Weekly Publications

MARKET REPORT

In the end of February, the pepper market showed a mixed response. Farm gate prices of black pepper in India, Indonesia and Viet Nam are reported to decline by 2-3% this week. The decline in prices in India was caused by illegal pepper import that entered to India through border area. Furthermore, the decline of prices in Indonesia and Viet Nam were due to the considerable amount of pepper stocks in both countries because both countries just experienced a harvest period. Farm gate prices in Malaysia were reported to be stable, changes in prices in dollar terms were caused by the fluctuation in exchange rate of Malaysian ringgit against US Dollar. Sri Lanka was the only country that had shown a positive response this week. The farm gate price of black pepper in Sri Lanka was reported to have increased by 2% compared to last week.

Furthermore, Muntok White Pepper prices in Indonesia this week declined by 2% compared to the previous week. The decline in Viet Nam's white pepper prices this week was reported to be quite high, reaching 7% decline compared to last week prices. The price decline was also caused by the large amount of pepper stock due to the harvest in early 2019 came to a full swing in some provinces. Farm gate price of white pepper in Malaysia was also reported to be stable as well as the farm gate price of black pepper. Stable prices in Malaysia could not be separated from the big role of Malaysian Pepper Board (MPB) which had several policies to protect pepper farmers in Malaysia.
FOB Prices of pepper were also reported to have the same trend as farm gate prices of pepper. Declining of FOB Prices occurred in all pepper producing-countries except Malaysia. Furthermore, this week the Spot Prices in New York (USA) were reported to be stable.

IMPORT OF PEPPER BY SOUTH KOREA:

As a pepper consuming-country, South Korea meets its demand through imports from pepper producing-countries. The unique climate, geographical conditions, and community culture in South Korea have caused pepper not to be cultivated intensively in this country. In 2016, South Korea imported 5,470 MT of pepper consisting of 5,019 MT whole pepper and 451 MT ground pepper. The value of pepper imports by South Korea in 2016 was US$ 47.7 million. Thus averaging a total import price of US$ 8,562 per MT for whole pepper and US$ 10,628 per MT for ground pepper.

Furthermore, in 2017, South Korea imported 12% higher than 2016, which was as much as 6,153 MT pepper consisting of 5,658 MT whole pepper and 494 MT ground pepper. Even though there is an increase in quantity, pepper imports by South Korea have decreased by 17% in value. The value of pepper imports by South Korea in 2017 was reported at US$ 39.5 million which averaging a total import of US$ 6,354 per MT for whole pepper and US$ 7,254 per MT for ground pepper. Thus, recording an decrease of 26 % for whole pepper and 32% for ground pepper when compared to the price disbursed in 2016.

In 2018, South Korea imported fewer amounts of pepper than in 2017. In quantity, South Korea reportedly imported 5,607 MT of pepper consisting of 5,085 MT whole pepper and 522 MT ground pepper. The total import quantity by South Korea in 2018 was recorded to have declined by 9% compared to the total import quantity in 2017. The value of pepper imports by South Korea in 2018 was US$ 23 million, a 42% decline compared to import value in 2017. The average total price of imported pepper by South Korea was recorded at US$ 4,009 per MT for whole pepper and US$ 5,180 per MT for ground pepper.

Whole pepper imported by South Korea in 2018 was mostly shipped from Viet Nam with a quantity of 4,336 MT, followed by other countries such as Malaysia (627 MT), India (78 MT), Indonesia 35 MT, Thailand (2 MT), Brazil (2 MT) and Cambodia (2 MT). South Korea also imported whole pepper from other countries such as the USA, South Africa and Sri Lanka, but in very small quantities (less than 1 MT).

Furthermore, the ground pepper imported by South Korea in 2018 was mostly shipped from Viet Nam, with a quantity 465 MT, followed by Malaysia (31 MT), USA (11 MT), Sri Lanka (4 MT), Japan (4 MT), Thailand (4 MT), India (1 MT), and Brazil (1 MT). South Korea also imports ground pepper from other countries such as Indonesia, China, Singapore and Germany, but in very small quantities (less than 1 MT).