Weekly Publications

MARKET REPORT

Market this week showed a mixed response with only Indonesia black pepper was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 3% when compared to the previous week, averaging at USD 4,675 per Mt. Despite Farmers in Lampung were reported keeping hold of their crop, Indonesia black pepper was reported with 4% deficit when compared to the previous week, averaging at USD 2,339 per Mt. The decrease of Indonesia's black pepper also could be contributed to the weakening of Indonesia Rupiah against the US Dollar (IDR 14,322 @ USD 1), recording a 1% depreciation. Whilst, Indonesia white pepper was reported with a slight increase of 1% as compared to the previous week, averaging at USD 4,469 per Mt. Malaysia black and white pepper were reported stable, averaging at USD 2,484 per Mt for black pepper and USD 3,948 per Mt for white pepper. Viet Nam black and white pepper were reported with an increase of 8% and 15% respectively as compared to the previous week, averaging at USD 2,420 per Mt for black pepper and USD 3,803 per Mt for white pepper. 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 2,754 per Mt. China white pepper was traded at an average of USD 5,075 per Mt.

International market was also reported with a mixed response as India black pepper was reported with the same increase of 3% when compared to the previous week, averaging at USD 4,948 per Mt. Indonesia black pepper was reported with 4% deficit when compared to the previous week, averaging at USD 2,835 per Mt. Whilst, Indonesia white pepper was reported with an increase of 1% as opposed to the previous week, averaging at USD 5,211 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 3%, 3% and 2% respectively as opposed to the previous week, averaging at USD 3,155 per Mt, USD 3,236 per Mt and USD 4,800 per Mt respectively. China white pepper was traded at an average of USD 5,275 per Mt.

US market as well as European markets were reported stable with a slight increasing trend. Muntok white pepper in US Market for CF March/April was reported in the range of USD 5.300 - 5,500 per Mt.

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 is the 5th largest pepper producing country in the world with a total production of 33,940 Mt in 2019. The state of Sarawak accounts to 98% of the annual pepper production followed by Peninsular Malaysia and Sabah. Furthermore, 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 2018, Malaysia was reported to have imported a total 2,869 Mt of pepper which 71% or 2,031 Mt of it comprised of whole pepper while 29% or 838 Mt of it was ground pepper. The average import of pepper by Malaysia in 2018 was reported to be 239 Mt per month with the highest quantity recorded in April with 332 Mt. The total expenditure of pepper import by Malaysia in 2018 was reported to be as high as USD 12.2 Million, recording an average price of the total pepper imported by Malaysia at USD 3,924 per Mt for whole pepper and USD 5,128 Per Mt for ground pepper.

Year 2019 saw an increasing trend in term of quantity of pepper imported by Malaysia. Malaysia was reported to have imported a total of 3,262 Mt which 79% or 2,582 Mt of it comprised of whole pepper and 21% or 680 Mt of it was ground pepper. Thus, recording an increase of 14% when compared to the same period in 2018. The average pepper import by Malaysia in 2019 was reported at 272 Mt per month which peaked in July with 363 Mt. Although increasing in term of quantity, Malaysia's expenditure of pepper import was reported with a decrease of 4% to a total of USD 11.7 Million. Thus, recording an average price of the total pepper imported by Malaysia at USD 3,120 per Mt for whole pepper and USD 5,435 per Mt for ground pepper or a decrease by 21% for whole pepper and an increase of 6% for ground pepper as compared to 2018.

As of December 2020, Pepper import by Malaysia was reported with a decrease of 17% as compared to 2019, totaling at 2,705 Mt which comprised of 66% or 1,792 Mt of whole pepper and 34% or 913 Mt of ground pepper. The total expenditure of pepper import by Malaysia as of December 2020 was reported with a decrease of 15% when compared to 2019, totaling at USD 9.9 Million. Thus, recording an average price of the total pepper imported by Malaysia at USD 3,479 per Mt for whole pepper and USD 4,064 per Mt for ground pepper or an increase of 12% for whole pepper and a decrease by 25% for ground pepper as compared to 2019.

The top five countries of origins of Malaysia's pepper as of December 2020 were reported to be Viet Nam with 1,111 Mt (a decrease of 41% as compared to 2019), Indonesia with 543 Mt (a decrease of 18%), China with 409 Mt (an increase of 383 Mt), India with 277 Mt (an increase of 4%) and Madagascar with 78 Mt (2019 n.a). The decrease of Malaysia's import from Viet Nam could be contributed to Malaysia preference of importing from other origin such as China (an increase of 383 Mt as compared to the same period).