Weekly Publications

MARKET REPORT

Market this week showed mixed response. In local market, Malabar black pepper was traded with a 2% deficit as compared to the previous week with an average of USD 4,442 per Mt. Indonesia black and white pepper were reported with an increase by 2% and 1% respectively with an average of USD 1,660 per Mt for black pepper and USD 3,321 per Mt for white pepper. Malaysian black and white pepper was reported stable at an average of USD 2,002 per Mt and USD 3,516 per Mt respectively. Furthermore, Viet Nam black and white pepper was also reported stable and unchanged averaging at USD 1,702 per Mt and USD 2,626 per Mt respectively. Sri Lanka black pepper steadily moving up gradually, in local market it recorded an increase by 1% as compared to the previous week and was traded at an average of USD 2,608 per Mt. Whilst, China white pepper recorded a 1% deficit when compared to the previous week with an average of USD 4,610 per Mt.

In international market, the trend also showed mixed response. FOB price of India black pepper was reported with the same 2% deficit as compared to the previous week at an average of USD 4,722 per Mt. Indonesia black and white pepper was reported with the same increase by 2% and 1% respectively. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a decrease by 1% respectively as opposed to the previous week averaging at USD 2,326 per Mt, USD 2,391 per Mt and USD 3,476 per Mt respectively. Whilst, China traded its white pepper in the international level with an average of USD 4,810 per Mt or a decrease by 1% when compared to the previous week.

EXPORT OF PEPPER BY FRANCE

France, officially the French Republic, is a country whose territory consists of metropolitan France in Western Europe and several overseas regions and territories. Pepper was one the earliest commodities that was traded between the Orient and Europe including France. Furthermore, France actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In the past three years import of pepper by France had fluctuated with a tendency of decreasing. In 2017, France imported a total of 10,811 Mt which 75% of it consisted of whole pepper. In the following year, France import of pepper increased by 5%, totalling at 11,371 Mt. The ratio of France's import and export during 2017-2019 are 2:1 respectively. Until the end of July 2019, France was reported to have imported a total of 6,903 Mt of which 3,946 Mt went for re-export purposes. The top five countries of origins of France pepper both for whole and ground as of July 2019 were reported to be Brazil with 2,535 Mt, Viet Nam with 1,389 Mt, Germany with 845 Mt, Indonesia with 784 Mt and Netherlands with 326 Mt (Table 1).

In 2017, France was reported to have exported a total of 5,780 Mt of pepper from which 73% or 4,209 Mt of it comprised of whole pepper and 27% or 1,570 Mt of it ground pepper. France on average exported a total of 482 Mt per month in 2017. The total revenue of France export in 2017 was reported to be as high as USD 53 Million. Thus, recording an average price of the total pepper exported by France at USD 8,115 per Mt for whole pepper and USD 12,036 per Mt for ground pepper.

Year 2018 saw an increasing trend in term of quantity of pepper exported by France. France was reported to have recorded a total of 5,906 Mt of pepper of which 64% or 3,781 Mt of it comprised of whole pepper and 36% or 2,124 Mt of it ground pepper. Thus, recording a 2% increase in term of quantity as compared to the same period in 2017. The average export of pepper by France was reported to be at 492 Mt per month. Although increasing in term of quantity, France's revenue from pepper export was reported to have declined by 27% to a total of USD 38.6 Million, recording an average price of the total pepper exported by France at USD 5,997 per Mt for whole pepper and USD 7,503 per Mt for ground pepper or a decrease by 26% and 38% respectively as compared with 2017.

As of July 2019, France was reported to have exported a total of 3,946 Mt which comprised of 2,270 Mt of whole pepper and 1,676 Mt of ground pepper. Thus, recording a 14% increase when compared to the same period in 2018. By the end of July 2019, the total revenue of pepper export by France was reported to have reached USD 19.5 Million, recording a decrease by 27% as compared to the same period in 2018. The average price of the total pepper exported by France as of July 2019 was reported at USD 4,734 per Mt for whole pepper and 5,272 per Mt for ground pepper.

Pepper exports from France are mostly traded in European Countries and United States of America market. Furthermore, as of July 2019 France's top 5 Country destinations for its pepper were reported to be United States of America with 1,143 Mt (an increase of 14% as compared with the same period in 2018), Poland with 1,122 Mt (an increase of 27%), Italy with 625 Mt (a decrease of 2%), United of Kingdom with 613 Mt (an increase of 28%) and Portugal with 118 Mt (an increase of 45%).