Weekly Publications

MARKET REPORT

Market this week showed mixed response. In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 5,039 per Mt. India black pepper price in local currency was reported to experience a continuous drop from the beginning of the week and was closed at INR 347 per Kg on Thursday. As the market resume after the Eid Mubarak Holiday, Indonesia black and white pepper were traded at an average of USD 2,104 per Mt and USD 3,506 per Mt respectively. Sarawak black and white pepper was reported stable and relatively unchanged when compared with the previous week. Recording a 2% spike as opposed to the previous week, Viet Nam black pepper became the only product which recorded an increase and was traded at an average of USD 1,890 per Mt. Whilst Viet Nam white pepper was reported stable. Sri Lanka black pepper continued to be traded negatively, recording a 5% deficit as opposed to the previous week while China white pepper was traded with an average of USD 4,775 per Mt.

In international market, India was the only origin to have recorded a deficit. FOB price of India black pepper was reported with a 1% deficit as compared to the previous week at an average of USD 5,327 per Mt. Indonesia black and white pepper were traded internationally at an average of USD 2,567 per Mt and USD 4,138 per Mt respectively. Malaysia black and white pepper remained stable and showed insignificant movement. As offer dried up Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a significant 4%, 4% and a 3% spike respectively as opposed to the previous week. China white pepper was reported at an average of USD 4,975 per Mt in the international market.

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

IMPORT OF PEPPER BY FRANCE

France, officially the French Republic, is a country whose territory consists of metropolitan France in Western Europe and several overseas regions and territories. The metropolitan area of France extends from the Mediterranean Sea to the English Channel and the North Sea and from the Rhine to the Atlantic Ocean. The overseas territories include French Guiana in South America and several islands in the Atlantic, Pacific and Indian oceans. France is ranked as the first tourist destination in the world. The Eiffel Tower is the world's most visited paid monument, an icon of both Paris and France. French cuisines are renowned for being one of the finest in the world. French cuisines are also regarded as a key element of the quality of life and the attractiveness of France. Therefore, to meet its seasoning need for their cuisines, France imported pepper from many pepper producing countries. Pepper was one the earliest commodities that was traded between the Orient and Europe including France. The history of medieval Europe throws up further evidence of the influence pepper had in the trading community.

In 2017, France was reported to have imported a total 10,794 Mt of pepper which 75% of it comprised of whole pepper while 2,646 Mt of it ground pepper. The average pepper import by France in 2017 was reported at 900 Mt per month with the highest quantity recorded in August with 1,126 Mt. The total expenditure of pepper import by France amounted to USD 82.0 Million, recording an average price of the total pepper imported by France at USD 7,353 per Mt for whole pepper and USD 8,364 per Mt for ground pepper.

2018 saw pepper import by France increased by 5% as compared to previous year totalling at 11,371 Mt which comprised of 8,612 Mt of whole pepper and 2,759 Mt of ground pepper. The average pepper import by France was reported at 948 Mt per month which peaked in March 2018 with 1,325 Mt. Although increasing in term of quantity, the pepper import by France decreased by 30% in terms of value which only amounted to USD 57.8 Million. The average prices of the total pepper imported by France was reported to be at 4,602 per Mt for whole pepper and USD 6,596 per Mt for ground pepper which meant a loss of 37% and 21% respectively as compared to the previous year.

At the beginning of 2019 pepper import by France as of April 2019 continued its increasing trend by recording an increased by 8% as compared with the same period in 2018, totalling 4,098 Mt which comprised of 2,984 Mt of whole pepper and 1,114 Mt of ground pepper. The total expenditure of pepper imports by France as of April 2019 decreased by 24% as compared to previous year in the same period, totalling USD 16.8 Million.
The top five most of pepper imported by France both whole and ground as of April 2019 reported to come from Brazil with 1,773 Mt (an increase of 5% compared with the same period in 2018), Indonesia with 529 Mt (an increase of 48%), Germany with 499 Mt (stable at 0%), Vietnam with 494 Mt (stable at 0%) and Netherlands with 195 Mt (a decrease of 6%). Brazil during that period became the largest pepper export for French due to Brazil's most competitive price among other pepper producing countries. Furthermore, the significant increase of France pepper import from Indonesia could be contributed to the decreased of pepper import from India and Madagascar. India exported only 62 Mt to France as of April 2019, recording a drop of 65% as compared to the same period in 2018. Whilst Madagascar was reported to export only 71 Mt as of April 2019, losing 39% as compared to the same period in 2018.