Special Issue

Cloves Report

Cloves are the aromatic flower buds of a tree in the family Myrtaceae, Syzygium aromatic. They are native to the Maluku Islands (Moluccas) in Indonesia. Cloves are also commonly used as food condiments and in recent years cloves are also used for raw material of cigarette production. Cloves are also grown in India and Madagascar, though cloves are mostly associated coming from Indonesia. Cloves are available throughout the year due to different harvest seasons in different countries.

The distribution of clove plants out of the Moluccas began in 1769. The spread of clove plants to regions of Indonesia such as Java, Sumatra and Kalimantan began in 1870. Today, clove plants have spread throughout the world.

In 2019, the top 10 largest area of cloves cultivation were estimated to be North Sulawesi Province with 74,940 Ha, Central Sulawesi Province with 71,704 Ha, South Sulawesi Province with 63,136 Ha, East Java Province with 46,043 Ha, Maluku Province with 44,161 Ha, Central Java Province with 42,037 Ha, West Java Province with 35,697 Ha, South East Sulawesi with 31,388 Ha, Aceh Province with 25,530 Ha and North Maluku Province with 21,157 Ha (Table 1).

Harvest season in various producing area in Indonesia varied depending on the local climatic conditions. In Sumatra Island: flower buds grow between October - November and the harvest season is around April - June. Whilst, in Java Island: flower buds grow from November to January, so the harvest falls in May - July. In Maluku Island: flower buds grow between May - July and harvest season is between October - January. Whilst, in other areas the harvest occurred between July - October. Though, generally clove flowering and harvesting in Indonesia occur once a year, the harvest lasts a minimum of three months. Normally, cloves planting at 15 - 20 years of age would be able to produce around 3 kg per tree.

In 2018, Indonesia as the largest producer of cloves in the world contributed to 74% or 123,399 Mt of global production and followed by Madagascar with 14% or 23,325 Mt. Since the 21st century, Indonesia became the largest cloves producer and consumer countries. Cloves in Indonesia are mostly used to supply the cigarette factories. Therefore, from the industrial side, Indonesia domestic production has met the needs of the processing sector. Furthermore, in 2019 the need for processing sector was estimated at 110,000 Mt which was around 83% of the total production and was fully absorbed by cigarette companies such as PT. Djarum Kudus, PT. Gudang Garam, PT. Sampoerna, etc.

The area under cloves cultivation in Indonesia fluctuated with a rather increasing trend. During 1961-2018 Indonesia area of plantation was reported with significant increase of 541,212 Ha. The average increase of cloves area of plantation in the course of half century was recorded 9% per year with the highest increase recorded in 1968 with an increase of 96% as compared with the previous year. In 2018, the area under cloves cultivation in Indonesia recorded the largest ever in the history with a total of 561,212 Ha, recording an increase of 2% when compared to 2017. Furthermore, for the year 2019 and 2020, the area under cloves cultivation was estimated to increase by 2% and 0.4% respectively to 571,305 Ha in 2019 and 573,529 in 2020. The increase in the area of cloves plantation could be contributed to Indonesia government program of rehabilitation of dying farm and expansion of area under clove cultivation (Table 2).

Indonesian production of cloves during 1961-2018 was also fluctuated with a rather positive trend, recording an increase of 116,399 Mt to a total of 123,399 Mt in 2018. The average increase of cloves production in the past 58 year was reported by 11% per year with the highest increase recorded in 1966 with an increase of 103% as compared to the previous year. Furthermore, the highest production of Indonesia cloves was reported in 2015 with 139,641 Mt whilst the lowest occurred in 1962 with only 6,600 Mt. In addition, production of Indonesia cloves in 2019 was estimated to decrease by 3% when compared to 2018 to a total of 120,000 Mt. whilst, in 2020 clove production was estimated to increase of 4% when compared to 2019 to a total of 125,000 Mt. The increase of cloves production in 2020 could be contributed to Indonesian Government efforts in recent years developing a superior seed of clove which could be used by planters to replanting old or damaged plants and also to boost the productivity of cloves plantations as well as the Directorate General of Plantations of Indonesia application of good agricultural practices (GAP) to cloves plantation in various clove producing area.

