viet Nam black pepper 500 g/l and 550 g/l were reported steady with an average of USD 2,280 per Mt and USD 2,345 per Mt respectively.

Table 4. FOB Prices of Black Pepper (US$ per Mt)

Farm gate prices of white pepper from most origins showed negative outlook (Table 5) with only Viet Nam was reported stable. As Indonesian harvest of Muntok white pepper came to an end, Muntok white pepper was reported with a 3% decrease as compared to the previous month and was traded at an average of USD 3,193 per Mt. In local currency, the price of Muntok white pepper decreased to an average of IDR 44,595 per Kg from IDR 46,609 per Kg in October 2019. Farm gate price of Malaysia white pepper was reported with a deficit of 2% as compared with the previous month and was traded at an average of USD 3,454 per Mt. Furthermore, Viet Nam white pepper was reported stable at an average of USD 2,628 per Mt. Whilst, China white pepper was traded with a 1% deficit as opposed to the previous month at an average of USD 4,557 per Mt.

Table 5. Farm Gate Prices of White Pepper (US$ per Mt)

FOB price of white pepper showed a mixed response. FOB price of Indonesia white pepper for November 2019 was reported with a deficit by 3% when compared to October 2019 and was reported at an average of USD 3,792 per Mt. Furthermore, FOB price of Malaysia white pepper continued to be reported stable and unchanged. FOB price of Viet Nam white pepper was also reported stable averaging at USD 3,430 per Mt. Whilst, FOB price of white pepper in China was reported with a deficit by 1% when compared to the previous month and was traded at an average of USD 4,757 per Mt (Table 6).

Table 6. FOB Prices of White Pepper (US$ per Mt)

Highlight on Farm Gate and FOB Pepper Price 2017-2019

Farm gate and FOB price of both black and white pepper in pepper producing countries during 2017 - 2019 showed a negative outlook. During that period China was reported to have recorded the highest price for its FOB price white pepper with USD 11,066 per Mt in January 2017.

India

Farm Gate Price

India black pepper globally known as Malabar black pepper, during 2017-2019 the farm gate price of India black pepper was reported gradually decreasing, in 2017, the annual average farm gate price of India black pepper was reported at USD 7,771 per Mt with the highest price occurred in January with USD 9,602 per Mt whilst the lowest price occurred in November with USD 6,296 per Mt. In December 2017, the average farm gate price of India black pepper was USD 6,402 per Mt thus recording a 33% deficit as compared to January 2017.

Year 2018 continued to show a decreasing trend. The annual average farm gate price of India black pepper was reported with a deficit by 30% when compared with 2017 and was reported at an average of USD 5,471 per Mt with the highest price occurred in January with USD 6,593 per Mt whilst the lowest price occurred in July with USD 4,863 per Mt. At the end of 2018, the average farm gate price of India black pepper was USD 5,194 per Mt, thus, recording a 21% deficit as compared to the beginning of 2018.

As of November 2019, farm gate price of India black pepper continued its decreasing trends. The 11-months average farm gate price of India black pepper was reported with a 14% deficit as compared to the same period in 2018 with the highest price occurred in June with USD 4,990 per Mt whilst the lowest price occurred in October with USD 4,385 per Mt. in the 11th month of 2019, the farm gate price of India black pepper was USD 4,481 per Mt thus recording of 9% deficit as compared to January 2019 (Table 1).

FOB

Furthermore, FOB price of India black pepper also showed negative outlook. In 2017, the annual average FOB price of India black pepper was USD 7,965 per Mt with the highest price recorded in January with USD 9,793 per Mt whilst the lowest price was reported in November with USD 6,498 per Mt. At the end of 2017, the FOB price of India black pepper was reported at an average of USD 6,607 per Mt, thus, recording a 33% deficit as compared to the beginning of 2017.

Year 2018 showed a decreasing trend, the annual average FOB price India black pepper was reported with a deficit by 28% when compared to 2017 and was reported at an average of USD 5,703 per Mt. The highest price was reported in January with USD 6,807 per Mt whilst the lowest price was reported in July with USD 5,010 per Mt. At the end of 2018, the average FOB price was reported at USD 5,468 per Mt, thus, recording a 20% deficit as compared to the beginning of 2018.

As of November 2019, FOB price of India black pepper continued its decreasing trends as the average FOB price for 11 months was reported with a 12% deficit as compared to the same period in 2018. The highest price was reported in June with USD 5,278 per Mt whilst the lowest price was reported in October with USD 4,666 per Mt. In the 11th month of 2019, the FOB price of India black pepper was at USD 4,761 per Mt, thus, recording a 9% deficit as compared to January 2019 (Table 2).

