Weekly Publications

MARKET REPORT

This week market showed mixed responses with Indonesia and Sri Lanka being reported declining. In local market India traded its black pepper with an increase of 1% as compared to the previous week, averaging at USD 4,858 per Mt. Indonesian black and white pepper this week were reported with 1% deficits as a result of the weakening of Indonesian Rupiah against US Dollar. Lampung black pepper was traded at an average of USD 2,108 per Mt while Muntok white pepper at USD 3,443 per Mt. Malaysian black and white pepper was reported stable at an average of USD 2,264 per Mt and USD 3,809 per Mt respectively. Viet Nam local market was reported to be slow and stable with the Reunification and labour holidays. Viet Nam traded its pepper at an average of USD 1 ,838 per Mt for black pepper and USD 2,851 per Mt for white pepper. Sri Lankan pepper was traded with a 2% deficit as compared to the previous week at an average of USD 3,324 per Mt.

The international market was reported to experienced the same trend as the local market with Indonesian origin recorded a deficit. Indian FOB price was reported with an increase of 1% as compared to the previous week. Indonesian black and white pepper FOB prices recorded a slight 1% deficit when compared to the previous week at an average of USD 2,572 per Mt and USD 4,068 per Mt respectively. Malaysian FOB prices of black and white pepper were reported to be stable. Viet Nam FOB prices of black pepper 500 g/l, 550 g/l and white pepper were traded stable and unchanged at an average of USD 2,150 per Mt, USD 2,250 per Mt and USD 3,450 per Mt respectively.

US market was reported to remain stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

IMPORT OF PEPPER BY SOUTH AFRICA

South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa, it is bounded to the south by 2,798 kilometres of coastline of Southern Africa stretching along the South Atlantic and Indian Oceans. South Africa also one of pepper producing country, because of pepper is a tropical plant that grows in hot humid areas with high rainfall, pepper cultivation in South Africa can only be grown in the Lowfeld of Mpumalanga Province and KwaZulu Natal Province. However, South Africa's pepper production is unable to meet the domestic consumption which pushes the import of pepper by South Africa become one of the most importer country pepper in Africa in the past three years.

In 2017, South Africa was reported to have imported a total of 4,995 Mt of pepper which 71% of it comprised of whole pepper while 1,472 Mt of it ground pepper. The average pepper imports by South Africa in 2017 was reported at 416 Mt per month with the highest quantity recorded in February with 817 Mt. The total expenditure of pepper imports by South Africa amounted to USD 25.6 Million, recording an average price of the total pepper imported by South Africa at USD 4,496 per Mt for whole pepper and USD 6,631 per Mt for ground pepper.

2018 saw pepper import by South Africa decreased by 25% as compared to previous year totalling at 3,731 Mt which comprised of 2,352 Mt of whole pepper and 1,378 Mt of ground pepper. The average pepper import by South Africa was reported at 311 Mt per month which peaked in August 2018 with 413 Mt. In accordance with decreasing in terms of quantity, the pepper imports by South Africa also decreased by 32% in terms of value which amounted to USD 17.4 Million. The average price of the total pepper imported by South Africa was reported to be at USD 3,932 per Mt for whole pepper and USD 5,939 per Mt for ground pepper which meant a loss 13% and 10% respectively.At the beginning of 2019, pepper import by South Africa as of February continued its decreasing trend by recording a decrease by 20% as compared with the same period in 2018, totalling 501 Mt which comprised of 341 Mt of whole pepper and 160 Mt of ground pepper. The total expenditure of pepper imports by South Africa as of February 2019 decreased by 47% as compared to previous year in the same period, totalling USD 1.99 Million.

Most of pepper imported by South Africa both whole and ground pepper as of February 2019 was reported to come from Viet Nam with 357 Mt. Following Viet Nam, Brazil exported 59 Mt and Thailand 36 Mt. Compared to previous year in the same period pepper imported by South Africa was reported to come from Viet Nam with 383 Mt, Singapore with 105 Mt and Brazil with 32 Mt.