Market Insider

SPICES MARKET INSIDER

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

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Spices News and Updates

Marketing spice flavoured chocolates The Economic Times of India reports that the Spices Board are in discussion with chocolate manufacturers for marketing spice flavoured chocolates. Talks with Cadbury, Amul and Nestle have explored the opportunities for marketing spiced chocolate in domestic and international markets. The Spices Board currently sells six different spice-flavoured chocolates, using cinnamon, cardamom, cumin, chili, clove and mace. Other innovative products incorporating spices are planned such as cosmetics, fragrances, candles, soaps and textiles.

Rise in the demand for Indian dehydrated onion

Indian domestic demand for dehydrated onion has risen steeply over the past two years, reports The Economic Times of India. The rise is the result of the rapidly growing demand for fast-foods and ready to eat meals in the domestic market. The production of dehydrated onions is focused in Mahuva in Gujarat State, and here 62 dehydration units are now being supplemented with a further five to keep pace with demand. Annual turnover in the Mahuva onion dehydration industry is said to be of the order of INR500 crore (approx. USD84mn).

Viet Nam Industry and Trade Center (VITIC)

The Vietnam Industry and Trade Center (VITIC) quoted a forecast of the Vietnam Pepper Association that pepper output in 2014 should hit 150,000 tonnes. This would represent a 30,000 tonne increase over 2013 when exports earned USD 900 million for the economy.

Prime Minister of Grenada signs two Memoranda of Understanding on sustainable development with the Dutch Government. The Prime Minister of Grenada, Dr Keith Mitchell, was in The Hague recently to sign two Memoranda of Understanding on sustainable development with the Dutch Government. The MOUs encompass the “Blue Economy” and “Climate-Smart Agriculture” as two integrated programmes to improve sustainable productivity at land, and at sea, so as to benefit farmers, fishermen, agri-businesses and tourism businesses. Under the MOU arrangements the Netherlands is providing EC$5 million to Grenada. The Netherlands will also work with Grenada to attract a further EC$ 5 million from the Dutch private sector banks and businesses. The cooperation agreement with the Netherlands envisages the establishment of an International Spice Institute, to be co-located in Grenada and the Netherlands, and the establishment in Grenada of a Blue Economy and Oceans Governance Institute. The institutes will help Grenada to grow its economy through more value-added agri-business products, and through the development of an ocean-based economy that builds on fisheries and tourism.

Unification of commodity boards, Grenada Cooperative Nutmeg Association (GCNA) and the Grenada Cocoa Association The Grenada Cooperative Nutmeg Association (GCNA) and the Grenada Cocoa Association are taking their first steps towards amalgamation. The unification of the commodity boards is expected to result in improved extension services by both associations to better serve farmers. For example more field officers will be on call to assist farmers; at present one field officer is responsible for

some 3000 farmers. The amalgamation will be formally proposed at the upcoming GCNA annual general meeting this month.

Flavour company sale The German food and drink flavour company Wild is up for sale and is expected to be valued at around Euro 1.5 billion. Wild is the sixth largest flavour provider in the world and has grown from its foundation in 1931 in Germany to 2013 sales of Euro 900 million from its present base in Switzerland. According to the Reuters news agency bidders might include ADM, Tate & Lyle, Givaudan, the Japanese seasonings group Ajinomoto and private equity firm EQT.

Cinnamon Web site www.foodmanufacture.co.uk report that the increasing interest in cinnamon’s health properties has led to its use in more foods. They note its increasing use in baked goods, pastries and confectionery as well as breakfast cereals and ready meals. They go on to warn, however, that heavy rainfall in producer countries has affected supply and prices are now about 20% up year-on-year. Wet weather in Indonesia (the major supplier of cassia rather than cinnamon in the strict sense) has impacted on the drying process and increased the effort needed to produce exportable quality. As the weather turns drier, so the supply problem should ease.

New products for Synthite The Hindu Business Line reports that Synthite of India has launched a number of new products in the fast-growing curry masala market. The products marketed under the “Kitchen Treasures” label, include chicken and fish spice blends plus six basic spice powders such as chilli, turmeric and coriander among others. George Paul, Managing Director of Synthite, said that the company was targeting sales of INR30 crore (about USD5 million) in the first year of operations.

