Weekly Publications

MARKET REPORT

Market this week showed mixed response. In local market, Malabar black pepper was traded with a 1% increase as compared to the previous week with an average of USD 4,957 per Mt. India black pepper price in local currency was reported at INR 343 per kg on Thursday. Though Indonesian Rupiah strengthen against US Dollar, Indonesia black and white pepper were reported to be traded with a 3% and 1% deficit respectively as compared to the previous week, averaging at USD 2,048 per Mt for black pepper and USD 3,461 Mt for white pepper. Indonesian black and white pepper in local currency lost IDR 1,000 per Kg and were traded at an average of IDR 29,000 per Kg and IDR 49,000 per Kg respectively. Malaysian black and white pepper was traded with an increase of 1% as compared with the previous week, averaging at USD 2,469 per Mt for black pepper and USD 3,899 per Mt for white pepper. Viet Nam black and white pepper was reported stable when compared with previous week, averaging at USD 1,962 per Mt for black pepper and USD 2,848 per Mt for white pepper. Sri Lanka black pepper continued to be traded negatively and was reported with the lowest ever prices in recent years. Recording a 4% deficit as opposed to the previous week at an average of USD 2,837 per Mt. Whilst, China white pepper was traded with an increase of 2% as compared with the previous week averageing at USD 4,800 per Mt.

In international market, FOB price of India black pepper was reported with a 1% increase as compared to the previous week at an average of USD 5,246 per Mt. Indonesia black and white pepper were reported negative and were traded with a 2% and 1% deficit respectively as compared to the previous week with an average of USD 2,505 per Mt for black pepper and USD 4,088 per Mt for white pepper. Malaysia black and white pepper were reported with a significant 3% spike as opposed to the previous week, averaging at USD 3,685 per Mt for black pepper and USD 5,275 per Mt for white pepper. Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable with an average USD 2,343 per Mt, USD 2,408 per Mt and USD 3,493 per Mt respectively. China white pepper was reported with a 2% increase as opposed to the previous week at an average USD 5,000 per Mt in the international market.

US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

EXPORT AND IMPORT OF PEPPER BY SPAIN

Spain, officially the Kingdom of Spain is a country mostly located in Europe. Its continental European territory is situated on the Iberian Peninsula. Its territory also includes two archipelagoes : the Canary Islands off the coast of Africa, and the Balearic Islands in the Mediterranean Sea make Spain the only European country to have a physical border with an African country (Morocco). Spanish cuisine consists of a great variety of dishes which stem from differences in geograhpy, culture and climate. Spain's extensive history with many cultural influences has led to a unique cuisine. Furthermore, to meet its needs of spices especially pepper, Spain imports pepper from several production countries both for domestic consumption or to re-export purpose.

In 2017, Spain was reported to have imported a total 4,377 Mt of pepper. The average pepper import by Spain in 2017 was reported at 365 per month with the highest quantity recorded in October with 499 Mt. The total expenditure of pepper by Spain amounted to USD 27.5 Million. The average price of the total pepper imported by Spain in 2017 was reported at USD 6,276 per Mt. Furthermore, Spain was reported to have exported a total of 3,677 Mt of pepper. Spain on average exported a total of 306 per month with the highest quantity recorded in May with 391 Mt. The total revenue of Spain's pepper export in 2017 was reported to be as high as USD 18.2 Million. Thus, recording an average price of the total pepper exported by Spain to be at USD 4954 per Mt.

Year 2018 saw increasing trend in terms of quantity of pepper imported by Spain. Spain was reported to have imported a total of 5,275 Mt. Thus, recording an increase of 21% as compared to the same period in 2017. The average import of pepper by Spain was reported to be 440 Mt per month with the highest quantity recorded in April with 580 Mt. Although increasing in term of quantity, the pepper import by Spain decreased by 22% in terms of value which amounted to USD 21.3 Million. Thus, recording an average price of the total pepper imported by Spain at USD 4,043 per Mt which decreased by 36% as opposed to the previous year. Furthermore, pepper exported by Spain decreased by 11% as compared to previous year totalling at 3,267 Mt. The average pepper export by Spain was reported at 272 Mt per month which peaked in May 2018 with 432 Mt. In accordance with decreasing in term of quantity, the pepper export by Spain also decreased by 20% in terms of value which amounted to USD 14.6 Million. The average price of the total pepper exported by Spain was reported at USD 4,484 per Mt, recording a 9% decrease when compared to the previous year.

At the beginning of 2019, pepper imported by Spain as of March 2019 reported continued its increasing trend by 24% as compared with the same period in 2018, totalling 1,505 Mt. The total expenditure of pepper imports by Spain as of March 2019 decreased by 14% as compared to previous year in the same period, totalling USD 4.9 Million. Recording an average price of the total pepper imported by Spain at USD 3,224 per MT. Furthermore, pepper exported by Spain also reported an increase of 23% as compared with the same period in 2018 totalling at 1,000 Mt. By the end of March 2019, the total revenue of pepper export by Spain was reported to have reached USD 3.3 Million, recording a loss 21% when compared to the same period in 2018. The average price of the total pepper exported by Spain was reported at USD 3,307 per Mt.

As of March 2019, the top five origins of pepper imported by Spain were reported to be Viet Nam with 354 Mt (a decrease of 1% compared with the same period in 2018), Brazil with 300 Mt (an increase of 20%), India with 178 Mt (an increase of 89%), Indonesia with 134 Mt (an increase of 65%) and Netherlands with 124 Mt (a decrease of 22%). The significant increase of Spain import from India and Indonesia could be contributed to the fact that Spain directly imported pepper from producing countries instead of "Middle-Man" countries like Netherlands and Germany (a decrease of 37%).

Furthermore, Spain's top five country destinations for its pepper were reported to be Algeria with 238 Mt (an increase of 100% compared with the same period in 2018), France with 199 Mt (an increase of 47%), United States of America with 77 Mt (an increase of 91%), Portugal with 72 Mt (a decrease of 14%) and Italy with 72 Mt (an increase of 71%).