Table 1. Average Farm Gate Price of India Black Pepper (USD/MT)

Table 2. Average FOB Price of India Black Pepper (USD/MT)

Chart 1

Indonesia

Farm Gate Price

In the period between 2017 - 2019, farm gate price of Indonesia black pepper globally known as Lampung black pepper and Indonesia white pepper known as Muntok white pepper, were reported gradually decreasing. In 2017, the annual average farm gate price of Indonesia black pepper was reported at USD 4,190 per Mt with the highest price recorded in January with USD 5,683 per Mt whilst the lowest price recorded in December with USD 3,197 per Mt. The annual average farm gate price of Indonesia white pepper was USD 6,672 per Mt with the highest price occurred in January with USD 9,222 per Mt whilst the lowest price occurred in November with USD 4,760 per Mt. At the end of 2017, the average farm gate price of Indonesia black and white pepper was reported at USD 3,197 per Mt and USD 5,316 per Mt respectively, thus, recording a 44% and 42% deficit respectively as compared to the beginning of 2017.

Year 2018 showed a decreasing trend with the annual average farm gate price of Indonesia black pepper was reported with a deficit of 39% when compared to 2017. Recording an average of USD 2,537 per Mt with the highest price reported in January with USD 3,094 per Mt whilst the lowest price reported in September with USD 2,062 per Mt. Similar to black pepper, the annual average farm gate price of Indonesia white pepper was reported with a deficit by 40% when compared to 2017. Recording an average of USD 4,009 per Mt with the highest price reported in January with USD 4,817 per Mt whilst the lowest price reported in August with USD 3,530 per Mt. At the end of 2018, the average farm gate price of Indonesia black and white pepper was reported at USD 2,297 per Mt and USD 3,622 per Mt respectively. Thus, recording a 26% and 25% deficit respectively as compared to the beginning of 2018.

As of November 2019, farm gate price of Indonesia black and white pepper continued to be recorded negatively as the average farm gate price of Indonesia black pepper for 11 months was reported with a deficit by 22% when compared to the same period in 2018 and was reported at an average of USD 1,994 per Mt. The highest price was reported in January with USD 2,320 per Mt whilst the lowest price was reported in November with USD 1,635 per Mt. Similar to black pepper, the 11 months average farm gate price of Indonesia white pepper was reported with a deficit by 15% when compared to the same period in 2018 and was reported at an average of USD 3,453 per Mt. The highest price was reported in January with USD 3,664 per Mt whilst the lowest price was reported in November with USD 3,170 per Mt. in the 11th month of 2019, the average farm gate price of Indonesia black and white pepper was reported at USD 1,635 per Mt and USD 3,170 per Mt respectively. Thus, recording a 30% and 13% deficit respectively as compared to January 2019 (Table 3).

FOB

Furthermore, FOB price of Indonesia black and white pepper trend also showed negative outlook. In 2017, the annual average of FOB price of Indonesia black pepper was reported at USD 5,322 per Mt with the highest price recorded in January with USD 7,200 per Mt whilst the lowest price recorded in December with USD 4,052 per Mt. The annual average FOB price for white pepper was reported at USD 7,828 per Mt with the highest price recorded in January with USD 10,800 per Mt whilst the lowest price recorded in November with USD 6,000 per Mt. At the end of 2017, the average FOB price of Indonesia black and white pepper was reported at USD 4,052 per Mt and USD 6,095 per Mt respectively. Thus, recording the same 44% deficit respectively as compared to the beginning of 2017.

Year 2018 showed a decreasing trend, the annual average FOB price of Indonesia black pepper was reported with a deficit by 40% when compared to 2017. Recording an average of USD 3,180 per Mt with the highest price recorded in January with USD 3,826 per Mt whilst the lowest price recorded in September with USD 2,713 per Mt. Similar to black pepper, the annual average FOB price of Indonesia white pepper was reported with a deficit by 38% when compared to 2017. Thus, recording an average of USD 4,838 per Mt and the highest price recorded in January with USD 5,759 per Mt whilst the lowest price recorded in September with USD 4,250 per Mt. At the end of 2018, the average FOB price of Indonesia black and white pepper was USD 2,786 per Mt and USD 4,261 per Mt respectively. Thus, recording a 27% and 26% deficit respectively as compared to the beginning of 2018.

