Market Insider

SPICES MARKET INSIDER

1 Market Insider

Spices

Market Insider

Spices

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INDEX

SPICES NEWS AND UPDATES ........................................................................................................ 1 MARKET DYNAMICS ......................................................................................................................... 3 PRICES IN THE MARKET PLACE ..................................................................................................... 6

Spices .............................................................................................................................................. 6 PRICES IN THE MARKET PLACE ................................................................................................... 10

Herbs .............................................................................................................................................10 STATISTICAL INFORMATION AND RELATED RESOURCES ...................................................... 11 EVENTS ............................................................................................................................................ 18

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Spices News and Updates

Monsoon arrives in southern India The summer monsoon finally arrived in Kerala brining the prospect of relief from the killer heatwave that has killed more than 2,500 people this year. As the monsoon moves north more clement temperatures should prevail but extreme heat is still possible in central and northern states in the two weeks before the rains arrive. The monsoon arrived in Kerala on June 5th a few days behind schedule, a feature that has become common in recent years. A developing El Niño is expected to lead to reduced rainfall and warmer conditions in northern states over the middle of the year though this is by no means certain and not all El Niños lead to drought.

Indian spice exports up The Business Standard reports that Indian spices maintained their robust demand in the international market with exports from the country touching Rs 14,900 crore ($2,433 million) in 2014-15, compared to Rs 13,735 crore ($2,268 million) a year earlier.

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Chilli, mint and mint products, cumin, spice oils & oleoresins, pepper, turmeric, coriander, small cardamom, curry powder/paste and fenugreek contributed substantially to the spice export basket as the demand for Indian spices scaled up phenomenally. In 2014-15, a total of 893,920 tonnes of spices and spice products were exported, registering a nine per cent increase. The total export of spices during 2014-15 exceeded the target of 755,000 tonnes valued at Rs 12,305 crore ($2,000 million) in terms of both volume and value for 2014-15. “The increased demand for Indian spices in the international market is a testimony to their unmatched quality and escalating faith in their sustainability," said A Jayathilak, chairman, Spices Board. Chilli continued to be India's largest exported spice, accounting for 347,000 tonnes worth Rs 3,517 crore in 2014-15. The export grew 11.04 per cent in quantity and 29.20 per cent in value compared to FY14. Mint and mint products - mint oils, menthol and menthol crystals - earned substantial foreign exchange worth Rs 2,689 crore through exports of 25,750 tonnes, emerging as a major money-spinning commodity in international spice markets. In terms of volume, chilli was followed by cumin with an export quantity of 155,500 tonnes that earned foreign exchange worth Rs 1,838.20 crore. In 2013-14, the figures stood at 121,500 tonnes valued at Rs 1,600 crore. Value added spice products such as spice oils and oleoresins notched a significant high with figures of 11,475 tonnes (exports) and Rs 1,910 crore, registering a growth of one per cent in quantity and 10 per cent in value, respectively. The figures for the corresponding period in 2013 stood at 11,415 tonnes and Rs 1,733 crore, respectively. Pepper contributed significantly to export earnings by bringing home Rs 1,208 crore with a corresponding export volume of 21,450 tonnes in FY15. The earnings from pepper exports rose marginally as the figures in the corresponding FY14 were Rs 940 crore and 21,250 tonnes, registering an increase of one per cent and 29 per cent in terms of volume and value, respectively. Turmeric continued to make great strides with an export volume of 86,000 tonnes worth Rs 744.35 crore compared to 77,500 tonnes and Rs 666.75 crore in FY14. Coriander, too, commanded high demand in foreign markets. By exporting 46,000 tonnes, it fetched Rs 498.12 crore while curry powder/paste fetched Rs 476.26 crore for 24,650 tonnes. Small cardamom stood at 3,795 tonnes, which earned foreign exchange worth Rs 498.12 crore. However, large cardamom’s export value surged substantially to Rs 84.04 crore compared to Rs 79.61 crore in FY14. Ginger, nutmeg and mace, fennel, fenugreek, garlic, celery and other seed spices (mustard, aniseed, bishops weed, dill seed, etc) also chipped in significantly by bolstering spice exports and earning precious forex for the country. In 2014-15, chilli, cumin, turmeric, coriander and ginger accounted for more than 70 per cent of the total volume of spice exports. Mint, chilli, spice oils & oleoresins, cumin and pepper accounted for 70 per cent of the total export earnings. “Indian spices are not only lucrative products for the national exchequer, but have also become a trusted global brand. The challenge for us is to give a huge impetus to their exports and sustain their quality and flavour,” said Jayathilak. Source: Business Standard http://tinyurl.com/qeu6zam

