Weekly Publications

WPB Week #39/13, 23 - 27 September 2013

it.assistant@ipcnet.org 27 Sep 2013 3

The recent evaluation of the Pepper supply demand scenario, one can assess that there is going to be a tight supply position emerging during the last quarter of the year to the extent of about 6 to 9000 tons shortage expected. The importing countries have maintained a hand to mouth approach towards inventory and there is no carry over left in the consuming countries. This situation is precarious as any spurt in demand will boost the prices and the volatility will be high.

Vietnam has already exported more than 100000 tons till August and the prevailing high prices have motivated the producers to sell their produce without holding much stock. It is reported that the Lampong crop is almost exhausted and there is no selling pressure from Brazil. As the rain gods have been kind the crop of 2014 is likely to be better than that of 2013 hence the farmers are advised not to hold many stocks this year

The market continued to strong this week. Pepper price in Sarawak increased, while at other source the prices were relatively stable. The decrease in production this year and the continued demand are the main factor for the continuous high price. Currently the material available in the domestic market is limited to meet the demand for the next few months. Until new material from India and Vietnam comes to the market during early 2014, the supply will be tight.

In Sarawak, local price of black pepper increased daily from MYR 16 per kg last week to MYR 16.4 at the week-s close. In dollar term the average price of Sarawak black increased by 4%, while Sarawak White increased by 1%. In Lampung and Bangka, the local price increased marginally, but in dollar term, the prices were relatively stable. In the coming Session in Kuching, the IPC will further evaluate the position and one can come to a well defined conclusion which affects the Pepper industry in general.

IMPORT OF PEPPER BY GERMANY:
In 2012 import of pepper into Germany increased by 8% from 25,200 mt in 2011 to 27,250 mt. Out of these figures around 7% and 9% respectively in 2011 and 2012 were ground pepper. During January - June 2013, Germany has imported 15,660 mt, registering an increase of 18% from import in the same period last year. Share of import of ground pepper in the first six months was 6%. Major source of pepper imported into Germany in the first six months of 2013 was from Vietnam for whole pepper and from Netherlands for ground pepper. Monthly import figures and chart are given below.

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