VENTURA COMMODITIES PVT.LTD.
BLACK PEPPER
INDEX
GLOBAL SCENARIO:
Page No.
3
World offer/demand seems to be in deficit of at least 10%.
TECHNICAL OUTLOOK:
4
HISTORY OF PEPPER:
5
THE MOST IMPORTANT SPICE IN THE WORLD
WORLD PEPPER INDUSTRY
7
Producing Countries
World Production
World Area and Productivity
WORLD EXPORTS:
13
Pepper exports
Black Pepper
White pepper
WORLD IMPORTS OF PEPPER:
17
COMMON USES OF PEPPER:
19
COUNTRYWISE PEPPER OUTLOOK:
20
Vietnam's pepper output seen falling:
India Pepper exports may jump 30%
Indonesia sees 2008 pepper output to fall by 57 pct
Brazil exports rise 59% on higher yields
Imports to us:
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
IT'S A TOPSY, TURVY WORLD!
26
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
BRIEF REPORT ON BLACK PEPPER
BLACK PEPPER
Black pepper (Piper nigrum), the king of spices, is one
of the oldest and the most popular spice in the world. It
is a perennial, climbing vine indigenous to the Malabar
Coast of India. The hotly pungent spice made from its
berries is one of the earliest spices known and is
probably the most widely used spice in the world today.
It was mentioned as far back as 1000 BC in ancient
Sanskrit literature.
In early historic times black pepper was widely cultivated in the tropics of Southeast Asia,
where it became an important article of overland trade between India and Europe. It
became a medium of exchange, and tributes were levied in black pepper in ancient Greece
and Rome. In the Middle Ages the Venetian and the Genoese became the main distributors,
their virtual monopoly of the trade helping to instigate the search for an eastern sea route.
The name Pepper comes from the Sanskrit word Pippali meaning berry.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
GLOBAL SCENARIO:
Global supply for this year is expected to amount to 2,70,000 tonnes, while
global demand is predicted to reach 3,76,500 tonnes, led by rising demand
from Russia, China and India.
With an additional carry-over stock from last year of 59,000 tonnes, the global
pepper supply will suffer a shortfall of 47,500 tonnes.
World offer/demand seems to be in deficit of at least 10%.
Indonesian crop is estimated to be around 15,000 tonne in 2008 and the Brazilian
crop around 32,000 tonne,
On top of that Indonesia crop still show some weakness in their production.
Low stocks in Consuming countries (mainly is US and Europe)
China and India still increase their consumption.
Expected fall in supplies from Vietnam could push global pepper prices up
to around $4,000 a tonne from $3,500 a tonne
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
TECHNICAL OUTLOOK:
RECOMMENDATION: NCDEX PEPPER August contract made a
high of 18055 on 24 April 2007; after which it gave correction
upto 13630 level. Two consecutive closes above 15920 can show
18055 levels. On closing bases above 18055 it can give move of
1000-1500 Rs. upmove.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
HISTORY OF PEPPER:
THE MOST IMPORTANT SPICE IN THE WORLD
Known as the “King of Spices”, Pepper is the most important spice traded internationally,
accounting for some one-third of the total volume and value
Pepper was one the earliest commodities traded between the Orient and Europe. In
medieval times, pepper frequently changed hands as rent, dowry and tax. “Peppercorn rent”
may today mean something trivial or next-to-nothing but in the middle Ages, pepper was
the preferred currency, prized by the wealthy. The history of medieval Europe throws up
further evidence of the influence pepper had in the trading community. Pepper traders even
had their own vernacular names: ‘Pepperer’ in England, “Pfeffersacke” in Germany and
“Poivrier” in France.
The cities of Alexandria, Genoa and Venice carried on brisk trade in pepper during the
middle Ages. In fact, they owed their prosperity to this priceless commodity.
