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.