Weekly Publications

MARKET REPORT

Market this Christmas week showed mixed response with rather negative outlook. In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 4,686 per Mt. Indonesia black and white pepper was reported stable at an average of USD 1,754 per Mt for black pepper and USD 3,042 per Mt for white pepper. Malaysian black and white pepper was also recorded stable and unchanged. Furthermore, Viet Nam black pepper was reported with a 1% deficit as opposed to the previous week with an average of USD 1,747 per Mt. Whilst, Viet Nam white pepper was reported steady at an average of USD 2,625 per Mt. Sri Lanka black pepper was traded with a 3% deficit as compared to the previous week at an average of USD 3,713 per Mt. China white pepper was reported stable at an average of USD 4,350 per Mt.

International market showed a rather stable outlook this week with only India origin recorded decrease. FOB price of India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,966 per Mt. Indonesia black and white pepper was reported steady with an average of USD 2,171 per Mt for black pepper and USD 3,624 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l and 550 g/l were reported with an increase of 1% respectively as opposed to the previous week at an average of USD 2,345 per Mt and USD 2,410 Per Mt respectively. Whilst, Viet Nam white pepper was reported stable at an average of USD 3,495 per Mt. In international market China was reported steady with an average of USD 4,450 per Mt.

EXPORT OF PEPPER BY INDONESIA

Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia between the Indian and Pacific oceans. Indonesia, known for its Lampung black pepper and Muntok white pepper, is one of the top producers of pepper in the world. Year 2019 saw Indonesia becoming the 3rd biggest pepper producer in the world after Viet Nam and Brazil.

In 2017, Indonesia was reported to have exported a total of 42,687 Mt of pepper from which 98% or 41,647 Mt of it comprised of whole pepper and 2% or 1,041 Mt of it ground pepper. Indonesia on average exported a total of 3,557 Mt per month in 2017 which peaked in August with 5,665 per Mt. The total revenue of Indonesia's export of pepper in 2017 was reported to be as high as USD 236 Million. Thus, recording an average price of the total pepper exported by Indonesia at USD 5,483 per Mt for whole pepper and USD 7,405 per Mt for ground pepper.

Year 2018 saw an increase in term of quantity of pepper exported by Indonesia. Indonesia was reported to have exported a total of 47,614 Mt of which 98% or 46,503 Mt of it comprised of whole pepper and 2% or 1,111 Mt of it ground pepper, recording an increase of 12% when compared with 2017. The average export of pepper by Indonesia in 2018 was reported to be at 3,968 Mt per month which peaked in October with 5,657 per Mt. Although increasing in terms of quantity, Indonesia's revenue from pepper export was reported to have declined by 35% to a total of USD 152.4 Million as compared to the previous year. Thus, recording an average price of the total pepper exported by Indonesia at USD 3,169 per Mt for whole pepper and USD 4,568 per Mt for ground pepper or a decrease by 42% and 38% respectively as compared with 2017.

As of October 2019, Indonesia was reported to have exported a total of 42,468 Mt which comprised of 41,317 Mt of whole pepper and 1,151 Mt of ground pepper. Thus, recording an increase of 8% when compared to the same period in 2018. By the end of October 2019, the total revenue of pepper export by Indonesia was reported to have reached USD 121.1 Million, recording a decrease by 5% as compared to the same period in 2018. The average price of the total pepper exported by Indonesia as of October 2019 was reported at USD 2,822 per Mt for whole pepper and 3,900 per Mt for ground pepper.

Pepper from Indonesia is widely traded in Asia, America and European Countries. As of October 2019, Indonesia's top 5 Country of destinations for its pepper were reported to be Viet Nam with 19,068 Mt (a decrease of 1% as compared with the same period in 2018), India with 4,893 Mt (an increase of 17%), United States of America with 4,009 Mt (an increase of 4%), China with 3,916 Mt (an increase of 296%) and Germany with 1,867 Mt (an increase of 1%). The significant increase of export to China was the result of China start to shift importing pepper from Indonesia instead of Malaysia (a decrease by 327 Mt or 15% of Malaysia export of pepper to China as compared with the same period in 2018).