Sluggish World Spice Trade To Gain Momentum Soon
Not
much activity is seen in the World Spice Markets. Some buying interest was
however reported for most of spice items for the third and Fourth quarter. Black
pepper from Sarawak and Lampong seem to attract most attention, due to
availability and cheaper prices. India is bound to ease its prices soon, despite
the resistance by farmers and strong local demand to maintain the firm prices.
The good monsoon rain is expected to benefit the new crop of October-November in
addition to the already good inventories currently available. Traders in trading
markets especially in Europe are expecting activities by the end of August, when
booking will become more noticeable.
According
to the International pepper community monthly report on the situation of pepper
in the major producing countries, the six major pepper producing countries
(Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) together exported
22,178 mts in May 2001 against 12, 233 mts in May 2000 showing a substantial
increase of 81 per cent. Compared to the export in the previous month (April
2001), the export has also increased by 19 per cent. During January - May 2001
these countries exported 88,668 mts as against 61,167 mts during the
corresponding period of last year namely January - May 2000 showing an increase
of 45 per cent.
During May 2001 Brazil exported 1,044 mts of pepper valued at US$2.09
billion as against 502 mts valued at US$2.57 billion in May 2000. During
January-May 2001 a total of 7,481 mts valued at US$17.17 billion has been
shipped from Brazil as against 2,628 mts valued at US$13.08 billion in the same
period last year or increased substantially by 185 per cent.
India
exported around 2,900 mts of pepper during May 2001 as against 1,637 mts. in May
2000 showing an increase of 77 per cent. During January - May 2001, total export
of pepper from India was 12,202 mts. Compared to the export during corresponding
period last year of 12,389 mts, the export has declined slightly by 2 per cent.
Indonesia’s export of pepper have also shown a significant increase of 132 per
cent during May 2001 compared to May 2000. During May 2001, around 5,092 mts of
pepper comprised of 2,260 mts of black valued at US$4.67 billion and 2,832 mts
of white have been shipped from Indonesia. Exports during January - May 2001 was
16,596 mts against 9,376 mts in January - May 2000 or increased by 77 per cent.
Malaysia
is estimated to have exported around 3,642 mts of pepper (3,503 mts of black and
139 mts of white). This quantity represents an increase of 548 mts or 18 per
cent when compared to the export of 3,094 mts in May 2000. During January - May
2001, export of pepper from Malaysia has increased from 10,274 mts to 7,737 mts
during January - May 2000 showing an increase of 2,537 mts or 33 per cent. It
was reported that Vietnam has exported around 9,000 mts of pepper during May
2001 showing a substantial increase of 127 per cent compared to the export of
3,962 mts in May 2000. During January - May 2001 around 41,000 mts of pepper has
been shipped from Vietnam. Based on trade source’s prediction, Vietnam’s
2000 crop is about 45,000 mts. Considering carry over from last year and local
consumption into account, then stocks available for export would be very
limited.
Overall,
export of pepper from producing countries during January - May 2001 was 45 per
cent higher to the total export during January - May 2000. For black pepper,
origins seem to be driven by Lampong decreasing prices, which according to trade
sources will drag other origins, especially Sarawak to follow. India seems to
resist still this softening tendency, but as the internal demand is strong they
can afford to maintain their position for sometime longer than others.
Meanwhile,
vanilla traders are warning that Madagascar’s vanilla new crop would be of
lower quality if exporters continue to exercise more pressure on farmers to
harvest their crops early. The early harvesting before beans reach maturity
could badly affect the quality, leading to lower vanillin content, which was the
case of 2000/01 crop. This year’s crop, to be harvested end of July early
August, is estimated around 1000 tons, about 25 per cent higher than last
year’s production. Exports from Comoros, Indonesia and India are forecast to
reach 150, 300 and 50 tons respectively. Despite from Comoros, Indonesia and
India are forecast to reach 150, 300 and 50 tons respectively. Despite the lower
quality, prices remained stationary around US$ 140/kg for standard grade red
beans on c&f basis.
Cardamom
oil prices meanwhile have increased by almost 8 per cent during the past few
weeks due to reduced crop this year. This has resulted in limited volumes of
seeds available to crushers. Quite recently price of Guatemalan Cardamom oil was
quoted around US$ 295/kg seven and 13 per cent higher than the previous
consecutive two weeks. Buying interest has been reported to be weak especially
that other origins, such as South America, are offering at lower levels.
Meanwhile,
pimento trees in Jamaica are source of concern to farmers, as they are not
flowering properly, due to dry weather conditions. It is not known if this will
result in a smaller crop, but should this occur and with little carryover,
prices are expected to surge again. Prices for Jamaican pimento have been
fluctuating recently but at high levels nevertheless quoted between US$ 65000
and $7000/ton Guatemala and Honduras are forecast to have normal crops in
September, and Mexico continue to be a reasonably priced origin. Material from
there is still available due to the belated crop last year, however, this
year’s crop is expected to be of normal size and around the expected time,
mainly in two months time.
Brazil
has imposed a 55 per cent duty on garlic imports with the aim of protecting
farmers who receive subsidies for growing certain crop of which is garlic. The
government explained that garlic originating from other countries; China in
particular, is much cheaper than locally produced garlic. It has stressed as
well that such goods (garlic and other farm produce) will remain outsde the
Mercosur Common Tariff of 20 per cent and will be hit with surtaxes at the
maximum level permitted by the WTO.
Source : Agribusiness Information Centre