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June 2016 Report

Market Insider

SPICES MARKET INSIDER

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Market Insider

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Spices News and Updates

Market Update & News

Simplifying ginger exports from Nepal

The Himalayan Times reports that traders and producers of ginger in eastern Nepal, who often

used to face quarantine-related hassles while exporting their products to neighbouring India and

third countries, no longer have to face these problems. Through the Ginger Competitiveness

Project, the government has supported them with ginger washing facility as well as provided

training on good agricultural practices and distributed quality seeds.

The Ginger Competitiveness Project, run by the Ministry of Commerce with support of the

Enhanced Integrated Framework — the only aid for trade mechanism of World Trade Organisation

for least developed countries — aims to enhance the capacity of local producers and traders in

production and export of ginger.

The project has established ginger-washing facility in Jhapa of eastern Nepal, which has helped

traders get rid of the quarantine-related hassles while exporting their products. The project,

implemented by the Food and Agriculture Organisation (FAO), was recently handed over to the

producers and traders association after the completion of the project deadline.

Now producers and traders of ginger in eastern Nepal will be responsible for operating the ginger

washing plant and implement good agriculture practices. They will also be involved in distribution of

quality seeds. With these steps in place, they have been fetching better price from ginger export

which has benefited both producers and traders in Morang, Jhapa and Ilam, the pocket areas for

ginger production.

In Nepal, such activities hardly continue after the completion of the project, but the Nepal Ginger

Producers and Traders Association (NGPTA) has successfully taken the responsibility to expand

ginger production and for value addition of the products. NGPTA has allocated certain fund for the

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maintenance of the washing facility, pest control activities, distribution of quality seeds, and proper

monitoring of good agricultural practices, among others.

Along with the completion of the project deadline, the private sector has taken the lead for all the

systems to continue the income-generating activity. The monitoring committee, however, comprise

of representatives from the government as well as private sector.

As the Ministry of Agricultural Development was the focal point for the implementation of the ginger

project, the joint secretary from the ministry and representative from Agro Enterprise Centre of the

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) are in the monitoring

committee.

The NGPTA, along with expansion of the production area, has been preparing to install another

washing plant in the near future, according to the association.

Ginger is one of the products that was incorporated in the Nepal Trade Integration Strategy (NTIS)

2010 — the export strategy of the government — which identified products and services that have

niche market advantage, also known as comparative and competitive advantage. Earlier, ginger

was being exported at a low price when it was exported without being washed. The Ginger

Competitiveness Project has supported in transforming the whole process from production to

export.

Source: The Himalayan Times https://thehimalayantimes.com

South West Monsoon arrives in southern India

The India Meteorological Department announced today the onset of the South West monsoon in

the southern India states of Kerala and Tamil Nadu. Parts of Kerala have been receiving rainfall

over the past few days but certain criteria important for the declaration of the onset had not been

met until the last 24 hours. The states have important spice production for black pepper,

cardamom, clove, ginger, vanilla, cinnamon and nutmeg.

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The southwest monsoon has advanced over Kerala, most parts of Tamil Nadu and some parts of

south interior Karnataka, besides hovering over parts of south and central Bay of Bengal, stated an

update issued by the Met Department. Following this, the monsoon is likely to hit the coasts of

Maharashtra in another three-four days, said D.S. Pai, Director (Long Range Forecast), IMD. He,

however, added that there would be a slackening in monsoon's progress in mid-June.

This year’s monsoon has arrived about one week late, but, with a slackening El Nino pattern in the

Pacific Ocean, forecasters expect a slightly higher than normal rainfall this season.

Ginger in the prevention of chronic disease

A research paper published in the journal Nutrition suggests that a daily intake of 2-4g/day of ginger

might prevent a number of chronic diseases in adults. The paper, Evaluation of daily ginger

consumption for the prevention of chronic diseases in adults: a cross-section study, reports on the

results of a large cross-section study to examine the prevalence rate of chronic diseases (diabetes,

hypertension, coronary heart disease, hyperlipidemia, cerebrovascular disease, fatty liver, anaemia

and tumor), as well as the daily ginger intake. The study data indicated that ginger has a potential

preventive property against some chronic diseases, especially hypertension and coronary heart

disease as well as its ability to reduce the probability of illness.