Vasco de Gama’s discovery of a sea-route to the spice lands of Malabar Coast in 1498 was
triggered by his obsession with spices, particularly pepper. Gama’s feat had two results:
one, it gave Portugal a secure monopoly over the spice trade. Two, it destroyed the
economies of Alexandria, Genoa and Venice, which were built on the prosperity which
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
pepper had brought them. For the next two centuries, Lisbon was the richest European port
since it remained the key trading center for pepper and other oriental spices.
In 1595, Houtman of Holland made a successful voyage to Indonesia.
This was the
beginning of the end of Portugal’s monopoly over spice trade. By 1605, the Dutch drove
away the Portuguese from the Moluccas. Holland gradually established a firm grip over the
pepper producing centers near Lampong in Sumatera and Banten in Java. Pepper is a
thriving agricultural activity in these regions even today.
The Dutch control over spice production and was sale considerably weakened by 1650 when
pepper cultivation spread to the Malay Archipelago. The Dutch could not do anything about
it because this area was outside their sphere of influence. During the 19th century, London
emerged as the world’s most important spice center. By then, increased production had
driven pepper prices down, making it affordable even to the man on the street. Pepper no
longer remained the exclusive commodity of the rich and famous.
When the fortunes of the Dutch East India Company were down, the US rode into the fray.
In 1797, Jonathan Carnes of Massachusetts sailed into the New York waters with Sumatran
pepper worth US$100,000. The US cities of Salem and Boston soon became main spice
centres. Incidentally, the dare-devil commanders of the 18th century trading ships were the
forebears of today’s US merchant marine.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Today the pepper trade encompasses the world with Western Europe, United
States, Japan and Korea being the biggest consumers. The main pepper producing
countries are Vietnam, India, Indonesia, Brazil, Malaysia, China and Sri Lanka
WORLD PEPPER INDUSTRY
Producing Countries
Pepper is cultivated today in many countries- Brazil, India, Indonesia, Malaysia, Sri Lanka
Vietnam, China, Ecuador, Madagascar, Thailand and Cambodia produce quantities of pepper
significant in world trade. Other countries where pepper is grown on a small scale are
Mexico, Brunei, Fiji, Samoa, Micronesia, Guatemala, Honduras, St. Lucia, Tanzania, Malawi,
Zimbabwe, Benin, Kenya, Cameroon, Ethiopia, Uganda and Zambia.
World Production
World pepper production has been increasing over the last half century. Recent estimates
show that annual production ranged between 176,000 to 239,000 tons during 1991 to1996.
IPC estimates that world production in 2003 was much higher at 362,160 tons. This increase
in production has mainly been due to a substantial expansion in area and production in
Vietnam, as well as increased output from Indonesia and China. In 2004, there was a
marginal decline in production of about 3%. Vietnam has become the world’s largest
producer of pepper, followed by India and Indonesia.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Table gives details of worldwide area, production and yield of pepper
during the period from 2001 to 2004.
2001
Country
2002
Area
Prodn
Yield
(ha)
(MT)
(kg/ha)
(ha)
(MT)
2003
(kg/ha)
(ha)
2004
(MT)
(kg/ha)
(ha)
(MT)
(kg/ha)
Brazil
-
43,000
1,103
41,000
45,000
1,098
50,000
50,000
1,000
45,000
45,000
1,000
India
218,670
79,000
361
220,620
80,000
363
216,550
65,000
300
216,550
62,000
286
Indonesia
159,884
59,000
369
184,000
66,000
359
171,000
80,000
468
150,000
55,000
367
Malaysia
11,600
27,000
2,328
13,100
24,000
1,832
13,100
21,000
1,603
13,000
20,000
1,538
Sri Lanka
30,794
7,800
253
31,020
12,600
406
31,969
12,660
396
32,232
12,020
373
Vietnam
36,106
56,000
1,551
47,900
75,000
1,566
48,800
85,000
1,742