Harvesting of cloves has begun The Hindu Business Line reports that harvesting of cloves has begun in the Comoros, and the crop is expected in the market shortly. Comoros production is projected at 3,000 tonnes. Business Line reported market sources anticipating comparatively good crops in Madagascar, Zanzibar, Brazil and Sri Lanka. This year, Indonesia’s crop is estimated to be between 80,000 and 90,000 tonnes. It is expected to be fully absorbed by local cigarette companies there, sources said. Sri Lanka, where the crop was small last year, will harvest a bumper crop this year while the output in Madagascar, Zanzibar and Brazil is pegged at 15,000 tonnes, 3,000 tonnes, and 2,000 tonnes, respectively. According to traders, India needs 10,000 tonnes a year, but this year imports have been lower because of the high rupee-dollar exchange rate. Much of the domestic demand is met by imports as Indian production is constantly between 1,500 and 2,000 tonnes.

Sustainable spices The Sustainable Spices Initiative (SSI) (www.sustainablespicesinitiative.com/) a coalition of leading spice companies and NGOs, report that one of its members, Nedspice, has obtained, as the first international company, ‘Rainforest Alliance’-/RA-certification on pepper in Vietnam. Via the ‘Nedspice-Farmers Partnership Programme’, the company has built relationships with farmers in Binh Phuoc, one of the main Pepper producing provinces of Vietnam. The company provides farmers with training on agricultural best-practice, a more secured market access, and a price premium as well as Nedspice’s community outreach activities and market intelligence.

Nedspice, in turn, has achieved higher level of quality compliant products, stronger traceability, cultivation intelligence and a more secured supply via project-associated collector and farmer clubs. The standards applied for Nedspice’s sustainability project in Binh Phuoc are mainly the SAN- and SAC-standards, where guiding principles help focus on environmental improvement and social developments, while they also encourages farmers to alter their cultivation practices to conserve water, protect wildlife, conserve soil, manage their crops better, etc.. Both these standards are required to obtain RA-certification. Through this project there are already 247 hectares being cultivated sustainably. During the first year of the Nedspice-project, about 300 farmers were trained and coached in agricultural best-practice, eventually leading to 202 farmers qualifying for Nedspice’s RA-certification. During the 2

nd year of the project, Nedspice expects to build more farmer-relationships, aiming at 700 farmers

in 2015. These results help SSI meet its target ambition of 20% of all pepper imported in the European Union to be sustainably cultivated by 2015. SSI’s part-funding of the Nedspice project was used to establish capacity building among farmers and in farmer clubs, stimulate crop-diversification and offer technical assistance to increase the farmers’ knowledge of agricultural best-practice and facilitate farmers to have access a more integrated supply chain.

Indonesia hosts pepper working group The Ministry of Agriculture of Indonesia has recently hosted and organized the ASEAN National Focal Point Working Group (ANFPWG) on Pepper in Surabaya, East Java. The meeting of 6th and 7th of May 2014 was attended by delegates from Indonesia, Malaysia and Philippines. The Meeting of ANFPWG on Pepper is under the umbrella of the Association of South Asia Nations (ASEAN). Indonesia is the lead country for this working group. The Meeting of ANFPWG on pepper aimed at improving the pepper trade among ASEAN countries and strengthening the cooperation in overcoming the trade barriers among the member countries. Among the issues discussed in the Meeting were strengthening the cooperation for developing the pepper industry, control of pests and diseases, sustainability and products diversification of the pepper and pepper based products.

Pepper days Pepper Days have recently been held in Indonesia and Malaysia. These follow decisions made in the last Annual Session and Meetings of IPC to have promotion programme to increase the domestic consumption of pepper in the IPC member countries. Honorable Vice Minister of Trade, Mr. Bayu Krishnamurti inaugurated the Pepper Day programme held in Jakarta, which was attended by over 100 participants including Ambassadors/ representatives of the Embassies of IPC member countries. Meanwhile in Maysia, Pepper Day was held at AEON Mall Kulaijaya, Johor from 23rd to 25th May 2014. The programme was attended by the more than 1,000 participants from west Malaysia and Singapore. The highlight of the program was the launching of the Bio-Chemical Fertilizer and BBQ Sauce from Perusahaan Azharazad. Other activities during Pepper Day in Malaysia were exhibition and sales by entrepreneurs selling pepper and pepper based products, junior chef competition, celebrity chef cooking demonstrations, pepper quiz, dialogue session with pepper farmers and also distribution of fresh pepper cuttings to the public.

