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SPICES MARKET INSIDER

Market News Service

Spices

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INDEX

SPICES NEWS AND UPDATES ........................................................................................................ 3 MARKET DYNAMICS ....................................................................................................................... 12 PRICES IN THE MARKET PLACE ................................................................................................... 14

Spices ............................................................................................................................................14 PRICES IN THE MARKET PLACE ................................................................................................... 18

Herbs .............................................................................................................................................18 STATISTICAL INFORMATION AND RELATED RESOURCES ...................................................... 19 EVENTS ............................................................................................................................................ 24

3

Spices News and Updates A round-up of news items in April 2016

Week 13 4th Apr 2016

Falling ginger prices in South Asia

The Hindu newspaper in India reported last week that “tribal organic cultivators of turmeric and

ginger in Kandhamal district of Odisha held a demonstration at Daringbadi on Monday demanding

that the government assures proper procurement price for their produce to end distressed sales

and exploitation.

They demanded that the government instigate a procurement mechanism through which the

farmers could be ensured to sell their turmeric produce at Rs.200 per kg and ginger at Rs.100 per

kg. At present these traditional organic cultivators are compelled to sell their turmeric at Rs.40 to 70

and ginger at Rs.10 to 20 rupees per kg.

These traditional organic turmeric and ginger cultivators want low interest loans from nationalized

banks and cooperative institutions. Apparently, cooperatives such as Auxiliary Marketing

Cooperative Society of Tikabali, or the Tribal Development Cooperative Corporation, KASAM used

to procure organic turmeric and ginger from tribal farmers, but the process has almost stopped now.

Establishment of cold storages and renovation of existing godowns for storage of organic turmeric

and ginger produce to end distress sell was also demanded.

Kandhamal district has a long tradition of turmeric and ginger cultivation, for the most part without

the use of chemical fertilizers and pesticides. The organic produce has had good demand outside

Kandhamal district, including overseas.

Source: http://www.thehindu.com/

4

An earlier report form The Hindu (24th March2016) had noted that there were concerns over

increasing cultivation of ginger. The paper reported that the spurt in ginger cultivation in parts of

Mysuru district, had provoked the district administration to set up three special teams to try to arrest

the trend since ginger is a highly water-intensive crop, which requires high amount of pesticides.

The excessive use of chemicals in, ginger cultivation is said to have a long-term impact on the soil

health and there are growing concerns over the impact of ginger cultivation on groundwater.

There is no provision to ban ginger cultivation but one MP has asked banks to restrict loans for

ginger cultivation although a senior banker has pointed out that 90 per cent of farmers who cultivate

ginger don’t avail themselves of crop loans.

The main effort will be directed towards educating farmers and the Departments of Horticulture and

Agriculture will soon launch an awareness programme to deter farmers from ginger cultivation. The

ill-effects on the soil will be explained.

Source: http://www.thehindu.com/

Meanwhile in Bhutan, Kuensel Online (http://www.kuenselonline.com/) reports that the current price

of ginger is half the levels achieved last year. Middlemen and traders are blaming the over-supply

of ginger in India for the falling demand and therefore prices in Bhutan.

This comes at a time when many farmers are gradually shifting crops, especially ginger after the

production of oranges dropped.

Further the quality of the Bhutanese ginger is held to be inferior to the Indian product. Traders

complain that most Bhutanese farmers do not sort and pack ginger properly, which again affects

the price because the quality and packing play vital role in determining price.

There are efforts to encourage farmers to sell their product through auctions rather than accepting

advances from middlemen while the crop is still in the field. There are signs that the auction

5

channel achieves better prices for the farmers.

So far this year about 198MT of gingers have been exported to India.

Week 13 4th April 2016

UK recall of cumin and coriander powders

The UK Food Standards Agency reports that TRS Wholesale Company Ltd is recalling its Jeera

(Cumin) Powder, the Dhania (Coriander) Powder and the Chili Powder (Extra Hot) because

salmonella has been detected in the products. Salmonella is a bacterium that can cause food

poisoning.