50,000
105,000
2,100
China
17,000
21,700
1,276
17,000
23,000
1,353
17,000
33,000
1,941
28,400
35,000
1,232
Thailand
2,897
8,820
3,045
2,890
9,960
3,446
2,800
9,500
3,393
2,800
9,500
3,393
Madagascar
4,000
3,375
844
4,000
2,500
625
4,000
2,500
625
4,000
2,500
625
Others
1,500
2,500
1,667
3,000
3,000
1,000
3,000
3,500
1,167
3,000
4,689
1,563
521,451
308,195
564,530
341,060
558,119
362,160
544,982
350,679
Total
591
604
649
643
Source: International Pepper community
World Pepper Production 1970- 2005
Countries
India
Malaysia
Indonesia
Brazil
SLanka
Thailand
Vietnam
China
Madaga
-
Cambodia
Total
-
2,000
2,115
-
100,460
-
-
2,755
-
140,097
Year
1970
25,000
24,400
17,219
14,267
14,000
1980
29,490
30,700
31,500
40,628
1,014
3,250
1990
65,000
31,000
53,000
31,500
1,990
10,345
8,623
-
3,380
-
203,961
1995
55,000
15,500
59,000
20,000
3,725
10,949
20,000
5,000
2,500
-
189,174
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
1996
65,000
16,000
39,500
25,700
3,987
7,730
20,000
-
2,100
-
191,771
1997
60,000
18,000
43,291
18,000
4,470
5,183
25,000
-
1,500
-
187,000
1998
65,000
19,000
56,250
17,000
6,771
5,313
22,000
-
1,700
-
205,034
1999
75,000
21,500
44,500
22,000
4,740
7,000
30,000
12,000
2,000
-
218,740
2000
58,000
24,000
77,500
30,000
10,676
6,534
36,000
10,000
1,500
-
254,210
2001
79,000
27,000
59,000
43,000
7,800
8,819
56,000
21,700
3,376
-
305,695
2002
80,000
24,000
66,000
45,000
12,600
9,962
75,000
23,000
2,500
3,250
341,312
2003
65,000
21,000
65,000
50,000
12,660
9,500
85,000
21,000
2,500
2004e
62,000
21,000
30,500
45,000
12,000
9,500
85,000
23,000
2,500
1,259
294,159
2005f
70,000
20,000
29,000
40,000
13,500
9,500
85,000
25,000
2,500
1,275
299,275
355,160
In metric tonnes; e = estimate; f = forecast
Source: IPC
Cultivation: The plant requires a long rainy season,
fairly high temperatures, and partial shade for the best
growth. Propagation is usually by stem cuttings. The
cuttings are set out near a tree or a pole that will serve
as a support. Black pepper plants are sometimes
interspersed in tea or coffee plantations. They begin
bearing in 2 to 5 years and may produce for as long as 40 years. The berries are picked
when they begin to turn red. The collected berries are scalded with boiling water for about
10 minutes, which causes them to turn dark brown or black in an hour. Then they are
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
spread out to dry in the sun for three or four days. The whole peppercorns, when ground,
yield black pepper.
White pepper is obtained by removing the outer part of the pericarp of the ripened berries.
The outer coating is softened either by keeping the berries in moist heaps for 2 or 3 days or
by keeping them in sacks submerged in running water for 7 to 15 days, depending on the
region. The softened outer coating is then removed by washing and rubbing or by trampling,
and the berries are spread in the sun to dry. Whole white pepper can also be prepared by
grinding off the outer coating mechanically. The flavour is less pungent than that of black
pepper.
Green peppers are immature berries freeze dried or mechanically air dried. They are
available pickled in brine or vinegar.
Harvesting Chart of Pepper in Major Producing Countries
Country
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Vietnam
India
Brazil
Indonesia
Malaysia
Sri Lanka
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Dec
World Area and Productivity
There has been steady growth in area and production of pepper over the last few years.
Total planted area reportedly increased from 523,000 ha in 2001 to 563,000 ha in 2003, an
increase of 7.7 %. The attractive price for pepper, which prevailed during 1999 and to some
extent in 2000, encouraged farmers to expand the area cultivated with pepper. Overall
estimated pepper yield, however appears to have peaked in 2002, at 637 kg per hectare,
declining in 2003 to 581 kg per hectare, reflecting decreased expenditure on farm
maintenance and inputs.
