Weekly Publications

MARKET REPORT

Market this Easter week showed mix response with Indonesia and China reported to be positive. India black pepper was traded stable in local market, averaging USD 4,784 per Mt. This week Indonesia successfully held the Presidential and Legislative election on the 17th April 2019 which contributed to the strengthening of Indonesian Rupiah towards US Dollar. Consequently, Lampung black pepper and Muntok white pepper were traded locally with an increase of 1% respectively as compared with the previous week, averaging at USD 2,135 per Mt for black pepper and USD 3,594 per Mt for white pepper. Contrary to Indonesia Rupiah, Malaysian Ringgit was reported at its lowest point in the past three months with MYR 4.145 (Bank Negara Malaysia Middle rate) to USD 1 on 18th April 2019, the continuous dropped of Malaysian Ringgit was reportedly linked to the pressure from negative news on the global index provider FTSE Russel reviewing Malaysia's market liquidity. Malaysian black and white pepper were traded locally with the same 1% deficit as compared to the previous week. Viet Nam black and white pepper in local market were reported to be traded stable at an average of USD 1,841 per Mt and USD 2,856 respectively. Following the Sinhala New Year and Easter holiday, pepper market in Sri Lanka was reported to be inactive. China white pepper was reported to have experienced a significant 4% increase as opposed to the previous week at an average of USD 4,895 per Mt.

Continuing the local market trend, FOB price of India black pepper was reported to be stable at an average of USD 5,072 per Mt. Indonesia black and white pepper were reported to record the same 1% increase in the international market with an average of USD 2,606 per Mt and USD 4,240 per Mt respectively. In International market, Malaysia black and white pepper were also reported to experience the same 1% deficit as compared with the previous week, averaging at USD 2,995 per Mt and USD 4,542 per Mt respectively. Viet Nam FOB prices for black 500 g/l, 550 g/l and white pepper were reported to be stable and unchanged. China white pepper FOB price experienced the same 4% increase as in local market and was traded at an average of USD 5,095 per Mt.

US market continued to be quiet with only white pepper spot price of Sarawak/Brazil/Viet Nam recording a slight deficit to USD 4,741 per Mt.

IMPORT OF PEPPER BY PHILIPPINES

The Republic of Philippines, a sovereign state in archipelagic Southeast Asia, is one of pepper producing country. Philippines' pepper production, known to have been cultivated partially in the Batangas regions, is unable to meet the domestic consumption which pushes the import of pepper by the Philippines to keep increasing in the past three years.

In 2016, Philippines was reported to have imported a total of 4,393 Mt of pepper which 84% of it comprised of whole pepper while 688 Mt of it was ground pepper. The average pepper imports by Philippines in 2016 was reported at 366 Mt per month. The total expenditure of pepper imports by Philippines amounted to USD 20.3 Million, recording an average price of the total pepper imported by Philippines at USD 4,538 per Mt for whole pepper and USD 5,008 per Mt for ground pepper.

2017 saw pepper imports by Philippines increased by 20% as compared to the previous year totalling at 5,281 Mt which comprised of 4,256 Mt of whole pepper and 1,025 Mt of ground pepper thus averaging at 440 Mt per month. Though increasing in terms of quantity, the pepper imports by Philippines decreased by 5% in terms of value which amounted to USD 19.1 Million. The average price of the total pepper imported by Philippines was reported to be at USD 3,518 per Mt for whole pepper and USD 4,090 per Mt for ground pepper which meant a loss of 22% and 18% respectively.

Pepper imports by Philippines continued its increasing trend in 2018 by recording a 11% spike as compared with the previous year, totalling 5,857 Mt which comprised of 5,029 Mt of whole pepper and 828 Mt of ground pepper. The average pepper imports by Philippines in 2018 was reported at 488 Mt per month. The total expenditure of pepper imports by Philippines in 2018 decreased marginally to an amount of USD 19.0 Million. The average price of the total pepper imported by Philippines continued to decrease to USD 3,155 per Mt for whole pepper and USD 3,842 per Mt for ground pepper, recording 10% and 6% respectively as compared with the previous year.

Most of pepper imported by Philippines in 2018 was reported to come from Viet Nam with approximately 4,923 Mt. Following Viet Nam, India with 268 Mt, Malaysia with 235 Mt, South Korea with 223 Mt and China with 80 Mt.