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Multinationals blamed for price hike in Nigerian ginger According to a report in the Nigerian newspaper Business News (13/6/15), the non-oil export sector, once dominated by indigenous operators during the oil boom, has become attractive to big multinational companies as more and more of them have gone into the sector. The result is that most indigenous companies are finding it hard to compete as prices of non-oil export commodities have gone through the roof and out of their reach. According to the project coordinator of the newly inaugurated Zero to Export project of the Nigeria Export Promotion Council for new exporters, Mr. Kola Awe, the pressure on the sector has already pushed up local prices of commodities. Speaking during the unveiling of trainees in the first season of the project, Awe said almost all the manufacturing firms in the country had gone into non-oil export and the resultant pressure reflected on local prices. He said, “This is the first time in the history of Nigeria that ginger is selling for N450, 000 per metric ton. A short while ago, it was N26, 000. Cashew now sells for N250, 000 per metric ton. “To export a container of ginger, an operator needs N5m while N4.5m is needed for cashew. It means an average Nigerian entrepreneur can no longer export because he cannot afford such costs.” Awe added, “There is going to be more challenges in the sector. Many people are going to lose money because the focus of the government is now on non-oil export and there is a lot of inflow. Every company, including the big multinationals that were not exporting before want to export because the value of the naira has dropped drastically and firms need to raise foreign exchange to be able to bring in their goods.” He added that the massive inflow into the sector was also affecting quality of commodities. “The man that is given the money to produce is getting money from several people. So he needs to produce quickly so he can meet up with the demand and in doing that, quality will be compromised,” he said. Awe said the situation would lead to the exclusion of indigenous Nigerian exporters from the sector considering the fact that they would not be able to raise the kind of money required to export and the banks were not granting credit. According to him, this thinking informed the Zero to Export initiative by the NEPC, to train exporters who at the end of their training can form themselves into groups in order to jointly raise the amount of money required to buy commodities for export. He said the Zero to Export programme was one way the government could keep indigenous exporters in the business. He said, “What we need is more advocacy and training from NEPC so that we can have a pool of trained entrepreneurs that will be versatile in the area of quality in export. The trainees from the Zero to Export project will be visiting quality control agencies to learn how to attain high quality. A director at the NEPC, Olajide Ibrahim, said the programme brought people who knew nothing about export to a height where they could have all the knowledge required to be able to export. He said, “The idea behind this is for us to begin to develop a crop of indigenous Nigerian exporters who can go on their own to the international market without going through different hurdles as many of them have done in the past and consequently swindled.” Source: Business News 13

th June 2015 http://businessnews.com.ng/2015/06/13/multinationals-

take-over-non-oil-exports-from-local-operators/

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Concerns push local vanilla prices higher According to local traders vanilla prices have moved up sharply in Madagascar though the season is yet to open. Harvesting has apparently started in some areas, but officially the season is not likely to be declared until the first week in July. The price moves are the result of speculative activity by exporters and there is some discussion about a lower than usual crop. The downsizing is expected because of a run of good crops rather than inclement weather or other external influences. The early harvesting tends to be a consequence of higher prices when farmers fear theft more than a discount for low quality.

