Weekly Publications

WPB Week #01/16, 04-08 January 2016

it.assistant@ipcnet.org 09 Jan 2016 11

Entering 2016 the market is still calm, with limited activities. Pepper prices at source of many producing countries have decreased. This may be due to initial harvest in Vietnam, the main source of pepper, has started. Price of pepper in HCMC, decreased up to 4%. In Sri Lanka the price also decreased. Prices stability was recorded in Lampung, Bangka and Sarawak. In dollar terms however, local price at these sources decreased marginally due to weakening of local currencies against US dollar. Significant decrease is also recorded in China. Weakening of Renminbi (Yuan) was reported a main factor for the decrease.
Year 2015 was recorded as the hottest year for pepper trade, where price prevailed during the years had recorded the highest so far. In New York black pepper price reached US$ 5.15 per pound and US$ 7.50 for white pepper achieved in July 2015. Previous peak prices at the level of US$ 3.90 and US$ 5.90 per pound, respectively, for black and white pepper were achieved in October 2011. The high price prevailing in the last few years has increased the enthusiasm of farmers to expand attention on pepper cultivation and increase production. However, the result is still not encouraging. Limited area of expansion at most of the main producing countries and extreme weather changes in last few years has been the main factor for poor success in production growth. Although production in 2015 has crossed 400,000 Mt, in 2016 however it is estimated to decrease. Significant decrease is anticipated in India and Indonesia. Under this situation the price is expected to remain high in 2016. Development of pepper price in the last 40 years recorded in New York is shown in the following chart

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