Indonesian pepper exports predicted to drop 40%

JAKARTA (JP): Indonesia's pepper export will drop 40 percent to 25,000 metric tons this year from 40,511 tons in 1998 due to poor harvests, the International Pepper Community (IPC) predicted on Wednesday.

IPC executive director K.P.G. Menon told a media conference that Indonesian exports for the whole year would consist of 9,000 tons of black pepper, dropping sharply from 23,500 tons last year, and 16,000 tons of white pepper, down from a previous 17,000.

"Unfavorable climate conditions have affected pepper crops in Bangka and Lampung in southern Sumatra," Menon said.

He said too much rain had delayed the harvest, usually occurring between July and August, until October.

An IPC market study showed that bad weather had affected 90 percent of the pepper plantations in Lampung, the country's main black pepper producing area, and 50 percent of pepper crops in Bangka, the main producer of white pepper.

Indonesia would, however, remain the world's second largest pepper exporter this year, accounting for around 19 percent of the total export, the market report said.

Indonesia exported 11,625 tons of pepper, comprising 3,000 tons of black and 8,625 tons of white pepper, in the first half of this year.

IPC, based in Jakarta, is an intergovernmental organization of pepper-producing countries comprising Brazil, India, Indonesia, Malaysia, Sri Lanka, Thailand, Papua New Guinea and Micronesia.

IPC also projected declines in pepper exports from several other major suppliers this year.

Brazil's exports were predicted to decrease to 16,000 tons this year from 17,000 tons last year and Sri Lanka's exports to 4,000 tons from 5,400 tons.

However, exports from Malaysia are forecasted to increase to 19,000 tons this year from 17,833 tons and those from India to 40,000 tons from 33,080 tons, while Vietnam's exports were foreseen to remain stable at 22,000 tons.

IPC projected global pepper exports to fall to 130,300 tons this year from 138,780 tons last year.

IPC also foresees higher pepper prices in the second half of this year due to lower supplies on the market and depleting stocks in consuming countries. But it stopped short of specifying price levels within the next few months.

IPC said it also planned to reform itself into the International Spice Community including condiments that commonly use in Indonesia such as red chilli, ginger, cloves, cinnamon and tamarind.

Another move by the IPC to improve the pepper production was to set a quality standard, similar to the European Spice Association, that would standardize the product quality to meet the market's requirements.

The organization will also promote more diversified uses of pepper at the Food Ingredients Europe trade fair in Paris from Sept. 14 to Sept. 16. (01)