European Spice association meet in Murcia The European Spice Association held its General Assembly in Murcia on 5

th /6

th June. Around 300

delegates attended a successful meeting, located in the centre of the Spanish pepper industry.

Market Dynamics

Ginger – Reported as firm by traders. Prices are edging upwards. Pepper – Trade sources report a frim market for black pepper: prices edging upwards on pervasive bullish sentiment. Yet buying remains sluggish with indications that Mid-East buyers were well covered in advance of an early Ramadan. Some rumours of a potential squeeze in supply in Vietnam. The International Pepper Community (IPC) reported domestic prices in producing countries as follows: Producer Prices in US$ / tonne*

Market Insider

Spices

Prices in the market place

Spices All prices are quoted in US$/Kg

MARKET → USA JAPAN EUROPE KUWAIT

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE GRADE PRICE

This

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Black Pepper

Spot 550g/l 9.15 8.05 Sarawak 9.50 9.30 6.90 FAQ 500g/l 8.20 7.15

Tellicherry Extra Bold

11.02 Mal MG-1 14.50 13.00 7.40 FAQ 550g/l 8.55 7.80 MG1

Nearby Delivery

7.61 Lampung SteamTreated 550g/l

FAQ Vietnam

Steam treated 550g/l

Brazil

White Pepper

Muntok FAQ spot

14.88 12.68 Muntok 13.50 11.00 Muntok FAQ spot

11.77 11.65 FAQ

Muntok nearby

Brazil Brazilian spot

Sarawak 16.00 16.00 Steam treated Muntok spot

Vietnam 10.36 Vietnam 11.40 10.50

Aniseed

Whole China star

6.83 China Star 7.60

Turkish/Syrian

4.63 4.08 Syrian 1% 3.70 3.85

Caraway

Canadian 2.25 2.20 FAQ

Dutch Dutch 1.66 1.97

Cardamom

Fancy Green

5.76 India AGS1 MYQ 5.00 5.75 No 1

Mixed Green

India AGS Bold 12.00 13.23 No 2

Market Insider Spices

All prices are quoted in US$/Kg

MARKET → USA JAPAN EUROPE KUWAIT

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE GRADE PRICE

This

Week 2 Month

ago 1 Year

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Cassia

Korintji A 3.00 ML/SVO

2.47 China whole 3.00 3.00 2.90 Korintji B Br & Cl

2.10

Vera C/W AA

4.52 China broken 2.80 2.80 2.65 Vera AA China broken

Vietnamese 5ML/SVO

Vietnam QNV

3.15 3.15 3.00

Celery Indian spot 1.63 Indian Indian 99% 1.60

Chili

Indian S4 2.54 Indian Sannam

S4 grade 2.65 Indian powder

African fukien

3.97 Chinese Malawi Bird’s Eye

4.30 5.00 Pakistan powder

Cinnamon Ceylon H2 10.36

Sri Lanka C5 SP

Sri Lanka c5 cut

Cloves

Sri Lanka hand picked

21.50 17.90 Madagascar 15.50 15.50 13.80 Comores / Madagascar

14.10 13.80

Zanzibar Zanzibar 16.00 16.00 15.00

Indo stems

Coriander Bulgarian

98% East European

1.80 1.97 Indian

Canadian 1.87

Cumin

Turkish 2.65 2.76 Turkish 98%

Syrian Syrian 99% 3.15 3.05 Iran

Indian Indian Indian 99% Indian

Dill Indian 1.77 Indian 99%

Fennel

Fancy Egyptian

2.82 Egyptian99%

Indian ASTA

2.25 Indian Indian 99% 3.07 Indian

Market Insider

Spices

All prices are quoted in US$/Kg

MARKET → USA JAPAN EUROPE KUWAIT

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE GRADE PRICE

This

Week 2 Month

ago 1 Year

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Week 2 Month

ago 1 Year

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Week 2 Month

ago 1 Year

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Fenugreek Turkey 1.21 1.10 Indian 99% 0.70 0.86 Indian