Source: http://dx.doi.org/10.1016/j.nut.2016.05.009

New guidance on herbs and spices for UK food businesses

A new resource launched today will provide UK food companies that use culinary dried herbs and

spices with industry best practice guidance on assessing and protecting the authenticity of these

products.

Food companies will be able to use the practical guidance to ensure that they have the appropriate

measures in place to play their role in assuring the integrity of these products. The guide was

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developed by the British Retail Consortium (BRC), Food and Drink Federation (FDF) and

Seasoning and Spice Association (SSA) in liaison with the Food Standards Agency (FSA) and Food

Standards Scotland (FSS).

Kerina Cheesman, Policy and Food Integrity Manager at FDF, said: "Culinary dried herbs and

spices are widely used ingredients. This guide, developed in partnership with regulators, draws on

industry expertise to provide food businesses across the supply chain with practical guidance so

that they can confidently play their part in assuring the integrity of these ingredients." The FDF is

the voice of the food and drink manufacturing industry – the UK’s largest manufacturing sector.

Elizabeth Andoh-Kesson, Food Policy Advisor at the British Retail Consortium, the UK's largest

retail trade association, said: "This is a really important, practical guide for all food businesses to

improve the way they manage a potentially vulnerable supply chain. It was great to collaborate with

experts from manufacturers and suppliers to make a positive contribution to securing the supply

chain and reinforcing consumer confidence."

Steve Clemenson, Chair Joint Industry Working Group, said "The Seasoning and Spice

Association (SSA) is very pleased with the publication of Industry Best Practice Guidance to

Assessing and Protecting the Authenticity of Culinary Dried Herbs. The development of this

document was decided following the Global Chain Analysis Workshop organized by the FSA

(February 2015), in collaboration with FDF and BRC. It provides in-depth expertise and advice from

SSA Members to assist companies using herbs and spices in understanding their role in assuring

the integrity of their products". The SSA is the leading voice of the UK seasoning and spice

industry.

Source: BRC Press Release http://www.brc.org.uk

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Investigations into an alleged garlic cartel in the Philippines

In the Philippines, the Inquirer reports on investigations into price fixing in garlic. Outgoing

Agriculture Secretary Proceso Alcala and several Bureau of Plant Industry (BPI) officials are being

investigated by the Ombudsman for graft for their alleged involvement in the garlic cartel that spiked

prices in 2014.

In a statement on Wednesday, the Office of the Ombudsman said its Field Investigation Office

(FIO) filed a graft complaint affidavit against Alcala and the following BPI officials: former BPI

director Clarito Barron, Merle Palacpac, Jesus Bajacan and Luben Marasigan.

The FIO also included in the graft complaint alleged dummy importer Lilia Cruz, who headed the

Vegetable Importers, Exporters and Vendors Association of the Philippines, Inc. (VIEVA), which is

allegedly behind the garlic cartel that spiked garlic prices from P80 to as much as P300 per kilo in

2014.

In its complaint, the FIO said from January to July 2014, prices of garlic spiked, which compelled

the Department of Justice and the National Bureau of Investigation (NBI) to conduct an

investigation into possible profiteering, hoarding and cartel-like activities.

According to its transmittal letter dated Jan. 2015, the NBI found that VIEVA, a group of garlic

traders and importers headed by Cruz, monopolized the supply of garlic and dictated its prices.

The NBI said VIEVA was able to control the garlic market by conniving with BPI officials who in turn

granted import permits to VIEVA and its affiliates despite the absence of required accreditation.

The FIO said Alcala was included in the complaint because he has direct supervision over the

functions of the BPI.

It added that Alcala created the National Garlic Action Team, which the NBI said was composed of

“private stakeholders with apparent interest in the garlic industry.

Alcala and the others are set to be investigated for violation of Sections 3(e) and 3(j) of the Anti-

Graft and Corrupt Practices Act or Republic Act No. 3019.

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Alcala and Barron also face administrative adjudication for Grave Misconduct and Conduct

Prejudicial to the Best Interest of the Service.

In Jan. 2015, the FIO had also recommended to the Ombudsman a preliminary investigation on

Barron for violating Section 3(b) of the Anti-Graft and Corrupt Practices Act.

