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SPICES MARKET INSIDER

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Spices

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INDEX

SPICES NEWS AND UPDATES ........................................................................................................ 3 MARKET DYNAMICS ......................................................................................................................... 7 PRICES IN THE MARKET PLACE ..................................................................................................... 9

Spices .............................................................................................................................................. 9 PRICES IN THE MARKET PLACE ................................................................................................... 13

Herbs .............................................................................................................................................13 STATISTICAL INFORMATION AND RELATED RESOURCES ...................................................... 14 EVENTS ............................................................................................................................................ 16

3

Spices News and Updates A round-up of news items in September 2016

Chili – Prices remain weak, and the progress of the monsoon, the availability of water and

the impact of pest and disease will be the principal drivers in the market.

Turmeric –Demand picking up as India moves into the festival season, and, with low carry

over, the market is predicted to be firm for the time being. Further ahead, better sowing

estimates and favourable climate will likely limit the upside.

Black pepper – Good growing conditions are reported to continue, and should result in firm

supply to the markets for the next crop.

Vanilla market continues in turmoil

The first reports of the Madagascar crop are that quality will remain very poor, resulting in

extreme shortage of good quality vanilla, forcing prices still higher. No respite is forseen

in the short term.

4

Symrise sustainability

Symrise acheives notable sustainability

- Sustainability rating agency EcoVadis awards Symrise gold status for its corporate social

responsibility

- Systematic valuation of sustainability with regard to the environment, social aspects,

ethics and sourcing management

- Reference portal for strategically important customers and partners

For the second time running, EcoVadis has awarded the fragrance and flavoring

manufacturer Symrise gold status for its responsible corporate business practices. In terms

of ecological, social and ethical sustainability, the German company is among the top 2.79

percent of the manufacturers of chemical basic materials evaluated by EcoVadis. Symrise

thus supplies strategic key customers with all important data regarding sustainability in the

supply chain at a glance.

EcoVadis analyzes and rates the corporate social responsibility (CSR) of companies

according to 21 criteria in the areas of the environment, social aspects, ethics and

sustainability in the supply chain. The aim is to make it easier to integrate sustainability

criteria into business relationships. That would allow companies to determine quickly

whether their suppliers fulfill their own sustainability standards. Key companies in the

consumer goods industry in particular use the EcoVadis online portal to evaluate suppliers

in this regard. More than 10,000 suppliers are now registered there.

5

“The CSR rating by EcoVadis allows us to transparently present our sustainability

achievements to current and new customers and thus to establish ourselves as preferred

partners,” Dr. Helmut Frieden, Vice President Corporate Sustainability at Symrise,

explained. “This method shines a light on all relevant sustainability criteria in a

standardized and goal-oriented manner.”

Making CSR comparable

EcoVadis analysts first compare the services of the company in the four sub-areas of the

environment, social aspects, ethics and sustainability in the supply chain. The results are

shown for each sub-area using an index value between 0 and 100 points. These sub-results

are then weighted based on the industry and the size of the company to determine the

overall CSR rating. For major manufacturers of chemical raw materials, the key areas are

social aspects, which include working conditions, and environmental protection. The

companies in this industry that were evaluated received an average of 43 of 100 possible

points.

Top marks for Symrise

Symrise achieved a rating far above the industry average for its corporate social

responsibility with 68 points. This puts the company into the top 2.79 percent of

manufacturers of chemical raw materials evaluated by EcoVadis. In the sub-area of the

environment Symrise is even in the top two percent with 80 points, and in terms of

sustainability in the supply chain the company is in the leading 0.7 percent.

“We are very happy with our excellent results,” says Frieden. “On the one hand, it is

encouraging recognition from outside the company for our efforts to become more

6

sustainable. On the other hand, it is also important for the success of the company since

strategically significant customers require a CSR rating of at least 65 points in order to do

business together.”

About Symrise

Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients and raw

materials, as well as functional ingredients. Its clients include manufacturers of perfumes,

cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional

supplements and pet food. Its sales of more than € 2.6 billion in the 2015 fiscal year make

Symrise a leading global provider in the flavors and fragrances market. Headquartered in

Holzminden, Germany, the Group is represented in over 40 countries in Europe, Africa, the

Middle East, Asia, the United States and Latin America. Symrise works with its clients to

develop new ideas and market-ready concepts for products that form an indispensable part

of everyday life. Economic success and corporate responsibility are inextricably linked as

part of this process. Symrise thus takes sustainability into account in every part of its

corporate strategy. The company was awarded the German Sustainability Award in 2012.

In 2013, Symrise was certified as a “Green Company” by DQS.

Source: Symrise

7

Market Dynamics A general weakness in spice prices is continuing, with supplies continuing strong, and able to meet

demand.

Pepper – Prices in the destination markets weakened with slack demand.

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

Chilies – reports from India say good arrivals of current crop continue with a good outlook for new

plantings.

