market insider spices market insider...mccormick & company, announced plans to take a leadership...
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Market Insider
SPICES MARKET INSIDER
Market Insider
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: http://www.intracen.org/itc/market-insider
@ITCMktInsider Copyright © Market Insider/ITC 2015. All rights reserved
INDEX SPICES NEWS AND UPDATES ........................................................................................................ 1 MARKET DYNAMICS ......................................................................................................................... 4 PRICES IN THE MARKET PLACE ..................................................................................................... 5
Spices .............................................................................................................................................. 5 PRICES IN THE MARKET PLACE ..................................................................................................... 9
Herbs ............................................................................................................................................... 9 STATISTICAL INFORMATION AND RELATED RESOURCES ...................................................... 10 EVENTS ............................................................................................................................................ 13
1 Market Insider
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Spices News and Updates
Red chilli futures approved for trading on PMEX In an endeavour to augment the portfolio of agricultural commodities in domestic market, the Securities and Exchange Commission of Pakistan (SECP) has approved launching of Red Chilli futures contracts on Pakistan Mercantile Exchange Limited (PMEX). The PMEX red chilli futures contracts will be available for trading by investors effective September 1, 2015. The prominent stakeholders such as Pakistan Agricultural Coalition, Red Chilli Grower Association, Kunri, Red Chillies Association, Sindh and significant food processing companies have also been involved in the consultation process for launch of this product to ensure its acceptability by the market participants. PMEX is a technology driven, electronic, transparent and regulated market and it will provide participants a great alternative to the traditional trading market that is burdened with middlemen and profiteers. The salient features of PMEX Red Chilli futures contracts include compulsory delivery, quality certification of red chillies and availability of multiple grades of red chillies for trading. The participation of investors at a national level market of PMEX will result in better price discovery and benefit the growers by fetching better price for their produce. The PMEX Red Chilli Futures Contract has been modelled in such a way that it will provide the processors an opportunity to procure good quality red chillies in an efficient, convenient and transparent manner.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 (USD1085) for replanting, while farmers in Karnataka will get up to INR 50,000 (USD777). 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
Concern over chilli crop in India The Financial Chronicle reports that Indian red chilli prices are on a upward trend partly owing to the demand coming from export markets and partly from the speculation of a lower than expected crop in some parts of India. The prices were around 7,200 to Rs 7,600 per quintal. Now, the prices are touching Rs 9,500 to 10,800 per quintal. However, this is expected as the stocks coming to the market are those from cold storages. The sowing for 2015-16 season has begun and the crop is about 40 days old in Andhra Pardesh, the largest producer of chili in India. However, monsoons have not been on the expected scale. Rains in the next fortnight or so will have an impact on the production and thereby on the prices. “If the reservoirs are full, the prices will fall 10 per cent. If they are not, the prices could rise by about 10 per cent,’ said Kilari Rosaiah, former president of the Guntur Chillies’ Merchants Association.