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Market Dynamics Pepper – Prices rises were recorded at the major origins as the exportable surplus in India and Vietnam declined. Next crop from Indonesia should be available in the next four to six weeks with the main harvesting starting at the end of July. Good yields are expected here, but plant populations in one or two areas have reportedly declined, which will moderate the outturn.. The shortage of origin sales has left a tight stock situation in the major markets and the market is firm with prices reaching historic highs of USD 11,000/tonne for black pepper and USD 15,000/tonne for white. The International Pepper Community (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

Cloves – Prices have eased since May. Indonesia not yet buying. And still the North American and European buyers are holding back if they can. Chillies – Malawi production suffered under excessive rainfall in the early months of 2015. Significant losses are reported and shipment defaults are mentioned. A second harvest, late quarter 3, is expected but it will be small. Pricing in these circumstances is imaginary – if product were available, would offers at USD 6,000/tonne find buyers? Coriander – The Indian market is reported as extremely firm. Prices around USD 2,500/tonne while buyers are waiting out for the new crop East European offers. Shipment should begin in the next few weeks. Bulgarian indicated at USD 1,100/tonne and Romanian slightly higher at USD1,200/tonne. Ginger – Scant availability from Nigeria, and no new crop expected until mid-quarter 4. Nigerian ginger priced at USD 3,500/tonne Pimento – Stocks are reportedly low and the market is tight until the new crop becomes available in a few weeks’ time.

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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 10.80 8.05 Sarawak 12.00 11.50 9.50 Sarawak

Mal MG1 Mal MG-1 12.00 13.00 14.50 FAQ 550g/l 11.00 10.50 8.15

FAQ 500g/l 10.69 Lampung FAQ 500g/l 7.83

Steam treated 550g/l

Brazil

White Pepper

Muntok FAQ spot 15.21 12.68 Muntok 15.80 16.50 13.00 Muntok FAQ spot 15.00 14.60 12.55

Sarawak n/a 17.00 16.00 Steam treated Muntok spot

Vietnam 10.36 Vietnam 15.00 14.60 11.15

Aniseed Whole China star 6.83 Vietnam Star

Turkish/Syrian 4.63 4.08 Syrian 1% 3.41 3.80

Caraway Canadian 3.09 2.20 FAQ

Dutch European 2.03 1.97

Cardamom Bold 15.98 India AGS1 MYQ 5.50 5.73

Mixed Green India AGS Whole, green 13.03

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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

2.03 China whole 3.70 3.70 3.00 Korintji B Br & Cl 2.85

Vera C/W AA 4.19 4.52 China broken 3.50 3.50 2.80 Vera AA

Vietnamese 5ML/SVO

Vietnam QNV 3.80 3.80 3.15

Celery Indian spot 1.98 Indian Indian 99%

Chili Indian S4 2.91 2.54 Indian Sanna S4 grade

African fukien 3.97 3.97 Chinese African Bird’s Eye n/a 5.00

Cinnamon Ceylon H2 12.02 10.36 Sri Lanka C5 SP Sri Lanka c5 cut

Cloves

Sri Lanka hand picked

19.29 17.90 Madagascar 12.20 12.20 15.50 Comores / Madagascar

9.50 14.05

Comores/ Mada 12.68 Zanzibar 13.00 13.00 16.00

Indo stems

Coriander Bulgarian 1.98 98% East European 1.88 1.88

Canadian 1.87

Cumin

Turkish 3.75 2.76 Turkish 98%

Syrian Syrian 99% 2.80 3.15

Indian Indian Indian 99%

Dill Indian 1.81 Indian 99%

Fennel Fancy Egyptian 2.54 Egyptian99% 2.61

Indian ASTA 1.81 Indian Indian 99% 2.57

Fenugreek Turkey 1.10 Indian 99% 0.62 0.86

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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

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Week 2 Month

ago 1 Year Ago

Garlic

Ch. Powder 2.98 2.38 Flakes 2.00 2.48

Ch. Granulated 3.26 2.60 Powder 1.30 2.09

Granules 2.70 2.34

Ginger

Cochin 5.73 5.29 Cochin Cochin 4.30

Chinese sliced Chinese sliced Chinese sliced 4.90

Chinese peeled 5.71 4.63 Chinese whole Chinese peeled 5.20 4.81

Nigerian 3.64 3.20 Nigerian 3.50 2.35

Mace Papua broken 25.90 35.27 Siauw whole 18.50 18.50 22.50 PNG Broken 11.50 15.81

