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1 SPICES MARKET INSIDER Market Insider

2 Market News Service Spices Building awareness and assisting developing countries with access to trade and market information has been at the heart of the International Trade Centre (ITC) work. The Market Insider is a newly branded global public goods service built on a "blog" interface to provide just-in-time content on market prices and industry developments focusing on forward-looking intelligence in anticipation of market opportunities, market dynamics, quality issues, trade events and sector-specific intelligence on commodities of interest to developing countries. No part of these reports may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior permission of the MI/ITC Geneva. Market Insider information is available free of charge to trade support institutions, enterprises and research institutions in developing and developed countries. Please log on to: Copyright Market Insider/ITC All rights reserved

3 INDEX SPICES NEWS AND UPDATES... 3 MARKET DYNAMICS PRICES IN THE MARKET PLACE Spices...14 PRICES IN THE MARKET PLACE Herbs...18 STATISTICAL INFORMATION AND RELATED RESOURCES EVENTS... 24

4 Spices News and Updates A round-up of news items in April 2016 Week 13 4 th 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: 3

5 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: Meanwhile in Bhutan, Kuensel Online ( 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 4

6 channel achieves better prices for the farmers. So far this year about 198MT of gingers have been exported to India. Week 13 4 th 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 5 th 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: 5

7 Week 13 7 th April 2016 Jamaican ginger production to be encouraged The Jamaican Observer reports ( 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 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. 6

8 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: 7

9 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: Week th 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 pence a share when McCormick first expressed interest, fell 27 per cent to close at 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. 8

10 Week th 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). 9

11 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 Australianbased 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. 10

12 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 crop is anticipated to be 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: 11

13 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 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 USD /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. 12

14 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. 13

15 Prices in the market place Spices All prices are quoted in USD/Kg MARKET USA JAPAN EUROPE PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE 2 Month 1 Year This 2 Month 1 Year This Week ago Ago Week ago Ago Spot 550g/l Sarawak Sarawak This Week 2 Month ago 1 Year Ago Mal MG1 Mal MG FAQ 550g/l Black Pepper FAQ 500g/l Lampung FAQ 500g/l Steam 550g/l treated Brazil Muntok FAQ spot Muntok Muntok FAQ spot White Pepper Aniseed Caraway Cardamom Steam treated Sarawak n/a Muntok spot Vietnam Vietnam Whole China star Vietnam Star Turkish/Syrian Syrian /Spanish Canadian FAQ Dutch European Bold India AGS1 MYQ Seed India AGS Bold Market Insider Spices

16 MARKET USA JAPAN EUROPE PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE Cassia Korintji B 3.00 ML/SVO This Week 2 Month ago 1 Year Ago This Week 2 Month ago 1 Year Ago This Week 2 Month ago 1 Year Ago n/a China whole Korintji B Br & Cl Vera C/W AA n/a China broken Vera AA Vietnamese 5ML/SVO Vietnam QNV Celery Chili Cinnamon Indian spot Indian Indian 99% n/q n/q n/q Indian S Indian Sanna S4 grade Malawi n/a Chinese African Bird s Eye n/q n/q 5.50 Ceylon H2 n/a n/a Sri Lanka C5 SP Sri Lanka c5 cut n/q n/q n/q Cloves Sri Lanka hand picked Madagascar Comores / Madagascar Comores/ Mada Zanzibar n/a n/a Indo stems Coriander Cumin Bulgarian % East European Canadian n/q Turkish Iranian 99% Syrian Syrian 99% 2.80 Indian Indian Indian 99% Dill Indian Indian 99% n/q n/q n/q Fancy Egyptian Egyptian99% Fennel Indian ASTA Indian Indian 99% 1.99 n/q n/q Fenugreek Indian 99% Indian 99% Market Insider Spices

