Weekly Publications

MARKET REPORT

This week market showed mixed responses with India and Viet Nam origins reported to have experienced a deficit. In local market, India was reported to trade its black pepper with a deficit of 1% as compared with the previous week and record an average price of USD 4,769 per Mt. The price loss could be contributed to the weakening of Indian Rupees towards US Dollars. In local currency black pepper India was reported to be at an average of INR 328 per Kg. Lampung black pepper this week was reported to be traded stable with an average of USD 2,110 per Mt whilst Muntok white pepper experienced 1% increased and was traded at an average of USD 3,552 per Mt. Malaysia's black and white pepper continued till the end of March 2019 to be traded at a stable rate. Viet Nam black pepper in local market was reported to have recorded a 3% deficit as compared with the previous week at an average of USD 1,897 per Mt while Viet Nam white pepper recorded an even bigger deficit at 4% when compared to the previous week and averaging at USD 3,071 per Mt. This week saw Sri Lanka black pepper to be traded 1% higher than the previous week which could be contributed to the strengthening of Sri Lankan Rupee towards US Dollars.

In the international market, India and Viet Nam remained to be the origins which experienced deficit. India's FOB price of black pepper experienced the same deficit by 1% when compared to the previous week. Following the local market trend Lampung black pepper's FOB price was reported stable whilst Muntok white pepper's FOB price experienced a 1% increase and were traded at an average of USD 2,575 per Mt and USD 4,189 per Mt respectively. FOB price of Malaysian black and white pepper continued to be traded stable at an average of USD 3,034 per Mt and USD 4,603 per MT respectively. Viet Nam FOB prices for its black pepper 500 g/l and 550 g/l experienced the same 2% deficit while its white pepper experienced 1% loss when compared with the previous week.

US Market was reported to continue its stable trend and record an average spot price for Muntok White at USD 5,072 per Mt. Viet Nam's harvest season is currently in its second month with a lot of pepper still in the pipeline.

IMPORT OF PEPPER BY EUROPE UNION:

European Union, a unique economic and political union between 28 countries that together cover much of the continent, was created in the aftermath of the Second World War. With the initial purpose of increasing economic cooperation between six countries; Belgium, Germany, France, Italy, Luxembourg and the Netherlands, European Economic Community (EEC) was created in 1958. Since then, 22 other countries joined and created a huge single market. Started as a purely economic union this Community has evolved into an organization spanning policy areas from climate, environment and health to external relations and security, justice and migration, hence the name changed in 1993 to European Union.

Pepper is well sought in E.U which is reflected in the high pepper import figures by the E.U. In the past 5 years pepper import by E.U was reported to follow an increasing trend. In 2014, E.U. imported a total of 102,491 Mt of pepper which comprised of 71,220 Mt of whole pepper and 31,271 Mt of ground pepper. The total expenditure of pepper imports by E.U. amounted to USD 860 Million for the year 2014, thus, recording an average price of the total pepper imported by E.U. at USD 8,581 per Mt for whole pepper and USD 7,971 per Mt for ground pepper. The top 5 importers of pepper in E.U. for 2014 were reported to be Germany with a total of 26,253 Mt, Netherlands with 15,433 Mt, United Kingdom 11,901 Mt, Spain 9,717 Mt and France with 9,574 Mt.

In 2015, total pepper imported by E.U. reached a total of 105,479 Mt which comprised of 72,217 Mt of whole pepper and 33,262 Mt of ground pepper, recording an increase of 3% as compared to the previous year. E.U.'s total expenditure for pepper imports in 2015 amounted to USD 1 Billion which was an increase of 16% when compared to the previous year. 2015 saw E.U. recording an average price of the total pepper imported by E.U. at USD 9,961 per Mt for whole pepper and USD 8,439 per Mt for ground pepper which meant an increase of 16% and 6% respectively. The top 5 importers of pepper in E.U. for 2015 were reported to record a slight shift with United Kingdom being the second highest pepper importer.

Pepper import in 2016 by E.U. was reported to have an increase of 2% as compared to the previous year, thus recording a total of 107,414 Mt comprised of 76,513 Mt of whole pepper and 30,901 Mt of ground pepper. E.U. was reported to spend 4% less than in 2015, thus recording a total of USD 961 Million which amounted to an average price of the total pepper imported by E.U. of USD 8,991 per Mt for whole pepper and USD 8,821 per Mt for whole pepper.

E.U. imported 2% more pepper in terms of quantity for 2017 when compared with 2016. Thus, recording a total of 109,121 Mt which comprised of 78,695 Mt of whole pepper and 30,426 Mt of ground pepper. In 2017, E.U. saved around 20% of its pepper imports expenditures as its value of pepper imports dropped to USD 772 Million which recorded an average price of total pepper imported by E.U. at USD 6,808 per Mt for whole pepper and USD 7,772 per Mt for ground pepper. Germany continued to be the top pepper importers of pepper in E.U. with a total of 32,399 Mt of pepper which recorded a 9% increase when compared with 2016.

2018, E.U. total import of pepper amounted to 106,674 Mt, recording a decrease of 2% when compared to 2017. E.U. reported to have imported 76.779 Mt of whole pepper and 29,895 Mt of ground pepper. As the trend of global price kept on decreasing, E.U. spent 32% less for its pepper import expenditure as compared with 2017, thus, recording a total value of pepper import at USD 526 Million. Making its price of the total pepper import at an average of USD 4,542 per Mt for whole pepper and USD 5,931 per Mt for ground pepper.