Cloves productivity in Indonesia during 1961-2018 was reported to be fluctuated with a rather stable trend. In the past 3 years cloves productivity in Indonesia saw decreasing trend to a total of 220 Kg per Ha in 2018. Since 1961 to 2018, cloves productivity in Indonesia was reported with a decrease by 37%. The average increase of cloves productivity in Indonesia was reported at 2% per year and the highest was reported in 1973 with 483 Kg per Ha whilst the lowest occurred in 1985 with only 144 Kg per Ha (Table 3). Furthermore, in 2019, Indonesia cloves productivity was estimated at 210 Kg per Ha or a decrease of 4% as compared to 2018. Whilst, in 2020 Indonesia cloves productivity was estimated at 218 Kg per Ha or an increase of 4% as compared to 2019. Despite Indonesian Government efforts in recent years developing a superior seed of clove which could be used by planters to replanting old or damaged plants andalso to boost the productivity of cloves plantations as well as the Directorate General of Plantations of Indonesia application of good agricultural practices (GAP) to clove plantation in various clove producing area, Indonesia's clove productivity was yet to show an increase trend following a decreasing streak which started in 2016.

As the top producers of cloves in the world, Indonesia actively exports cloves to various countries. In 2017, Indonesia was reported to have exported a total of 9,089 Mt of cloves from which 95% or 8,675 Mt of it comprised of whole cloves and 5% or 414 Mt of it ground cloves. Indonesia on average exported a total of 757 Mt per month which peaked in February with 1,484 Mt. The total revenue of Indonesia's export of cloves in 2017 was reported to be as high as USD 28.9 Million. Thus, recording an average price of the total cloves exported by Indonesia at USD 3,104 per Mt for whole cloves and USD 4,823 per Mt for ground cloves.

Year 2018 saw an increase in term of quantity of cloves exported by Indonesia. Indonesia was reported to have exported a total of 20,246 Mt of which 95% or 19,183 Mt of it comprised of whole cloves and 5% or 1,063 Mt of it ground cloves, recording a total increase of 123% when compared with 2017. The average export of cloves by Indonesia in 2018 was reported to be at 1,687 Mt per month which peaked in November with 5,132 Mt. In accordance with increasing in terms of quantity, Indonesia's revenue from cloves export was reported to have increased by 252% to a total of USD 101.7 Million as compared to the previous year. Thus, recording an average price of the total cloves exported by Indonesia at USD 4,995 per Mt for whole cloves and USD 5,581 per Mt for ground cloves or an increase of 61% and 16% respectively as compared with 2017.

In 2019, Indonesia was reported to have exported a total of 25,990 Mt of which 96% or 24,971 Mt of it comprised of whole cloves and 4% or 1,019 Mt of it ground cloves. Thus, recording a total increase of 28% when compared to 2018. By the end of 2019, the total revenue of cloves export by Indonesia was reported to have reached USD 111.5 Million, recording an increase of 10% as compared to 2018. The average price of the total cloves exported by Indonesia in 2019 was reported at USD 4,289 per Mt for whole cloves and 4,346 per Mt for ground clovesor a decrease by 14% and 22% respectively as compared with 2018.

Furthermore, in the past three years export of cloves and pepper by Indonesia had been reported with an increase. Although Indonesia is the world largest cloves producer in the world, export quantity and value of cloves from Indonesia was reported to be inferior to pepper export. The total quantity of cloves export in the past three years was reported at 55,326 Mt whilst the total quantity of pepper export was reported with 142,082 Mt. Thus, recording the annual ratio quantity of Indonesia export between cloves and pepper during 2017-2019 at 1:5, 1:2 and 1:2 respectively. The total value of cloves export in the past three years was reported as high as USD 242.2 Million whilst the total value of pepper export was reported as high as USD 535.7 Million. Thus, recording the annual ratio value of Indonesia export between cloves and pepper during 2017-2019 at 1:8, 1:1 and 1:1 per year respectively (Table 8).