As of November 2019, the FOB price of Indonesia black and white pepper continued its decreasing trends. The average FOB price of Indonesia black pepper for 11 months was reported with a deficit of 24% when compared to the same period in 2018 at an average of USD 2,442 per Mt. The highest price was reported in January with USD 2,815 per Mt whilst the lowest price recorded in November with USD 2,034 per Mt. Similar to black pepper, the average FOB price of Indonesia white pepper for 11 months was reported with a deficit of 17% when compared to the same period in 2018 at an average of USD 4,078 per Mt with the highest price recorded in January with USD 4,315 per Mt whilst the lowest price recorded in November with USD 3,766 per Mt. in the 11th month of 2019, the average FOB price of Indonesia black and white pepper was reported at USD 2,034 per Mt and USD 3,766 per Mt respectively. Thus, recording a 28% and 13% deficit respectively as compared to January 2019 (Table 4).

Table 3. Average Farm Gate Price of Indonesia Black and White Pepper (USD/MT)

Table 4. Average FOB Price of Indonesia Black and White Pepper (USD/MT)

Chart 2

Malaysia

Farm Gate Price

In the period of 2017 - 2019, the farm gate price of Malaysia pepper globally known as Sarawak pepper was reported gradually decreasing. In 2017, the annual average farm gate price for black pepper was USD 3,789 per Mt with the highest price recorded in February with USD 4,606 per Mt whilst the lowest price was reported in July with USD 2,815 per Mt. The annual average farm gate price of Malaysia white pepper was USD 6,038 per Mt with the highest price recorded in February with USD 7,559 per Mt whilst the lowest price was reported in December with USD 4,951 per Mt. At the end of 2017, the average farm gate price of Malaysia black and white pepper was reported at USD 3,286 per Mt and USD 4,951 per Mt respectively. Thus, recording a 25% and 29% deficit respectively as compared to the beginning of 2017.

Year 2018 showed a negative outlook. The annual average farm gate price of Malaysia black pepper was reported with a deficit by 33% when compared to 2017 at an average of USD 2,550 per Mt. The highest price was reported in February with USD 3,427 per Mt whilst the lowest price recorded in October with USD 1,809 per Mt. Similar to black pepper, the annual average farm gate price of Malaysia white pepper was reported with a deficit by 31% when compared to 2017 at an average of USD 4,194 per Mt. The highest price recorded in February with USD 5,163 per Mt whilst the lowest price recorded in October with USD 3,373 per Mt. At the end of 2018, the average farm gate price of Malaysian black and white pepper was reported at USD 2,212 per Mt and USD 3,745 per Mt respectively. Thus, recording a 35% and 27% deficit respectively as compared to the beginning of 2018.

As of November 2019, farm gate price of Malaysia black and white pepper continued its decreasing trend. The average farm gate price of Malaysia black pepper for the 11 months was reported with a deficit by 13% when compared to the same period in 2018 at an average of USD 2,238 per Mt. The highest price was reported in July with USD 2,438 per Mt whilst the lowest price was reported in November with USD 1,937 per Mt. Similar to black pepper, the average farm gate price of Malaysia white pepper for the 11 months was reported with a deficit by 11% when compared to the same period in 2018 at an average of USD 3,762 per Mt. The highest price was reported in July with USD 3,920 per Mt whilst the lowest price recorded in November with USD 3,442 per Mt. In the 11th month of 2019, the average farm gate price of Malaysia black and white was USD 1,937 per Mt and USD 3,442 per Mt respectively. Thus, recording a 15% and 10% deficit respectively as compared to January 2019 (Table 5).

FOB

Furthermore, FOB Price of Malaysian black and white pepper in the year 2019 was reported with a better outlook as compared with the farm gate price. As of November 2019, the average FOB price of Malaysia black pepper for the 11 months was reported at an average of USD 3,362 per Mt with the highest price firstly recorded in July at an average of USD 3,685 per Mt which remained stable until November and the lowest prices was reported in January with USD 3,004 per Mt. The average FOB price of Malaysia white pepper for the 11 months was reported at an average of USD 4,929 per Mt with the highest price was firstly recorded in July at an average of USD 5,275 per Mt which remained stable until November and the lowest price was reported in May at an average of USD 4,550 per Mt .In the 11th month of 2019, the average FOB price of Malaysia black and white pepper was USD 3,685 per Mt and USD 5,275 per Mt respectively. Thus, recording an increase of 23% and 16% respectively when compared to January 2019 (table 6).