This expansion of area and increase in production is of concern to producers, for the world
market has responded to the surplus production with steadily declining prices, to the very
low levels prevailing at present. It is observed that the unattractive price level prevailing for
a period of time has discouraged farmers from cultivating pepper in new areas. While the
expectation of future production declines may curb further deterioration in price, total
supply is likely to remain at a relatively high level, barring any unforeseen developments
such as extreme weather conditions in producing countries as newly planted areas are likely
to offset declines in productivity in old and poorly maintained farms.
India: Ninety percent of the pepper grown in India is found in Kerala and the rest mainly in
Karnataka, Tamil Nadu, Pondicherry and Andaman and Nicobar Islands. There are small
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
areas of production in Andhra Pradesh, Orissa, Goa, Assam and Tripura. Black pepper
produced in Kerala is known as Malabar Black Pepper.
The official estimates of area and production of pepper in different states and
Union Territories in India are shown in Table.
Area, Production and yield of Black Pepper in India
1992-1993
State
2001-2002
Area
Prodn
Yield
(ha)
(MT)
(kg/ha)
(ha)
(MT)
2002-2003*
(kg/ha)
(ha)
(MT)
(kg/ha)
2,980
750
252
12,100
20,760
1,716
12,000
16,870
1,406
183,480
49,670
271
203,960
58,240
286
200,000
47,320
237
Tamil Nadu
2,810
280
100
4,110
910
221
4,000
740
185
Pondicherry
Andaman &
Nicobar
Island
110
10
91
-
-
-
-
-
-
110
50
455
450
90
200
550
70
127
189,490
50,760
220,620
80,000
216,550
65,000
Karnataka
Kerala
Total
268
363
300
*Provisional
Source: Directorate of Economics and Statics, New Delhi
In Kerala, more than 80% of the pepper farms are small (< 0.2 ha) or medium (0.2 ha to 0.
8 ha). Karnataka, which is the second largest producing State in India, grows pepper
extensively in coffee plantations using shade tree, mainly silver oak as supports. Yields per
hectare in India are among the lowest when compared to other producing
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
countries, mainly because pepper is grown as a mixed crop and improved production
technologies are not widely adopted.
With nearly 40% of the global area under pepper, India’s share of world production in 2002
was only 23%. With the increasing domestic demand, Indian exports have declined from
36,908 MT in 1988-89 to 17,000 MT in 2003-04, despite relatively high FOB prices
compared to other producing countries.
WORLD EXPORTS:
Pepper exports
Total pepper exports have shown a substantial increase during the period 1985-2004, from
96,162 tons in 1985 to 230,521 tons in 2004, recording a compound growth rate (CGR) of
4.7 percent. The emergence of Vietnam as the world’s largest exporter of pepper between
2001- 2004 is another significant development during this period. Demand (as reflected by
the export figures) has increased most significantly over the last 7 years, as can be seen
from the CGR of 7.2 percent during 1997-2004. This has absorbed a major portion of
Vietnamese production.