Week 13 5th April 2016

New cardamom feels the heat

The Hindu newspaper reports that high temperatures in the Cardamom Hills Reserve in the

southern state of Kerala are threatening newly planted areas of cardamom.

Severe drought has largely affected the newly planted areas where the possibility of irrigation is

low. Cardamom cultivation needs a humid climate and a low temperature to thrive. This season, the

climate was mostly unfavorable for cardamom and the losses of new plantings are estimated by

farmers to be very high.

Cardamom prices have remained low over the present harvest season following a good crop, but

newly planted cardamom is now said to be suffering.

Source: www.thehindu.com

6

Week 13 7th April 2016

Jamaican ginger production to be encouraged

The Jamaican Observer reports (http://www.jamaicaobserver.com/) that the Ministry of Industry,

Commerce, Agriculture and Fisheries is moving to improve Jamaica’s ginger production in an effort

to satisfy the export market.

General Manager of the Export Division at the Ministry, Byron Henry, told JIS News that this will be

done by increasing the number of ginger farmers across the island, particularly in the parishes

known for cultivating the crop.

Henry said the ministry is focusing on the tissue culture method in order to produce disease-free

ginger plants for farmers, especially in the parishes of St James, Portland, Manchester, St Thomas

and Clarendon.

To this end, the ministry is collaborating with the Scientific Research Council (SRC) in the

production of clean ginger plants, so that within a year, there will be enough disease-free planting

material for farmers, including greenhouse operators.

“What we really need to do is to push the tissue culture production, so that we can provide clean

seed materials for the farmers. What we are promoting is that the farmers do not replant what they

have out in the field, but to visit a nursery or producer of tissue culture material and use that

continuously to replenish their stock,” Henry urged.

He pointed out that Jamaica’s ginger production continues to suffer from the rhizome rot disease,

which damaged the industry in the 1990s, although there was some level of recovery in 2013.

Henry said that there is currently a domestic demand for over three million pounds (1,360 tonnes)

of ginger annually, while the demand for the product on the export market is way above that.

7

Week 15 12th April 2016

Cultivating spices in northern Europe?

A report from a Dutch sustainability and clean technology online news service reveals a proposition

from Intertaste to cultivate spices in the Netherlands. The company is apparently looking for

partners to build the capability for production of spice, flavors and fragrances of Southeast Asia,

Africa and South America.

The report says that Intertaste wants to set up an ingredients production facility under glass in the

Lingewaard area located near the border with Germany. The aim is to develop new cultivation

systems with other partners in a modern greenhouse system for the production of plants which are

valuable ingredients. The company sees opportunities in vanilla orchids, wasabi plants and

peppers. There will also be a focus on optimal post-harvest processing.

The company points out that the flavor and fragrance industry are to a large extent dependent on

imports from areas in Southeast Asia, Africa and South America. However, increasing supply

concerns over safety together with rising prices and issues of sustainability and certification creates

a strong incentive to bring production closer to home. With production in the Netherlands

companies could arrange the production itself and can provide oversight of the whole process,

while production would also provide opportunities closer to home for the development of new

flavors and innovations.

Why this is preferable to contracting with supply in the traditional growing areas is not explained.

Source: http://www.duurzaambedrijfsleven.nl/landbouw/14069/ingredient-farm-haalt-specerijenproductie-dichter-bij-huis

8

Week 15 13th April 2016

Indian Spices Board revises export regulations for cumin

In a circular dated 6th April the Indian Spices Board has expressed concern over the adulteration

and shipment of inferior quality of cumin from Gujarat. Since this might impact on the reputation

and image of the country as well as threatening the export of cumin the Board has issued revised

and tightened procedures for sampling and testing.

Source: http://www.indianspices.com/trade/trade-notifications

Week 15 14th April 2016

McCormick withdraws from Premier Foods bid

McCormick & Company, Incorporated has announced that it does not intend to make an offer for

Premier Foods.

McCormick has completed its due diligence review of Premier Foods, which was conducted with

the management of Premier Foods in an open and collaborative spirit. McCormick has, after careful

consideration, concluded that it would not be able to propose a price that would be recommended

by the Board of Premier Foods while also delivering appropriate returns for McCormick

shareholders. Accordingly, McCormick has withdrawn its proposal to acquire Premier Foods.

