Weekly Publications

MARKET REPORT

Market this week continued showing a mixed response with only Viet Nam being reported to have recorded a positive trend. At the local level, black pepper India was traded 2% lower when compared to the previous week, averaging at US$ 4,547 per Mt. Though, Indian Rupee strengthen against US Dollar, it didn't help increase the pepper price in India which have dropped continuously since the beginning of February 2019. Lampung black pepper and Muntok white pepper also experienced a slight 1% deficit as compared to the previous week and were traded at an average of US$ 2,118 per Mt for Lampung black pepper and US$ 3,531 per Mt for Muntok white pepper. Both black and white pepper price in Malaysia were traded stable at an average of US$ 2,293 per Mt and US$ 3,858 per Mt respectively. Pepper prices in Viet Nam were reported to have bounced back up slightly. Black pepper in Viet Nam were traded 5% higher than the previous week. Whilst its white pepper experienced a bigger spike of 7% when compared to the week before. Sri Lankan pepper were reported stable this week at an average of US$ 3,418 per Mt.

FOB prices of all origins were reported to show the same pattern as its Local prices. Indian's FOB price of black pepper was reported to also experience a deficit of 2% and losing an average of US$ 83 per Mt when compared to last week average price. FOB prices of Lampung black pepper and Muntok white pepper also experienced a 1% deficit and were traded an average of US$ 2,585 and US$ 4,167 per Mt respectively. Malaysia reported its FOB price of black and white pepper at the same level as the previous week. Viet Nam FOB prices recorded increases between 3% - 5% for its pepper. Black pepper 500g/l was reported to have recorded a 4% increase while black pepper 550 g/l recorded a 5% increase. Traded at an average of US$ 3,395 per Mt, Viet Nam FOB price for white pepper experienced a 3% increase as compared to the previous week.

US market was reported stable and unchanged.

EXPORT OF PEPPER BY MADAGASCAR:

Though it is not that well known as Brazil, India, Indonesia, Malaysia, Sri Lanka and Viet Nam, Madagascar is one of pepper producing country. Pepper in Maadagascar is mainly cultivated in the South-East of the island from the Nosy Varika to Fararangana with black pepper being the main product . Furthermore, as a pepper producing country, Madagascar is also reported to have exported a quite significant amount of pepper throughout the world.

In the past three years, pepper exported by Madagascar had fluctuated quite significantly. In 2016, Madagascar was reported to have exported pepper as high as of 2,027 Mt which comprised of 1,986 Mt in the form whole pepper and 40 Mt ground pepper. Madagascar banked a total of US$ 9.9 Million from its pepper export revenue in the 2016. Thus, recording an average price of the total pepper exported by Madagascar at US$ 4,913 per Mt for whole pepper and US$ 4,271 per Mt for ground pepper.

In the following the year, pepper export by Madagascar showed a declining trend both in term of quantity, value as well as its average price. In 2017, Madagascar exported 2% less than the previous year at a total of 1,983 Mt which comprised of 1,889 Mt of whole pepper and 94 Mt of ground pepper. In term of value, Madagascar recorded a 30% deficit as compared to 2016 at US$ 6.9 Million. The average price of the total pepper exported by Madagascar in 2017 dropped to US$ 3,463 per Mt for whole pepper and US$ 4,054 per Mt for ground pepper when compared to the previous year.

2018 saw the spike in Madagascar export of pepper with a 67% of increase in term of quantity and 33% increase in value. Madagascar exported a total of 3,313 Mt which comprised of 2,986 Mt of whole pepper and 328 Mt of ground pepper. Madagascar banked a total of US$ 9.2 Million from its pepper export revenue. This increasing trend was not followed by the average price of the total exported pepper by Madagascar which reported deficit to US$ 2,825 per Mt for whole pepper and US$ 2,467 per Mt for ground pepper.

Madagascar exported pepper to various countries in the world. As per 2018, Madagascar had exported to more than 35 countries all over the globe with the top five countries being United Arab Emirates with a total of 542 Mt of pepper followed by Pakistan with 452 Mt, France with 349 Mt, Belgium with 303 Mt and India with 272 Mt.