Barron has since been relieved of his duties as BPI director and transferred to the agriculture

department’s field operations office since the garlic price fiasco.

According to its investigation, the fact-investigating team has a vegetable importer/exporter who

testified that “the giving of money or payment to secure import permits has been a prevalent

practice in the BPI.”

The witness also told the Ombudsman investigators that he went to Barron’s office in July 2012 and

paid Barron P240,000 for the release and approval of two import permits.

“The permits will not be processed unless there is a note or input from Barron allowing the permits

to be processed,” the witness was quoted in the statement as saying.

The FOI in its complaint asked the Ombudsman to place Barron under preventive suspension

pending investigation.

Cruz, the so-called “Janet Lim-Napoles” in the garlic market, was the subject of a House of

Representatives inquiry on an alleged scam within the garlic industry. Cruz is accused of

operating a P200-million garlic and onion import scam by using dummy companies under the

names of her drivers, clerks and house helpers.

Source: Inquirer.net http://newsinfo.inquirer.net/

Pepper business contributes to Cambodian deforestation

In Cambodia, the Phnom Penh Post writes about the destruction of forests to create poles for the

pepper industry locally and in Vietnam. While the luxury timber trade continues to eat away at

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Cambodia’s forests, there is another industry that poses a growing threat to the Kingdom’s trees:

pepper farms.

Interviews with dozens of residents, local officials, conservation NGOs and experts in Mondulkiri,

Kratie and Tbong Khmum provinces reveal that pepper farms are growing in popularity among

those who can afford to create them. The result, conservationists say, is nonluxury trees being

indiscriminately cut down to be made into pepper stakes that are sold locally and in Vietnam.

Compounding the problem is the need for more space to accommodate the new plantations,

leading to hundreds of hectares of the Kingdom’s forests being chopped down to make way.

“We have seen an increasing number of pepper [farms] rising in the past few years,” said

Mondulkiri Governor Svay Sam Eang. “In late 2015, there were about 300 or 400 hectares but in

2016, it may have increased by 200 or 300, so there can be up to 600 hectares across the

province.”

“If it is a family growing pepper, it will not be a problem … but if there is a company growing, it will

have an impact on deforestation to make stakes, and on water use,” he added.

Sok Ratha, the Adhoc coordinator in Mondulkiri, corroborated Eang’s figures. “Growing pepper in

Mondulkiri is very popular and it keeps increasing from year to year,” he said.

The governor of Tbong Khmum’s Memot district, Cheng Bunara, said he had seen even larger

areas.

“Across the district, we have more than 2,000 hectares of pepper,” he said. Over 2015, the amount

of land used for pepper grew by 25 per cent, Bunara said, adding that besides Memot district,

pepper is also grown in the Ponhea Krek, Dambe and O’Reang-ou districts of Tbong Khmum.

According to data from the Ministry of Agriculture, in 2016 Cambodia had produced 11,819 tonnes

of black pepper as of the end of May, an increase of 20 per cent compared to the same period last

year. About 72 per cent of that came from Tbong Khmum, which has over 2,762 hectares of pepper

land.

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According to Mey Kalyan, a senior adviser with the government’s Supreme National Economic

Council, favourable prices are driving Cambodia’s increase in pepper production.

While Kampot has traditionally been associated with pepper – “Kampot pepper” is a protected

designation of origin in the EU – many new pepper farms are also springing up in the hills of

Mondulkiri and Kampong Thom. The hilly land is good for pepper, unlike lowlands, which are better

for rice, Kalyan said.

The plantation owners tend to be powerful and wealthy individuals, according to multiple local

residents and Prak Munny, a consultant who until recently worked with the Wildlife Conservation

Society.

However, those who cut the stakes or clear forests for them tend to be poor people, either hired by

businessmen or “freelancing”, who see wood as their best shot at making a living.

“There are two types [of farms],” said Munny. “One is where they buy land from villagers and the

other form is where they encroach on land in protected areas. It’s mostly done by powerful

individuals.”

Kalyan disagreed, however, saying that the wealthiest agricultural entrepreneurs are still focused

on rubber as a primary cash crop. Pepper farms tend to be medium-scale investments by

“advanced” farmers. Regardless, the input costs are very high. A 1-hectare pepper farm takes

$30,000 to get off the ground, he said.