Shares in Premier, which had nearly doubled in price from 31.50 pence a share when McCormick

first expressed interest, fell 27 per cent to close at 41.75 pence.

Institutional and other large investors were critical of the food company's board for rejecting

McCormick's proposal to buy the shares at 65 pence each.

McCormick is cannot now make another approach to Premier for six months under UK takeover

rules, but Premier can seek to resume talks if it wants.

9

Week 15 16th April 2016

Adulterated oregano in the Australian market

An investigation by Australian consumer advocacy group CHOICE has found that many common

brands of oregano in the market have been adulterated with olive and sumac leaves. Some brands

were found to contain less than 10 per cent of the actual herb.

Of the 12 brands tested, only five were found to contain 100 per cent oregano.

“Dried oregano is a fixture in most kitchens across the country but many consumers will be

surprised to learn they may be getting less than they bargained for with this popular herb,” said

CHOICE Head of Media Tom Godfrey.

MasterFoods, Woolworths Select, Coles, McCormick and Herbies Spices brands were all found to

contain 100 per cent oregano leaves, but a number of other well-known brands had substantially

less of the herb.

“There is clearly a major problem in the oregano supply chain in Australia, which also raises the

question about other herbs and spices entering the Australian market,” Mr Godfrey said.

CHOICE has referred its findings to the Australian Competition and Consumer Commission

(ACCC).

https://www.choice.com.au

10

Week 16 20th April 2016

McCormick buys Australian firm

A Press Release from US flavor giant McCormick announced that it has purchased 100 per cent of

the shares of Botanical Food Company, Pty Ltd, a privately held company based in Australia that

manufactures and sells the Gourmet Garden brand of packaged herbs

Gourmet Garden is a global market leader in chilled convenient packaged herbs. Annual sales are

approximately 70 million Australian dollars (53 million U.S. dollars) and growing at a double-digit

rate.

Gourmet Garden's closer to fresh products complement McCormick's existing branded herb

portfolio with the addition of chilled convenient herbs located in the perimeter of the grocery

store. McCormick plans to drive sales of the Gourmet Garden brand by expanding global

distribution and building awareness with increased brand investment.

McCormick has acquired the business for a cash payment of approximately 150 million Australian

dollars (114 million U.S. dollars), subject to certain closing adjustments.

The deal comes a week after McCormick withdrew from its offer for British food manufacturer

Premier Foods plc. McCormick said at the time that it was unable to propose an offer price that

would be recommended by Premier Foods’ leadership.

Gourmet Garden is based in Queensland in Australia. The company was launched in 1998 and

employs 150 people at its processing headquarters at Palmwoods, sourcing herbs from Central

Queensland and Victorian farmers. Gourmet Garden CEO, Nicholas White said the Australian-

based company had grown from being a small market leader in chilled, convenient herbs and

spices to a very successful international leader.

"We're exporting to 15 different countries and export's probably 60 per cent of our current sales," Mr

White said. He added "It's going to be a tremendous fit for us, McCormick, in terms of the space

that we compete in — herbs, spices and seasonings, they're the global market leader.

11

Week 17 27th April 2016

Fears over Indian cumin supply

The Economic Times of India reports that “cumin prices are likely to hit a new peak this year owing

to the robust demand and a shortfall in production. Prices are up 20 per cent from a year ago, to Rs

172 per kg, but the industry expects a further increase due to the extended dry spell in the growing

regions of Gujarat and Rajasthan”.

Abnormally high temperatures in 2016 are held responsible for a low level of arrivals and overall the

2015-2016 crop is anticipated to be 15-20 per cent below the previous year’s outturn of 300,000

tonnes.

Increased export demand has also contributed to the price rise, noted The Economic Times.

Read more at: http://economictimes.indiatimes.com/

12

Market Dynamics Another quiet month in the spice trade.