Whole pepper is usually exported as black, white or green. However black and white pepper
account for more than 95 percent of pepper exports from the producing countries. Country
wise exports of black pepper are shown in Table.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Total Exports of Pepper by Country (1985-2004)
Years
Brazil
India
Indonesia
Malaysia
Sri
Lanka
Vietnam
Others
Total
1985
24,676
19,536
26,201
18,751
1,260
1,335
4,403
96,162
1986
22,069
49,807
29,572
15,366
1,287
3,133
3,658
124,892
1987
25,500
32,252
29,994
13,826
2,015
4,275
3,302
111,164
1988
23,550
47,258
41,494
18,554
2,692
2,612
3,385
139,545
1989
27,692
25,120
42,136
25,524
1,575
7,551
4,984
134,582
1990
28,014
34,429
47,676
27,706
2,609
8,995
5,779
155,208
1991
47,553
18,945
49,665
25,458
2,058
16,252
5,845
165,776
1992
25,702
19,399
61,438
21,932
2,127
22,358
7,629
160,585
1993
24,119
47,228
25,801
15,727
7,779
14,801
8,837
144,292
1994
21,103
34,111
35,134
22,312
3,411
15,000
10,431
141,502
1995
21,259
24,541
56,129
13,991
2,278
17,900
3,103
139,201
1996
23,418
41,138
36,560
19,128
2,987
25,300
3,334
151,865
1997
13,961
37,816
33,011
24,808
3,279
23,500
5,392
141,767
1998
17,250
32,154
38,311
18,699
5,493
22,000
1,822
135,729
1999
19,615
45,156
35,227
21,534
3,754
28,000
4,981
158,267
2000
20,385
21,108
63,938
22,730
4,855
36,465
2,261
171,742
2001
36,585
21,459
53,291
24,929
3,161
56,506
2,144
198,075
2002
37,531
24,900
53,210
22,642
8,225
78,155
8,609
233,272
2003
37,940
17,787
60,596
18,530
8,240
74,600
8,597
226,290
2004
40,529
14,049
45,760
18,206
4,853
98,494
8,630
230,521
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Black Pepper
Total Exports of Black Pepper by Country (1985-2004)
Years
Brazil
India
Indonesia
Malaysia
Sri
Lanka
Vietnam
Others
Total
1985
22,568
19,536
14,081
13,633
1,260
1,335
4,403
76,816
1986
20,368
49,807
13,304
11,569
1,287
3,133
3,658
103,126
1987
24,499
32,252
10,394
11,429
2,015
4,275
3,302
88,166
1988
21,691
47,258
19,600
14,919
2,692
2,612
3,347
112,119
1989
26,558
25,120
17,303
22,467
1,575
7,551
3,494
104,068
1990
27,110
34,429
13,015
25,602
2,609
8,995
5,264
117,024
1991
45,581
18,945
19,024
23,649
2,058
16,252
5,682
131,191
1992
25,103
19,399
31,327
20,244
2,127
22,358
7,448
128,006
1993
22,404
47,228
8,419
11,874
7,779
14,801
6,396
118,901
1994
19,373
33,999
16,675
17,407
3,411
15,000
2,670
108,535
1995
19,401
24,324
36,094
9,829
2,278
17,900
2,110
111,936
1996
20,710
40,940
19,150
13,946
2,987
25,300
1,926
124,959
1997
12,961
37,513
11,388
19,054
3,279
23,500
1,403
109,098
1998
16,070
31,984
21,161
14,043
5,493
22,000
834
111,585
1999
17,735
45,004
11,657
16,057
3,754
28,000
1,520
123,727
2000
19,385
21,039
29,682
20,978
4,855
36,465
1,285
133,689
2001
34,785
21,312
23,654
23,117
3,161
56,506
1,538
164,073
2002
35,531
24,661
21,020
20,453
8,225
78,155
3,839
191,884
2003
35,940
17,475
36,000
14,567
8,240
70,100
4,837
187,159
2004
35,260
13,860
32,000
15,655
4,853
90,614
5,205
197,447
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Over the last 20 years black pepper exports have increased from 76,816 tons to 197,447
tons recording an annual growth rate of 5%. Over the last few years, Vietnam has overtaken
the traditional pepper producing countries such as India and Indonesia and added
considerable to world pepper production. Exports of black pepper from producing countries
are shown in Table.
White pepper
The market segment for white pepper is generally smaller than for black pepper and has not
shown growth comparable with black pepper. White pepper exports have fluctuated between
19,346 tons in 1985 to the highest of level of 41,388 tons recorded in 2002, after which
exports declined to 33,074 tons in 2004. The annual growth rate recorded for the period
1985-2004 was only 2.9 percent. It is difficult, however to assess demand for white pepper,
as there is likely to be some conversion of black pepper to white when the price of black
pepper is low. Exports of white pepper from the major producing countries are shown in
Table.