Analysts say the investment is well worth the money. Pepper commodity prices have been in a “bull

market” since 2006 and were still reaching new highs as of February, according to the Indian spice

company group Nedspice’s annual pepper report. Nedspice estimates that 40 to 45 per cent of

global consumption takes place in Asia.

Data from analysis firm Knoema showed white pepper prices have climbed rapidly from $2,400 per

tonne at the end of 2005, to a peak of $15,500 per tonne in July 2015. As of March, the price

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approached $13,000. Black pepper prices peaked during June 2015 at $10,900 per tonne,

compared to $1,560 per tonne in July 2005, according to Nedspice.

“During 2014 Vietnam topped the list with a crop of 155,000 tons, 38.6 per cent share of global

production,” Nedspice stated in its report. “Playing the market leader‘s role Vietnam set the

benchmark for the global pepper price.”

According to a paper by Jara Zicha, an analyst with the market research firm Mintec, pepper prices

have climbed in part due to higher demand, which is strongest in Southeast and East Asia.

These trends make for an increasing number of pepper farms in Vietnam and Cambodia, which

draw in thousands of people who cut trees – any trees – to make the supporting stakes for pepper

plants, interviews indicate.

Whereas in the past, people mostly looked for luxury wood, the logging now is more indiscriminate

– if the wood is not rotten, it will do, locals said.

“Now they changed from transportation of luxury wood to pepper wood,” said Nim Vicheat, a

resident of Kratie. “The luxury wood is finished because they had already cut all of it.”

New pepper plantations continue to spring up around the eastern provinces. Driving through

Mondulkiri and Kratie, it’s easy to spot patches of missing forest, littered with charred logs. In other

places, these burned out clearings have already been cleaned up and planted, with leafy pepper

plants winding around rows of stakes extending into the distance.

Locals and conservationists claim that at least some of these plantations are located on state or

community land, and are therefore illegal.

This week, the World Wildlife Fund warned that such rampant deforestation is affecting a big cross

section of species on the eastern plains, an area that covers Mondulkiri and parts of its adjacent

provinces. “Uncontrolled economic growth” was given as a primary reason.

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“Companies buy land from villagers for establishing plantations and people try to intrude on

conservation areas in search of new land and cut trees for agriculture,” the WWF said in a

statement.

Villagers are seeing the same. “The forest is almost gone because companies bulldoze it,” said

Kheive Sambor, a village chief in Sre Khtum commune of Keo Seima district in Mondulkiri.

Munny, the conservation consultant, said that, in particular, the encroachment was impacting the

southern part of the Seima protected forest.

Besides space, pepper farms also require a lot of water. The farms usually set up near streams or

other water sources and divert most of the water into their farm. This leaves less water for the

remaining wild plants and animals, according to Munny and several locals.

Since development often occurs unevenly, it can also have side effects for the patches of forest that

remain. Putting holes in the forest cover dries out the remaining plants and saps their ability to

capture carbon, according to a study published in the science journal Nature Communications in

December.

Marcus Hardtke, the Southeast Asia coordinator for German conservation group ARA, said at the

time that such degradation was more responsible for forest decline than deforestation, calling the

situation “death by 1,000 cuts”.

Multiple attempts to reach officials the Forestry Administration were unsuccessful this week.

Meanwhile, Environment Ministry spokesman Sao Sopheap said that the government doesn’t have

enough personnel to enforce the integrity of protected forests. As the Ministry of Environment takes

over protecting such areas, Sopheap said, it will work closer with community groups to help stop

logging and clear-cutting.

Despite authorities acknowledging the issue, some police officers are sceptical. Phin Phall, the

police chief of Kratie province’s Kantuot commune said “we try to stop them from transporting

pepper wood but it does not work and we do not know why top authorities allow them to do it”.

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According to interviews with locals and leaked videos shot by timber smugglers, police, military

police and forestry officials also benefit from a lucrative bribe economy and are reluctant to make

arrests. Following the release of some of these videos, military police spokesman Eng Hy said an

internal investigation will be launched.

Officials and community members said that as the pepper craze grows, people from other

provinces are coming to eastern Cambodia to get in on the action, causing even more damage to

the environment.