Cloves, coriander, cumin, pimento, turmeric – Prices continuing weak

Garlic – Prices continue to be strong in all markets, with USA leading the way, but Europe

following.

Ginger – No change.

8

Vanilla – Prices still at super high levels, with the trade expecting further increases towards the end

of the year. Everyone knows that this cannot continue, and at some stage prices will choke off

demand and a price crash will follow – but the question is, when will this happen?

9 Market Insider

Spices

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 8.55 11.50 11.50 Sarawak 8.86 9.50 10.80 Sarawak

Mal MG1 Mal MG-1 12.80 12.90 12.30 FAQ 550g/l 8.75 9.75 10.60

FAQ 500g/l 8.36 10.50 10.69 Lampung FAQ 500g/l 8.45 8.80 10.00

Steam treated 550g/l

Brazil

White Pepper

Muntok FAQ spot 13.75 15.65 Muntok 12.10 14.30 16.50 Muntok FAQ spot 12.40 13.50 14.80

Sarawak 13.05 14.50 17.00 Steam treated Muntok spot

Vietnam 12.10 Vietnam 11.90 12.45 14.80

Aniseed Spanish 4.35

Vietnam Star

Turkish/Syrian 4.37 4.63 Syrian /Spanish 3.08 3.27 3.33

Caraway Canadian 3.64 3.20 FAQ

Dutch 2.87 European 2.75 3.33 2.88

Cardamom Bold 15.30 15.00 15.98 India AGS1 MYQ 4.72 5.20

Seed 9.40 8.0 9.37 India AGS Bold 12.00 10.16

10 Market Insider

Spices

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

2.50 n/a 2.03 China whole 3.70 3.70 3.70 Korintji B Br & Cl 2.20 2.37 1.92

Vera C/W AA 4.90 n/a 4.08 China broken 3.50 3.50 3.50 Vera AA 3.90 n/a

Vietnamese 5ML/SVO

Vietnam QNV 3.80 3.80 3.80

Celery Indian spot 2.10 2.34 2.03 Indian Indian 99% n/q n/q

Chili Indian S4 3.86 3.04 Indian Sanna S4 grade

Malawi 3.90 n/a 3.97 Chinese African Bird’s Eye 11.25 11.25 10.00

Cinnamon Ceylon c5 14.45 n/a 12.02 Sri Lanka C5 SP Sri Lanka c5 cut n/q n/q

Cloves

Sri Lanka hand picked

19.29 19.29 Madagascar 9.00 10.00 10.50 Comores / Madagascar

9.13 9.32 9.83

Comores/ Mada 10.30 11.79 11.79 Zanzibar 13.00

Indo stems

Coriander Bulgarian 1.27 1.00 1.98 98% East European 0.85 0.94 1.30

Canadian

Cumin

Turkish 3.05 3.42 Iranian 99%

Syrian Syrian 99% 3.10

Indian 3.62 Indian Indian 99% 3.15 3.05

Dill Indian 2.83 1.98 1.81 Indian 99% n/q n/q

Fennel Fancy Egyptian 2.60 2.54 2.54 Egyptian99%

Indian ASTA 2.09 2.09 2.32 Indian Indian 99% 1.83 1.83

Fenugreek Indian 99% 1.65 1.54 1.72 Indian 99% 0.95 0.94 1.41

11 Market Insider

Spices

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 8.60 4.71 3.20 Flakes 9.50 4.50 n/a

Ch. Granulated 10.40 5.64 3.62 Powder 7.00 4.38 2.66

Granules 8.40 5.97 3.33

Ginger

Cochin 5.25 n/a 5.73 Cochin Cochin n/q n/q

Chinese sliced 3.40 Chinese sliced Chinese sliced 2.90 3.27 4.80

Chinese peeled 3.53 4.00 4.74 Chinese whole Chinese peeled 3.30 3.89 5.20

Nigerian 3.60 3.00 3.53 Nigerian 2.75 2.80 3.03

Mace Papua broken 25.90 15.50 25.90 Siauw whole 19.50 19.50 18.00 PNG Broken 14.00 n/a n/a

W Indian 12.50 12.50

Mustard

No 1 Yellow Canadian

1.70 1.80 1.74 Ukraine Yellow 0.76 0.78 0.79

Brown oriental 1.50 1.60 1.54 Ukraine Brown 0.86 0.83 0.83

Nutmeg

E.I. ABCDs 15.98 13.50 18.08 Indo 110's 17.00 17.00 15.50 Indonesian SS 11.14 12.38 n/a

E.I. SS 14.11 13.20 WI 110's 10.00

EI ABCDs 12.04 12.50 12.71

Onion Egypt pow Powder 1.62 1.70 2.46

India pow Flakes 1.79 1.78

Paprika

Spanish 120 ASTA

3.51 4.37 4.63 Chinese 100ASTA 1.74 1.83

Spanish visual Spanish 80 ASTA n/q n/q

Hungarian 7.17 7.05 7.17 Hungarian 100 ASTA

n/q n/q

Peru ASTA 2.87 4.30 3.39 Peru HT90 ASTA n/q n/q

12 Market Insider

Spices

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 4.65 4.00 4.63 Mexican 4.50 5.00 5.25 Mexico 3.30 3.00 3.90