Total Exports of White Pepper by Country (1985-2004)
Years
Brazil
India
Indonesia
Malaysia
Vietnam
Others
Total
1985
2,108
-
12,120
5,118
-
-
19,346
1986
1,701
-
16,268
3,797
-
-
21,766
1987
1,001
-
19,600
2,397
-
-
22,998
1988
1,859
-
21,894
3,635
-
38
27,426
1989
1,134
-
24,833
3,057
-
1,490
30,514
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
1990
904
-
34,661
2,104
-
515
38,184
1991
1,972
-
30,641
1,809
-
163
34,585
1992
599
-
30,111
1,688
-
181
32,579
1993
1,715
-
17,382
3,853
-
2,441
25,391
1994
1,730
112
18,459
4,905
-
7,761
32,967
1995
1,858
217
20,035
4,162
-
993
27,265
1996
2,708
198
17,410
5,182
-
1,408
26,906
1997
1,000
303
21,623
5,754
-
3,989
32,669
1998
1,180
170
17,150
4,656
-
988
24,144
1999
1,880
152
23,570
5,477
-
3,461
34,540
2000
1,000
69
34,256
1,752
-
976
38,053
2001
1,800
147
29,637
1,812
-
606
34,002
2002
2,000
239
32,190
2,189
-
4,770
41,388
2003
2,000
312
24,596
3,963
4,500
3,760
39,131
2004
5,269
189
13,760
2,551
7,880
3,425
33,074
WORLD IMPORTS OF PEPPER
World imports of pepper, including pepper for re-export in various forms, has increased in
line with exports. The United States is the world’s largest importer and consumer of pepper,
Singapore features strongly in world trade in pepper as an importer but though much of the
imports are re-exported. Germany and Netherlands are also important pepper importing
countries for a domestic consumption as well as for processing and re-export. Over the last
years, India has also begun to import significant amounts of pepper, as domestic
demand for grinding and extraction as well as other uses expands. Growth in
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
imports has also been significant in the United Arab Emirates (UAE), France, Pakistan and
Poland.
World Import of Pepper by 25 Important Consuming Countries
Sr.
No
1999
2000
2001
2002
2003
1
Country
United States Of
America
56,477
53,875
57,738
60,747
63,821
2
Singapore
48,149
45,491
43,806
42,616
29,415
3
Germany
19,515
17,776
19,951
21,489
22,994
4
Netherlands
16,519
17,517
19,422
19,289
17,399
5
India
3,080
6,045
6,325
15,635
14,584
6
United Arab Emirates
7,000
11,000
8,000
7,500
10,500
7
France
8,599
8,311
8,578
10,517
10,451
8
Japan
8,023
7,766
8,294
8,667
8,579
9
Russia Federation
4,915
6,328
5,330
7,194
6,956
10
United Kingdom
5,485
5,629
5,117
4,808
5,844
11
Canada
6,303
5,597
5,482
5,902
5,647
12
Pakistan
1,626
863
2,137
2,601
5,161
13
Poland
3,183
3,235
3,286
3,648
4,675
14
Egypt
2,931
4,949
6,848
5,531
4,312
15
Belgium
2,482
3,010
2,546
3,431
3,664
16
Korea, Republic of
3,010
3,177
3,648
3,378
3,576
17
Spain
2,381
2,391
3,051
3,027
3,485
18
Italy
3,610
3,754
3,473
3,768
3,420
19
China
3,418
4,681
5,211
5,245
3,276
20
Turkey
457
747
1,518
2,639
3,262
21
Malaysia
1,504
2,806
2,560
2,779
2,965
22
Ukraine
1,711
2,183
2,730
3,237
2,621
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
23
Australia
1,938
2,226
2,135
2,417
2,292
24
Austria
1,815
1,854
1,384
2,014
2,186
25
Morocco
282
441
1,276
848
2,095
38,586
47,725
47,000
43,139
40,020
252,999
269,377
276,846
292,066
283,200
Others
Total
COMMON USES OF PEPPER
As a Food Condiment: The use of pepper as a seasoning/condiment, on its
own or in spice blends, is on the increase with the growing popularity of
snacks, ethnic foods, ready-to-cook meals as well as healthy low-sugar-andsalt foods especially in the developed countries. Black pepper tastes
strongest when freshly ground although pre-ground pepper is often used in
seasonings for convenience.
