SPICES MARKET INSIDER. Market Insider
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1 SPICES MARKET INSIDER
2 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 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. information is available free of charge to trade support institutions, enterprises and research institutions in developing and developed countries. Please log on to: Copyright /ITC All rights reserved
3 INDEX SPICES NEWS AND UPDATES... 1 MARKET DYNAMICS... 5 PRICES IN THE MARKET PLACE PRICES IN THE MARKET PLACE Herbs...10 STATISTICAL INFORMATION AND RELATED RESOURCES EVENTS... 19
4 News and Updates Subsidy scheme from Indian Board According to The Hindu Business Line, the Board has launched a raft of measures to support farmers by offering various subsidies and sensitise them on the need to enhance the quality of spices through post-harvest improvement techniques. The Board also decided to provide financial assistance to farmers for irrigation, land development, mechanisation, replanting, soil conservation and organic farming of various spices, mainly small cardamom. It will also give financial aid to them for purchasing modern irrigation and farming equipment and tools. The Board Chairman A Jayathilak said in a statement that the initiatives are part of the Board s 12th Plan to improve export-oriented production of small cardamom and post-harvest improvement of other spices across spice-growing regions in India. The eligibility criteria for availing the benefits are based on land held by the grower and is different for each programme. Under the new schemes, cultivators of small cardamom in Kerala and Tamil Nadu will receive up to INR70,000 (US$1085) for replanting, while farmers in Karnataka will get up to INR 50,000 (US$777). They will also receive aid for planting material production. The Board also gives financial aid to organic farmers for attaining organic certification, maintenance of Internal Control System and purchasing organic inputs and bio-agent production units. Source: Hindu Business Line Adulterated oregano in the UK A recent study by the Belfast-based Institute for Global Food Security (IGFS) found that 25% of 78 samples of dried oregano bought from a range of retailers contained ingredients other than oregano. The most common adulterants were found to be olive and myrtle leaves and in some cases these were found to make up 30-70% of the product. The samples were bought from a range of retailers throughout and the UK and Ireland and from online sellers too. "Much better controls are needed," said lead author Prof Chris Elliott of the IGFS. The team used a technique called mass spectrometry to identify the make-up of the samples. "Clearly we have identified a major problem and it may well reflect issues with other herbs and spices that enter the British Isles through complex supply chains," said Prof Elliott. Consumers need much better protection "from heavily contaminated products," he added. Prof Elliott blamed the complexity of food supply systems for the problem and suggested a lot of food may not be what consumers think it is Board promotes exports from North East India 1
5 The Indian Board will promote the organic spices from North Eastern states in global markets in view of Prime Minister Narendra Modi's thrust on rapid and sustainable development of the region. The board will promote in the overseas market spices such as large cardamom and Lakadaong turmeric grown organically in the seven sister states, Board Chairman A Jayathilak said. "Our reach in the region was limited earlier. Thanks to the 'Look East' policy of the government, we have opened offices in last eight months in each and every state in the North East," he said. According to the Board spices grown in North East were supposed to be organic by default and not by design because pesticides and fertilisers were not used in the region and hence they were of high quality and could be exported easily. "In other parts of India, we have to check whether spices are of high quality before export. Only places where we can blindly accept the spices for export is in the North East. Because it is of outstanding quality," he told PTI