Monthly Publication

PRICE HISTORY

Despite the rolling out of the vaccination for COVID-19 in most country, the Corona Virus cases are still increasingly reported as we enter 2021. The price index of pepper in the first month of 2021 was reported quite stable with only marginal changes. The price index of black pepper for January 2021 was reported at 40.28 points, recording a 0.01 point correction as compared to December 2020 and an increase of 19% as compared to January 2020. Price index of white pepper in the first month of 2021 was reported at 43.33 points (Table 1), recording a 0.4% increase as compared to December 2020 and an increase of 25% as compared to the same period in 2020.

Composite price in the beginning of 2021 were also reported stable with a marginal change. The composite price of black pepper was reported with a marginal loss of USD 1 per Mt as compared to December 2020 at an average of USD 2,996 per Mt (Table 2). Whereas, the composite price of white pepper was reported at USD 4,484 per Mt, recording an increase by USD 19 per Mt as compared to December 2020.

Pepper prices in the first month of 2021 showed a mixed response. The farm gate price of black pepper in India was reported with a decrease of 1% as opposed to December 2020, averaging at USD 4,477 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 decreasing from INR 333 per Kg in the previous month.

The farm gate price of black pepper in Indonesia (Lampung black pepper) was reported with an increase of 11% as opposed to December 2020 to an average of USD 2,486 per Mt. The increase was contributed to the lack of stock in local market as well as the strengthening of Indonesia Rupiah against the US Dollar (IDR 14,062 @ 1 USD), recording a 1% appreciation. The price of Indonesia black pepper in local currency increased to an average of IDR 35,000 per Kg from IDR 32,337 per Kg in December 2020.

The farm gate price of Malaysia's black pepper for the 1st month of 2021 was reported with an increase of 5% when compared to December 2020, averaging at USD 2,383 per Mt. In local currency, the price of Malaysia black pepper increased to an average of MYR 9.6 per Kg from MYR 9.2 per Kg in December 2020.

In contrast, farm gate price of black pepper in Viet Nam was reported with a decrease of 5% as compared to December 2020, averaging at USD 2,216 per Mt. In local currency, the price of Viet Nam black pepper decreased to an average of VND 52,524 per Kg or a decrease of VND 2,650 per Kg when compared to the previous month.

The farm gate price of Sri Lankan black pepper was reported with 6% deficit as opposed to December 2020 and was reported at an average of USD 2,743 per Mt. Sri Lanka black pepper in local currency decreased to an average of LKR 520.84 per Kg from LKR 544.85 per Kg in December 2020.

FOB price of black pepper for January 2021 showed a rather positive outlook with only India origin was reported with a decrease. The FOB price of Malabar black pepper from India was also reported with 1% deficit when compared to December 2020, averaging at USD 4,750 per Mt (Table 4). Furthermore, the FOB price of Indonesian black pepper was reported with an increase of 10% as opposed to December 2020, averaging at USD 3,006 per Mt. FOB price of Malaysian black pepper was reported stable and unchanged. Furthermore, FOB price of Viet Nam black pepper 500 g/l and 550 g/l were reported with an increase of 1% respectively as compared to the previous month, averaging at USD 2,849 per Mt and USD 2,930 per Mt respectively.

Farm gate prices of white pepper in January 2021 also showed a mixed response (Table 5). Indonesia Muntok white pepper was reported with an increase of 5% as compared to the previous month to an average of USD 4,205 per Mt. Similar to Lampung black pepper, the increase of Indonesia white pepper was also contributed to the depleted stock in local market as well as the strengthening of Indonesia Rupiah against the US Dollar. In local currency, the price of Muntok white pepper was reported at an average of IDR 59,500 per Kg from IDR 57,158 per Kg in December 2020. Farm gate price of Malaysia white pepper was reported with an increase of 3% as opposed to December 2020 at an average of USD 3,860 per Mt. Furthermore, Viet Nam white pepper was reported with 9% deficit when compared to the previous month, averaging at USD 3,048 per Mt. In local currency, the price of Viet Nam white pepper was reported at an average of VND 72,500 per Kg, a decrease of VND 5,652 per Kg when compared to the previous month. China white pepper was reported with 2% deficit as compared to December 2020 and was traded at an average of USD 4,978 per Mt in domestic market.

FOB price of white pepper showed a rather positive outlook with only China origin was reported with a decrease. FOB price of Indonesia white pepper for January 2021 was reported with an increase of 4% when compared to the previous month, averaging at USD 4,921 per Mt. FOB price of Malaysia white pepper was reported with an increase 1% when compared to December 2020 and was traded at an average of USD 4,960 per Mt. Furthermore, FOB price of Viet Nam white pepper was reported with an increase of 1% when compared to the previous month at an average of USD 4,425 per Mt. China white pepper was reported with 1% deficit when compared to December 2020 and was traded at an average of USD 5,178 per Mt internationally (Table 6).

Entering the second year of the global pandemic, FOB price of peppers in comparison between January 2020 and January 2021 fluctuated with an increasing trend. India black pepper in January 2021 was reported with 1% deficit as compared to the same period in 2020 at an average of USD 4,734 per Mt. Meanwhile, Indonesia black and white pepper were reported with an increase of 36% and 33% respectively as compared to January 2020, averaging at USD 3,009 per Mt for black pepper and USD 4,950 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 6% deficit as compared to the same period in 2020 to an average of USD 4,975 per Mt. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 22%, 22% and 27% respectively as opposed to the same period in 2020 to an average of USD 2,848 per Mt, USD 2,929 per Mt and USD 4,425 per Mt respectively. China white pepper was reported with an increase of 17% when compared to January 2020 and was traded at an average of USD 5,153 per Mt (Table 7).