Garlic

Ch. Powder 2.38 Flakes 2.25 2.48

Ch. Gran’ed 2.60 Powder 1.55 2.09

Granules 3.04 2.34

Ginger

Cochin 5.29 Cochin Cochin 4.30

Chinese sliced

Chinese sliced

Chinese sliced

5.00 Chinese

Chinese peeled

4.74 463 Chinese whole

Chinese peeled

5.40 4.98

Nigerian 3.20 3.20 Nigerian 2.70 2.25

Mace

Siauw No 2 siftings

32.00 35.27 Siauw whole 22.50 22.50 29.00 PNG Whole 15.80 16.00

Indonesian

Mustard

No 1 Yellow Canadian

1.57 1.57 Canada Yellow

1.36

Brown Canadian

1.54 1.54 Canada Brown

1.31 Indian

India

Nutmeg

E.I. ABCDs 20.39 20.39 Indo 110's 20.00 20.00 25.00 Indonesian SS

18.00 15.20

E.I. cracked 18.19 WI 110's 16.90

Onion Egypt pow Powder 2.02

India pow Flakes 2.43

Paprika

Spanish 120 ASTA

5.18 Spanish 80 ASTA

2.70

Hungarian 6.83

Peru ASTA 2.09 Peru HT90 ASTA

Market Insider Spices

All prices are quoted in US$/Kg

MARKET → USA JAPAN EUROPE KUWAIT

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE GRADE PRICE

This

Week 2 Month

ago 1 Year

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ago 1 Year

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Pimento

Mexico/Guatemala

4.30 4.30 Mexican 4.80 5.00 5.25 Mexico 3.90 4.45

Jamaica 6.95 6.95 Jamaica 6.50 Jamaica 6.20 6.50

Poppy Dutch Dutch 4.00

Turkish 2.71 Turkey

Sesame

Indian Natural

Central American hulled

Indian hulled

3.35 Indian Hulled 3.00 Indian Hulled

Turmeric

Madras fingers

3.53 Madras fingers

1.75 1.70 2.00 Madras fingers

Alleppey fingers

Powder 1.74

Indian Rajapuri

Madras powder

Vanilla!

Bourbon Extract/ Gourmet

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.