here. "We can take it without even tasting it. We are trying to say that when you ask for spices you ask for specifically branded...when you sell spices based on a Geographical Indication you can ask for a higher premium," he said. Already GI registration had been obtained for Lakadong Turmeric, which is known to have medicinal qualities, he said. The board chief said Large cardamom was mainly grown in Sikkim and Arunachal Pradesh while black pepper was cultivated in Assam, Meghalaya, Tripura, Nagaland and Mizoram. Ginger, turmeric and chillies are grown in all the NE states. Nadia ginger, having less fibre content, Lakadong/Megha turmeric having high curcumin content and bird's eye chilli and king chillies having high pungency are the important varieties of spices grown in North Eastern Region. Jayathilak said Board was implementing programmes for development of spices particularly on large cardamom and export potential varieties of ginger, turmeric and chillies. As part of the Centre's efforts, officers had been tasked with the job of identifying the best farmers for spices. "We are organising buyer-seller meets with the exporters for the spices. So that they can interact among themselves and get the best spices," he said. Source: The Economic Times Delayed monsoon impacting southern states spice crops The Financial Express reports a shortage in rainfall in the plantation areas of south India for the current South West monsoon, with the state of Kerala receiving 30% lesser rainfall for the period of 1 June to 14 August, A number of plantation crops, such as pepper, cardamom, rubber, tea and coffee are highly monsoon sensitive with production directly dependent on the timing and quantum of rain. While too much of rains damage most of the cash crops, too short a monsoon also leads to lower crop production. Idukki district, which has more than 70% of the cardamom plantations, is shorter by 26% from normal. While the rainy days have been few when compared to the normal in Idukki district, the soil 2
6 moisture is seen better as the region had good summer showers, KK Devassia of Cardamom Growers Association said. Cardamom needs low temperature, high humidity and incessant drizzles. Heavy rains could damage the crop, while intermittent rains that keep the atmosphere humid augur well. Rains in July are very critical for cardamom. Cardamom berries shrivel and fall down from the plant with the atmospheric temperature rising from the normal level during the flowering season. However, an extended dry period during the harvesting season could lead to lower productivity, he added. Cardamom has six-seven rounds of pickings starting June-July. Broking agencies like Geofin Comtrade and Angel Commodities report that deficient rains in turmeric growing areas have not only slowed down pace of sowing, but may affect the quality and yield, resulting in a shortage of quality turmeric for the next crop season. Last season, the rain fed areas saw chilli yield decline by 30% as the ground water availability dropped sharply by January. In India, 40% of chilli crop is monsoon dependent and fluctuates according to the availability of ground water. Chilli crop has to be irrigated and protected till March, P Ravipati, a chilli farmer from Bellary said. Reports of lower rains in some places of Andhra Pradesh and Tamil Nadu could lead to farmers opting for other crops. Source: A new variant on Madagascan vanilla extract A leading flavour manufacturer, Synergy Flavors, has enhanced its range of vanilla flavours with a new variant of its core Madagascan vanilla extract. The new addition to the vanilla extract range possesses a sweet and creamy taste profile whilst also retaining an authentic beany flavour. Part of a wide range of extracts, flavourings and pastes, the new addition opens up broader application and taste opportunities for Synergy Flavors customers in the dairy, bakery and beverage sectors. Synergy Flavors entire vanilla range is based on Madagascan vanilla which is a global benchmark for quality and is renowned for its rich, luxurious flavour and aromatic qualities. The new extract, which is ideally suited to dairy desserts, such as trifles, and