Weekly Publications

MARKET REPORT

The market showed negative trend this week with only India reported to remain stable. At the local level, prices were reported to record a deficit between 1% up to 5%. In Indonesia black pepper was traded 1% lower than the previous week while Muntok white pepper experienced more pressure due to some part already started their first harvest resulting a 2% deficit when compared to last week. Malaysia also recorded a 1% deficit both for black and white pepper which could be contributed to the local currency weakening over the US dollar. The biggest deficit this week was recorded in Viet Nam with a 5% deficit for black pepper and 4% deficit for white pepper. The loss experienced by Viet Nam was as result of new crops coming in and also factored in the weakening of Vietnam Dong towards US Dollar. Sri Lanka black pepper and China white pepper were reported to have recorded the same 1% deficit as compared with the previous week.

Following the same trend as in the local level, India's FOB price was reported to remain stable whilst others recorded deficit between 1% up to 11%. Indonesian FOB price this week also recorded the same amount of deficit as in local level, black pepper recorded a loss of 1% while Muntok white pepper took 2% deficit. Malaysian black and white pepper as well as China white pepper recorded the same amount of deficit by 1% as compared with the previous week. Viet Nam's loss this week was even greater for the FOB price than on local level, recording 8% and 11% deficit for the FOB price black pepper 500 and 550 g/l respectively. Whilst Viet Nam white pepper FOB price was reported at 6% lower when compared with the previous week at an average of US$ 3,598 per Mt.

US market remained flat as the shutdown continued to its 34 days with no clear end in sight as this has become the longest shutdown in US history.

IMPORT OF PEPPER BY TURKEY:

Turkey, famous for being located partly in Asia and partly in Europe, has always been known for incorporating various of spices in its cuisine resulting in a significant number of spice import to fulfil the domestic consumption.

Pepper Import by Turkey showed a significant fluctuation in the past three years with 2017 being the most apparent. In 2016, Turkey imported a total of 4,228 Mt pepper in which 97% of it was in the form of whole pepper resulting in an average of 352 Mt per month of pepper imported. Total value of imported pepper by Turkey in 2016 was reported to be US$ 7.8 million. Thus, in 2016 the average prices of the total imported pepper by Turkey were US$ 1,837 per Mt for whole pepper and US$ 2,278 per Mt for ground pepper.

In 2017, Turkey's pepper import recorded a significant spike of 33% in terms quantity and 48% in terms of value as compared with the previous year. Turkey recorded a total of 6,288 Mt of pepper imported in 2017 which consisted of 6,116 Mt whole pepper and 172 Mt ground pepper resulting in an increase of 49% for whole pepper and 30% for ground pepper as opposed to the previous year. In 2017, Turkey's total value of imported pepper was US$ 15.1 million. The average price of total imported pepper by Turkey were US$ 2,410 per Mt for whole pepper and US$ 2,000 per Mt for ground pepper. Turkey's highest import of pepper in 2017 was recorded in June with 858 Mt.

As of November 2018, pepper import by Turkey amounted to 3,581 Mt which consisted of 3,500 Mt whole pepper and 81 Mt ground pepper. Thus, recording a staggering deficit of 40% in terms of quantity as compared to the same period in 2017. In terms of value of the imported pepper by Turkey as of November 2018, which banked a total US$ 6.9 million, it reported an even sharper deficit of 51% as opposed to the same period of the previous year. In 11 months of 2018, Turkey's average prices of total imported price were at level of US$ 1,958 per Mt for whole ground and US$ 1,391 for ground pepper.

In 2018 the top five countries in which Turkey imported their pepper were Viet Nam with 2,578 Mt followed by Brazil with 716 Mt, Singapore (194 Mt), Indonesia (59 Mt) and Islamic Republic of Iran (19 Mt).