Weekly Publications

MARKET REPORT

With Chinese New Year holiday on the brink, market this week showed a rather positive response with Viet Nam the only origin recorded a deficit. At the local level, price for black pepper India was reported to experience a slight 1% increase as compared to the previous week and traded at an average of US$ 4,914 per Mt. Whilst in Indonesia, Lampung black pepper and Muntok white pepper were traded stable. Malaysia also recorded an increase of pepper prices for its black and white pepper by 1% as opposed to the previous week and traded its pepper at an average of US$2,281 and US$ 3,838 per Mt respectively. With arrival of new crops expected to reach its peaks during March, Viet Nam\'s prices were squeezed even more at the end of the week, thus recording deficit of 2% for black pepper and 6% for white pepper. Meanwhile Sri Lanka black pepper and China white pepper were reported to experience increase by 1% and 2% respectively as opposed to the previous week.

The international prices also showed a similar trend with Viet Nam again the only origins which recorded a deficit. FOB price for black pepper India was at an average of US$ 5,195 which was an increase of 1% as opposed to the previous week. Indonesia black and white pepper followed the local level trend and were traded stable. As for Malaysian black and white pepper prices, they were traded 1% higher as opposed to the week before. After last week substantial price drop, deficits were also recorded for Viet Nam\'s black pepper 500 g/l, 550 g/l and white pepper which amounted to 2%, 3% and 2% respectively. Low price and the upcoming Tet holiday season forced Viet Nam's farmers to hold on their stocks . FOB price for China white pepper recorded an increase of 2% and were traded at an average of US$ 5,123 per Mt.

Though the 35-days long shutdown in US has been temporarily ended on Friday 25 January 2018, the US market remained inactive. Situation in US resulted in all origins local currencies grew strong against US dollar this week which would attribute to the increase of prices in some origins.

EXPORT OF PEPPER BY BRAZIL:

Brazil as the second biggest pepper producer in the world just behind Viet Nam, has also become the second biggest exporter of pepper in the world. In the past three years, Brazil which mainly produce black pepper, has kept increasing its export number substantially. In the last three years Brazil\'s total pepper export quantity had reached an increase of 134% as opposed to 2016 albeit recording a deficit of 21% in terms of values.

In 2016, Brazil exported a total of 31,085 Mt pepper with 99% of it in the form of whole pepper thus recording an average of 2,590 Mt per month of exported pepper. In the same year Brazil recorded a total revenue of pepper export as high as US$ 246 Million which then recorded an average price of total pepper exported by Brazil at US$ 7,982 Mt for whole pepper and US$ 2,237 Mt for ground pepper.

2017 saw a significant spike in number of peppers exported by Brazil. Brazil was recorded to have exported a total of 59,501 Mt pepper in which 99% of it was in the form of whole pepper, thus, recording a 91% increase as compared to the previous year in 2016. On average in 2017, Brazil exported 4,958 Mt of pepper each month with the highest number at 8,848 Mt which was recorded in October 2017. The total value of pepper exported by Brazil in 2017 was reported at US$ 274 Million which recorded a spike of 11% as compared to 2016. The average prices of total pepper exported by Brazil for 2017 were US$ 4,622 per Mt for whole pepper and US$ 2,140 per Mt for ground pepper.

At the end of 2018, Brazil had exported a total of 72,580 Mt pepper in which 99% of it was in the form whole pepper. Thus, recording an increase of 134% and 22% when compared to year 2016 and 2017 respectively. On 2018 Brazil which averagely exported around 6,048 Mt per month, recorded the highest export number on November at 12,791 Mt. Brazil banked a total amount of US$ 195 Million as its pepper export revenue in 2018 which was a deficit of 21% and 29% as opposed to the 2016 and 2017 respectively. Throughout the 2018 the average prices of total pepper exported by Brazil were US$ 2,689 per Mt for whole pepper and US$ 1,954 per Mt for ground pepper.

Over the year of 2018 Brazil had exported pepper to more than 80 countries around the world including fellow pepper producing countries with the only exception Indonesia. Furthermore, the top five destinations were Germany at 14,677 Mt which contributed to 21% of total exported pepper by Brazil followed by United States with 10,764 Mt, Viet Nam with 9,763 Mt, Morocco with 6,541 Mt and Mexico with 4,285 Mt.