baked goods, such as cupcakes offers creamy top-notes with sweet, beany tones. Offering an extract label declaration, the product has been developed using Synergy Flavors 100 years of vanilla expertise, which combines technology with artistry to create the most authentic vanilla solutions using the finest pods and beans. Using sensory analysis, Synergy Flavors provides customisable solutions for a multitude of applications from cheesecakes and muffins to ice cream and yoghurts. As well as delivering innovative vanilla profiles including creamy, smokey and caramellic varieties, Synergy Flavors high impact vanilla range comprises clean label, natural and organic options. The range includes vanilla pastes that offer a luscious, buttery profile and mouthfeel, ideal for bakery applications and frosting, as well as liquid top-notes which enable bespoke profiles for specific customer requirements. Hugh Evans, marketing manager Europe and Asia at Synergy Flavors, commented: We have fused our analytical and sensory capabilities with modern extraction techniques to produce an unrivalled range of smooth, rich vanilla flavours. This latest addition to our portfolio ensures that we have the profile and format needed for the widest range of applications. Our technical experts assist customers in selecting the right vanilla or combination of profiles to develop winning recipes. With provenance and clean label key considerations for many target applications, our Madagascan vanilla range includes natural liquid top-notes that permit a natural vanilla flavouring declaration. Synergy Flavors is a leading manufacturer and supplier of flavourings, extracts and essences. The company is part of the Carbery Group based in Cork, Republic of Ireland. 3
7 Source: 4
8 Market Dynamics Pepper As the Indonesian harvest moved to a maximum at the outset of August prices drifted off. The Indonesian crop was coming in better than expected. All origins with availability were affected and weakness in the Dong also impacted on Vietnamese prices. But the respite for buyers was short lived and pepper end the month on a firmer note though still below July levels. In the consuming markets, prices weakened by up to 5% but remain exceptionally high. 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 August proved to be a quiet month in the spice trade. The northern hemisphere consuming markets scaled back activity for the summer holidays. At origin, there was excitement in the vanilla trade with speculation in Madagascar pushing prices to levels not seen for a few years. At the time of writing there has been little sign of downward pressure. Clove prices have drifted down a little but cumin has strengthened. 5
9 Prices in the market place All prices are quoted in US$/Kg MARKET USA JAPAN EUROPE PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE This 2 Month 1 Year This 2 Month 1 Year Week ago Ago Week ago Ago Spot 550g/l Sarawak Sarawak This Week 2 Month ago 1 Year Ago Black Pepper White Pepper Aniseed Caraway Cardamom Mal MG1 Mal MG FAQ 550g/l FAQ 500g/l Lampung FAQ 500g/l Steam 550g/l Muntok spot treated Brazil FAQ Muntok Muntok FAQ spot Sarawak Steam treated Muntok spot Vietnam Vietnam Whole China Vietnam star Star 6.26 Turkish/Syrian Syrian Canadian FAQ Dutch European Bold India AGS1 MYQ Seed 9.37 India AGS Whole, green
10 MARKET USA JAPAN EUROPE PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE Cassia Celery This Week 2 Month 1 Year ago Ago This Week 2 Month 1 Year ago Ago This Week 2 Month ago 1 Year Ago Korintji B China whole Korintji B Br & Cl ML/SVO Vera C/W AA China broken Vera AA 5.48 Vietnamese 5ML/SVO Vietnam QNV Indian spot Indian Indian 99% Chili Cinnamon Indian S Indian Sanna S4 grade Malawi Chinese African Bird s Eye Ceylon H Sri Lanka C5 SP Sri Lanka c5 cut Cloves Sri Lanka hand picked Madagascar Comores/ Mada Zanzibar Indo stems Comores / Madagascar 98% East Bulgarian Coriander European Canadian Turkish Turkish 98% Cumin Syrian Syrian 99% Indian Indian Indian 99% Dill Indian Indian 99% 2.50 Fennel Fancy Egyptian Egyptian99% 3.30 Indian ASTA Indian Indian 99% Fenugreek Indian 99% Indian 99%
