Weekly Publications

MARKET REPORT

Market this week showed mixed response with a rather stable outlook as only Malaysia recorded deficit. In local market, Malabar black pepper was reported stable with an average of USD 4,692 per Mt. Indonesia black pepper was also reported steady with an average of USD 1,896 per Mt. Whilst, Indonesia white pepper was reported with an increase of 1% as compared with the previous week, averaging at USD 3,406 per Mt. In local currency, Muntok white pepper was traded with an average of IDR 48,500 per Kg increasing marginally by IDR 500 per Kg. This week, Malaysian black and white pepper was reported with a decrease by 3% and 1% respectively as opposed to the previous week averaging at USD 2,267 per Mt for black pepper and USD 3,840 per Mt for white pepper. Viet Nam black and white pepper were reported stable and unchanged. Sri Lanka black pepper reported with an increase by 1% as compared to the previous week averaging at USD 2,509 per Mt while China white pepper was reported stable with an average of USD 4,795 per Mt.

In international market, FOB price of India black pepper was reported steady with an average of USD 4,971 per Mt. Indonesia black pepper was reported stable and unchanged. Whilst, Indonesia white pepper was traded with 1% increase as compared to the previous week with an average of USD 4,026 per Mt. Contrary to the farm gate price, Malaysia FOB prices for black and white pepper continued stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable averaging at USD 2,270 per Mt, USD 2,335 per Mt and USD 3,420 per Mt respectively. China white pepper was also reported stable and unchanged averaging at USD 4,995 per Mt.

GEOGRAPHICAL INDICATION (GI) OF LAMPUNG BLACK PEPPER

Lampung province is the main area of production for Indonesian black pepper. Pepper in Lampung is cultivated in all 15 districts, totalling an approximate of 45,742 Ha with concentration area being East, North, West Lampung and Tanggamus district. In international pepper market generally, pepper is identified by its port of export or the region where it is grown. Likewise with Lampung black pepper, a commercially important pungent black pepper is grown in the Lampung province which port of export is Panjang Port of Lampung.

On May 2016 Lampung Province legalized the product of black pepper with Geographical Indication (GI) with Directorate General of Intellectual Property - Ministry of Law and Human Rights of Indonesia under the name Lampung Black Pepper. The geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify a product as originating in a given place (www.wipo.int). In addition, the qualities, characteristics or reputation of the product should be essential to the place of origin. Furthermore, with a height of pepper cultivation between 20-800 meters above sea level, Lampung black pepper has its own characteristics such as the pepper colour is black to brownish with content of piperine (3,29%-4,7%), volatile oil (1,14%-2,89%) and oleoresin (12,8%-15,20%).

In 2017, Lampung port was reported to have exported a total of 15,095 Mt. The average export of pepper from Lampung port was reported to be at 1,258 Mt per month which peaked in January with 2,649 Mt. The total revenue of pepper export from Lampung port in 2017 was reported to be as high as USD 86.8 Million, thus recording an average price of the total pepper exported from Lampung port to be at USD 5,747 per Mt.
Year 2018 saw a decreasing trend in term of quantity of pepper exported from Lampung port. Pepper export from Lampung port was reported to have recorded a total of 13,027 Mt, thus, recording a decrease by 14% as opposed to 2017. The average export of pepper from Lampung port was reported to be at 1,086 Mt per month which peaked in September with 1,985 Mt. In accordance with decreasing in terms of quantity, Lampung port's revenue from pepper export was reported to have decline by 52% to a total of USD 41.2 Million which recorded an average price of the total pepper exported from Lampung port at USD 3,166 per Mt or a decrease by 45% as compared with 2017.

As of June 2019, Lampung port was reported to have exported a total of 4,541 Mt of pepper. Thus, recording an increase of 8% as compared to the same period in 2018. By the end of June 2019, the total revenue of pepper export from Lampung port was reported to have reached USD 13.8 Million, recording a loss 16% when compare to the same period in 2018. The average price of the total pepper export from Lampung port as of June was reported at USD 3,033 per Mt.