Weekly Publications

MARKET REPORT

Celebrating Chinese New Year, markets in China and in Viet Nam were reported to be inactive. The price of black pepper at the farm level (farm gate prices) and FOB this week was reported to be relatively stable with only slight increase reported, except in Indonesia which had decreased by 3%. The price of black pepper in Indonesia had decreased due to the absence of purchasing activities. Based on reports from pepper farmers in Lampung, stocks were sufficient yet there was no positive response from the market. Thus, causing the price of black pepper in Lampung to decline this week. The external factors which influenced the declining in prices in Lampung were the pepper harvest in Viet Nam, and several gardens in Thailand and Sri Lanka which have begun to harvest even though they haven\'t reached their peaks yet. Furthermore, prices in India and Sri Lanka were reported to slightly increase, both farm gate prices and FOB prices in each country increased by 1% compared to last week's prices.

As with black pepper, the white pepper market was relatively stable this week. Farm gate price and FOB price of white pepper in Indonesia and Malaysia were reported to increase slightly by 1%. The increase in price at both countries was due to the strengthening of Indonesian Rupiah and Malaysian Ringgit against the US Dollar.

IMPORT OF PEPPER BY AUSTRALIA:

Australia, the country down under, imported a quite substatial amount of pepper from producing countries. In the past three years Australia, which almost equally exported in the form of whole and ground, shown a fluctuated movement in terms of quantity. The past three years saw 4% increase of the total quantity and 42% deficit of the total value of the pepper imported by Australia.

In 2016, Australia imported a total of 3,689 Mt in which comprised of 52% whole pepper amounted to 1,916 Mt. Thus, recording an average of 307 Mt per month with the highest quantity recorded in July with 419 Mt. At the same year Australia spent a total US$ 36 million to import their pepper which resulted in an average buying price of US$ 10,245 per Mt for whole pepper and US$ 9,269 per Mt for ground pepper.

For 2017, Australia recorded an 9% increase in term of the total quatity of pepper imported as opposed to the previous year which amounted to a total of 4,012 Mt in which comprised of 1,968 Mt whole pepper and 2,044 Mt ground pepper. Australia imported an average of 334 Mt pepper per month which peaked in September 2017 with 603 Mt. in 2017, the total pepper bought by Australia was worth US$ 27 million which was 24% less when compared with 2016. Australia recorded an average buying price of US$ 7,043 per Mt for whole pepper and US$ 6,716 per Mt for ground pepper.

At the end of 2018 saw Australia importing a total of 3,828 Mt of pepper in which 2,103 Mt of it in the form of whole pepper. This resulting to a decrease of 5% as opposed to the previous year. In 2018, Australia which imported an average of 319 Mt per month,recorded the highest import number in January 2018 with 528 Mt. Australia in total bought US$ 21 million worth of pepper in 2018. Thus, recording 24% less expenditure on pepper import when compared to the previous year. Over the year 2018, Australia reported an average buying price of US$ 5,866 per Mt for whole pepper and US$ 5,076 for ground pepper.

Over the past three years, the top major contributors for Australia\'s pepper were Viet Nam, South Africa, Indonesia and India. Viet Nam contributed to 53%, 55% and 60% of the total imported pepper for 2016, 2017 and 2018 respetively. In 2018, Australia imported pepper from Viet Nam as much as 1,263 Mt, South Africa 224 Mt, India 208 Mt and Indonesia 112 Mt.