11 MARKET USA JAPAN EUROPE PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE Garlic Ginger This 2 Month 1 Year This 2 Month 1 Year This 2 Month Week ago Ago Week ago Ago Week ago 1 Year Ago Ch. Powder Flakes n/a Ch. Granulated Powder Granules Cochin Cochin Cochin Chinese sliced Chinese sliced Chinese sliced Chinese peeled Chinese whole Chinese peeled Nigerian Nigerian Mace Mustard Nutmeg Onion Paprika Papua broken Siauw whole PNG Broken n/a Indonesian No 1 Yellow 1.74 Canadian Canada Yellow Brown oriental Canada Brown E.I. ABCDs Indo 110's Indonesian SS n/a E.I. cracked WI 110's EI ABCDs Egypt pow Powder India pow Flakes Spanish ASTA Spanish visual Spanish 80 ASTA 3.30 Hungarian Hungarian 100 ASTA Peru ASTA Peru HT90 ASTA 8
12 MARKET USA JAPAN EUROPE PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE Pimento Poppy Sesame This 2 Month 1 Year This 2 Month 1 Year This 2 Month Week ago Ago Week ago Ago Week ago 1 Year Ago Mex/Guatemala Mexican Mexico Jamaica Jamaica Jamaica n/a n/a 6.90 Dutch Turkish Dutch Indian Natural Indian hulled Indian Hulled Turmeric Alleppey 5% Madras fingers Madras fingers 3.80 curcumin Alleppey fingers Powder 1.70 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. 9
13 Prices in the market place All prices are quoted in US$/Kg USA EUROPE PRODUCT GRADE PRICE GRADE PRICE This 2 Month 1Year This Week Ago Ago Week 2 Month 1Year Ago Ago Herbs Egyptian FAQ Egypt Basil Egyptian Extra Fancy Egypt fines Bay leaves Turkish Fancy Turkish semi select FAQ HPS Turkish semi-select Chervil German Egyptian Cut 8.20 n/q Dill weed Californian Marjoram Egypt Fancy Egypt Mint Spearmint Egyptian Oregano Turkish 30# Turkish Parsley Israeli USA European 2mm Rosemary Saffron Sage Savoury Tarragon Thyme Morocco Morocco Spanish Spanish Spanish 2,315 2,315 2,425 Iranian 2,500 2,500 7,770 Albanian Turkish Albanian German Spanish French Spanish Spanish Moroccan 3.85 Moroccan
14 Statistical information and related resources All statistics sourced UN COMTRADE ( ) Imports of cardamoms to Japan by year and origin Imports of cinnamon to Japan by year and origin Imports of cloves to Japan by year and origin 11
15 Imports of coriander seed to Japan by year and origin 12
16 Imports of cumin seed to Japan by year and origin Imports of dried capsicums to Japan by year and origin 13
17 tonnes Imports of fennel and juniper berries to Japan by year and origin Italy India China World Imports of dried ginger to Japan by year and origin 14
18 Imports of mace to Japan by year and origin Imports of nutmegs to Japan by year and origin Imports of pepper (crushed or ground) to Japan by year and origin 15
19 Imports of pepper (whole) to Japan by year and origin 16
20 Imports of turmeric to Japan by year and origin Imports of vanilla to Japan by year and origin 17
21 Imports of anise/star anise to Japan by year and origin 18
22 Events Event Start Date End Date Country City URL Biofach America 17/09/ /09/2015 USA Baltimore Fine Food Australia 20/09/ /09/2015 Australia Sydney Food Hospitality World 22/09/ /09/2015 China Guangzhou World of Food India 23/09/ /09/2015 India Mumbai ANUGA 10/10/ /10/2015 Germany Cologne Food Ingredients India 19/10/ /10/2015 India Mumbai Sweets & Snacks Dubai 27/10/ /10/2015 UAE Dubai Food & Hotel China 11/11/ /11/2015 China Shanghai Natural Products Scandinavia 01/11/2015 2/11/2015 Sweden Malmö Food Ingredients Europe 01/12/ /12/2015 France Paris SIAL Middle East 07/12/ /12/2015 UAE Abu Dhabi Alimentaria Barcelona 25/04/ /04/2016 Spain Barcelona eria=78 19
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
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Prices in the market place - PLEASE REMEMBER THESE ARE ONLY PRICE INDICATIONS Grade = quality, grade, origin or other price related details. Spices Spot 550g/l Sarawak 11.00 9.50 7.50 Sarawak 10.00 9.40
More informationAll prices are quoted in US$/Kg MARKET USA JAPAN EUROPE KUWAIT PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE GRADE PRICE This Week.
12 th May 2014 Prices in the market place - PLEASE REMEMBER THESE ARE ONLY PRICE INDICATIONS Grade = quality, grade, origin or other price related details. Spices Spot 8.05 Sarawak 9.50 9.20 FAQ 500g/l
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