Weekly Publications

MARKET REPORT

Market this week showed a rather positive trend with only Muntok white pepper recorded a deficit. In local market, Malabar black pepper was traded with a slight 1% increase as compared with the previous week at an average of USD 4,955 per Mt. The slight increase of Malabar black pepper was contributed to the strengthening of the Indian Rupees toward US Dollar as the price of pepper in local currency remained stable at INR 345 per Kg. Indonesia black pepper was traded with an increase of 1% as compared with the previous week, averaging at USD 2,072 per Mt. Whilst Muntok white pepper was reported to be traded with a 2% deficit as the local price dropped to an average of IDR 50,000 per Kg. Despite the weakening of Malaysian Ringgit towards US Dollar (MYR 4.19 per USD 1), Malaysian black pepper was reported with a 1% increase as compared with the previous week due to increase in local currency (market closed with Malaysian black pepper at MYR 10 per Kg) while Malaysian white pepper was reported stable, averaging at USD 2,378 per Mt and 3,846 per Mt respectively. Viet Nam black and white pepper were traded stable as compared with the previous week. Sri Lanka black pepper and China white pepper were also reported to trade their pepper at a stable rate, averaging at USD 3,316 per Mt and 4,645 per Mt respectively.

In international market, pepper was traded with a similar trend in local market with Indonesia white pepper reported a slight deficit. India black pepper was also reported with a slight 1% increase as compared with the previous week. Lampung black pepper was traded with the same 1% increase internationally, averaging at USD 2,529 per Mt while Muntok white pepper was traded with 2% deficit as compared with previous week. Malaysian black and white pepper were traded at stable rate internationally. Viet Nam black pepper 500 g/l 550 g/l and white pepper were reported with the same 1% increase respectively. China white pepper FOB price was reported stable at USD 4,845 per Mt.

US market this week was reported stable and unchanged.

IMPORT OF PEPPER BY UNITED ARAB EMIRATES,

The United Arab Emirates (UAE) sometimes simply called the Emirates, is a country in Western Asia at the southeast end of the Arabian Peninsula on the Persian Gulf, bordering Oman to the east and Saudi Arabia to the south, as well as sharing maritime border with Qatar to the west and Iran to the north. The economy of the United Arab Emirates is the second largest in the Middle East (after Saudi Arabia), with a GDP of USD 403.2 Billion in 2014. Spices and herbs are an essential part of UAE cuisine. The food is tasty and fragrant because of the various exotic spices and herb used to make the food. Therefore, to meet the domestic consumption of spices especially pepper, the UAE imported pepper from various pepper producing countries. The pepper import of UAE showed an increasing trend in the last three years.

In 2017, UAE was reported to have imported a total of 2,799 Mt of pepper which 88% of it comprised of whole pepper while 335 Mt of it was ground pepper. The average pepper import by UAE in 2017 was reported at 233 Mt per month with the highest quantity recorded in November with 517 Mt. The total expenditure of pepper imports by UAE amounted to USD 11.3 Million, recording an average price of the total pepper imported by UAE at USD 3,886 per Mt for whole pepper and USD 5,056 per Mt for ground pepper.

2018 saw pepper import by UAE increased by 21% as compared to previous year totalling at 3,397 Mt which comprised of 3,227 Mt of whole pepper and 170 Mt of ground pepper. The average pepper import by UAE was reported at 283 Mt per month which peaked in November 2018 with 752 Mt. There was an increase in demand of pepper in November due to preparation to celebrate the national day on 2 December each year in UAE. Although increasing in term of quantity, the pepper import by UAE decreased by 20% in terms of value totalling at USD 8.9 Million. The average prices of the total pepper imported by UAE was reported to be at USD 2,491 per Mt for whole pepper and USD 5,447 per Mt for ground pepper which meant a loss 36% for whole pepper and a gain 8% for ground pepper as compared to previous year.

At the beginning of 2019, pepper import by UAE as of March continued its increasing trend by recording an increase of 94% as compared with the same period in 2018, totalling 1,243 Mt which comprised of 1,233 Mt of whole pepper and 9 Mt of ground pepper. The total expenditure of pepper imports by UAE as of March 2019 increased by 33% as compared to previous year in the same period, totalling USD 2.6 Million.
By the end of March 2019, most of pepper imported by UAE both whole and ground were reported to come from Brazil with 1,025 Mt (an increase of 74% as compared with the same period in 2018), Madagascar with 107 Mt (a decrease of 24%), India with 54 Mt (a decrease of 105%) and USA with 13 Mt (a decrease of 22%). UAE import of pepper from Brazil increased significantly as of March 2019 was contributed to the low-price of pepper coming out from Brazil. The average price of the total pepper imported by UAE from Brazil was at USD 2,156 per Mt.