Weekly Publications

Both local and international market continued showing mixed response throughout this week. Black pepper price in local market of India and Sri Lanka was reported stable, while in Indonesia and Viet Nam their price decreased by 2% and 5% respectively. Only in Malaysia was black pepper traded higher by 5% as opposed to the week before. White pepper was reported stable in the local market of Viet Nam and China, while in Indonesia it was traded lower by 2% compared to the previous week. Again, Malaysia price of white pepper prevailed by 3% when compared to last week.

Following the trend in local market, FOB price for Malaysian black and white pepper recorded increase of 4% and 2% respectively as compared to the previous week. In Viet Nam the average FOB price of black pepper 500g/l and 550g/l were US$ 2,525 and US$ 2,775 recording a loss of US$150 and US$ 100 respectively as opposed to the previous week. Whilst the average price FOB price of Viet Nam white pepper was also reported to decrease by US$51. FOB prices for India and China were the only two that showed stability when compared to last week. Indonesia FOB price also followed the declining trend of Viet Nam by recording a drop of 2% both for Lampung black pepper and Muntok white pepper.

With new crop arrival expected during December, US Spot prices continue its steady streak. As the stock of pepper remains low with forecasted to increase only by February/March, domestic demand is expected to absorb most of the yield.

EXPORT OF PEPPER FROM GERMANY:
Germany, known for its role as one of the major pepper exporter in Europe, acquires their pepper from major pepper producing countries with Viet Nam, Brazil, Indonesia and India as the top exporters. More than 80% of peppers imported to Germany are in the form of whole pepper in which some of them would be processed into ground pepper before being consumed or exported out of the country. Since 2016 import of pepper by Germany has increased steadily, with 29,706 Mt in 2016 to 32,299 Mt in 2017. As of September 2018, Germany imported in total of 20,145 Mt recording a slight increase of 1% compared to the same period in 2017, with 89% of it in the form of whole pepper. Furthermore, Germany was reported to import 7,732 Mt of pepper from Brazil and 7,341 Mt from Viet Nam as of the 9th month of 2018, making them the two biggest pepper exporters to Germany.

In 2016, Germany exported pepper with a quantity of 14,846 MT consisting of 7,155 Mt whole pepper and 7,691 Mt ground pepper, with a value of US$ 146.8 million. Pepper exports from Germany in 2016 were slightly dominated by ground pepper with a percentage of 52% ground pepper, and 48% whole pepper. In 2017 Germany exported 8,713 Mt whole pepper, and 6,599 Mt ground pepper, amounting the total of 15,312 Mt with a value of US$ 122.9 million. Thus, recording a 3% increase in quantity, yet decreased 16% in value as opposed to 2016.

As of September 2018, Germany was reported to export whole pepper with a quantity of 6,557 Mt valued at US$ 35.8 million and ground pepper with a quantity of 5,075 Mt valued at 34.6 million, so the total export in this period reached 11,632 Mt in quantity and US$ 70.5 million in value. Though in terms of quantity of export, both for the whole and ground pepper, showed a slight increase by 0.2% and 2.2% respectively as compared to the same period in 2017, the export value took a cut of 30% for whole pepper and 24% for ground.

Since the beginning of 2018 until the 9th month of 2018, most of whole pepper from Germany had been exported to Poland with a quantity of 2,592 MT, followed by Austria (1,203 MT), France (368 MT), Czech Republic (310 MT) and Italy ( 283 MT), making them the 5 top importers of pepper from German. Meanwhile, most of the ground pepper from Germany was shipped to the United States of America with a quantity of 1,401 MT, followed by France (1,045 MT), Austria (342 MT), Netherlands (309 MT), and Poland (297 MT).