Table 5. Average Farm Gate Price of Malaysia Black and White Pepper (USD/MT)

Table 6. Average FOB Price of Malaysia Black and White Pepper 2019 (USD/MT)


*due to insufficient data FOB Prices 2017 and 2018 were unable to be analysed

Chart 4

Chart 5

Sri Lanka

Farm Gate Price

Farm gate price Sri Lanka black pepper during 2017-2019 was reported gradually decreasing. In 2017, the annual average farm gate price of Sri Lanka black pepper was reported at USD 5,448 per Mt with the highest price was reported in February with USD 7,237 per Mt whilst the lowest price recorded in December with USD 3,659 per Mt. At the end of 2017, the average farm gate price of Sri Lanka black pepper was reported at USD 3,659 per Mt. Thus, recording a 49% deficit as compared to the beginning of 2017.

Year 2018 showed a decreasing trend, the annual average farm gate price of Sri Lanka black pepper was reported with a deficit by 31% when compared to 2017 at an average of USD 3,776 per Mt. The highest price was reported in September with USD 3,976 per Mt whilst the lowest price recorded in July with USD 3,356 per Mt. At the end of 2018, the average farm gate price of Sri Lanka black pepper was reported at USD 3,741 per Mt. Thus, recording 3% deficit as compared to the beginning of 2018.

As of November 2019, farm gate price of Sri Lanka black pepper continued its decreasing trend. The average farm gate price of Sri Lanka black pepper for the 11 months was reported with a deficit by 21% when compared to the same period in 2018 at an average of USD 2,978 per Mt. The highest price was reported in March and April with USD 3,413 per Mt whilst the lowest price recorded in September with USD 2,409 per Mt. In the 11th month of 2019, the average farm gate price of Sri Lanka black pepper was reported at USD 3,063 per Mt. Thus, recording a 3% deficit as compared to January 2019 (Table 7).

Table 7. Average Farm Gate Price of Sri Lanka Black Pepper (USD/MT)

Chart 6

Viet Nam

Farm Gate Price

During 2017-2019, farm gate price of Viet Nam black and white pepper was reported gradually decreasing. In 2017, the annual average farm gate price of Viet Nam black pepper was reported at USD 4,069 per Mt with the highest price recorded in January with USD 5,789 per Mt whilst the lowest price recorded in December with USD 3,324 per Mt. The annual average farm gate price of Viet Nam white pepper was reported at USD 5,902 per Mt with the highest price was reported in January with USD 7,918 per Mt whilst the lowest price was reported in November and December with USD 5,166 per Mt. At the end of 2017, the average farm gate price of Viet Nam black and white pepper was reported at USD 3,324 per Mt and USD 5,166 per Mt respectively. Thus, recording a 43% and 35% deficit respectively as compared to the beginning of 2017.

Year 2018 showed a decreasing trend, the annual average farm gate price of Viet Nam black pepper was reported with a deficit by 40% when compared to 2017 at an average of USD 2,460 per Mt. The highest price was reported in January with USD 2,924 per Mt whilst the lowest price recorded in August with USD 2,103 per Mt. Similar to black pepper, the annual average farm gate price of Viet Nam white pepper was reported with a deficit by 31% when compared to 2017 at an average of USD 4,065 per Mt. The highest price was reported in January with USD 4,726 per Mt whilst the lowest price recorded in September with USD 3,536 per Mt. At the end of 2018, the average farm gate price of Viet Nam black and white pepper was reported at USD 2,277 per Mt and USD 3,737 per Mt respectively. Thus, recording a 22% and 21% deficit respectively as compared to the beginning of 2018.

As of November 2019, farm gate price of Viet Nam black and white pepper continued its decreasing trend. The average farm gate price of Viet Nam black pepper for the 11 months was reported with a deficit by 25% when compared to the same period in 2018 at an average of USD 1,862 per Mt. The highest price was reported in January with USD 2,082 per Mt whilst the lowest price recorded in October with USD 1,705 per Mt. Similar to black pepper, the average farm gate price of Viet Nam white pepper for the 11 months was reported with a deficit by 29% when compared to the same period in 2018 at an average of USD 2,896 per Mt. The highest price recorded in January with USD 3,464 per Mt whilst the lowest price was reported in October with USD 2,626 per Mt. In the 11th month of 2019, the average farm gate price of Viet Nam black and white was reported at USD 1,722 per Mt and USD 2,627 per Mt respectively. Thus, recording a 17% and 24% deficit respectively as compared to January 2019 (Table 8).

