Indonesian pepper exports predicted to drop 40%

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)