“Not only local people but also newcomers want to grow pepper,” said Prob Chib, a member of a

Phnong ethnic community in Mondulkiri, adding that the new arrivals hail from Kratie, Kampong

Cham, Tbong Khmum, Prey Veng, Takeo and Siem Reap.

“First they cut down the forest and sell the wood, then they occupy the land while they grow pepper,

then they cut the forest in another location to make pepper stakes. It’s double deforestation.”

Source: The Phnom Penh Post http://www.phnompenhpost.com/

Chinese garlic attracts the specs

Reuters news agency carried reports on the increasing appetite for garlic among Chinese investors.

Yang Fei doubled his money last year buying and selling in the unofficial garlic capital of the world.

He did pretty well the year before, too, and the year before that.

One of a few dozen garlic agents in Jinxiang, in China's eastern Shandong province, 34-year-old

Yang is at the centre of a trade that has attracted a small group of retail investors, mainly wealthy

businessmen, seeking a surer bet than China's volatile stock and real estate markets. When prices

are low around the spring harvest, investors buy as much of the crop as they can, put it into store,

and release it on to the market when prices rise later in the year.

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"Manipulating the garlic market and hyping the price is pretty simple compared to the stock market

and real estate. Many of my clients have stocked tens of thousands of tonnes of garlic and don't

sell it until the price rises," another agent, Liu Yunfei, told Reuters.

Yang's profits and those of his dozen or so clients ballooned to 7 million yuan (£758,182) last year,

when the price of garlic rose to 10.6 yuan ($1.62) per kilogram.

"For the last three years, our investors have made money, we made a 100 percent profit last year,"

said Yang, who has built five warehouses for garlic storage and plans another four.

This year, though, may be different.

The one-way bet on garlic has lured many new investors, driving prices up to a record 13.4 yuan/kg

in March, much earlier than usual. Also, frosts in China at the turn of the year hit plantings and

yields, and that could squeeze margins when the investors' stored garlic comes on to the market

later.

Agents said there were more investors this year, and they were spending more to buy up the garlic

crop.

"This year, garlic prices are especially high," said an agent named Yan Jianhua. "A lot of people

have been looking for me. I know one person from Guangdong who wants to store around 5,000

tonnes. Last year, he stored less than 1,000 tonnes."

'GARLIC ECONOMY' BOOM

With a population of around 640,000 and no previous claim to fame other than proximity to the

provincial capital, Jinxiang has boomed.

It produced 1.69 million tonnes of garlic last year, around 7 percent of China's total - and more than

the whole of South Korea, the world's third-largest producer. China's annual crop of around 25

million tonnes dominates the global market.

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Garlic fields stretch out around Jinxiang, and at harvest time the air is filled with dust kicked up by

trucks ferrying the crop to market and storage. The town also grows onions and hot peppers.

As production around Jinxiang has doubled in a decade, the 'garlic economy' has sprouted new

villas, auto dealerships and modern retail space.

"Garlic has made Jinxiang richer in the last two years," said Su Xiuling, a local grower who makes

some extra money by peeling garlic at the market once the crop is in. "There's a huge change. Our

roads are wider ... and even farmers now build bigger homes."

Garlic is a staple in Asia's diet, used in everything from the ubiquitous monosodium glutamate

(MSG) to desserts. Believed to have medicinal healing powers, it's even added to foot salve.

It's easy to grow, harvest, transport and store. Modern coldstores - some bigger than a football

pitch - can keep it fresh for up to two years, giving investors a longer window to sell into.

Zheng Xiang from Chengdu in southwestern Sichuan - a more than 2-hour flight away - is one of

those investors who converge on Jinxiang each year to meet their agents, inspect the crop and

check on prices.

"I came to inspect the market and see how big the harvest is and whether the price has increased,"

Zheng said over dinner, with heaps of stir-fried garlic.

Zheng invested 300,000 yuan ($45,664) in garlic last year and plans to spend up to 2 million yuan

this year - hoping to recoup some of the 60,000 yuan he lost on the stock market when property

shares fell.

"Isn't everybody switching from stocks to agriculture commodities now? It's the trend. Speculating

with garlic is similar to stocks, but (physical) garlic is not as unreliable as futures (trading)," he said.

