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WPB Week #40/19, Sep 30 -04 Oct 2019

Fri Oct 04 2019

 

MARKET REPORT

 

Market this week showed mixed response with Indonesia recorded the lowest deficit for its black pepper. In local market, Malabar black pepper was reported stable averaging at USD 4,565 per Mt. Indonesia black pepper was reported to be traded negatively and was reported with the lowest ever prices in recent years. Recording a 10% deficit as opposed to the previous week at an average of USD 1,622 per Mt. The significant decrease in price of black pepper in Indonesia was as result of harvest period currently in full swing which flooded the market with product. Thus, pressuring the price in the local currency to an average of IDR 23,000 per Kg from IDR 25,500 per Kg in the previous week. Indonesia white pepper was reported with a 1% deficit when compared to the previous week averaging at USD 3,279 per Mt. Malaysian black and white pepper were reported with a 1% deficit as compared to the previous week at an average of USD 2,002 per Mt for black pepper and USD 3,516 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with a decrease by 2% as compared to the previous week averaging at USD 1,726 per Mt for black pepper and USD 2,625 per Mt for white pepper. Sri Lanka black pepper was reported with a 1% increase as compared to the previous week at an average of USD 2,398 per Mt.

 

In international market, the trend also showed mixed response as only Viet Nam reported an increase. FOB price of India black pepper was reported steady at an average of USD 4,847 per Mt. Indonesia black pepper was reported with a 9% deficit as compared to the previous week at an average of USD 2,018 per Mt. Whilst, Indonesia white pepper was reported with a 1% deficit when compared with the previous week at an average of USD 3,885 per Mt. 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 by 1% respectively as opposed to the previous week averaging at USD 2,218 per Mt, USD 2,283 per Mt and USD 3,368 per Mt respectively.

 

EXPORT OF PEPPER BY RUSSIA

 

Russia, officially the Russian Federation, is a transcontinental country in Eastern Europe and North Asia. In the last five years, Russia has imported pepper more than 6,000 Mt annually from pepper producing countries, pepper is used in all kind of Russian preparation, especially in soups and vodka. Furthermore, Russia actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

 

In the past three years import of pepper by Russia had fluctuated with decreasing trend. In 2017, Russia imported a total of 8,205 Mt. In the following year, Russian import of pepper slightly decreased by 2%, totalling at 8,048 Mt. The ratio of Russia's import and export during 2017-2019 are 13:1, 13:1 and 27:1 respectively. Until the end of July 2019, Russia was reported to have imported a total of 5,439 Mt. which 227 Mt of it went for re-export purposes. The top five countries of origins of Russia pepper both for whole and ground as of July 2019 were reported to be Viet Nam with 3,629 Mt, Brazil with 583 Mt, Sri Lanka with 384 Mt, India with 335 Mt and Indonesia with 168 Mt (Table 1).

 

In 2017, Russia was reported to have exported a total of 601 Mt of pepper from which 23% or 140 Mt of it comprised of whole pepper and 77% or 461 Mt of it ground pepper. Russia on average exported a total of 50 Mt per month in 2017. The total revenue of Russia export in 2017 was reported to be as high as USD 4.5 Million. Thus, recording an average price of the total pepper exported by Russia at USD 10,400 per Mt for whole pepper and USD 6,616 per Mt for ground pepper.

 

Year 2018 saw an increasing trend in term of quantity of pepper exported by Russia. Russia was reported to have recorded a total of 633 Mt of pepper of which 31% or 199 Mt of it comprised of whole pepper and 69% or 434 Mt of it ground pepper. Thus, recording a 5% increase in term of quantity as compared to the same period in 2017. The average export of pepper by Russia was reported to be at 53 Mt per month. Although increasing in term of quantity, Russia's revenue from pepper export was reported to have declined by 14% to a total of USD 3.8 Million, recording an average price of the total pepper exported by Russia at USD 6,589 per Mt for whole pepper and USD 5,878 per Mt for ground pepper or a decrease by 37% and 11% respectively as compared with 2017.

 

As of May 2019, Russia was reported to have exported a total of 227 Mt which comprised of 54 Mt of whole pepper and 173 Mt of ground pepper. Thus, recording a relatively stable movement when compared to the same period in 2018. By the end of May 2019, the total revenue of pepper export by Russia was reported to have reached USD 1.4 Million, recording a decrease by 6% as compared to the same period in 2018. The average price of the total pepper exported by Russia as of May 2019 was reported at USD 6,637 per Mt for whole pepper and 6,080 per Mt for ground pepper.

 

Pepper exports from Russia are mostly traded in Eastern Europe Countries, Central Asia Countries and East Asia Countries which are the borders countries of Russia. Furthermore, as of May 2019 Russia's top 5 Country destinations for its pepper were reported to be Kazakhstan with 76 Mt (an increase of 15% as compared with the same period in 2018), Belarus with 71 Mt (an increase of 35%), Ukraine with 45 Mt (a decrease of 16%), Mongolia with 10 Mt (a decrease of 63%) and Azerbaijan with 8 Mt (same as the previous year).

 

http://www.ipcnet.org/admin/data/news/mx1940.jpg

 

Source: http://www.ipcnet.org/

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