During 2017-2019, the average export price of cloves for both whole and ground by Indonesia had fluctuated (Table 8). In 2017, the average export prices of cloves by Indonesia was recorded at USD 3,263 per Mt for whole cloves and USD 6,780 per Mt for ground cloves. The highest average export price of cloves from Indonesia in 2017 was recorded in September with USD 5,439 per Mt for whole cloves and in November with USD 15,452 per Mt for ground cloves whilst the lowest average export price was recorded in June with USD 1,635 per Mt for whole cloves and in March with only USD 922 per Mt for ground cloves.

Year 2018, saw an increase in the average export price for both whole and ground cloves by Indonesia, the average export prices of whole cloves by Indonesia was reported at USD 5,062 per Mt for whole cloves and USD 9,008 per Mt for ground cloves. Thus, recording an increase of 55% and 33% respectively when compared to 2017. The highest average export price of cloves from Indonesia in 2018 was recorded in February with USD 6,256 per Mt for whole cloves and USD 28,845 per Mt for ground cloves which also occurred in the same month. Whilst, the lowest average export price was recorded in May with USD 3,506 per Mt for whole cloves and in April with USD 2,080 per Mt for ground cloves.

Contrary with 2018, the average export prices of cloves by Indonesia in 2019 saw a decreasing trend. The average export prices of whole cloves by Indonesia was reported at USD 4,333 per Mt for whole cloves and USD 4,526 per Mt for ground cloves.Thus, recording a decrease by 14% and 50% respectively when compared to 2018. The highest average export price of cloves by Indonesia in 2019 was recorded in June with USD 5,248 per Mt for whole cloves and in December with USD 10,714 per Mt for ground cloves. Whilst, the lowest average export price of cloves was recorded in December with USD 3,538 per Mt for whole cloves and in November with only USD 975 per Mt for ground cloves.

Cloves export by Indonesia was reported to be shipped through ports and airports all over the Indonesia such as Java, Sumatera, Sulawesi and Bali (Table 9). Based on the port of origin, the top five origins for cloves export by Indonesia in 2019 were reported to be Port of Tanjung Perak, Surabaya with 23,108 Mt (contributed to 89% of the total export from Indonesia), Port of Tanjung Priok, Jakarta with 1,204 Mt (5%), Port of Tanjung Emas, Semarang with 985 Mt (4%), Port of Belawan, Medan with 304 Mt (1%) and Port of Panjang, Lampung with 232 Mt (1%). Furthermore, cloves export from Indonesia was also reported to be flown through airport such as Juanda (Surabaya), Ngurah Rai (Bali), Soekarno-Hatta (Jakarta) and Kuala Namu (Medan) though its quantity was insignificant when compared to quantity of cloves export through the ports.

Cloves from Indonesia areglobally traded in Asia, America, Africa and European Countries (Table 10). In 2019, Indonesia's top 5 Country of destinations for its cloves were reported to be India with 9,638 Mt (an increase of 115% as compared with 2018), Viet Nam with 2,158 Mt (a decrease of 59%), Saudi Arabia with 2,100 Mt (an increase of 17%), United Arab Emirates with 1,820 Mt (an increase of 125%) and Pakistan with 1,559 Mt (an increase of 2%). In terms of value, Indonesia's top 5 contributors for its cloves export revenue were reported to be India with USD 34.8 Million, Saudi Arabia with 12.3 Million,United Arab Emirates with 8.6 Million, Singapore with USD 8.2 Million and Pakistan with 7.0 Million (Table 11).

Farm gate price of cloves in Indonesia in the first quarter of 2019 fluctuated with a rather negatively outlook (Table 12). During that period, in several regency of cloves producer, clove farm gate price was reported to have recorded the highest price with IDR 100,000 per Kg (USD 7.0 per Kg) in January and February at Bima Regency and in January at Cianjur Regency, whilst the lowest price occurred in February at Ende Regency with only IDR 79,000 per Kg (USD 5.6 per Kg). Furthermore, the average farm gate price of cloves in most regions in Indonesia during January-April 2019 was recorded at IDR 85,139 per Kg (USD 6.02 per Kg).

Source:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia

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.