But not everyone gets to share in the spoils.

Garlic farmers see little of the profits once their crops are lifted. They typically sell their garlic for

around 4.4 yuan/kg, according to local official media.

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OPAQUE MARKET

China's garlic market is difficult to track as there is no official data or clarity on acreage and no

centralised pricing. That can exacerbate wild price swings as in some of China's other nascent,

casino-like futures markets.

And the scale of production in places like Jinxiang is felt thousands of miles from China among rival

growers who accuse a hands-off government of failing to regulate the crop or control the "dumping"

of cheap exports.

"The Jinxiang government is paying close attention to garlic prices, but isn't regulating and

controlling the market. It is trying to guide planting and trade," said a local commerce official who

gave only his surname, Li.

Yu Li, a spokesperson, said the Dalian Commodity Exchange has no plans to add garlic futures,

and pays little attention to the crop.

As more money pours in, next year's garlic acreage is expected to increase again, potentially

squeezing margins, but not by enough to deter investors. "You can buy garlic pretty much any year

and still make money," said Wang Xiaoying, an investor who owns four Jinxiang warehouses.

Source : Reuters http://uk.reuters.com/

Calls for rehabilitation of ginger factory in Ghana

Ginger producers at Gyankobaa in the Ashanti Region have appealed to the government to revive a

defunct ginger factory in the area to boost production in order to improve the livelihoods of the

locals.

The factory, set up in 1975 to dry and mill ginger in produced by the farmers at Gyankobaa is in the

Atwima Nwabiagya District, has been shut for over two decades. It is not clear what caused the

collapse of the factory, as the Assembly is unable to find records to that effect. But the people say it

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was shut down due to lack of electricity to power the plant.

According to some residents, the plant was being powered with a generator set because there was

no electricity in the area at the time. They claim generator developed some problems leading to the

total shutdown of the plant. Ginger farming under threat. The shut down, the farmers say, has

impacted negatively on ginger production in the area as well as their livelihood.

With about 2,000 inhabitants, Gyankobaa is the leading producer of ginger in Ghana, with about

3,000 acres of land under cultivation. An estimated 1,500 individuals are engaged in the cultivation

of ginger on an average two-acre land each at Gyankobaa. Almost every household in Gyankobaa

owns a ginger farm or two. Even though farms are not cultivated on household basis, the strong

external family ties make such farms family ventures.

But poverty is endemic in the local community. Farmers are faced with the perennial challenge of

not accessing markets to get value for their produce. They have no option than to sell their ginger

directly to traders because a ginger processing factory established in 1975 to support their farming

activities has collapsed.

During the Acheampong era, the Agricultural Development Bank facilitated the setting up of the

ginger drying and milling plant in Gyankobaa to assist the farmers to add value to ginger and also

offer a guaranteed market for their farm produce.

But the plant did not operate for long and it collapsed. Its collapse rendered about 300 factory

workers jobless. The farmers told 3News the lack of storage facilities and a processing facility,

often force them to dispose of their produce at a cheaper price to avoid a total loss.

They are therefore urging the government to revive the factory to help boost their local economy

and livelihood. The farmers say now that the community has been connected to the national grid,

government should consider reviving the factory to boost the local economy and prevent rural-

urban migration. According to the caretakers, most of the machines in the factory still functional

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even though some have broken down.

“If this factory starts functioning, it will encourage some of us to expand and increase our production

because there is assurance of ready market for us”, a ginger farmer, Dauda Abdullai said.

Another farmer Hawa Mohammed told 3News: “The collapse of the ginger factory has led to rural-

urban migration among the youth in the area. Production has also reduced because there isn’t any

ready market for us now. If the government is indeed committed to creating jobs, then it should

revive our ginger factory for us”.

Public-private partnership: The assemblyman for Gyankobaa-Wiawso electoral area, Charles

Henry-Poku, said the reviving the factory would create job opportunities for the people in the area,

especially among the youth.

“Government should stop making empty promises of reviving the once vibrant ginger factory and

walk the talk”, he added. District Chief Executive for Atwima Nwabiagya, Nana Asare Bediako, told

3News said they were considering a Public-Private Partnership arrangement to revive the factory.

