Weekly Publications

The domestic market of producing countries showed a mixed response during the week. However, more clarity seen in production of pepper in Lampung and Bangka, Indonesia has given a good signal in the market. Price of Lampung black and Muntok white pepper has increased during the week. Local price of Vietnamese black also increased marginally; while for white pepper was reported stable. FOB price of Vietnamese pepper were also reported stable. Stable pepper price was also recorded in Sri Lanka; while in Sarawak the price of pepper has decreased.

It was clear that production of pepper in Lampung has decreased significantly this year. Some farmers reported that output of current harvest is only 50%, even lower of last year harvest. This was due to El Nino phenomenon occurred last year which has resulted in many productive pepper plants die. In addition to the above, heavy rain fall during flowering season and prolonged wet season was unfavorable for flowering and fruiting. Similar situation has also happened in Bangka. Fortunately young pepper vines planted in the last two years has started bearing fruits. Production of white pepper this year is slightly lower or more or less same compared to last year. Significant decrease in price of white pepper occurred in the last few weeks, was due to a sudden sizeable arrivals of new pepper from current harvest, since farmers need immediate cash to settle labor cost for picking and processing white pepper. During the week, white pepper price in Bangka has gradually recovered from IDR 115,000 per Kg in the last two weeks to IDR 135,000 per Kg this week.

IMPORT OF PEPPER BY THE UNITED STATES OF AMERICA :
In 2015, Import of pepper into the United States of America increased by 11,560 Mt (17%) from 68,800 Mt in 2014 to 80,360 Mt, consisting of 53,290 Mt of black pepper, 5,480 Mt of white pepper and 21,590 Mt of ground pepper). A substantial increase of 45% was recorded for ground pepper. In 2016 import of United States is estimated to be more or less same as last year or slightly lower from last year. Indication of the situation is reflected by it import performance during the first five months of this year. Although global supply from producing countries this year has decreased, sufficient inventory from last yearÔÇÖs good harvest in Indonesia can fulfill production decrease this year.

During January - May 2016, the United States has imported 34,188 Mt, comprising of 22,278 Mt of black Pepper, 2,203 Mt of white Pepper and 9,707 Mt of ground Pepper. The import showed a marginal decrease of 3% from the import of 35,216 Mt in the same period last year.