Pepper – Vietnam producer prices are surprisingly constant of late. Perhaps the farmers were

spooked by the long decline in prices since mid- 2015 and looked to sell out quickly while they

could or more likely they are now holding back stock or perhaps even there is no buying interest up

country. Any which way, prices are unusually stable. Further along the chain, the trade reports that

export sales from Vietnam have been brisk this year. It is expected that by the end of May some

90,000 tonnes will have been exported in an unprecedented first half of the new season. With the

unrecorded cross-border trade with china this takes total exports to around 60 per cent of the likely

outturn. If that’s indicative of the demand, then the prospect for prices surely looks bullish and as a

result European brokers are recommending that their buyers push out cover.

The IPC have reported producer prices as follows:

(Indicative prices as received by growers. Based on information received from regional reporters)

Source: IPC Weekly Prices Bulletin data

Ginger – Very quiet. Stocks diminishing in Nigeria. Meanwhile, in China Ginger prices have

dropped from 6 to 8 Yuan / kg (about USD0.9 – 1.22 /kg) last year, to only 0.60 to 0.80 Yuan /kg

this year. The worsening economic climate in China is impacting the catering sector which is a

large consumer of ginger and is blamed for the fall in prices. In addition, in the second half of 2013

and in 2014 the ginger market price increased significantly. In 2015 ginger production ballooned.

When this new ginger arrived on the market in the autumn of 2015, the price started to collapse.

13

Chilies – No firm offers on the Bird’s Eye chilies from Malawi as yet. Wait and see but the new

crop should be available shortly. Small quantities testing the market at USD13/kg.

Pimento – Price remain low with good carry over from old to new season and traders and importers

seeking to dispose of their cargo at minimal loss.

Vanilla – Still at quote “lunatic” unquote prices with up to USD200/kg in the market. A large harvest

is forecast for Madagascar this year. Prices may ease if, and it is a big if, early harvesting and can

be prevented and quality maintained.

14 Market Insider

Spices

Prices in the market place

Spices

All prices are quoted in USD/Kg

MARKET → USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE

This Week 2 Month

ago 1 Year

Ago This

Week 2 Month

ago 1 Year

Ago This

Week 2 Month

ago 1 Year Ago

Black Pepper

Spot 550g/l 11.79 11.24 10.80 Sarawak 10.50 10.00 12.00 Sarawak

Mal MG1 Mal MG-1 13.00 11.20 12.00 FAQ 550g/l 9.25 8.50 10.70

FAQ 500g/l 10.32 10.98 10.69 Lampung FAQ 500g/l 8.76 8.20 9.80

Steam treated 550g/l

Brazil 12.00

White Pepper

Muntok FAQ spot 15.10 15.10 15.21 Muntok 15.70 16.00 15.80 Muntok FAQ spot 13.38 13.00 14.60

