Weekly Publications

MARKET REPORT

Market this week showed a rather negative outlook. In local market, Malabar black pepper was reported stable with an average of USD 4,866 per Mt. As Lampung is currently undergoing harvest period, Indonesia black pepper was reported with a 4% deficit as opposed to the previous week with an average of USD 1,930 per Mt. Whilst, Indonesia white pepper reported stable averaging at USD 3,468 per Mt. Indonesian black and white pepper in local currency were traded with an average of IDR 27,000 per Kg and IDR 48,500 per Kg respectively. Malaysian black pepper was reported to be traded with 2% deficit as compared to the previous week. Whilst, Malaysian white pepper was reported stable averaging at USD 3,926 per Mt. Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,901 per Mt while Viet Nam white pepper was reported unchanged. Sri Lanka black pepper continued to be traded negatively as the harvest period progressed. Recording a 3% deficit as compared to the previous week at an average of USD 2,524 per Mt. China white pepper was reported unchanged averaging at USD 4,688 per Mt.

In international market, FOB price of India black pepper was reported stable at an average of USD 5,155 per Mt. Indonesia black pepper was reported with a deficit of 4% as opposed to the previous week with an average of USD 2,373 per Mt. Whilst, Indonesia white pepper was reported unchanged averaging at USD 4,099 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported to be traded negatively with 1% deficit as compared to the previous week averaging at USD 2,273 per Mt, USD 2,338 per Mt and USD 3,423 per Mt respectively. China white pepper was reported stable at an average of USD 4,888 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 OF PEPPER BY UNITED STATES OF AMERICA

United States of America is one of the countries that import quite a lot of pepper from various pepper producing countries whether for its domestic consumption or for re-export to other countries.

In 2017, United States of America was reported to have exported a total of 12,938 Mt of pepper which 43% or 5,517 Mt of it comprised of whole pepper and 57% or 7,421 Mt of it ground pepper. United States of America on average exported a total of 1,078 Mt per month in 2017. The total revenue of United States pepper export in 2017 was reported to be as high as USD 57.1 Million, thus, recording an average price of the total pepper exported by United States of America at USD 3,118 per Mt for whole pepper and USD 5,370 per Mt for ground pepper.

Year 2018 saw a decreasing trend in terms of quantity of pepper exported by United States of America. United States of America was reported to have recorded a total of 9,290 Mt which comprised of 4,640 Mt of whole pepper and 4,650 Mt of ground pepper. Thus, recording 28% decrease as compared to the same period in 2017. The average export of pepper by United States of America was reported to be at 774 Mt per month. In accordance with decreasing in terms of quantity, United States of America's revenue from pepper export was reported to have declined by 22% to a total of USD 44.4 Million which recorded an average price of the total pepper exported by United States of America at USD 3,124 per Mt for whole pepper and USD 6,435 per Mt for ground pepper or stable for whole pepper and increased by 20% for ground pepper as compared with 2017.

As of April 2019, United States of America was reported to have exported a total of 2,652 Mt which comprised of 1,205 Mt of whole pepper and 1,447 Mt of ground pepper. Thus, recording a decrease of 21% as compared to the same period in 2018. By the end of April 2019, the total revenue of pepper export by United States of America was reported to have reached USD 13.7 Million, recording a loss of 13% when compared to the same period in 2018. The average price of the total pepper export by United States of America as of April was reported at USD 3,067 per Mt for whole pepper and USD 6,899 per Mt for ground pepper.

Until the end of April 2019, United States of America was reported to have imported a total of 28,688 Mt of pepper which 2,652 Mt of it went for re-export purposes. By the end of April 2019, United States of America was reported to have imported pepper from various countries such as Viet Nam with 17,227 Mt, Brazil with 5,170 Mt, India with 2,224 Mt, Indonesia with 1,978 Mt and Germany with 711 Mt (Table 3).

Furthermore, as of April 2019, United States of America's top 5 country destinations for its pepper were reported to be Canada with 1,424 Mt (a decrease of 19% as compared with the same period in 2018), Mexico with 233 Mt (a decrease of 27%), United Kingdom with 113 Mt (a decrease of 37%), Japan with 104 Mt (an increase of 10%) and Taiwan with 82 Mt (a decrease of 16%). The decrease of export to United Kingdom was the result of United Kingdom directly imported pepper from pepper producing country such as Viet Nam (an increase by 411 Mt as compared to the same period in 2018). United Kingdom's preference towards importing from Viet Nam origins as opposed to United States of America could be contributed to the fact that Viet Nam offer more competitive price.