“The factory has been handed over to a private company to invest towards reviving it and manage

it. Soon, work will commence on bringing the factory back to life”.

Source: Ghanaweb http://www.ghanaweb.com/

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Market Dynamics

Pepper – Prices have stabilised. Vietnamese prices are weakening slightly – there is concern over

quality in some quarters but it is not clear that this is quite justified.

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

Garlic – Prices edging ever further upwards. Underlying issues with low carry-over stocks, reduced

yield expectations and issues in processing the crop to standards have all attracted the speculators

into the market and prices moves have been amplified.

Ginger – Quiet days with low demand and limited movement in price.

Mustard – A Substantial increase in the Canadian acreage has been reported. So far the forecast

for yields is good too, and we are on track for a big outturn, but until the crop is in the bag things

can change.

Pimento – Seems to be a good crop and prices drift on downwards.

Vanilla – No substantive change in the market or sentiment here. Prices are still floating up in the

stratosphere and show no signs of coming back to earth just yet not least while commentators point

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to low stocks in Europe. That there will be an adjustment is accepted but when and how hard the

fall remains to be seen.

21 Market Insider

Spices

Prices in the market place

Spices

All prices are quoted in US$/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 11.50 11.79 10.80 Sarawak 9.50 10.50 12.00 Sarawak

Mal MG1 Mal MG-1 12.90 13.00 12.00 FAQ 550g/l 9.75 9.25 11.00

FAQ 500g/l 10.50 10.32 10.69 Lampung FAQ 500g/l 8.80 8.76

Steam treated 550g/l

Brazil 12.00

White Pepper

Muntok FAQ spot 13.75 15.10 15.21 Muntok 14.30 15.70 15.80 Muntok FAQ spot 13.50 13.38 15.00

Sarawak 14.50 16.00 n/a Steam treated Muntok spot

Vietnam Vietnam 12.45 12.25 15.00

Aniseed Whole China star

Vietnam Star

Turkish/Syrian 4.37 4.37 4.63 Syrian /Spanish 3.27 3.33 3.41

Caraway Canadian 3.64 3.64 3.09 FAQ

Dutch European 3.33 3.35 2.03

Cardamom Bold 15.00 17.64 15.98 India AGS1 MYQ 4.72 4.60 5.50

Seed 8.0 9.70 India AGS Bold 10.16 11.00

22 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 n/a 2.03 China whole 3.70 3.70 3.70 Korintji B Br & Cl 2.37 1.70 2.85

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

Vietnamese 5ML/SVO

Vietnam QNV 3.80 3.80 3.80

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

Chili Indian S4 3.86 3.86 2.91 Indian Sanna S4 grade

Malawi n/a n/a 3.97 Chinese African Bird’s Eye 11.25 n/q n/a

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

Cloves

Sri Lanka hand picked

19.29 19.29 19.29 Madagascar 10.00 10.00 12.20 Comoros / Madagascar

9.32 9.66 9.50

Comoros/ Mada 11.79 11.79 12.68 Zanzibar n/a 13.00

Indo stems

Coriander Bulgarian 1.00 1.54 1.98 98% East European 0.94 0.90 1.88

Canadian

Cumin

Turkish 3.05 3.28 3.75 Iranian 99% 2.85

Syrian Syrian 99% 2.80

Indian Indian Indian 99% 3.05

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

Fennel Fancy Egyptian 2.54 2.54 2.54 Egyptian99%

Indian ASTA 2.09 2.09 1.81 Indian Indian 99% 1.83 1.99

Fenugreek Indian 99% 1.54 1.54 Indian 99% 0.94 1.11 0.62

23 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 4.71 n/a 2.98 Flakes 4.50 4.70 2.00

Ch. Granulated 5.64 n/a 3.26 Powder 4.38 4.24 1.30

Granules 5.97 5.37 2.70

Ginger

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

Chinese sliced 3.40 Chinese sliced Chinese sliced 3.27 4.00 4.90

Chinese peeled 4.00 4.08 5.71 Chinese whole Chinese peeled 3.89 4.50 5.20

Nigerian 3.00 3.53 3.64 Nigerian 2.80 3.10 3.50

Mace Papua broken 15.50 24.25 25.90 Siauw whole 19.50 19.50 18.50 PNG Broken n/a 13.50 11.50

