Weekly Publications

MARKET REPORT

Market behaved differently in this 19th week of 2019. India and Malaysia origins were reported to experience a slight increase. In local market Indian black pepper was traded with a 3% spike as compared with the previous week at an average of USD 5,016 per Mt. The increase of India pepper prices could be contributed to the increase of the price in the local currency to INR 348 per Kg. Lampung black pepper and Muntok white pepper were reported to be traded locally with a 2% deficit as compared to the previous week, averaging at USD 2,060 per Mt and USD 3,387 per Mt respectively. The decreased was a result of the weakening of Indonesian Rupiah as well as the decreased of the price in local currency. Malaysia's black pepper was reported to have recorded a 2% spike as compared to the previous week at an average of USD 2,299 per Mt while its white pepper was reported to be stable. In local market Viet Nam black and white pepper were reported to be at stable rate and relatively unchanged. Sri Lanka black pepper was reported to be stable at an average of USD 3,322 per Mt while China white pepper was reported at an average of USD 4,643 per Mt.

International market was reported to be slightly on the negative side with Indonesia and Viet Nam recording a deficit. India FOB prices was reported to have recorded the same 3% increase as opposed to the previous week. Indonesia origins experienced the same 2% deficits on its FOB prices for black and white pepper and was recorded at an average of USD 2,517 per Mt and USD 4,003 per Mt respectively. FOB prices for Malaysia black pepper recorded a marginal increase by 1% as compared to the previous week while the FOB price for white pepper remained stable. Viet Nam black pepper 500 g/l was reported to be stable. Whilst black pepper 550 g/l and white pepper were reported to have experienced 1% and 4% deficit respectively as compared to the previous week. China FOB price of white pepper was reported to be at an average of USD 4,843 per Mt.

US Market was reported to be stable and recorded no changes.

Special News - Indonesia is to halt of cut pepper export to Viet Nam. Indonesian Minister of Agriculture Mr. Andi Amran Sulaiman had halted white pepper exports to Viet Nam and would channel them to India and Europe to make sure a good selling price for farmers which would boost their income and family welfare. He remarked that decision to end or cut pepper export to Viet Nam was taken due to Viet Nam's reprocessing of Indonesia's pepper for re-exporting. He further remarked in the future direct processing ought to take place in Indonesia. Furthermore, the Minister of Agriculture had instructed the Agricultural Quarantine Agency to Support all Indonesian export products to directly enter the destination country or to no transit in other countries. (Source: AntaraKalsel, https://kalsel.antaranews.com/berita/96502/indonesia-halts-pepper-exports-to-vietnam)

EXPORT OF PEPPER BY MALAYSIA

Malaysia, divided by the South China Sea into two regions of the Peninsular Malaysia and Malaysian Borneo, shared land borders with Thailand, Indonesia and Brunei. Malaysia, known to be one of the major peppers producing country in the world with an average annual production more than 23,000 Mt, produces more than 90% of its pepper in the State of Sarawak. Producing both black and white pepper, Malaysia's most common varieties are Kuching and Semengok Emas.

Being one of the major pepper producers in the world, Malaysia is the fifth biggest pepper exporter in the world. In the past three years, pepper export by Malaysia had shown a declining trend. In 2017, Malaysia was reported to export a total of 12,184 Mt of pepper which 86% of it comprised of whole pepper and 1,700 Mt of it ground pepper. Malaysia on average exported a total of 1,015 Mt per month in 2017. The total revenue of Malaysia's pepper export in 2017 was reported to be as high as USD 72.6 Million, thus, recording an average price of the total pepper exported by Malaysia at USD 5,543 per Mt for whole pepper and USD 8,553 per Mt for ground pepper.

2018 saw a declining trend in terms of quality and value of the pepper exported by Malaysia. Malaysia was reported to have recorded a total of 11,777 Mt which comprised of 10,126 Mt of whole pepper and 1,652 Mt of ground pepper. Thus, recording a decrease of 3% as compared to the same period in 2017. The average export of pepper by Malaysia was reported to be at 981 Mt per month. Following the declining in quantity, Malaysia's revenue from pepper export was reported to have declined by 31% to a total of USD 50.1 Million which recorded an average price of the total pepper exported by Malaysia at USD 3,760 per Mt for whole pepper and USD 7,301 per Mt for ground pepper or loss of 32% and 15% respectively as compared with 2017.

As of January 2019, Malaysia was reported to have exported a total of 541 Mt which comprised of 435 Mt of whole pepper and 106 Mt of ground pepper. Thus, recording a decrease of 34% when compared to the same period in 2018. By the end of January 2019, the total revenue of pepper export by Malaysia was reported to have reached USD 2.1 Million, recording a loss 55% when compared to the same period in 2018. The average price of the total pepper exported by Malaysia as of January 2019 was reported at USD 3,108 per Mt for whole pepper and USD 7,938 per Mt for ground pepper, thus, recording a loss of 17% and a gain of 9% respectively.

As of January 2019, Malaysia's top 5 country destinations for its pepper were reported to be Japan with 134 Mt (a decrease of 53% as compared with January 2018), Taiwan with 90 Mt (an increase of 45%), China with 75 Mt (a decrease of 72%), Viet Nam with 75 Mt (an increase of 197%)and South Korea with 52 Mt (an increase of 161%).