Quarterly Publication

A. Current Market Situation

Origin wise update:

Vietnam:

The largest producer of Black Pepper in the world is on the verge of harvest. Harvest has started in Daknong province. The other 5 big provinces will start harvest after the Vietnamese Tet holiday which is on Jan 25 2020. The man crop flows will therefore start end of Feb/Early March 2020.

The local price of pepper is very close to variable cost of production and below cost of one considers the fixed investments made in pepper farming. There is practically no old stock at farm level and therefore one does not see any panic selling before the crop. Business has been done in the vicinity of 1.00 USD/lb for ASTA CNF NYK.

Opening prices for new crop are as follows:
USD/MT FOB HCMC
500 FAQ : 1900
500 MC : 2000
550 MC : 2050
570 MC : 2100
5mm : 2150
White : 2950
For steam sterilization add 200 USD/MT, for Pesticide guarantees add 200 USD/MT and for ground pepper add at least 1000 USD/MT

Brazil:

The crop from the north in Para is almost over. This region is also known for pesticide compliant sundried material. The south starts offering from Vitoria March/April shipments. The freight from the south is higher at least by 40 USD/MT. With the currency appreciating slightly and heavy booking we feel the Brazil prices may not very soon see the lows of 1750 fob any more. At present prices for B ASTA are hovering around 1850 USD/MT at fob levels.

Opening prices from the South:
B ASTA machine dried: USD 1850 fob/MT

B ASTA sundried: USD 1900 fob /MT
March April shipments.

Indonesia:

Crop is practically over but it seems there is some decent inventory in the hands of the traders. The Muntok white pepper is quoted at around USD 3750 /MT at fob levels on the other hand Black ASTA at 2200 USD/MT fob basis. The origin has a good domestic demand and other than white pepper its influence on pricing of black has been diminishing.

India:

The harvest is due in another 25-40 days depending on the area. Crop seems to be ok and since there is enough inventory on hand at farm gate there seems to be good availability. Traders report market may softer from current levels to below Rs 300 per kg.

Cambodia:

Cambodia usually harvests after Vietnam. A crop of 25-30k MT Is expected and flows may start end March to early April. Most of the produce continues to move to either Vietnam or Thailand. This may change once the port in Sihanoukville is completely operational.

B. Looking back at 2019.

2019 was another year of many records. A record global output and trade was witnessed in 2019. Prices were also at record lows.

1. Global Origin wise export.

2. Global destination wise import.

3. IPC Global balance sheet for 2019 and 2020.

4. Highlights of IPC 2019

International Pepper Conference 2019 was held in Pullman Hotel Vung Tau, Vung Tau, Viet Nam during the 12 - 14 November 2019. With over 400 participants which consist of experts, scientist, officials, pepper growers/producers' associations and trade representative, the International Pepper Conference 2019 was themed 'Pepper in the Next Decade'.

Officiated and opened by H.E. Le Quoc Doanh, Vice Minister of Ministry of Agriculture and Rural Development, the International Pepper Conference 2019 invited international speakers from Eurofins, Fuchs Group, Griffith Foods, McCormick, Namagro, Nedspice Group, Olam International and many other. Furthermore, International Pepper Exhibition which gathered leading exporters, processors and manufactures of pepper and spices products, was also held at the sideline of the International Pepper Conference 2019.

During the International Pepper Conference 2019 a series of important, engaging and informative functions were held:

• 10th Business Session of IPC; the 10th Business Session focused more on traceability and sustainability of pepper as well as challenge and opportunities and drivers for demand and supply of pepper.
• 44th Pepper Tech Meeting; the 44th Pepper Tech Meeting elaborated on technical research on level of stress of black pepper and responsibly sustainable growing of pepper as well as regulation and testing capacity were intently discussed.
• 27th Pepper Exim Meeting; during the 27th Pepper Exim, representatives from IPC member countries as well as industry view on Brazil, Cambodia and China shared their updates on the statistical information on pepper cultivation in their respective countries.
• The 47th Plenary Session of the IPC; IPC released the Pepper Global Scenario and Crop Report Visual Data Analytics 2018 - 2020 in conclusion of the Plenary Session.

Moreover, during the International Pepper Conference 2019, IPC launched two latest innovations namely:

• Directions on Regulations for Exports (DIREX) which is a centralized and comprehensive database of regulatory parameters and relevant regulatory documents stipulated by Governments of key importing/consuming countries in relation to pepper. Exporters can access this information in just a few clicks. IPC will constantly scan for any change on these regulations and update it in this software so that exporters will always get the most updated information. This is available through the IPC website www.ipcnet.org.
• Crop Report Visual Analytics which is a graphical view of pepper price and quantity. The graphs use data from 10 years. This historical and current data can be viewed from numerous angles and generates visually riveting analytics. The interface is very user friendly enabling them to access complicated information very easily and with just a few clicks. This feature allows user to browse, download and customized crop report data of the last decade in the form of interesting chart as well as numerical table.

Furthermore, listing below a quick feedback collected from many delegations at the IPC 2019 highlighted a few of the things that went well:

• A very relevant theme and topic
• Meticulous organization of the Conference
• Exciting and engaging quiz which kept audience very attentive
• Crop Report Visual Analytics was very useful and user-friendly
• Outstanding venue.

The IPC team is quite motivated and energized by these positive feedbacks and will definitely work harder to bring out better projects next year for the benefit of the pepper community and also to make the IPC 2020 an all-time best.