W Indian 12.50

Mustard

No 1 Yellow Canadian

1.80 1.85 1.57 Ukraine Yellow 0.78 0.77 1.26

Brown oriental 1.60 n/a 1.54 Ukraine Brown 0.83 1.00 1.21

Nutmeg

E.I. ABCDs 13.50 16.75 18.08 Indo 110's 17.00 17.00 17.50 Indonesian SS 12.38 13.00 11.50

E.I. SS 13.20 13.18 WI 110's

EI ABCDs 12.50 13.56

Onion Egypt pow Powder 1.70 1.86 2.38

India pow Flakes 1.78 2.09 3.03

Paprika

Spanish 120 ASTA

4.37 4.37 5.18 Chinese 100ASTA 1.83

Spanish visual Spanish 80 ASTA n/q n/q

Hungarian 7.05 7.05 7.17 Hungarian 100 ASTA

n/q n/q

Peru ASTA 4.30 4.30 3.39 Peru HT90 ASTA n/q 1.88

24 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 4.00 4.37 5.07 Mexican 5.00 5.00 5.25 Mexico 3.00 3.28 4.00

Jamaica 10.00 11.79 11.57 Jamaica Jamaica 8.80 11.00 n/a

Poppy Turkish 2.90

3.09

2.60 Dutch 2.16 2.43 3.03

Sesame

Indian Natural 1.60 Indian natural 1.50 1.67

Indian hulled 1.80 2.09 2.54 Indian Hulled 1.67 1.83 2.25

Turmeric

Alleppey 5% curcumin

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

Powder 2.00 n/a Alleppey fingers Powder 2.00 1.90

Vanilla!

Bourbon 200-360 100-200 53 - 63 Extract/ Gourmet 200-360 100-250 55 / 65 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.

25

Prices in the market place

Herbs

All prices are quoted in US $/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 2.70 2.76 Egypt 3.27 3.50 3.33

Egyptian Extra Fancy 2.65 Egypt fines

Bay leaves

Turkish Fancy/HPS 7.50 7.61 FAQ HPS

6.83 10.66

7.00 11.00

6.72 10.91

Turkish semi select 4.00 4.08 3.73 Turkish

semi-select

Chervil 8.50 13.12 German 8.38 8.47 8.42

Dill weed

Egyptian 4.96 4.96 German 8.71 8.92 2.49

Californian 4.08

Marjoram Egypt Fancy 3.55 3.53 3.64 Egypt 3.66 4.27 4.63

Mint

Spearmint 4.30 4.30 6.50 Egyptian 3.66 3.75 3.96

Oregano Turkish30#

FAQ 4.30 4.30 Turkish 3.94 4.03 4.35

Parsley

Israeli 5.50 n/a 3.31 European

2mm 5.49 5.63 5.76

USA n/a n/a 7.00

Rosemary Morocco 2.30 2.31 8.16 Morocco

Spanish 2.09 Spanish 2.16 2.23 2.20

Saffron Spanish 2,315 Iranian 3,250 3,073 2,500

Sage Albanian 4.10 4.08 4.08 Turkish 5.88 5.42 5.26

Savoury Albanian 3.28 3.26 3.30 German 4.00 4.33 5.37

Tarragon Spanish 31.86 31.86 4.08 French 19.70 20.10 20.06

Thyme

Spanish 4.00 4.08 3.64 Spanish 3.24

Moroccan

3.64 Moroccan 3.16 3.22

26

Statistical information and related resources

All statistics sourced COMTRADE http://comtrade.un.org/

Progress of pepper exports (whole plus ground)

27

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29

Events Event Start Date End Date Country City URL

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

44th Annual Meetings of the

International Pepper Community 08/08/2016 11/08/2016 Indonesia Jakarta http://www.ipcnet.org/session44/index.php

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

Speciality & Fine Food Fair 04/09/2016 06/092016 UK London http://www.specialityandfinefoodfairs.co.uk/

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/

International Spice Conference 12/02/2017 14/02/2017 India Kovalam http://www.internationalspiceconference.com/

IFE 19/03/2017 22/03/2017 UK London http://www.ife.co.uk/

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

30 Market News Service

Spices