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India is also the largest exporter of chilli. Traditionally, it has been exporting to Sri Lanka, Bangladesh, Malaysia, Singapore and Pakistan. China, which itself was a large exporter, too is importing chilli from India. It was the second year in a row. As a result, the demand has shot up and the prices have shown an upward trend. Last year, about 30,000 to 40,000 tonne chilli was exported. This year it was expected to cross 50,000 tonne. The total exports of chilli from India was 3.15 lakh tonne, valued at more than Rs 1,500 crore. In anticipation of demand from China, the sowing has also increased, with Teja, the most pungent variety, accounting for more than 70 per cent. Madhya Pradesh is also a major chilli-producing state. The stocks from this state hit the market in October. However, it is said the production will be hit due to a pest attack. This is also fuelling the upward trend in prices, said Rosaiah, adding that the prices will be sustained for some time. The cold storage stocks are now about 27 lakh bags. According to Vijayanand, partner at Batkeeri Krishna Dayanand and Company at Malakpet in Hyderabad, the prices are reeling around Rs 10,000 a quintal. Stocks from here find their way to other markets in the country. Typically, about 1,000 to 1,500 bags come to the market during the non-season and these stocks are from cold storages. During the peak season from February to July, about 5,000 to 8,000 bags arrive. These are brought by farmers directly, he said. According to Ravinder Modi, managing director of Hyderabad Food, which makes the Surya brand of masale, the price rise has been sharp in the last few weeks. Source: Financial Chronicle http://www.mydigitalfc.com/
McCormick Announces plans to expand Organic and Non-GMO offerings McCormick & Company, announced plans to take a leadership position in Organic and Non-GMO herbs and spices ahead of the peak holiday season. The company announced the introduction of a Non-GMO labelled Vanilla Extract as well as plans to significantly increase the number of Organic and Non-GMO offerings in 2016. McCormick is making several important changes to its portfolio over the next 12 months. The company announced that 80% of its Gourmet herbs & spices business in the U.S. will be Organic and Non-GMO by 2016. Additionally over 70% of all McCormick branded herbs, spices and extracts in the U.S. will be labelled Non-GMO. Most of McCormick's herbs & spices are currently Non-GMO. The company will begin to label Non-GMO products to help consumers at the point of sale as part of its commitment to transparency and educating consumers about the category. This move is the first announcement under McCormick's new quality consumer education initiative. Non-GMO Vanilla extract will be the first to hit store shelves and has already begun shipping. "Our consumers are increasingly interested in quality flavors with pure ingredients in their food," said Lawrence Kurzius, McCormick's President & Chief Operating Officer. "Our effort to increase our Organic and Non-GMO offerings proves that we are listening to consumers and are committed to continuing to evolve." The announcement comes ahead of the peak fall cooking and holiday season where consumer usage of herbs, spices & extracts as key ingredients in recipe favorites increase. McCormick & Company, Incorporated is a global leader in flavor. With US$4.2 billion in annual sales, the company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry – retail outlets, food manufacturers and foodservice businesses. Source: McCormick & Company, Incorporated www.mccormickcorporation.com
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Expanding organic cultivation in Kerala In India, the Economic Times reports a developing enthusiasm for organic cultivation in Kerala State. The newspaper reports that “After the success in raising the production of organic vegetables, farmers in the state have turned to organic cultivation of cardamom, pineapple, coffee, tea and cocoa, given the widespread awareness about pesticide residues in food products.” The state government is focusing on increasing organic production of pepper and coffee in Wayanad; cardamom, tea and cocoa in Idukki; and vegetables and other products in Kasargod. "It is a continuous process. We need at least three years of organic cultivation to get APEDA (Agricultural and Processed Food Products Export Development Authority) approved certificate," said K Pratapan, state Horticulture Mission Director. Taking the cue, some cardamom and pineapple grower associations have tied up with leading agri-biotech company Camson Bio Technologies for using bio pesticides and fertilisers. "We find big scope in Kerala as the awareness on organic cultivation is high here. Our microbe extracts based fertilisers have a shelf-life of three to five years and are effective in extreme temperatures," said Santhosh Nair, CEO of Camson. The Kerala Cardamom Processing and Marketing Cooperative Society has found the initial trials with the product encouraging and is now trying it out in the cardamom plantations. Vazhakulam Pineapple Growers and Producers Private Limited is now using natural fertiliser in about 500 hectares of the total 13,000 hectares under pineapple cultivation in the state. Kerala government is encouraging farmer clusters to take up organic cultivation and training them to produce their own bio fertilisers through cattle rearing. About 200 such clusters have been formed in the state. Source: The Economic Times http://economictimes.indiatimes.com/news/economy/agriculture
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Market Dynamics Pepper – Pepper prices drifted further from the highs 10 weeks ago. 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
Indian exports of cumin are increasing as the Syrian conflict disrupts planting, supplies and the willingness to make contracts. Trade sources report beneficial rains in South Eastern Europe leading to good crops of coriander in Romania and Bulgaria with a light coloured seed. Ukraine on the other hand has been drier and the seed somewhat darker.