Sarawak 16.00 16.50 n/a Steam treated Muntok spot

Vietnam Vietnam 12.25 12.90 14.60

Aniseed Whole China star

Vietnam Star

Turkish/Syrian 4.37 4.63 4.63 Syrian /Spanish 3.33 3.25 3.41

Caraway Canadian 3.64 4.08 3.09 FAQ

Dutch European 3.35 3.25 2.03

Cardamom Bold 17.64 17.53 15.98 India AGS1 MYQ 4.60 4.60 5.50

Seed 9.70 9.70 India AGS Bold 11.00 9.20

15 Market Insider

Spices

MARKET → USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE

This Week 2 Month

ago 1 Year

Ago This

Week 2 Month

ago 1 Year

Ago This

Week 2 Month

ago 1 Year Ago

Cassia

Korintji B 3.00 ML/SVO

n/a 2.06 2.03 China whole 3.70 3.70 3.70 Korintji B Br & Cl 1.70 2.20 2.85

Vera C/W AA n/a 4.01 4.19 China broken 3.50 3.50 3.50 Vera AA 3.92 3.80

Vietnamese 5ML/SVO

Vietnam QNV 3.80 3.80 3.80

Celery Indian spot 2.34 2.54 1.98 Indian Indian 99% n/q n/q n/q

Chili Indian S4 3.86 3.42 2.91 Indian Sanna S4 grade

Malawi n/a 15.43 3.97 Chinese African Bird’s Eye n/q n/q 5.50

Cinnamon Ceylon H2 n/a n/a 12.02 Sri Lanka C5 SP Sri Lanka c5 cut n/q n/q n/q

Cloves

Sri Lanka hand picked

19.29 20.00 19.29 Madagascar 10.00 10.30 12.20 Comores / Madagascar

9.66 9.30 10.97

Comores/ Mada 11.79 11.79 12.68 Zanzibar n/a n/a 13.00

Indo stems

Coriander Bulgarian 1.54 1.72 1.98 98% East European 0.90 0.80 1.88

Canadian n/q

Cumin

Turkish 3.28 3.28 3.75 Iranian 99% 2.85 2.70

Syrian Syrian 99% 2.80

Indian Indian Indian 99%

Dill Indian 1.98 1.85 1.81 Indian 99% n/q n/q n/q

Fennel Fancy Egyptian 2.54 2.54 2.54 Egyptian99%

Indian ASTA 2.09 3.20 1.81 Indian Indian 99% 1.99 n/q n/q

Fenugreek Indian 99% 1.54 1.76 1.59 Indian 99% 1.11 1.21 0.62

16 Market Insider

Spices

MARKET → USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE

This Week 2 Month

ago 1 Year

Ago This

Week 2 Month

ago 1 Year

Ago This

Week 2 Month

ago 1 Year Ago

Garlic

Ch. Powder n/a n/a 2.98 Flakes 4.70 4.70 2.00

Ch. Granulated n/a n/a 3.26 Powder 4.24 3.03 1.30

Granules 5.37 4.24 2.70

Ginger

Cochin n/a n/a 5.73 Cochin Cochin n/q

Chinese sliced Chinese sliced Chinese sliced 4.00 4.70 4.90

Chinese peeled 4.08 4.08 5.71 Chinese whole Chinese peeled 4.50 4.18 5.20

Nigerian 3.53 3.35 3.64 Nigerian 3.10 2.40 3.50

Mace Papua broken 24.25 24.25 25.90 Siauw whole 19.50 19.50 18.50 PNG Broken 13.50 13.50 11.50

Indonesian

Mustard

No 1 Yellow Canadian

1.85 1.85 1.57 Ukraine Yellow 0.77 0.80

Brown oriental 1.65 1.76 1.54 Ukraine Brown 1.00 1.05

Nutmeg

E.I. ABCDs 16.75 17.53 18.08 Indo 110's 17.00 16.50 17.50 Indonesian SS 13.00 11.50 11.50

E.I. SS 13.18 14.00 WI 110's

EI ABCDs 13.56 12.20 n/q

Onion Egypt pow Powder 1.86 2.15 2.38

India pow Flakes 2.09 n/q 3.03

Paprika

Spanish 120 ASTA

4.37 4.37 5.18

Spanish visual Spanish 80 ASTA n/q 1.86

Hungarian 7.05 7.05 7.17 Hungarian 100 ASTA

n/q n/q

Peru ASTA 4.30 4.30 3.40 Peru HT90 ASTA 1.88 1.86

17 Market Insider

Spices

MARKET → USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE

This Week 2 Month

ago 1 Year

Ago This

Week 2 Month

ago 1 Year

Ago This

Week 2 Month

ago 1 Year Ago

Pimento Mex/Guatemala 4.37 4.37 5.07 Mexican 5.00 5.00 5.25 Mexico 3.28 3.50 4.00

Jamaica 11.79 12.90 11.57 Jamaica Jamaica 11.00 11.00 n/q

Poppy Turkish 3.09 3.09

2.60 Dutch 2.43 2.37 3.03

Sesame

Indian Natural Indian natural 1.67 1.20

Indian hulled 2.09 1.87 2.54 Indian Hulled 1.83 2.25

Turmeric

Alleppey 5% curcumin

3.48 3.48 3.53 Madras fingers 2.80 2.80 2.10 Madras fingers n/q

Powder n/a n/a Alleppey fingers Powder 1.90 1.85 n/q

Vanilla!

