Huge Blow to the Chili Pepper Industry as Prices Go out of Control – China
The wholesale price of chili pepper in China skyrocketed by +304.47% YoY (year on year). The price reached USD 6.30/kg in Week 2 of May-22, compared to the same corresponding a year ago was USD 1.56/kg. The highest value registered for chili pepper in China exceeded USD 10.15/kg in Week 2 of Apr-22 which coincide with the partial lockdown in Shanghai.
China has been known as the world’s highest importer of dried chilies pepper in the global market amounting to USD 413.07 million with most of the supplies coming from India, the major exporter of dried pepper to China. India exported USD 360.88 million worth of chiles to China in 2020. Indian chili pepper faced major shortage due to the recent heatwaves and pest attacks which made considerable damage to chili pepper crops and reduced the harvest supply. The robust growth of hot pot meals in China has created even greater demand for chili pepper. China’s current lockdown also placed further pressure on the chili pepper industry in China due to limited import activities.
Fresh Garlic Price Increased by 30.37% YoY (year on year) Due to Rising Demand – Brazil
Wholesale prices of Brazilian fresh garlic increased by 30.37% YoY, going from USD 3.17 in April 2021 to USD 4.14 in April 2022.
The increasing price trend occurred as a result of the increased domestic and global demand for garlic. Brazil has remained the second-largest garlic importer of garlic globally. Over the years they reduced their imports and have put more efforts to increase their domestic production. In 2021, Brazil decreased their global garlic imports by -35% and their Chinese garlic imports by almost -90%. Brazil has increased its garlic production by implementing technology to cover demand.
Brazil Struggle to Keep Up with Global Demand for Black Pepper as Shortage Persist
Wholesale price of Brazilian black pepper in W2 Jan-22 stood at USD 4.9/kg, the lowest price so far in 2022. The price has since risen to USD 5.59/kg in W1 May-22, which was USD 5.16/kg in the same week in 2021, increasing by +8.31% YoY.
Brazil is known as the 2nd highest exporter of black pepper amounting to USD 187.51 million in 2020 and USD 306 million in 2021 an increase of +63% YoY. Due to small crop in major producing countries, such as Vietnam, the world’s biggest exporter of black pepper, with a 43.32 percent market share, tightened the black pepper supply in the global market.
It is projected world’s black pepper consumption is going to increase to 3.7% from 506K tons in 2021 to 525 thousand tons in 2022. Brazil is estimated to increase black pepper production to 105K tons in 2022, a 10.5% YoY increase compared to 95K tons in 2021 in an effort to meet the increasing global demand. Despite the estimated increase in Brazilian black pepper supply, the market experts doubt that it will be enough to cover the high demand of the global market, which push the price on the rise in May 2022.
Export Blockage of Bell Pepper for Dominican Exports into EU Ports
The price of Bell peppers is at an all-time low in the local market. This is due to the fact that since January 26th, 2022, there has been a technical ban in place for all bell peppers exports to any European port from the Dominican Republic. There were about 50 national producers that used to export peppers into European markets – this volume is now available to move into other markets. As of May 2022, there are only three national producers who have European certifications. For any non-European buyers, it’s an ideal time to establish a Dominican pepper buying program with high-quality products at low market prices.
Our recommendation is to secure your Bell Pepper orders now so that you get the best possible price. We predict that the prices will rise as soon as these export blockages are resolved, and certifications are obtained.
Sesame Seed Price Increased by RMB 200-300/MT (USD 30.07/MT-45.11/MT) Due To The Depreciation of RMB Against US Dollars-China
Due to currency depreciation, the price of sesame seeds has increased considerably in China. China is one of the major importers of Sesame seeds.
Strong Export Performance of Pakistani Sesame Seed Leads to Rising Price- Pakistan
The wholesale price of sesame seed in Pakistan has surged +24.7% YoY (year on year) . Prices in early March 2021 stood at 0.97/kg, while in the same period in 2021 prices were at USD 1.21/kg. Higher prices in 2022 is caused by the higher demand for export
Tomato prices shoot up, nearly 400% costlier in India- India
Severe heatwave spells have adversely impacted the prices of tomatoes in Delhi, the national capital of India as the production has been hit in Rajasthan and Gujarat. The prices have increased as the arrival of tomatoes to Delhi has dropped to almost one-third.
The prices of tomatoes are nearly 400 per cent higher than in previous years, according to the wholesale and retail vegetable sellers.
The Indian government is currently developing subsidy programmes to help producers in growing tomatoes, and once this has been finalised we predict that prices coming out of India will drop considerably.
Black Pepper – Vietnam
The pepper market has continued to be very quiet in the recent weeks of various challenges around the world such as raw material price increase, oil price increase, inflation in many countries, instability of the global financial situation in terms of currency. On top of this, the situation between Russia & Ukraine has also reduced the consumption demand from the EU.
China continues to block black pepper imports from Vietnam, leading to a sharp decrease in their demand. There have been some positive signals regarding the Chinese market lately since they are gradually easing the COVID restrictions in many cities. We expect China to resume imports soon
Black pepper prices have dropped during the past month, also partly due to the tightening of money policy at banks in Vietnam. Many producers and exporting companies are unable to take the bank loans to buy the raw material. This has led to a liquidity crunch in the domestic pepper market in the past 2 weeks resulting in prices to come down. Our recommendations are to buy black pepper and take advantage of low prices. This year the crop is still short and any increase in demand will lead to higher prices