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 3.09 3.09 Egypt 4.05 2.91

Egyptian Extra Fancy Egypt fines

Bay leaves

Turkish Fancy FAQ

Turkish semi select 3.86 3.86 Turkish

semi-select 6.80 5.15

Chervil German 9.68

Dill weed

Egyptian 7.17 1.85 Cut 2.68 2.71

Californian 13.90

Marjoram Egypt Fancy 3.97 3.97 Egypt 5.43 3.88

Mint

Peppermint 5.07

Spearmint 6.50 6.50 Egyptian 6.04 6.12

Oregano Turkish 30# 3.31 6.28 Turkish 7.83 3.45

Parsley

Israeli 6.50 6.50 European

2mm 6.73 6.81

USA 8.16

Rosemary Morocco 1.97 1.96 Morocco 2.17

Spanish Spanish 2.54 2.17

Saffron Spanish Iranian 6,800

Sage Albanian 5.07 5.07 Turkish 6.38 6.46

Savoury Albanian 3.53 German 5.29 5.35

Tarragon French 4.08 27.56 French 24.36 24.67

Thyme Spanish 4.08 3.88 Spanish 3.20

Moroccan 3.88 Moroccan 3.78 3.20

Statistical information and related resources

Update of USA Spice & Herb Imports

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2009 2010 2011 2012 2013

ton

nes

Imports of Black Pepper to the USA

Vietnam Indonesia Brazil India China World

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011 2012 2013

ton

nes

Imports of White Pepper to the USA

Indonesia Vietnam World

0

200

400

600

800

1,000

1,200

2009 2010 2011 2012 2013

ton

nes

Imports of Cardamoms to the USA

Guatemala India Colombia China World

0

5,000

10,000

15,000

20,000

25,000

30,000

2009 2010 2011 2012 2013

ton

nes

Imports of Cinnamon and cassia to the USA

Indonesia Viet Nam Sri Lanka China World

0

500

1,000

1,500

2,000

2,500

2009 2010 2011 2012 2013

ton

nes

Imports of Cloves to the USA

Indonesia Madagascar Brazil Comoros India World

0

1,000

2,000

3,000

4,000

5,000

6,000

2009 2010 2011 2012 2013

ton

nes

Imports of Coriander seed to the USA

Canada India Bulgaria Romania World

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2009 2010 2011 2012 2013

ton

nes

Imports of Cumin to the USA

India Turkey Syria Spain World

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2009 2010 2011 2012 2013

ton

nes

Imports of Ginger to the USA

China Brazil Peru Costa Rica

India Nigeria World

0.00

100.00

200.00

300.00

400.00

500.00

600.00

2009 2010 2011 2012 2013

ton

nes

Imports of Mace to the USA

Indonesia India Sri Lanka Grenada World

0

500

1,000

1,500

2,000

2,500

2009 2010 2011 2012 2013

ton

nes

Imports of Nutmeg to the USA

Indonesia India Sri Lanka Grenada World

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2009 2010 2011 2012 2013

ton

nes

Imports of Saffron to the USA

Spain Portugal United Kingdom World

0

1,000

2,000

3,000

4,000

5,000

2009 2010 2011 2012 2013

ton

nes

Imports of Turmeric to the USA

India Fiji Jamaica World

0

500

1,000

1,500

2,000

2,500

2009 2010 2011 2012 2013

ton

nes

Imports of Vanilla to the USA

Madagascar Indonesia India Uganda World

Events

Event Start Date End Date Country City URL

IFT 21/06/2014 24/06/2014 USA New Orleans

www.am-fe.ift.org

International Pepper Conclave 24/06/2014 25/06/2014 UAE Dubai www.ipcnet.org/

Food Ingredients South America

05/08/2014 07/08/2014 Brazil Sao Paulo www.foodingredientsglobal.com/southamerica/home

Inprodmash 09/09/2014 11/09/2014 Ukraine Kiev www.inprodmash.ua

Brazil Alimentaria 15/09/2014 18/09/2014 Brazil Sao Paulo www.alimentariabrasil.com.br

World Food Moscow 15/09/2014 18/09/2014 Russia Moscow www.world-food.ru

Natural Products Expo East 17/09/2014 20/09/2014 USA Baltimore www.expoeast.com

Annapoorna World of Food India

24/09/2014 26/09/2014 India Mumbai www.worldoffoodindia.com

Food Ingredients India 29/09/2014 01/10/2014 India Mumbai www.foodingredientsglobal.com/india/home

Agroprodmash 06/10/2014 10/10/2014 Russia Moscow www.agroprodmash-expo.ru

Food Ingredients Asia 15/10/2014 17/10/2014 Indonesia Jakarta www.foodingredientsglobal.com/asia-indonesia/home

SIAL 19/10/2014 23/10/2014 France Paris www.sialparis.com

42nd Session and Meetings of IPC

27/10/2014 30/10/2014 Vietnam Ho Chi Minh www.ipcnet.org

World Food Kazakhstan 05/11/2014 07/11/2014 Kazakhstan Astana www.worldfood.kz

Gulfood Manufacturing 09/11/2014 11/11/2014 UAE Dubai www.gulfoodmanufacturing.com

World of Food Beijing 26/11/2014 28/11/2014 China Beijing www.worldoffoodbeijing.com

Horecava 12/01/2015 15/01/2015 Netherlands Amsterdam www.horecava.nl/

Gulfood 08/02/2015 12/02/2015 UAE Dubai www.gulfood.com

Prod Expo 09/02/2015 13/02/2015 Russia Moscow www.prod-expo.ru

International Food & Drink Event

22/03/2015 25/03/2015 UK London www.ife.co.uk

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

IBA 12/09/2015 17/09/2015 Germany Munich www.messe-duesseldorf.de

ANUGA 10/10/2015 14/10/2015 Germany Cologne www.anuga.de

Food Ingredients Europe 01/12/2015 03/12/2015 France Paris www.foodingredientsglobal.com/europe/home