Jamaica 12.90 10.00 12.89 Jamaica Jamaica 8.50 8.80 n/a

Poppy Turkish 1.85 2.90

2.54 Dutch 1.85 2.16 2.25

Sesame

Indian Natural 1.66 1.60 Indian natural 1.60 1.50

Indian hulled 1.90 1.80 2.32 Indian Hulled 1.74 1.67 2.01

Turmeric

Alleppey 5% curcumin

3.42 n/a 3.31 Madras fingers 2.80 2.80 2.20 Madras fingers n/q n/q

Powder 2.00 2.00 Alleppey fingers Powder 1.78 2.00 1.70

Vanilla!

Bourbon 400-500? 200-360 70-100 Extract/ Gourmet 400-500? 200-360 70-100 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.

13

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 2.55 2.70 2.65 Egypt 3.50 3.27 3.33

Egyptian Extra Fancy Egypt fines

Bay leaves

Turkish Fancy/HPS 7.50 FAQ HPS

5.76 11.50

6.83 10.66

5.42 11.13

Turkish semi select 4.27 4.00 3.73 Turkish

semi-select

Chervil 8.50 German 9.30 8.38 8.42

Dill weed

Egyptian 4.06 4.96 4.08 German 9.40 8.71 8.20

Californian

Marjoram Egypt Fancy 2.75 3.55 3.53 Egypt 3.96 3.66 4.24

Mint

Spearmint 5.07 4.30 4.12 Egyptian 4.08 3.66 3.95

Oregano Turkish30#

FAQ 4.85 2.65

4.30 3.31 Turkish 4.86 3.94 4.01

Parsley

Israeli 6.70 5.50 7.00 European

2mm 5.90 5.49 5.60

USA 8.16 n/a 8.16

Rosemary Morocco 2.09 2.30 2.09 Morocco

Spanish Spanish 2.52 2.16 2.32

Saffron Spanish 2,315 Iranian 3,250 3,250 2,500

Sage Albanian 4.08 4.10 4.08 Turkish 6.36 5.88 5.25

Savoury Albanian 4.17 3.28 3.30 German 4.32 4.00 4.29

Tarragon Spanish 24.15 31.86 4.08 French 21.45 19.70 20.06

Thyme

Spanish 3.64 4.00 4.08 Spanish 3.22

Moroccan

Moroccan 3.42 3.16

14

Statistical information and related resources

A review of recent export and import statistics up to 2013 for cloves is given below.

The major import markets for cloves are shown below. Caution is needed in the analysis of

import totals due to differences in market characteristics. Singapore and UAE are primarily

entrepot centers, importing and re-exporting product to supply regional (in the case of UAE) and

global markets. Import volumes to Singapore vary widely in the range 5,000 to over 15,000

tonnes depending on the level of supply made to Indonesia. Indonesia imports product to

supplement its very substantial domestic production (estimated in the range 70-90,000 tonnes) but

import totals vary dramatically depending on the size of the domestic crop, and Indonesia also

makes significant exports, generally in the range 5,000 tonnes, but occasionally in the range 10-

15,000 tonnes. Indonesia imports some of its clove demand direct from production origins, but in

15

many years the bulk of supply is sourced from Singapore. UAE typically imports in the range 3-

4,000 tonnes.

India is the largest destination (consumption) import market, importing cloves direct from the

production origins, typically in the range 10-15,000 tonnes, to supplement its domestic

production. The only other significant volume markets are Vietnam, Pakistan, USA and the EU,

with imports typically in the range 1-3,000 tonnes. There are a diverse range of small markets,

but these are almost wholly supplied from the main entrepot centers of Singapore or UAE.

It is important to note that for cloves, the principal Western markets of the US and EU are not the

principal volume markets for the international trade in cloves. They only account for around

3,500 tonnes out of a total trade of around 35,000 tonnes –10% of the total trade.

16

Events

Event Start Date End Date Country City URL

Speciality & Fine Food Fair 04/09/2016 06/092016 UK London http://www.specialityandfinefoodfairs.co.uk/

Food Ingredients Asia 21/09/2016 23/09/2016 Indonesia Jakarta http://www.figlobal.com/asia-indonesia/

SIAL 16/10/2016 20/10/2016 France Paris https://www.sialparis.com/

International Spice Conference 12/02/2017 14/02/2017 India Kovalam http://www.internationalspiceconference.com/

IFE 19/03/2017 22/03/2017 UK London http://www.ife.co.uk/

ASTA Annual Meeting 23/04/2017 26/04/2017 USA Austin TX http://www.astaspice.org/

17 Market News Service

Spices