Indonesian

Mustard

No 1 Yellow Canadian

1.57 1.57 Canada Yellow 1.26 1.36

Brown oriental 1.54 1.54 Canada Brown 1.21 1.31

Nutmeg

E.I. ABCDs 18.08 20.39 Indo 110's 17.50 17.50 20.00 Indonesian SS 11.50 15.20

E.I. cracked 18.19 WI 110's

EI ABCDs 16.89

Onion Egypt pow Powder 2.38 2.02

India pow Flakes 3.03 2.43

Paprika

Spanish 120 ASTA

5.18 5.18

Spanish visual Spanish 80 ASTA 2.70

Hungarian 7.17 6.83 Hungarian 100 ASTA

Peru ASTA 3.39 2.09 Peru HT90 ASTA

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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

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Week 2 Month

ago 1 Year Ago

Pimento Mex/Guatemala 5.07 4.30 Mexican 5.25 5.25 4.50 Mexico 4.00 3.91

Jamaica 11.57 6.95 Jamaica Jamaica n/a 6.24

Poppy Dutch Turkish

2.60

Dutch 3.03 4.38

Sesame

Indian Natural

Indian hulled 2.54 Indian Hulled 2.25

Turmeric

Alleppey 5% curcumin

3.53 Madras fingers 2.10 2.20 1.75 Madras fingers

Alleppey fingers

Vanilla!

Bourbon 53 - 63 Extract/ Gourmet 55 / 65 50.0/70.0 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.

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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 2.76 3.09 Egypt 3.33 2.91

Egyptian Extra Fancy Egypt fines

Bay leaves

Turkish Fancy FAQ HPS

6.72 10.91

Turkish semi select 3.73 3.86 Turkish

semi-select 5.15

Chervil German 8.42

Dill weed

Egyptian 4.08 1.85 Cut 2.49 2.71

Californian

Marjoram Egypt Fancy 3.64 3.97 Egypt 4.63 3.88

Mint

Spearmint 6.50 6.50 Egyptian 3.96 6.12

Oregano Turkish 30# 3.31 6.28 Turkish 4.35 3.45

Parsley

Israeli 7.00 6.50 European

2mm 5.76 6.81

USA 8.16

Rosemary Morocco 2.09 1.96 Morocco 2.17

Spanish Spanish 2.20 2.17

Saffron Spanish 2,315 Iranian 2,500

Sage Albanian 4.08 5.07 Turkish 5.26 6.46

Savoury Albanian 3.30 3.53 German 5.37 5.35

Tarragon Spanish 4.08 French 20.06 24.67

Thyme Spanish 3.64 3.88 Spanish 3.20

Moroccan 3.88 Moroccan 3.22 3.20

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Statistical information and related resources Source: USDA/FAS

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Events

Event Start Date End Date Country City URL

IFT Food Expo 11/07/2015 14/07/2015 USA Chicago http://www.am-fe.ift.org/

Food Ingredients South America 25/08/2015 27/08/2015 Brazil São Paulo http://www.figlobal.com/southamerica/home

Ingredients Turkey 03/09/2015 06/09/2015 Turkey Istanbul http://www.ite-exhibitions.com/Ingredients-Turkey

Asia Fruit Logistica 02/09/2015 04/09/2015 Hong Kong Hong Kong http://www.asiafruitlogistica.com/

Food Ingredients Asia 09/09/2015 11/09/2015 Thailand Bangkok www.foodingredientsglobal.com/asia-thailand/home

Annapoorna World of Food India 14/09/2015 16/09/2015 India Mumbai http://www.worldoffoodindia.com/

Biofach America 17/09/2015 19/09/2015 USA Baltimore https://www.biofach-america.com/

Fine Food Australia 20/09/2015 23/09/2015 Australia Sydney http://imexmanagement.com/show/138/fine-food-australia-2015/

Food Hospitality World 22/09/2015 24/09/2015 China Guangzhou http://www.fhwchina.com/en/

ANUGA 10/10/2015 14/10/2015 Germany Cologne http://www.anuga.com/anuga/index-2.php

Food Ingredients India 19/10/2015 21/10/2015 India Mumbai http://www.figlobal.com/india/home

Food & Hotel China 11/11/2015 13/11/2015 China Shanghai http://www.fhcchina.com/en/index.asp

Food Ingredients Europe 01/12/2015 03/12/2015 France Paris http://www.figlobal.com/fieurope

SIAL Middle East 07/12/2015 09/12/2015 UAE Abu Dhabi http://www.sialme.com/