Bourbon 100-250 100-150 53.00 Extract/ Gourmet 100-250 90-150 45.0/ 55.0 1 Vanilla – the prices given here are indicative of the value of bulk sales at origin. Selling prices within Europe are substantially higher as they reflect much smaller quantities that may be specially packaged.

18

Prices in the market place

Herbs

All prices are quoted in USD/Kg

USA EUROPE

PRODUCT GRADE PRICE GRADE PRICE

This Week

2 Month Ago

1Year Ago

This Week

2 Month Ago

1Year Ago

Basil

Egyptian FAQ 2.65 2.76 Egypt 3.50 3.40 3.33

Egyptian Extra Fancy 2.65 Egypt fines

Bay leaves

Turkish Fancy/HPS 7.61 7.61 FAQ HPS

7.00 11.00

6.77 10.56

6.72 10.91

Turkish semi select 4.08 4.08 3.73 Turkish

semi-select 11.09

Chervil 13.12 13.12 German 8.47 8.20 8.42

Dill weed

Egyptian 4.96 4.96 4.08 Cut 8.92 8.64 2.49

Californian

Marjoram Egypt Fancy 3.53 3.53 3.64 Egypt 4.27 4.13 4.63

Mint

Spearmint 4.30 4.30 6.50 Egyptian 3.75 3.63 3.96

Oregano Turkish30#

FAQ 4.30 4.30 3.31 Turkish 4.03 3.91 4.35

Parsley

Israeli n/a n/a 7.01 European

2mm 5.63 5.45 5.76

USA n/a n/a 8.16

Rosemary Morocco 2.31 2.31 2.09 Morocco

Spanish Spanish 2.23 2.15 2.20

Saffron Spanish 2,535 2,315 Iranian 3,073 2,965 2,300

Sage Albanian 4.08 4.08 4.08 Turkish 5.42 5.23 5.25

Savoury Albanian 3.26 3.26 3.31 German 4.33 5.23 5.37

Tarragon Spanish 31.86 31.86 n/a French 20.10 19.53 20.06

Thyme Spanish 4.08 4.08 4.08 Spanish 3.24 3.14 3.22

Moroccan 3.64 Moroccan

19

Statistical information and related resources

All statistics sourced EUROSTAT (http://ec.europa.eu/eurostat)

Imports of spices to Europe

20

21

22

23

24

Events

Event Start Date End Date Country City URL

Natural & Organic Products Europe 17/04/2016 18/04/2016 England London http://www.naturalproducts.co.uk/

International Symposium on Advances in Lamiaceae Science

22/04/2016 25/04/2016 Turkey Antalya http://www.lamiaceae2016.org/

Alimentaria Barcelona 25/04/2016 28/04/2016 Spain Barcelona http://www.feriasalimentarias.com/main/oblea.asp?id_feria=78

SIAL China 05/05/2016 07/05/2016 China Shanghai http://www.sialchina.com/

Food Ingredients Vietnam 18/05/2016 20/05/2016 Vietnam Saigon http://www.figlobal.com/vietnam/home

Int'l Food Ingredients & Additives Exhibition and Conference

18/05/2016 20/05/2016 Japan Tokyo http://www.ifiajapan.com/2016/jp/index.html

Afro Food Exhibition 26/05/2016 29/05/2016 Egypt Cairo http://afrofood.net/industry/

Free From Food Expo 09/06/2013 10/06/2016 Netherlands Amsterdam http://www.freefromfoodexpo.com/

Food Ingredients India 22/08/2016 24/08/2016 India New Delhi http://www.figlobal.com/india/home/

Food Ingredients South America 23/08/2016 25/08/2016 Brazil Sao Paulo http://www.figlobal.com/southamerica

Food Ingredients Asia 21/09/2016 23/09/2016 Indonesia Jakarta http://www.figlobal.com/asia-indonesia/

SIAL 16/10/2016 20/10/2016 France Paris https://www.sialparis.com/

ASTA Annual Meeting 23/04/2017 26/04/2017 USA Austin TX http://www.astaspice.org/

25 Market News Service

Spices