HIGHLIGHT ON BRAZIL

Production and Productivity

Brazil as one of the major pepper producing and exporting countries known for its Black Pepper, has a more competitive price as opposed to other origins. Brazil cultivates its pepper partially in Para State (Pa) North of Brazil and Espirito Santos (Es) South of Brazil. Furthermore, Brazil has also surpassed Indonesia as the second largest pepper producer in the world with estimated quantity of 95,000 Mt in 2020.

During 2009-2020 the area under pepper cultivation in Brazil had fluctuated with an increasing trend. Between 2009-2016, area under pepper cultivation in Brazil saw a decrease by 6% to a total of 25,660 Ha from 27,415 Ha in 2009. The area under pepper cultivation in Brazil saw an increasing trend during 2016-2020 with an increase of 20% to a total of 30,700 Ha. In the course of 12 years between 2009-2020 total area under pepper cultivation in Brazil recorded an increase by 12% (Table 8). Furthermore, in 2020 the area under pepper cultivation in Brazil was estimated to decrease by 1% as compared to 2019 to a total of 30,700 Ha. Whilst, for the year 2021 the area of pepper cultivation was projected to be stable and unchanged.

Brazil production of pepper during 2009-2020 was reported fluctuating with a rather positive trend. In the course 12 years since 2009 pepper production in Brazil was reported to have recorded an increase of 133% as it estimated a total of 95,000 Mt in 2020. The highest production of Brazil pepper in the course of 12 years between 2009-2020 was reported in 2020 with an estimation of 95,000 Mt whilst the lowest production occurred in 2012 with 32,000 Mt. However, in the year 2021 production of Brazil pepper was projected to decrease by 5% when compared with 2020 to a total of 90,000 Mt.

Pepper productivity in Brazil in the course of 12 years between 2009-2020 was reported to be fluctuated with a rather positive trend. During 2009-2020, the lowest pepper productivity in Brazil was reported in 2010 with 1,462 Kg per Ha while the highest productivity was reported in 2020 which was estimated at 3,094 Kg per Mt. The highest decrease of pepper productivity in Brazil was reported to occur in 2016 as it recorded a 19% loss when compared with the previous year. Whilst the highest increase of pepper productivity was reported in 2017 which recorded a 45% increase as opposed to the previous year. For the year 2020, Brazil pepper productivity was estimated with an increase of 20% as opposed to 2019 to 3,094 Kg per Ha. Whilst in 2021 Brazil pepper productivity was projected with a decrease by 5% to 2,932 Kg per Ha (Chart 1).

Pepper Export from Brazil

Brazil, known as the second largest pepper producer in the world, had managed to take the second largest pepper exporter position from Indonesia in 2017. Since 2009 until 2020 there had been a significant increase of 151% or 53,986 Mt in the quantity of pepper exported from Brazil which was mainly dominated with black pepper as it contributed to 94% of the total export figures (Table 9). The highest pepper export occurred in 2020 with 89,756 Mt whilst the lowest export occurred in 2012 with 29,129 Mt. In 2020, pepper export from Brazil was reported at 89,756 Mt which comprised of 86,166 Mt of black pepper and 3,590 Mt of white pepper. Thus, recording an increase of 6% as opposed to the previous year.

The number of pepper exports from Brazil had reportedly fluctuated in the last 2 years. The total export by Brazil in the past 24 months was reported at 174,432 Mt with total value as high as USD 364.9 Million. The average pepper export from Brazil was reported to be 7,268 Mt per month. The highest pepper export of Brazil occurred in October 2019 which reached 11,119 Mt whilst the lowest was reported in July 2019 with 3,046 Mt (Table 10). The high level of exports during that period (October) correlated closely to Brazil harvest season.

Pepper from Brazil is exported to various countries around the world (Table 11). In 2020, the top 10 country of destinations for Brazilian pepper were reported to be Germany with 13,281 Mt (Contributed to 15% of Brazil's total pepper export in 2020), Viet Nam with 12,173 Mt (14%), United States of America with 11,993 Mt (13%), Morocco with 7,486 Mt (8%), Egypt with 6,728 Mt (7%), United Arab Emirates with 5,117 (6%), India with 4,251 Mt (5%), Pakistan with 3,650 Mt (4%), Netherlands with 2,870 Mt (3%) and Mexico with 2,565 (2.9%).

Pepper Export Price

Brazil pepper export price had fluctuated significantly in the past three years which could be attributed to the world supply of pepper significantly exceeding the global demand. In 2018, the average export price for Brazilian pepper was reported at USD 2,835 per Mt with the highest prices recorded in January with USD 3,509 per Mt whilst the lowest price was reported in November with USD 2,195 per Mt.

In 2019, the average export price of Brazilian pepper was reported at USD 2,148 per Mt, recording a decreased of 23% as compared to 2018. In 2019, the highest price was reported to have reached USD 2,316 per Mt (July 2019) recording a deficit by 25% as compared to the same period in 2018. Whilst, the lowest price was reported in November with USD 2,002 per Mt, recording a deficit by 9% as compared to the same period in 2018.

In 2020, the average export price of Brazilian pepper was reported at USD 2,082 per Mt, recording a 3% decreased as compared to 2019. In 2020, the highest price was reported to have reached USD 2,412 per Mt (December 2020) recording an increase of 19% as compared to the same period in 2019. Whilst, the lowest price was reported in June with USD 1,888 per Mt, recording a deficit by 17% as compared to the same period in 2019 (Table 12).

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.