Weekly Publications

MARKET REPORT

As the result of the Corona Virus outbreak, global pepper market has been greatly affected as business has been reported to slow down almost in all of the major market in the world.
Market this week showed a mixed response as only Viet Nam and Malaysia origin recorded an increase. In local market, as the harvest come to full swing Malabar black pepper was traded with a 4% deficit as compared to the previous week, averaging at USD 4,203 per Mt. Indonesia black and white pepper were reported with a 2% and 1% deficit respectively when compared to the previous week at an average of USD 1,684 per Mt for black pepper and USD 3,053 per Mt for white pepper. The decrease of Indonesia black and white pepper could be contributed to the weakening of Indonesian Rupiah against US Dollar (2% depreciation to an average of IDR 14,248 @ USD 1). Malaysian black and white pepper were traded domestically with an increase of 1% respectively as opposed to the previous week, averaging at USD 1,767 per Mt for black pepper and USD 3,172 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported stable with an average of USD 1,635 per Mt for black pepper and USD 2,410 per Mt for white pepper. Sri Lanka black pepper was also reported steady at an average of USD 2,937 per Mt. Having been inactive for the past six weeks due to the Corona Virus outbreak, China market resumed with trading its white pepper at an average of USD 4,175 per Mt locally.

International market also showed a mixed response as only Viet Nam recorded an increase. India was reported trading its Malabar black pepper internationally with the same 4% deficit as compared to the previous week at an average of USD 4,477 per Mt. Indonesia black and white pepper were reported with a 2% and 1% deficit respectively as compared to the previous week, averaging at USD 2,089 per Mt for black pepper and USD 3,632 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, despite harvesting season, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a significant increase of 5%, 5% and 3% respectively as opposed to the previous week at an average of USD 2,110 per Mt, USD 2,210 per Mt and USD 3,210 per Mt respectively. China reported trading its white pepper internationally with an average of USD 4,375 per Mt.

US market this week was reported positively with real demand gradually returning. Brazil price in US market continued to be more competitive despite low in quantity. Whilst, Indonesia black and white pepper were reported to be offered with a 2% deficit as compared to the previous week offers. Viet Nam pepper price was reported to increase by 10% contributed to the recent handling of the Virus Outbreak.

IMPORT OF PEPPER BY MALAYSIA

Malaysia, divided by the South China Sea into two regions; the Peninsular Malaysia and Malaysian Borneo, shared land borders with Thailand, Indonesia and Brunei Darussalam. Malaysia, known to be one of the major pepper producing countries in the world with an average annual production more than 23,500 Mt, produces more than 90% of its pepper in the State of Sarawak. Producing both black and white pepper, Malaysia's most common varieties are Kuching and Semengok Emas. Malaysia was also reported to actively import pepper from other pepper producing countries for the purpose of domestic consumption as well as the industry.

In 2017, Malaysia was reported to have imported a total of 3,420 Mt of pepper which 58% or 1,988 Mt of it comprised of whole pepper while 42% or 1,432 Mt of it was ground pepper. The average import by Malaysia in 2017 was reported to be 285 Mt per month with the highest quantity recorded in April with 484 Mt. The total expenditure of pepper import by Malaysia was reported to be as high as USD 19.2 Million, recording an average price of the total pepper imported by Malaysia at USD 6,270 per Mt for whole pepper and USD 4,747 per Mt for ground pepper.

Year 2018 saw a decreasing trend in term of quantity of pepper imported by Malaysia. Malaysia was reported to have imported a total of 2,868 Mt which comprised of 71% or 2,031 Mt of whole pepper and 29% or 838 Mt of ground pepper, recording a decrease of 16% as compared to the same period in 2017. On average Malaysia was reported to have imported 239 Mt per month which also peaked in April with 332 Mt. In accordance with decreasing in term of quantity, Malaysia's expenditure for pepper import was reported to have declined by 36% to a total of USD 12.2 Million, recording an average price of the total pepper imported by Malaysia at USD 3,925 per Mt for whole pepper and USD 5,129 per Mt for ground pepper or a decrease by 37% for whole pepper and an increase of 8% for ground pepper as compared with 2017.

Pepper import by Malaysia in 2019 was reported with an increase by 14% as compared to 2018, totaling at 3,263 Mt which comprised of 79% or 2,582 Mt of whole pepper and 21% or 681 Mt of ground pepper. The average import by Malaysia in 2019 was reported to be 272 Mt per month with the highest quantity recorded in July with 364 Mt. Although increasing in term of quantity, the total expenditure of pepper import by Malaysia in 2019 was reported to decline by 4% as compared to the previous year, totaling at USD 11.7 Million. Thus, recording an average price of the total pepper imported by Malaysia at USD 3,119 per Mt for whole pepper and USD 5,427 per Mt for ground pepper or a decrease by 21% for whole pepper and an increase of 6% for ground pepper as compared with 2018.

The top five countries of origins of Malaysia's pepper in 2019 were reported to be Viet Nam with 1,880 Mt (an increase of 38% as compared with 2018), Indonesia with 663 Mt (an increase of 1%), India with 266 Mt (a decrease of 21%), South Korea with 69 Mt (an increase of 6%) and Myanmar with 69 Mt (a decrease of 15%). The decrease of Malaysia import from India could be contributed that Malaysia started to shift to import more from other origins country such as Viet Nam (an increase by 522 Mt as compared to 2018).