17 MARKET USA JAPAN EUROPE PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE Garlic Ginger This Week 2 Month ago 1 Year Ago This Week 2 Month ago 1 Year Ago This Week 2 Month ago 1 Year Ago Ch. Powder n/a n/a 2.98 Flakes Ch. Granulated n/a n/a 3.26 Powder Granules Cochin n/a n/a 5.73 Cochin Cochin n/q Chinese sliced Chinese sliced Chinese sliced Chinese peeled Chinese whole Chinese peeled Nigerian Nigerian Mace Mustard Nutmeg Onion Papua broken Siauw whole PNG Broken No 1 Yellow Canadian Indonesian Ukraine Yellow Brown oriental Ukraine Brown E.I. ABCDs Indo 110's Indonesian SS E.I. SS WI 110's EI ABCDs n/q Egypt pow Powder India pow Flakes 2.09 n/q 3.03 Spanish 120 ASTA Paprika Spanish visual Spanish 80 ASTA n/q 1.86 Hungarian Hungarian 100 ASTA Peru ASTA Peru HT90 ASTA n/q n/q 16 Market Insider Spices

18 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 Mexican Mexico Jamaica Jamaica Jamaica n/q Poppy Turkish Dutch Sesame Indian Natural Indian natural Indian hulled Indian Hulled Turmeric Alleppey 5% curcumin Madras fingers Madras fingers n/q Powder n/a n/a Alleppey fingers Powder n/q Vanilla! Bourbon Extract/ Gourmet / 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. 17 Market Insider Spices

19 Prices in the market place Herbs All prices are quoted in USD/Kg USA EUROPE PRODUCT GRADE PRICE GRADE PRICE This 2 Month 1Year This 2 Month 1Year Week Ago Ago Week Ago Ago Egyptian FAQ Egypt Basil Egyptian Extra Fancy 2.65 Egypt fines Bay leaves Turkish Fancy/HPS Turkish semi select FAQ HPS Turkish semi-select Chervil German Egyptian Cut Dill weed Californian Marjoram Egypt Fancy Egypt Mint Spearmint Egyptian Oregano Parsley Rosemary Saffron Sage Savoury Tarragon Thyme Turkish30# FAQ Turkish Israeli n/a n/a 7.01 USA n/a n/a 8.16 European 2mm Morocco Morocco Spanish Spanish Spanish 2,535 2,315 Iranian 3,073 2,965 2,300 Albanian Turkish Albanian German Spanish n/a French Spanish Spanish Moroccan 3.64 Moroccan 18

20 Statistical information and related resources All statistics sourced EUROSTAT ( Imports of spices to Europe 19

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25 Events Event Start Date End Date Country City URL Natural & Organic Products Europe 17/04/ /04/2016 England London International Symposium on 22/04/ /04/2016 Turkey Antalya Advances in Lamiaceae Science Alimentaria Barcelona 25/04/ /04/2016 Spain Barcelona 78 SIAL China 05/05/ /05/2016 China Shanghai Food Ingredients Vietnam 18/05/ /05/2016 Vietnam Saigon Int'l Food Ingredients & Additives 18/05/ /05/2016 Japan Tokyo Exhibition and Conference Afro Food Exhibition 26/05/ /05/2016 Egypt Cairo Free From Food Expo 09/06/ /06/2016 Netherlands Amsterdam Food Ingredients India 22/08/ /08/2016 India New Delhi Food Ingredients South America 23/08/ /08/2016 Brazil Sao Paulo Food Ingredients Asia 21/09/ /09/2016 Indonesia Jakarta SIAL 16/10/ /10/2016 France Paris ASTA Annual Meeting 23/04/ /04/2017 USA Austin TX 24

26 Market News Service Spices 25

Indicative prices in the market place

Indicative prices in the market place All prices are quoted in US$/Kg Spot 550g/l 10.91 9.80 Sarawak 10.50 11.50 12.00 Sarawak Mal MG1 Mal MG-1 12.30 13.00 14.80 FAQ 550g/l 9.50 9.80 Black Pepper FAQ 500g/l