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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 10.91 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
FAQ 500g/l 10.80 9.60 10.70 Lampung FAQ 500g/l 8.90 9.60 11.75
Steam treated 550g/l
11.00 Brazil
White Pepper
Muntok FAQ spot 15.65 14.60 15.20 Muntok 16.50 16.50 15.00 Muntok FAQ spot 14.00 14.60 15.40
Sarawak 17.00 17.00 17.00 Steam treated Muntok spot
15.65
Vietnam 15.20 Vietnam 14.00 14.60
Aniseed Whole China star 6.85
Vietnam Star
6.26
Turkish/Syrian 4.63 4.63 4.75 Syrian 2.97 3.41 4.45
Caraway Canadian 3.42 3.09 2.30 FAQ
Dutch European 3.14 2.03 2.52
Cardamom Bold 15.98 15.98 16.75 India AGS1 MYQ 4.84 n/a
Seed 9.37 India AGS Bold 12.05 18.25
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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 2.03 2.20 China whole 3.70 3.70 3.50 Korintji B Br & Cl 1.87 1.60
Vera C/W AA 4.03 4.19 4.75 China broken 3.50 3.50 3.30 Vera AA 3.85 1.71 5.48
Vietnamese 5ML/SVO
4.30 Vietnam QNV 3.80 3.80 3.60
Celery Indian spot 2.03 1.98 2.00 Indian Indian 99% 2.52
Chili Indian S4 3.20 2.91 2.55 Indian Sanna S4 grade
Malawi 3.97 3.97 3.95 Chinese African Bird’s Eye 10.00 10.00 6.38
Cinnamon Ceylon H2 12.02 12.02 10.36 Sri Lanka C5 SP Sri Lanka c5 cut 20.57
Cloves
Sri Lanka hand picked
19.29 19.29 20.40 Madagascar 10.50 12.00 14.00 Comores / Madagascar
9.02 10.12 16.05
Comores/ Mada 11.79 10.12 14.35 Zanzibar 13.00 13.00 15.00
Indo stems
Coriander Bulgarian 1.98 1.60 98% East European 1.05 1.35 2.32
Canadian 2.25
Cumin
Turkish 3.31 3.75 2.95 Turkish 98%
Syrian Syrian 99% 2.97 2.80 4.50
Indian Indian Indian 99%
Dill Indian 1.81 1.81 1.77 Indian 99% 2.50
Fennel Fancy Egyptian 2.60 2.54 2.55 Egyptian99% 3.30
Indian ASTA 2.43 1.81 2.30 Indian Indian 99%
Fenugreek Indian 99% 1.72 1.59 1.30 Indian 99% 1.38 0.62 1.75
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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
Garlic
Ch. Powder 3.20 2.98 2.65 Flakes n/a 2.00 3.80
Ch. Granulated 3.64 3.26 2.85 Powder 2.42 1.30 2.75
Granules 3.30 2.70 3.22
Ginger
Cochin 5.73 5.73 5.29 Cochin Cochin
Chinese sliced Chinese sliced Chinese sliced 4.84 5.30 7.30
Chinese peeled 4.63 5.71 4.80 Chinese whole Chinese peeled 5.12 5.50 5.60
Nigerian 3.53 3.64 3.40 Nigerian 3.03 3.50 2.35
Mace Papua broken 25.90 25.90 32.00 Siauw whole 18.00 18.50 22.50 PNG Broken n/a 11.50 29.34
Indonesian 24.85
Mustard
No 1 Yellow Canadian
1.74 1.57 1.57 Canada Yellow 0.79 1.26 1.80
Brown oriental 1.54 1.54 1.54 Canada Brown 1.08 1.21 1.87
Nutmeg
E.I. ABCDs 18.08 15.00 20.39 Indo 110's 14.00 17.50 20.00 Indonesian SS 11.75 12.00 29.15
E.I. cracked 16.00 WI 110's
EI ABCDs 12.25
Onion Egypt pow Powder 2.40 2.38 3.10
India pow Flakes 3.03 3.80
Paprika
Spanish 120 ASTA 4.63 5.18 5.18
Spanish visual Spanish 80 ASTA 3.30
Hungarian 7.17 7.17 6.83 Hungarian 100 ASTA
Peru ASTA 3.39 3.39 2.87 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 Ago
This Week 2 Month ago 1 Year Ago
Pimento Mex/Guatemala 4.63 5.07 4.75 Mexican 5.25 5.25 5.00 Mexico 3.41 4.00 5.09
Jamaica 12.89 11.57 8.70 Jamaica Jamaica 10.84 7.70 6.90
Poppy Dutch Turkish
2.54
2.60
2.75 Dutch 2.37 3.03
Sesame
Indian Natural
Indian hulled 2.32 2.54 Indian Hulled 1.89 2.25
Turmeric
Alleppey 5% curcumin
3.31 3.53 Madras fingers 2.20 2.20 1.80 Madras fingers 3.80
3.53 Alleppey fingers Powder 1.63
Vanilla!
