White pepper prices take tumble

White pepper prices take tumble

SINGAPORE (Bloomberg): White pepper prices have slumped 20 percent in five weeks in Indonesia, the world's No.2 producer, on declining purchases by the U.S., the world's largest buyer, the Financial Times said, citing unnamed officials of the Indian Pepper & Spice Trade Association.

White pepper dropped to a four-year low of $2,800 per ton from $3,500 five weeks ago. Black pepper in Malaysia, the world's third-largest producer after Indonesia and the largest, India, fell $500 in a week to $3,200 a ton, the newspaper said. Pepper is used to spice up foods and beverages ranging from cola drinks to pasta sauces.

Prices were also pushed lower by a 74 percent jump in Indonesian output, to 40,000 tons this year. Brazil, the world's No.5 producer, will start selling its crop of 28,000 tons, which is 30 percent higher than in 1999, next month. Vietnam, the world's fourth-biggest, has sold its 37,000-ton crop for this year.

World output is set to rise 2.3 percent to 217,164 tons in 2000, from 212,200 tons last year, according to the International Pepper Community, based in Jakarta. Europe and the U.S. account

Europe and the U.S. account for more than half of world pepper imports. Europeans prefer white pepper, while U.S. consumers prefer black.