FOB

Furthermore, FOB price of Viet Nam black and white pepper also showed negative outlook. In 2017, the annual average FOB price of Viet Nam black pepper 500 g/l and 550 g/l was reported at USD 4,395 per Mt and USD 4,817 per Mt respectively with the highest price for Viet Nam black pepper 500g/l and 550g/l recorded in January with USD 6,086 per Mt and USD 6,477 per Mt respectively whilst the lowest price occurred in November and December with USD 3,650 per Mt and USD 4,050 per Mt respectively. The annual average FOB price of Viet Nam white pepper was USD 7,005 per Mt with the highest price recorded in January with USD 9,673 per Mt whilst the lowest price recorded in November and December with USD 5,750 per Mt. At the end of 2017, the FOB price of Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper was reported at USD 3,650 per Mt, USD 4,050 per Mt and USD 5,750 per Mt respectively. Thus, recording a 40%, 37% and 41% deficit respectively as compared to the beginning of 2017.

Year 2018 showed a decreasing trend. The annual average FOB price of Viet Nam black pepper 500 g/l and 550 g/l was reported with a deficit by 38% and 39% respectively when compared to 2017 at an average of USD 2,705 per Mt and USD 2,956 per Mt respectively. The highest price for Viet Nam black pepper 500 g/l was reported in January and February with USD 3,150 per Mt whilst the lowest price was reported in August with USD 2,407 per Mt. The highest price for Viet Nam black pepper 550 g/l recorded in January with USD 3,550 per Mt whilst the lowest price recorded in August with USD 2,557 per Mt. Similar to black pepper, the annual average FOB price of Viet Nam white pepper was reported with a deficit by 39% when compared to 2017 at an average of USD 4,302 per Mt. The highest price recorded in February with USD 5,091 per Mt whilst the lowest price recorded in September with USD 3,823 per Mt. At the end of 2018, the FOB price of Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper was reported at USD 2,564 per Mt, USD 2,801 per Mt and USD 3,938 per Mt respectively. Thus, recording a 19%, 21% and 22% deficit respectively as compared to the beginning of 2018.

As of November 2019, FOB price of Viet Nam black 500 g/l, 550 g/l and Viet Nam white pepper continued its decreasing trends. The average FOB price of Viet Nam black pepper 500 g/l and 550 g/l for the 11 months was reported with a deficit by 18% and 22% respectively when compared to same period in 2018 at an average of USD 2,237 per Mt and USD 2,326 per Mt respectively. The highest price for Viet Nam black pepper 500 g/l and 550g/l was reported in January with USD 2,350 per Mt and USD 2,545 per Mt respectively. Whilst, the lowest price was reported in February with USD 2,107 per Mt and USD 2,218 per Mt respectively. Similar to black pepper, the average FOB price of Viet Nam white pepper for the 11 months was reported with a deficit by 21% when compared to the same period in 2018 at an average of USD 3,443 per Mt. The highest price was reported in January with USD 3,731 per Mt whilst the lowest price recorded in May with USD 3,280 per Mt. In the 11th month of 2019, the average FOB price of Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper was reported at USD 2,286 per Mt, USD 2,351 per Mt and USD 3,436 per Mt respectively. Thus, recording a 3%, 8% and 8% deficit respectively as compared to January 2019 (Table 9).

Table 8. Average Farm Gate Price of Viet Nam Black and White Pepper (USD/MT)

Table 9. Average FOB Price of Viet Nam Black and White Pepper (USD/MT)

Chart 7

Chart 8

China

Farm Gate Price

China white pepper during 2017-2019 was reported gradually decreasing. In 2017, the annual average farm gate price for China white pepper was reported at USD 8,610 per Mt with the highest price recorded in January with USD 10,865 per Mt whilst the lowest price recorded in December with USD 6,687 per Mt. At the end of 2017, the average farm gate price of China white pepper was reported at USD 6,687 per Mt. Thus, recording a 38% deficit as compared to the beginning of 2017.

Year 2018 showed a decreasing trend. The annual average farm gate price of China white pepper was reported with a deficit by 36% when compared to 2017 at an average of USD 5,504 per Mt. The highest price recorded in January with USD 6,485 per Mt whilst the lowest price recorded in October with USD 4,630 per Mt. At the end of 2018, the average farm gate price of China white pepper was reported at USD 5,059 per Mt. Thus, recording a 22% deficit as compared to the beginning of 2018.

