Weekly Publications

MARKET REPORT

Market this week showed mixed response. In local market, Malabar black pepper was reported with a slight decrease by 1% as compared to the previous week with an average of USD 4,847 per Mt. As Lampung is currently undergoing harvest period, Indonesia black pepper was reported with a 2% deficit as opposed to the previous week with an average of USD 2,008 per Mt. Whilst, Indonesia white pepper reported an increase by 1% as compare to the previous week averaging at USD 3,478 per Mt. Indonesian black and white pepper in local currency were traded with an average of IDR 28,000 per Kg and IDR 48,500 per Kg respectively. Malaysian black pepper reported to be traded with 2% deficit as compared to the previous week. Whilst, Malaysian white pepper was reported with a slight increase of 1% as compare to the previous week, averaging at USD 2,437 per Mt for black pepper and USD 3,933 per Mt for white pepper. Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,919 per Mt while Viet Nam white pepper was reported unchanged, averaging at USD 2,847 per Mt. Sri Lanka black pepper continued to be traded negatively as the harvest period progressed. Recording a 1% deficit as opposed to the previous week at an average of USD 2,592 per Mt. China white pepper was reported to be traded with 1% deficit as compared to the previous week averaging at USD 4,680 per Mt. The slightly drop in China was contributed to the harvest period currently in full swing.

In international market, FOB price of India black pepper was reported with a 1% deficit as compared to the previous week at an average of USD 5,138 per Mt. Indonesia black pepper was also reported with the same decrease by 2% as opposed to the previous week with an average of USD 2,461 per Mt. Whilst, Indonesian white pepper recorded a slight increase by 1% as compared to the previous week averaging at USD 4,111 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l and 550 g/l were reported to be traded negatively with 1% deficit as compared to the previous week averaging at USD 2,295 per Mt and USD 2, 360 per Mt respectively. Whilst, Viet Nam white pepper was reported stable, averaging at USD 3,445 per Mt. China white pepper was reported with an even higher deficit of 4% as opposed to the previous week at an average USD 4,880 per Mt in the international market.

EXPORT OF PEPPER BY UNITED KINGDOM

United Kingdom is one of the countries in Europe that imports quite a lot of pepper from various pepper producing countries whether for its domestic consumption or for purpose of re-export.

In 2017, United Kingdom was reported to have exported a total of 1,048 Mt of pepper which 40% of it comprised of whole pepper and 629 Mt of it ground pepper. United Kingdom on average exported a total of 87 Mt per month in 2017. The total revenue of United Kingdom's pepper export in 2017 was reported to be as high as USD 10.8 Million, thus, recording an average price of the total pepper exported by United Kingdom at USD 10,570 per Mt for whole pepper and USD 10,123 per Mt for ground pepper.

Year 2018 saw a decreasing trend in terms of quantity of pepper exported by United Kingdom. United Kingdom was reported to have recorded a total of 847 Mt which comprised of 338 Mt of whole pepper and 509 Mt of ground pepper. Thus, recording 19% decrease as compared to the same period in 2017. The average export of pepper by United Kingdom was reported to be at 71 Mt per month. In accordance with decreasing in terms of quantity, United Kingdom's revenue from pepper export was reported to have decline by 17% to a total of USD 8.9 Million. Thus, recording an average price of the total pepper exported by United Kingdom at USD 10,751 Mt for whole pepper and USD 10,407 Mt for ground pepper or increased by 2% and 3% respectively as compared with 2017.

As of April 2019, United Kingdom was reported to have exported a total of 317 Mt which comprised of 158 Mt of whole pepper and 159 Mt of ground pepper. Thus, recording an increase of 4% when compared to the same period in 2018. By the end of April 2019, the total revenue of pepper export by United Kingdom was reported to have reached USD 2.7 Million, recording a loss of 21% when compared to the same period in 2018. The average price of the total pepper export by United Kingdom as of April 2019 was reported at USD 7,591 per Mt for whole pepper and USD 9,517 per Mt for Ground pepper.

Until the end of April 2019, United Kingdom was reported to have imported a total of 4,180 Mt of pepper which 317 Mt of it went for re-export purposes. By the end of 2019, United Kingdom was reported to have imported pepper from various countries such as Viet Nam with 1,702 Mt, Netherlands with 755 Mt, France with 403 Mt, India with 380 Mt and China with 142 Mt.

Furthermore, as of April 2019, United Kingdom's top 5 country destinations for its pepper were reported to be Ireland with 81 Mt (a decrease of 7% as compared with the same period in 2018), Germany with 64 Mt (an increase of 35%), Netherlands with 59 Mt ( a decrease of 3%), Italy with 18 Mt (an increase of 14%) and France with 15 Mt (a decrease of 35%). The decrease of export to France was the result of France directly imported pepper from pepper producing countries such as Brazil (an increase by 1,798 Mt as compared to the same period in 2018) and Viet Nam (an increase by 324 Mt). France's preference towards importing from Brazil and Viet Nam origins as opposed to United Kingdom could be contributed to the fact that Brazil and Viet Nam offer more competitive price.