Weekly Publications

MARKET REPORT

Market this week showed a rather negative outlook with no origins recorded an increase. In local market, Malabar black pepper was reported with a slight deficit by 1% as compared to the previous week with an average of USD 4,549 per Mt. Indonesia black pepper was reported to be traded negatively and was reported with the lowest ever prices in recent years. Recording a 6% deficit as opposed to the previous week at an average of USD 1,804 per Mt. The decrease in price of black pepper in Indonesia was as result of harvest period currently in full swing which flooded the market with product. Thus, preassuring the price in the local currency with an average of IDR 25,400 per Kg from IDR 27,000 per Kg in the previous week. Muntok white pepper was also reported with a decrease by 2% as compared to the previous week averaging at USD 3,339 per Mt. Malaysian black and white pepper were reported stable averaging at USD 2,055 per Mt and USD 3,592 per Mt respectively. Viet Nam black pepper was reported with a decrease by 2% as compared to the previous week, averaging at USD 1,787 per Mt. Whilst, Viet Nam white pepper was reported stable with an average of USD 2,838 per Mt. Furthermore, Sri Lanka black pepper was reported stable with an average of USD 2,402 per Mt.

In international market, FOB price of India black pepper was reported with a 1% deficit as compared to the previous week at an average of USD 4,824 per Mt. Indonesia black pepper was reported with the same 6% deficit as compared to the previous week at an average of USD 2,220 per Mt. Indonesia white pepper was also reported with a decrease by 2% as compared to the previous week with an average of USD 3,954 per Mt. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a decrease by 1% respectively as opposed to the previous week averaging at USD 2,204 per Mt, USD 2,269 per Mt and USD 3,354 per Mt respectively.

EXPORT OF PEPPER BY ITALY

Italy, officially the Italian Republic, is a Southern European country consisting of a peninsula delimited by the Alps and surrounded by several islands. Italy actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In 2017, Italy was reported to have exported a total of 1,158 Mt of pepper from which 26% or 300 Mt of it comprised of whole pepper and 74% or 858 Mt of it ground pepper. Italy on average exported a total of 96 Mt per month in 2017. The total revenue of Italy export in 2017 was reported to be as high as USD 14.2 Million, Thus, recording an average price of the total pepper exported by Italy at USD 17,686 per Mt for whole pepper and USD 10,413 per Mt for ground pepper.

Year 2018 saw decreasing trend in term of quantity of pepper exported by Italy. Italy was reported to have recorded a total of 765 Mt of pepper of which 48% or 363 Mt of it comprised of whole pepper and 52% or 402 Mt of it ground pepper. Thus, recording a 34% deficit as compared to the same period in 2017. The average export of pepper by Italy was reported to be at 64 Mt per month. In accordance with decreasing in terms of quantity, Italy's revenue from pepper export was reported to have declined by 24% to a total of USD 10.8 Million, recording an average price of the total pepper exported by Italy at USD 20,626 per Mt for whole pepper or an increase by 17% and USD 8,421 per Mt for ground pepper or a decrease 19% as compared with 2017.

As of May 2019, Italy was reported to have exported a total of 304 Mt which comprised of 160 Mt of whole pepper and 145 Mt of ground pepper. Thus, recording a decrease of 13% as compared to the same period in 2018. By the end of May 2019, the total revenue of pepper export by Italy was reported to have reached USD 3.5 Million, recording a loss of 30% when compared to the same period in 2018. The average price of the total pepper exported by Italy as of May 2019 was reported at USD 17,040 per Mt for whole pepper and 5,904 per Mt for ground pepper.

Until the end of May 2019, Italy was reported to have imported a total of 1,944 Mt of pepper which 304 Mt of it went for re-export purposes. By the end of May 2019, Italy was reported to have imported pepper from various countries such as France with 452 Mt, Viet Nam with 424 Mt, Brazil with 302 Mt, Germany with 191 Mt and Indonesia with 130 Mt (Table 3).

Furthermore, as of May 2019 Italy's top 5 Country destinations for its pepper were reported to be United Kingdom with 88 Mt (a decrease of 17% as compared with the same period in 2018), Australia with 36 Mt (an increase of 65%), Netherlands with 26 Mt (a decrease of 36%), United States of America with 24 Mt (a decrease of 51%) and China with 17 Mt (an increase of 88%). The decrease of export to United State of America was the result of United State of America directly imported pepper from pepper producing country such as Viet Nam (an increase by 6,689 Mt or 39% as compared to the same period in 2018). United State of America's preference towards importing from Viet Nam origins as opposed to Italy could be contributed to the fact that Viet Nam offer more competitive price.