Monthly Publication

PRICE HISTORY

Price index for the 11th month of 2020 was reported with a positive outlook as the price index of black pepper recorded a 6.1% increase as opposed to the previous month at 39.08 points. When further compared with the same period in 2019, the price index of black pepper was reported with a higher increase by 18%. Following the trend of black pepper, the price index of white pepper was also reported with an increase albeit not as high as black pepper. Price index of white pepper for November 2020 was reported at 41.50 points (Table 1), a 3.6% increase as opposed to the previous month. When compared with the same period in 2019, the price index of white pepper was reported with a much higher increase by 18%.

Continuing the increasing trend of the price index, the composite price for November 2020 was reported with an increase. The composite price of black pepper was reported at USD 2,907 per Mt, recording an increase of USD 166 per Mt as compared with October. The composite price of white pepper was reported at USD 4,295 per Mt, recording a USD 150 per Mt as compared to the previous month (Table 2)

Pepper prices in the 11th month of 2020 showed a mixed response with only Malaysia and Sri Lanka were reported with a decrease. The farm gate price of black pepper in India was reported with an increase of 1% as opposed to October, averaging at USD 4,411 per Mt (Table 3). In the local currency farm gate price of India (Malabar black pepper) was reported at an average of INR 327 per Kg, increasing from INR 321 per Kg in the previous month.

The price of black pepper in Indonesia (Lampung black pepper) was reported with an increase of 7% to an average of USD 2,120 per Mt as opposed to October 2020 which was partly contributed to the appreciation by 4% of the Indonesia Rupiah against US Dollar. The price of Indonesia black pepper in local currency increased to an average of IDR 30,190 per Kg from IDR 29,368 per Kg in October.

The farm gate price of Malaysia's black pepper for the 11th month of 2020 was reported with 5% deficit when compared to the previous month averaging at USD 2,143 per Mt. In local currency, the price of Malaysia black pepper decreased to an average of MYR 8.8 per Kg from MYR 9.3 per Kg in the previous month.

Furthermore, farm gate price of black pepper in Viet Nam was reported with an increase of 9% as compared to the previous month, averaging at USD 2,322 per Mt. In local currency, the price of Viet Nam black pepper increased to an average of VND 55,405 per Kg or an increase of VND 4,541 per Kg when compared to the previous month.

The farm gate price of Sri Lankan black pepper was reported with 2% deficit as opposed to October 2020 and was reported at an average of USD 2,971 per Mt. Sri Lanka black pepper in local currency decreased to an average of LKR 549.47 per Kg from LKR 558.29 per Kg in October.

FOB price of black pepper for November 2020 showed a rather positive outlook with only Malaysia origin was reported with a decrease. The FOB price of Malabar black pepper from India was reported stable with a marginal increase, averaging at USD 4,680 per Mt (Table 4). Furthermore, the FOB price of Indonesian black pepper was reported with an increase of 6% as opposed to October, averaging at USD 2,587 per Mt. FOB price of Malaysian black pepper was reported with 2% deficit as opposed to the previous month and was traded at an average of USD 3,675 per Mt. FOB price of Viet Nam black pepper 500 g/l and 550 g/l were reported with an increase of 6% and 5% respectively as compared to the previous month averaging at USD 2,760 per Mt and USD 2,841 per Mt respectively.

Farm gate prices of white pepper in November 2020 also showed a rather positive outlook with only Malaysia origin was reported with a decrease (Table 5). Indonesia Muntok white pepper was reported with an increase of 4% as compared to the previous month to an average of USD 3,827 per Mt. In local currency, the price of Muntok white pepper was reported at an average of IDR 54,571 per Kg. Farm gate price of Malaysia white pepper was reported with 2% deficit as opposed to October, averaging at USD 3,603 per Mt. Furthermore, Viet Nam white pepper was reported with significant increase of 11% when compared to the previous month, averaging at USD 3,211 per Mt. In local currency, the price of Viet Nam white pepper was reported at an average of VND 76,500 per Kg, recording an increase of VND 7,182 per Kg when compared to the previous month. China white pepper was reported with an increase of 7% as compared to October and was traded at an average of USD 4,750 per Mt in domestic market.

