Weekly Publications

MARKET REPORT

Market this week showed mixed response. In local market, Malabar black pepper was traded with a 3% deficit as compared to the previous week with an average of USD 4,913 per Mt.India black pepper price in local currency was reported at INR 343 per Kg on Thursday. Indonesia black and white pepper were reported stable and unchanged when compared with the previous week, averaging at USD 2,104 per Mt for black pepper and USD 3,506 per Mt for white pepper. Malaysian black pepper was traded with an increase of 2% as compared with the previous week.Whilst Malaysian white pepper was traded stable and recorded insignificant movement. Viet Nam black pepper was reported with a4% spike as opposed to the previous week with an average of USD 1,961per Mt. Whilst Viet Nam white pepper was reported stable. Sri Lanka black pepper continued to be traded negatively and was reported with the lowest ever price since recent years. With a record of 4% deficit as opposed to the previous week,the negative trend in Sri Lanka market had pushed Sri Lanka pepper price below USD 3,000 per Mt, averaging at USD 2,948 per Mt. Furthermore, China white pepper was traded with a 1% deficit as compared with the previous week with an average of USD 4,710 per Mt.

In international market, FOB price of India black pepper was reported with a 2% deficit as compared to the previous week at an average of USD 5,200 per Mt. Indonesia black and white pepper were reported stable and unchanged with an average of USD 2,567 per Mt and USD 4,138 per Mt respectively. Malaysia's FOB prices as released by Malaysian Pepper Board experienced a significant 14% and 12% spike respectively as opposed to the previous week, averaging at USD 3,572 per Mt for black pepper and USD 5,138 per Mt for white pepper. Viet Nam black pepper 500 g/l and 550 g/l were reported stable whilst Viet Nam white pepper was reported with a 1 % increase as opposed to the previous week. China white pepper was reported with the same 1% deficit as compared to the prevoius week at an average USD 4,910 per Mt in the international market.

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

EXPORT AND IMPORT OF PEPPER BY THE NETHERLANDS

The Netherlands is a country located mainly in North-western Europe. In the past, Netherlands had an important role in the spread of pepper in the world. In 1595, Houtman of Holland made a successful voyage to Indonesia. This was the beginning of monopoly spice trade. Netherlands gradually established a firm grip over the pepper producing centers near Lampung in Sumatera and Banten in Java. Pepper is a thriving agriculture activity in these regions even today. Today, Netherlands is one of the most important pepper traders in the world. Since 2017, pepper import and re-export by Netherlands have been known to be high.

In 2017, Netherlands was reported to have exported a total of 9,916 Mt of pepper. Netherlands on average exported a total of 826 Mt per month with the highest quantity recorded in May with 989 Mt. The total revenue of Netherland's pepper export in 2017 was reported to be as high as USD 80.1 Million. Furthermore, Netherlands was reported to have imported a total 13,603 Mt of pepper. The average pepper import by Netherlands in 2017 was reported 1,089 Mt per month with the highest quantity recorded in October with 1,372 Mt. The total expenditure of pepper import by Netherlands amounted to USD 91.9 Million.

Year 2018 saw a decreasing trend in terms of quantity of pepper exported by Netherlands. Netherlands was reported to have exported a total of 8,594 Mt. Thus, recording a decrease of 13% as compared to the same period in 2017. The average export of pepper by Netherlands was reported to be 716 Mt per month with the highest quantity recorded in January with 868 Mt. In accordance with decreasing in term of quantity, the pepper export by Netherlands also decreased by 34% in terms of value which amounted to USD 52.7 Million. Furthermore, pepper import by Netherlands increased by 9% as compared to previous year totalling at 14,209 Mt. The average pepper import by Netherlands was reported at 1,184 Mt per month which peaked in June 2018 with 1,566 Mt. Although increasing in term of quantity, the pepper import by Netherlands decreased by 28% in terms of value which amounted to USD 66.5 Million.

At the beginning of 2019, pepper exported by Netherlands as of February 2019 continued its decreasing trend by recording a decreased of 16% as compared with the same period in 2018 with total quantity of 1,442 Mt. By the end of February 2019, the total revenue of pepper export by Netherlands was reported to have reached USD 7.3 Million, recording a loss of 40% when compared to the same period in 2018. Furthermore, pepper imported by Netherlands also reported decrease by 7% as compared with the same period in 2018, totalling 2,380 Mt. The total expenditure of pepper imports by Netherlands as of February 2019 decreased by 35% as compared to previous year in the same period, totalling USD 9.6 Million.

As of February 2019, Netherland's top five country destinations for its pepper were reported to be Germany with 328 Mt (a decrease of 9% as compared with the same period in 2018), France with 243 Mt (an increase of 43%), Belgium with 189 Mt (a decrease of 51%), United Kingdom with 137 Mt (an increase of 22%) and Spain with 70 Mt (a decrease of 82%). The decrease of export to Spain and Belgium was the result of Spain and Belgium directly imported pepper from pepper producing countries like Viet Nam and Brazil as these two origins are famous for its competitive prices.

Furthermore, the top five origins of pepper imported by Netherlands as of February 2019 were reported to be Viet Nam with 833 Mt (a decrease of 5% compared with the same period in 2018), Brazil with 826 Mt (an increase of 9%), Indonesia with 339 Mt (an increase of 5%), Germany with 85 Mt (a decrease of 62%) and Spain with 71 Mt (a decrease of 31%). The significant decrease of Netherlands import from Germany and Spain could be that Netherlands directly imported pepper from pepper producing countries such as; Brazil and Indonesia as their Quantity of exported pepper to Netherlands increased by 76 Mt and 16 Mt respectively.