Bourbon 70-100 70-100 Extract/ Gourmet 70-100 70-100 45.0/ 55.0 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 2.65 2.76 3.09 Egypt 3.41 3.25 3.65
Egyptian Extra Fancy Egypt fines
Bay leaves
Turkish Fancy FAQ HPS
6.77 10.84
6.55 10.62
Turkish semi select 3.73 3.73 3.86 Turkish semi-select
5.95
Chervil German 8.20 8.20 9.48
Dill weed
Egyptian 4.08 4.08 7.65 Cut 8.64 8.20 n/q
Californian 13.90
Marjoram Egypt Fancy 3.53 3.64 3.85 Egypt 4.13 4.24 5.10
Mint
5.07
Spearmint 4.12 6.50 6.50 Egyptian 3.74 4.24 4.65
Oregano Turkish 30# 3.31 3.31 6.40 Turkish 3.91 4.24 5.10
Parsley
Israeli 7.00 7.00 7.00 European 2mm
5.45 5.34 6.25
USA 8.16 8.16 8.16
Rosemary Morocco 2.09 2.09 2.10 Morocco
Spanish Spanish 2.26 2.15 2.40
Saffron Spanish 2,315 2,315 2,425 Iranian 2,500 2,500 7,770
Sage Albanian 4.08 4.08 4.30 Turkish 5.12 5.12 6.00
Savoury Albanian 3.30 3.30 3.30 German 4.18 4.34 6.13
Tarragon Spanish 24.14 27.56 French 19.53 19.52 22.90
Thyme Spanish 4.08 3.64 4.08 Spanish 3.14 3.14 3.55
Moroccan 3.85 Moroccan
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Statistical information and related resources All statistics sourced UN COMTRADE (http://comtrade.un.org/ )
Exports of pepper from the major producers
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Events
Event Start Date End Date Country City URL
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
Sweets & Snacks Dubai 27/10/2015 29/10/2015 UAE Dubai http://www.sweetsmiddleeast.com/
Natural Products Scandinavia 01/11/2015 2/11/2015 Sweden Malmö http://www.naturalproductsscandinavia.com/
Vanilla 2015 03/11/2015 05/11/2015 USA Jamesburg, NJ http://www.vanilla2015.com/
Food & Hotel China 11/11/2015 13/11/2015 China Shanghai http://www.fhcchina.com/en/index.asp
43rd Session & other meetings of the IPC
22/11/2015 25/11/2015 India Mysore http://www.ipcnet.org/session43india/index.php?p=register
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/
Gulfood 2016 21/02/2015 25/02/2015 UAE Dubai http://www.gulfood.com/
World Spice Congress 27/02/2015 29/02/2015 India Ahmedabad http://www.worldspicecongress.com/
ASTA Annual Meeting 10/04/2016 13/04/2013 USA Scottsdale http://www.astaspice.org/
Alimentaria Barcelona 25/04/2016 28/04/2016 Spain Barcelona http://www.feriasalimentarias.com/main/oblea.asp?id_feria=78
Food Ingredients Vietnam 18/05/2016 20/05/2016 Vietnam Saigon http://www.figlobal.com/vietnam/home