FOB price of white pepper showed a rather positive outlook with only Malaysia origin recording a decrease. FOB price of Indonesia white pepper for November 2020 was reported with an increase of 2% when compared to the previous month, averaging at USD 4,497 per Mt. FOB price of Malaysia white pepper was reported with 1% deficit as compared to the previous month to an average of USD 4,900 per Mt. Furthermore, FOB price of Viet Nam white pepper was reported with an increase of 4% when compared to the previous month at an average of USD 4,330 per Mt. China white pepper was reported with a significant increase of 7% when compared to October and was traded at an average of USD 4,950 per Mt internationally (Table 6).

Entering the 11th month of global pandemic, FOB price of pepper in comparison between November 2019 and November 2020 fluctuated with an increasing trend. India black pepper in November 2020 was reported with 2% deficit as compared to the same period in 2019 at an average of USD 4,683 per Mt. Furthermore, Indonesia black and white pepper were reported with an increase of 27% and 20% respectively as compared to November 2019, averaging at USD 2,587 per Mt for black pepper and USD 4,504 per Mt for white pepper. Malaysia black pepper was reported stable averaging at USD 3,675 per Mt. Whilst, Malaysia white pepper was reported with 7% deficit as compared to the same period in 2019 to an average of USD 4,900 per Mt. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 21%, 21% and 26% respectively as opposed to the same period in 2019 to an average of USD 2,762 per Mt, USD 2,843 per Mt and USD 4,332 per Mt respectively. China white pepper was reported with an increase of 4% when compared to November 2019 and was traded at an average of USD 4,961 per Mt (Table 7).

HIGHLIGHT ON THAILAND
Production and Productivity

Thailand, officially the Kingdom of Thailand and formerly known as Siam, is a country at the center of the Southeast Asian Indochinese peninsula. Agriculture in Thailand is highly competitive, diversified and specialized with a lucrative international trade. Rice is the major crop grown and Thailand is the world's biggest rice exporter. Thailand is also one of pepper producing country known to have cultivated its pepper partially in the eastern Thailand such as Chanthaburi Province, Trat Province and Rayong Province.

During 2010 to 2015 the area under pepper cultivation in Thailand had shown a decreasing trend. A decrease of 70% in term of area under pepper cultivation was reported when comparing 2010 to 2015. In 2016, the area under pepper cultivation in Thailand was reported with an increase of 15% when compared to 2015. As from 2016, the area of pepper cultivation in Thailand had fluctuated to 2019 with an increasing trend. In 2019, Thailand planted pepper on 614 Ha of area, recording a 58% decrease over the course of 10 years (Table 8). In addition, the area under pepper cultivation for 2020 was estimated to be stable and unchanged.

Pepper production of Thailand had fluctuated with a decreasing trend since 2010. Pepper production of Thailand was reported to have recorded a decrease of 52% in the past 10 years as it was reported to have produced a total of 2,219 Mt of black pepper which is the only product of pepper coming out from Thailand. The highest production of Thailand pepper in the past 10 years was reported in 2010 with 4,641 Mt whilst the lowest occurred in 2014 with 1,174 Mt. The production of Thailand pepper for 2020 was estimated with a slight increase of 2% when compared to 2019 totaling at 2,253 Mt.

Pepper productivity in Thailand in the past 10 years fluctuated with a positive trend (Chart 1). From 2010 until 2019 pepper productivity in Thailand was reported with an increase by 13% totaling at 3,616 Kg per Ha in 2019. The highest pepper productivity in Thailand in the past 10 years was reported in 2017 with 4,265 Kg per Ha. In 2020, pepper productivity in Thailand was estimated to increase by 2% as compared with the previous year to a total of 3,672 Kg per Ha.