White pepper is less aromatic than black
pepper but has special applications, as in white sauces where black pepper
would give them an undesirable speckled appearance.
As a Preservative: The value of pepper as a natural preservative for meat
and other perishable foods has been known for centuries. Studies have
shown that this is due to the anti-oxidant and anti-microbial properties
present in pepper.
Known Medicinal Uses: Pepper is an important ingredient in Ayurvedic,
Chinese and Unami and other traditional medicines. The three main
therapeutic uses of pepper are as a stomachic, digestive and tonic.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
COUNTRYWISE PEPPER OUTLOOK:
VIETNAM:
Vietnam's pepper output seen falling
Crop for 2007 (85% harvested) has dropped by at least 20% to reach around
80,000- 90,000 Mt (old trees, low yield due to lack of fertilizer, insect damage
on roots), and for the following years, it should stand below 100,000 mt.
Farmers are also in strong position as they do not produce only pepper but
other commodities (coffee price was good this year > 1,400$ /mt) or
spices.
Low carry over from 2006.
Vietnam is the largest pepper exporter in the world, accounting for 33 percent
[90,000 tonnes] of global supply in 2007, followed by Brazil on 15 percent
[40,000 tonnes] and Indonesia on 13 percent [35,000 tonnes].
The shortage would lead to higher prices. Prices currently stand at about
US$3,500 per tonne. The price could rise to $4,000 per tonne next year if the
bad weather and pest attacks prevail
Tight pepper supplies due to a fall in output have also cut Vietnam's
pepper exports.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
In the first six months of this year, the country exported 53,000 tonnes of
pepper, down 38 percent from the same period last year.
INDIA:
Pepper exports may jump 30%
Pepper exports are likely to go up by 20-30% in the current fiscal with global
supply staying short.
With their inventory level low, European and the US importers have to come
to India, as it is the cheapest origin.
Many buyers, who have postponed their purchase in anticipation of Vietnam
decreasing their price, have no option but to turn to India.
Vietnam is still not offering large quantities of the ASTA quality pepper
indicating that there is genuine shortage of good quality stock.
Traders expect the Indian exports to touch 40,000 tonne given the availability
of good quality pepper in the accredited warehouses.
The warehouses of the commodity exchanges have approximately 17,000
tonne of pepper and this is a major attraction for importers as it is quality
assured.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
India is also at an advantageous position with the crop arrivals from other
destinations
like
Indonesia
(August-September)
and
Brazil
(October-
November) expected to be short.
With the help of subsidies, Indian pepper exports for FY 2006-07 stood at
28,750 tonne against 17,363 tonne during 2005-06. Spices Board has fixed a
target of 30,000 tonne of pepper exports for the current fiscal.
Exporters are in short position and expected to buy in the coming days
INDONESIA:
Indonesia sees 2008 pepper output to fall by 57 pct
Indonesia's pepper output may fall by 57 percent to 15,000 tonnes in 2008
due to erratic weather.
Indonesia, the world's third largest pepper exporter after Vietnam and Brazil,
is expected to produce 35,000 tonnes of pepper this year, up 17 percent from
30,000 tonnes in 2006, because of large carryover stocks.
If the weather is good, Indonesia can only produce about 15,000 tonnes next
year according to industry officials.
