Weekly Publications

MARKET REPORT

As the outbreak of Corona Virus affected 213 countries and territories around the world, pepper business in Viet Nam as of 1st quarterly 2020 was reported with a 12% increase when compared to the same period in 2019, especially exporters with pepper processors or ground pepper business. Furthermore, as of March 2020, some exporters were reported to have increased their pepper shipments such as Tin Mai (an increase of 88% as compared to the same period in 2019), DK Commodity Viet Nam (an increase of 26%), Olam Viet Nam (an increase of 14%), Phuc Sinh (an increase of 13%) and Nedspice Viet Nam (an increase of 11%). The increase of pepper shipment could be contributed to the decrease of Viet Nam's pepper price in the 1st quarterly of 2020 as compared to the same period in 2019 (a decrease by 9% as compare to the same period) and also might be contributed to the increase of pepper consumption due to the benefit of pepper which widely acclaimed for its ability to boost the immune system.

Market this week showed a rather positive outlook. In local market, Malabar black pepper was reported stable averaging at USD 4,082 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as opposed to the previous week, averaging at USD 1,708 per Mt for black pepper and USD 2,913 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the strengthening of Indonesian Rupiah against US Dollar (IDR 14,931 @ USD 1). Malaysia's black and white peppers were reported stable with an average of USD 1,706 per Mt for black pepper and USD 3,060 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with an increase of 4% and 5% respectively as compared to the previous week at an average of USD 1,746 per Mt for black pepper and USD 2,643 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 1% as compared to the previous weekand was traded at an average of USD 2,753 per Mt. China white pepper was reported stable averaging at USD 4,233 per Mt.

International market showed a similar positive outlook. India black pepper was reported with the same stable at an average of USD 4,347 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as compared to the previous week averaging at USD 2,108 per Mt for black pepper and USD 3,466 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, 550 g/l and Viet Nam white pepper were reported with an increase of 4%, 4% and 3% respectively as opposed to the previous week at an average of USD 2,280 per Mt, USD 2,310 per Mt and USD 3,210 per Mt respectively. China white pepper was reportedsteady averaging at USD 4,433 per Mt.

IMPORT OF PEPPER BY FRANCE

France, officially the French Republic, is a country whose territory consists of metropolitan France in Western Europe and several overseas regions and territories. Pepper was one the earliest commodities that was traded between the Orient and Europe including France. Furthermore, France actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In 2018, France was reported to have imported a total 11,371 Mt of pepper which 76% or 8,612 Mt of it comprised of whole pepper while 24% or 2,759 Mt of it was ground pepper. The average import of pepper by France in 2018 was reported to be 948 Mt per month with the highest quantity recorded in March with 1,325 Mt. The total expenditure of pepper imported by France was reported to be as high as USD 57.8 Million, recording an average price of the total pepper imported by France at USD 4,601 per Mt for whole pepper and USD 6,595 Per Mt for ground pepper.

Year 2019 saw a decreasing trend in term of quantity of pepper imported by France. France was reported to have recorded a total of 11,264 Mt which 75% or 8,450 Mt of it comprised of whole pepper and 25% or 2,813 Mt of it was ground pepper. Thus, recording a slight decrease by 1% when compared to the same period in 2018. The average pepper imported by France was reported at 939 Mt per month which peaked in April with 1,219 Mt. In relation with the decreasing in terms of quantity, France was reported to have spent 18% less on its pepper import, totaling at USD 47.2 Million and recording an average price of the total pepper imported by France at USD 3,835 per Mt for whole pepper and USD 5,278 per Mt for ground pepper or a decrease by 17% and 20% respectively as compared to 2018.

As of March 2020, Pepper import by France was reported with an increase of 10% as compared to the same period in 2019, totaling at 3,180 Mt which comprised of 78% or 2,487 Mt of whole pepper and 22% or 693 Mt of ground pepper. The total expenditure of pepper imported by France as of March 2020 was reported stable when compared to the same period in the previous year, totaling at USD 12.0 Million. Thus, recording an average price of the total pepper imported by France at USD 3,433 per Mt for whole pepper and USD 5,046 per Mt for ground pepper.

The top five countries of origins of French's pepper as of March 2020 were reported to be Brazil with 1,099 Mt (a decrease of 11% as compared tothe same period in 2019), Viet Nam with 835 Mt (an increase of 151%), Indonesia with 367 Mt (an increase of 13%), Germany with 366 Mt (a decrease of 6%) and Netherlands with 103 Mt (a decrease of 26%). The decreased of France import from Brazil and Netherlands could be contributed to France preference of importing from other origins countries which offered more competitive price such as Viet Nam (an increase by 503 Mt as compared to the same period in 2019) and Indonesia (an increase by 41 Mt).