Pepper Export from Thailand

Since 2009 until 2019 there had been a 78% (Table 9) decrease in term of quantities of pepper exports from Thailand. The highest quantity of pepper export from Thailand was reported during 2010 which amounted to 3,180 Mt whilst the lowest occurred in 2013 with only 210 Mt. In 2019, Thailand was reported to have exported a total of 540 Mt of pepper, recording an increase of 29% as compared to 2018. As of September 2020, Thailand exported a total of 603 Mt which comprised of 405 Mt of whole pepper and 198 Mt of ground pepper.

The quantity of pepper exports from Thailand had reportedly fluctuated from January 2019 up to September 2020. The total export by Thailand in 2019 was reported at 540 Mt with total value as high as USD 4.8 Million. The average pepper export from Thailand in 2019 was reported to be 45 Mt per month with the highest reported in July which reached 74 Mt whilst the lowest was reported in February with only 15 Mt (Table 10). Furthermore, the total pepper export from Thailand as of September 2020 was reported to be 603 Mt with total value of USD 3.6 Million, recording an increase of 46% in terms of quantity of pepper exported by Thailand when compared to the same period in 2019.

Pepper from Thailand is exported to various countries around the world (Table 11). As of September 2020, the top 10 country of destinations for Thailand pepper were reported to be Myanmar with 180 Mt (Contributed to 30% of the total pepper export by Thailand as of September 2020), South Africa with 163 Mt (27%), United States of America with 94 Mt (16%), South Korea with 24 Mt (4%), Australia with 22 Mt (3.7%), New Zealand with 16 Mt (3%), Cambodia with 14 Mt (2%), China with 14 Mt (2%), Laos with 12 Mt (1.9%) and Taiwan with 10 Mt (1.7%).

Pepper Import by Thailand

Although Thailand is one of pepper producing country. However, Thailand's pepper production is unable to meet the domestic consumption which resulting to the import of pepper by Thailand from various pepper producing countries.

Since 2015 until 2019 there had been a 95% (Table 12) increase in term of quantities of pepper import by Thailand. The highest quantity of pepper import by Thailand was reported during 2019 which amounted to 5,700 Mt whilst the lowest occurred in 2015 with 2,920 Mt. As of September 2020, Thailand imported a total of 4,664 Mt which comprised of 3,723 Mt of whole pepper and 942 Mt of ground pepper.

The top five countries of origins of Thailand's pepper as of September 2020 were reported to be Viet Nam with 3,581 Mt (Contributed to 77% of the total pepper import by Thailand as of September 2020), Indonesia with 624 Mt (13%), India with 176 Mt (4%), Malaysia with 126 Mt (3%) and Myanmar with 55 Mt (1%) (Table 13).

Pepper Price

The farm gate price of pepper in Thailand was reported to fluctuate with a decreasing trend during January 2018 up to November 2020 which could be attributed to the world supply of pepper which significantly exceeded global demand as well as the development of the global pandemic of Corona Virus.

In 2018, the average farm gate price of Thailand black pepper was reported at USD 4,149 per Mt, the highest farm gate price of Thailand black pepper was reported in January with an average of USD 4,891 per Mt whilst the lowest occurred in December with USD 3,055 per Mt.

In 2019, the average farm gate price of Thailand black pepper was reported at USD 3,070 per Mt. Thus, recording a decrease by 26% when compared to 2018. The highest farm gate price of Thailand black pepper in 2019 was reported in June with an average of USD 3,776 per Mt, recording a deficit by 6% as compared to the same period in 2018. Whilst, the lowest occurred in December with USD 2,703 per Mt, recording a deficit by 12% as compared to the same period in 2018.

As of November 2020, the average farm gate price of Thailand black pepper was reported at USD 3,035 per Mt. Thus, recording a decrease of 2% as compared to the same period in 2019. As of November 2020, the highest farm gate price of Thailand black pepper was reported in November with USD 3,692 per Mt, recording an increase of 23% as compared to the same period in 2019. The lowest farm gate price of Thailand black pepper was reported during March 2020 which dropped as low as USD 2,732 per Mt, recording a deficit by 4% as compared to the same period in 2019 (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.