As of November 2019, China white pepper farm gate price continued its decreasing trend. The average farm gate price of China white pepper for the 11 months was reported with a deficit by 15% when compared to the same period in 2018 at an average of USD 4,722 per Mt. The highest price was reported in February with USD 4,883 per Mt whilst the lowest price recorded in November with USD 4,548 per Mt. In the 11th month of 2019, the average farm gate price of China white pepper was reported at USD 4,548 per Mt. Thus, recording a 4% deficit as compared to January 2019 (Table 10).

FOB

Furthermore, FOB price of China white pepper also showed negative outlook. In 2017, the FOB price for China white pepper was reported at USD 8,783 per Mt with the highest price was reported in January with USD 11,066 per Mt whilst the lowest price recorded in December with USD 6,649 per Mt. At the end of 2017, the average FOB price of China white pepper was reported at USD 6,649. Thus, recording a 40% deficit as compared to the beginning of 2017.

Year 2018 showed a decreasing trend. The annual average FOB price of China white pepper was reported with a deficit by 35% when compared to 2017 at an average of USD 5,703 per Mt. The highest price was reported in January with USD 6,688 per Mt whilst the lowest price was reported in October with USD 4,830 per Mt. At the end of 2018, the average FOB price of China white pepper was reported at USD 5,259 per Mt. Thus, recording a 21% deficit as compared to the beginning of 2018.

As of November 2019, FOB price of China white pepper continued its decreasing trends. The average FOB price of China white pepper for the 11 months was reported with a deficit by 14% when compared to the same period in 2018 at an average of USD 4,936 per Mt. The highest price was reported in February with USD 5,083 per Mt whilst the lowest price was reported in November with USD 4,748 per Mt. In the 11th month of 2019, the average FOB price of China white pepper was reported at USD 4,748 per Mt. Thus, recording a 6% deficit as compared to January 2019 (Table 11).

Table 10. Average Farm Gate Price of China White Pepper (USD/MT)

Table 11. Average FOB Price of China White Pepper (USD/MT)

Chart 9

Summary

Farm Gate Price

The farm gate price of black pepper across the IPC member countries during the past 3 years shown decreasing trend as India origin reported to be the most resilient followed by Sri Lanka whilst Indonesia, Malaysia and Viet Nam were of similar level. One of the reasoning behind India and Sri Lanka relatively higher prices could be contributed to the fact that most of their peppers were being consumed locally as their demand for pepper relatively high. Furthermore, farm gate price of white pepper of all IPC member countries was also reported with the same decreasing trend and China origin was the most resilient.

FOB

Relatively similar to the farm gate price trend, the FOB price of black pepper across the IPC member countries during the past 3 years also depicted negative outlook as India origin reported to be the strongest when compared to other origins. Moreover, FOB price of white pepper of all IPC member countries followed suit with decreasing trend and China was also reported being the strongest among other origins. However, during the later months of 2019 Malaysia origin started to show stronger outlook than other origins.

Spot Price New York

During the course of 11 years, spot price on New York markets fluctuated and was reported to firstly spike up in November 2011 with USD 8,556 per Mt for black pepper and USD 12,922 per Mt for white pepper which then followed with decreasing trend which lasted for 3 year. The spot price on New York market then started to gradually increase in the middle of 2013 until it peaked in July 2015 and recorded the highest price in history of the pepper industry with USD 11,333 per Mt for black pepper and USD 16,496 per Mt for white pepper. Following the peaked in July 2015, the spot prices of black and white pepper gradually decreased and lasted longer, compared with the previous trend, until the present time with USD 2,977 per Mt for black pepper and USD 5,072 per Mt for white pepper recorded in July 2019. Furthermore, in the course of 11 years the lowest spot price was reported in March 2009 with USD 2,568 per Mt for black pepper and USD 4,025 per Mt for white pepper (Chart 10).

The shift in the stretching of the decreasing trend of pepper price in the past few years could be contributed to the significant increase of stock in the global market which imbalance with the demand for pepper. By the end of 2019, the global production of pepper is estimated to be 591,946 Mt.

Chart 10

Source:
- Brazil, Unofficial source (Coreimex, CSG Trade)
- India: AISEF, NCDEX, Indian Chamber of Commerce & Industry, Spices Board India
- Indonesia: Unofficial source
- Malaysia: Malaysian Pepper Board
- Sri Lanka: Department of Export Agriculture
- Viet Nam : Viet Nam Pepper Association, HCMC
- China: Hainan Pepper Association, China Spice Association
- Office of Agricultural Economics of Thailand
- A.A. SAYIA & Company
- 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 Sri Lanka and have been processed based on statistical norms that can be accounted for.