The expected increase in output this year is only because of carryover stocks
with farmers and merchants and not because of improving productivity.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
BRAZIL:
Exports rise 59% on higher yields
Month
Avg. FOB
$/MT
Quantity
Jan-07
2380
3163
Feb-07
2528
2926
Mar-07
2398
4355
Apr-07
2750
2820
May-07
3002
4157
Total 2007
2618
17422
Same
period
2006
1439
10931
So far Brazil exported this year 17,422 mt against 10,931 mt for the same period last year.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Export from Brazil has risen by 59% in the January-April period and the new crop in the
nation will be higher than earlier estimate. Some new cropping areas in Brazil have reported
higher yields and may compensate the shortage felt in the traditional areas
BRAZILIAN PEPPER EXPORTS JANUARY - MAY 2006/2007 BY DESTINATIONS
DESTINATION
%
Increase/Decrease
JANUARY TO
MAY IN MT
2006 2007
GERMANY
ARGENTINA
USA
SPAIN
EGIPT
FRANCE
HOLAND
MEXICO
SENEGAL
SYRIA
TURKEY/ARAB
EMIRATES
UCRAINE/RUSSIA
The
destinations
that
were
216%
24%
34%
422%
58.30%
233%
-65%
47%
95%
-48%
top
ranked
1,033
513
5,390
331
0
576
400
1,062
235
0
87
3,265
640
7,244
1,084
305
912
1,332
364
346
100
170
128
65
as
for
increase
were:
Spain - 422%, Holand - 232%, Germany - 216%.
Although less impressive other countries also bought more this year: France - 58% and USA
- 34%.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Imports To US:
Total monthly imports per year * missing data for 2004 year
YEAR
2001
2002
2003
JANUARY
2,668
2,442
FEBRUARY
2,818
MARCH
2005
2006
2007
5,728
4,540
4,608
4,226
1,913
3,436
2,704
3,397
2,405
2,503
3,799
3,820
3,566
4,317
2,321
APRIL
3,969
4,478
2,567
2,697
3,731
4,497
MAY
5,403
3,826
3,722
4,625
3,728
JUNE
5,020
5,014
3,579
4,105
3,763
JULY
3,826
4,652
4,296
5,540
4,581
AUGUST
4,639
4,911
3,334
4,539
4,831
SEPTEMBER
3,345
4,645
4,114
3,418
4,539
OCTOBER
5,785
4,489
6,232
4,953
4,985
NOVEMBER
4,926
4,628
5,672
6,151
7,502
DECEMBER
3,908
5,315
4,677
5,314
5,516
48,810
50,112
51,177
52,152
55,498
+12,25%*
+2,66%
+2,12%
+1,09%**
+6,41%
TOTAL
PERCENT
2004
13,449
* Increase over previous year (2000) which total was of 43,481 mt.
** Increase over 2003 year
Imports of pepper to US have decreased from 16,053 MT to 13,449 MT in the first
five months of the calendar year.
Imports fall mostly due to higher prevailing market prices and also indicating
global shortage of the commodity
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
It's a Topsy, Turvy World!
In 1987 market reached briefly U$D 5,000 after a 2 years evolution and was back in some 5
years, to reach the lowest level in recent history - U$D 1,000/ mt in 1992. In 1998 was a
similar move and finalization - U$D 1,200 /mt in 2002.
YEAR
1985
1986
1987
1988
1989
AVERAGE PRICE
$3,500
$4,700
$5,000
$3,500
$2,500
1992
$1,000
YEAR
1996
1997
1998
1999
2000
AVERAGE PRICE
$3,250
$4,750
$5,200
$3,500
$2,200
2002
$1,200
The big difference is that this year, 2002, was the beginning of the Vietnam Era.
Ventura Commodities Pvt. Ltd.
Registered Office: Dhannur “E”, 15, Sir P.M. Road, Mumbai – 400 001; +91 22 2266 0969.
This report is neither an offer nor a solicitation to purchase or sell commodities. The information and views expressed herein are
believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be
trading in or have positions in the commodities mentioned in their articles. Neither Ventura Commodities Pvt. Limited nor any of the
contributors accepts any liability arising out of the above information/articles. Reproduction in whole or in part without written
permission is prohibited. This report is for private contribution.
Saturday, July 14, 2007
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.