Weekly Publications

MARKET REPORT

Market this week showed a rather positive outlook as only India origin was reported with a decrease. In local market, Malabar black pepper was reported with 1% deficit when compared to the previous week averaging at USD 4,121 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as opposed to the previous week, averaging at USD 1,622 per Mt for black pepper and USD 2,823 per Mt for white pepper. The slight increase of Indonesia pepper could be contributed to the strengthening of Indonesian Rupiah against US Dollar (IDR 15,413 @ USD 1). Malaysia's black and white peppers were also reported with an increase of 1% respectively when compared to the previous week with an average of USD 1,701 per Mt for black pepper and USD 3,052 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported with an increase of 1% as compared to the previous week at an average of USD 1,649 per Mt whilst Viet Nam white pepper was reported stable and unchanged. Sri Lanka black pepper was reported with an increase of 3% as compared to the previous week and was traded at an average of USD 2,680 per Mt. China white pepper was reported stable and unchanged.

International market also showed a rather positive outlook as only India origin was reported with a decrease. India black pepper was reported with the same 1% deficit when compared to the previous week at an average of USD 4,385 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as compared to the previous week averaging at USD 2,005 per Mt for black pepper and USD 3,358 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable and unchanged. China white pepper was reported steady and also unchanged.

Trade activity in US market this week was reported with moving slow due to the pandemic of corona virus with a wishful prospect the next month business will recommence though grinder/trading house stock limited.

EXPORT OF PEPPER BY NETHERLANDS

The Netherlands is a country located mainly in North-western Europe. In the past, Netherlands had an important role in the spread of pepper in the world. In 1595, Houtman of Holland made a successful voyage to Indonesia. This was the beginning of monopoly spice trade. Netherlands gradually established a firm grip over the pepper producing centers near Lampung in Sumatera and Banten in Java. Pepper is a thriving agriculture activity in Lampung region even today. Furthermore, Netherlands actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In 2018, Netherlands was reported to have imported a total of 14,219 Mt which 65% of it comprised of whole pepper. In the following year, Netherlands'import of pepper increased by 7%, totaling at 15,196 Mt. The ratio of Netherlands' import and export during 2018-January 2020 are 2:1, 2:1 and 1:1 respectively. As of January 2020, Netherlands was reported to have imported a total of 920 Mt of which 786 Mt went for re-export purposes. The top five countries of origins of Netherlands pepper both for whole and ground for January 2020 were reported to be Viet Nam with 362 Mt, Brazil with 215 Mt, Indonesia with 140 Mt, Spain with 99 Mt and Germany with 21 Mt.

In 2018, Netherlands was reported to have exported a total of 8,594 Mt of pepper from which 54% or 4,611 Mt of it comprised of whole pepper and 46% or 3,982 Mt of it ground pepper. Netherlands on average exported a total of 716 Mt per month in 2018 which peaked in January with 868 Mt. The total revenue of Netherlands' export of pepper in 2018 was reported to be as high as USD 52.7 Million. Thus, recording the average price of the total pepper exported by Netherlands at USD 5,524 per Mt for whole pepper and USD 6,842 per Mt for ground pepper.

Year 2019 saw a decrease in term of quantity of pepper exported by Netherlands. Netherlands was reported to have exported a total of 8,313 Mt of which 52% or 4,324 Mt of it comprised of whole pepper and 48% or 3,990 Mt of it ground pepper, recording a decrease of 3% when compared with 2018. The average export of pepper by Netherlands in 2019 was reported to be at 693 Mt per month which peaked in March with 791 Mt. In accordance with decreasing in terms of quantity, Netherlands' revenue from pepper export was reported with a decrease by 27% as compared to the previous year to a total of USD 38.3 Million. Thus, recording an average price of the total pepper exported by Netherlands at USD 3,920 per Mt for whole pepper and USD 5,357 per Mt for ground pepper or a decrease by 29% and 22% respectively as compared to 2018.

As of January 2020, Netherlands was reported to have exported a total of 786 Mt which 54% or 427 Mt of it comprised of whole pepper and 46% or 359 Mt of it ground pepper. Thus, recording a decrease of 20% when compared to the same period in 2019. As of January 2020, the total revenue of pepper export by Netherlands was reported to have reached USD 3.2 Million, recording a decrease by 6% as compared to the same period in 2019. The average price of the total pepper exported by Netherlands as of January 2020 was reported at USD 3,581 per Mt for whole pepper and USD 4,800 per Mt for ground pepper.

Pepper from Netherlands is widely traded in European countries. As of January 2020, Netherlands's top 5 Country of destinations for its pepper were reported to be Belgium with 151 Mt (an increase of 80% as compared to the same period in 2019), Germany with 136 Mt (a decrease of 33%), France with 104 Mt (an increase of 24%), Austria with 64 Mt (an increase of 354%) and Czech Republic with 52 Mt (an increase of 859%). The decrease of export to Germany was the result of Germany directly imported pepper from producing country such as India (an increase of 22% or 16 Mt as compared to the same period in 2019).