Quarterly Publication

4th Quarterly 2020 Report

it.assistant@ipcnet.org 28 Feb 2021 25

Executive Summary

Dear Subscribers,

2020 will go down in history as the year the world had to reset itself. The trigger point of reset is known to all and came in 2019 in the form of virus, infamously known as Covid-19.

The impact on the world was so massive that we all had to lock down ourselves from each other. Travel and Businesses came to a standstill. In the wake of this pandemic the global pepper markets also went through a reset. The expected drop in demand was no severe. On the other hand, due to a lagging growth in supply led to rise in prices by almost 20% in the second half of 2020.

We thank you for your wholehearted participation in the IPC Online annual meeting. This quarterly edition of our Black Pepper update, which has been together by our team of experts, brings to you trade data and some insights based on the same.

We wish you all the best and a very successful year 2021.


1. Origin wise Exports in MT

The table and graph depict the following:

  1. The Global exports in 2020 increased by close to 2% as compared to 2019.
  2. Thus, despite in slowdown in the sectors such as Travel, Food service and restaurants the demand was decent. It was expected that demand would not grow and remain almost flat for 2020. The data is in line with the expectations.
  3. 2021 one could expect some form of normalization based due to the advent of the vaccine and better preparedness to handle the pandemic.
  4. Exports from Vietnam marginally dropped in % terms. In absolute terms good 4500 MT was exported less. Some of the reasons could be raise in pepper prices, raise in freight rates and extra material ordered in the previous year.
  5. Malaysia exported close to 1000 MT less on the other hand all other origins exported more than what they did in the previous year. In all close to 10,000 MT was exported more in 2020 when compared to 2019.


2. Pepper Prices

Vietnam ASTA and Brazil ASTA prices.

ASTA 570 prices from Vietnam rose from under 1.00 USD/lb. to 1.40 USD/lb. in 2020.

A 40% increase in the prices was one of the strongest comeback in the past 5 years.
Likewise, Brazil ASTA prices rose from 1750 USD/MT fob to 2700 USD/MT at fob levels.


3. Freight Index

Besides Covid-19, the second most important story of 2020 in the realm of pepper exports was the freight increase. Due to dock workers being tested positive the work in most ports has slowed down tremendously.

What to expect in terms of freight from Asia pacific (Vietnam, India, Malaysia, Sri lanka etc.) region and South America (Brazil) to the global import regions:

From Pepper growing regions to Middle East freights might reduce. To all other destinations they will likely remain stable.
Freights from South America will likely rise.

Download PDF

Previous Publications