Weekly Publications

MARKET REPORT

Market this week showed mixed responses with India and Viet Nam origins recorded with an increase. In local market, Malabar black pepper was traded with an increase of 1% as compared to the previous week with an average of USD 4,746 per Mt. Indonesia black and white pepper was reported stable at an average of USD 1,750 per Mt for black pepper and USD 3,035 per Mt for white pepper. Malaysian black and white pepper was traded negatively with 1% and 2% decreases respectively as opposed to the previous week at an average of USD 1,840 per Mt for black pepper and USD 3,258 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported with an increase of 1% as opposed to the previous week with an average of USD 1,764 per Mt. Whilst, Viet Nam white pepper was reported steady at an average of USD 2,626 per Mt. After the continuous increasing trend lately, Sri Lanka black pepper was traded with marginal decrease and was reported with 1% deficit as compared to the previous week at an average of USD 3,822 per Mt. In the past four weeks China white pepper was continuously reported with a deficit and this week it was reported with a 1% deficit as compared to the previous week with an average of USD 4,350 per Mt.

International market reacted rather stable this week with only India recorded an increase. FOB price of India black pepper was reported with the same increase of 1% as compared to the previous week at an average of USD 5,027 per Mt. Indonesia black and white pepper was reported steady with an average of USD 2,167 per Mt for black pepper and USD 3,616 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 at an average of USD 2,330 per Mt, USD 2,395 per Mt and USD 3,480 per Mt respectively. In international market China was reported with a higher deficit by 3% as opposed to the previous week with an average of USD 4,450 per Mt.

EXPORT OF PEPPER BY GERMANY

Germany, officially the Federal Republic of Germany is a country in Central and Western Europe. Its bordering countries include Denmark, Poland, Czech Republic, Austria, Switzerland, France, Luxembourg, Belgium, and the Netherlands. As one of the pepper export hub of the European countries, Germany actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In the past three years, import of pepper by Germany fluctuated. In 2017, Germany imported a total of 32,729 Mt which 89% of it consisted of whole pepper. In the following year, Germany import of pepper decreased by 6% as compared to 2017, totaling at 30,741 Mt. Until the end of October 2019, Germany was reported to have imported a total of 27,579 Mt of which 11,880 Mt went for re-export purposes. The ratio of Germany's import and export during 2017-2019 are 2:1 respectively. The top five countries of origins of Germany pepper as of October 2019 were reported to be Brazil with 11,097 Mt, Viet Nam with 10,532 Mt, Indonesia with 2,106 Mt, India with 1,017 Mt and Cambodia with 959 Mt (Table 1).

In 2017, Germany was reported to have exported a total of 15,312 Mt of pepper from which 57% or 8,713 Mt of it comprised of whole pepper and 43% or 6,599 Mt of it ground pepper. Germany on average exported a total of 1,276 Mt per month in 2017. The total revenue of Germany's export of pepper in 2017 was reported to be as high as USD 122.9 Million. Thus, recording an average price of the total pepper exported by Germany at USD 7,464 per Mt for whole pepper and USD 8,781 per Mt for ground pepper.

Year 2018 saw a marginal decrease in term of quantity of pepper exported by Germany. Germany was reported to have exported a total of 15,304 Mt of which 57% or 8,722 Mt of it comprised of whole pepper and 43% or

6,582 Mt of it ground pepper. Thus, recording a mere 8 Mt loss when compared with 2017. The average export of pepper by Germany in 2018 was reported to be at 1,275 Mt per month. Germany's revenue from pepper export was reported to have declined by 27% to a total of USD 89.5 Million, recording an average price of the total pepper exported by Germany at USD 5,246 per Mt for whole pepper and USD 6,655 per Mt for ground pepper or a decrease by 30% and 24% respectively as compared with 2017.

As of October 2019, Germany was reported to have exported a total of 11,880 Mt which comprised of 7,152 Mt of whole pepper and 4,728 Mt of ground pepper. Thus, recording a 9% decrease when compared to the same period in 2018. By the end of October 2019, the total revenue of pepper export by Germany was reported to have reached USD 56.4 Million, recording a decrease by 28% as compared to the same period in 2018. The average price of the total pepper exported by Germany as of October 2019 was reported at USD 4,171 per Mt for whole pepper and 5,626 per Mt for ground pepper.

Pepper exports from Germany are mostly traded in European Countries and United States of America. As of October 2019, Germany's top 5 Country of destinations for its pepper were reported to be Poland with 2,911 Mt (a decrease of 9% as compared with the same period in 2018), Austria with 1,802 Mt (an increase of 3%), France with 1,447 Mt (a decrease of 7%), United States of America with 1,082 Mt (a decrease of 28%) and Czech Republic with 599 Mt (an increase of 38%). The decrease of export to United States of America was the result of United States of America start to shift importing pepper from origins countries such as Viet Nam (an increase by 8,694 Mt or 22% as compared with the same period in 2018) and India (an increase by 2,347 Mt or 61%).