Market Briefing: Spices and Exotics – 01 Oct

Oct, 2021 Quản Trị

– Heavy rains and frosts hit the Spanish lemon production
– Strong home consumption and hostelry recovery fuel spice sales
– CO2 shortage and high sea freight fares to raise spice prices

Production
– Spain’s 2021-22 lemon production is expected to fall by 23% y/y to 1.03 million tonnes due to frosts and heavy rains during the bloom period, according to the Spanish lemon and grapefruit association (Ailimpo). Spain is the biggest European lemon producer, exporting fresh product, juice and essential oils mainly to EU members, the US and Canada.
– French vanilla processor Eurovanille has acquired the natural vanillin brand Vaniforlia products from Solvay. In addition, Solvay will supply compounds to Eurovanille over the next three years.

Demand
The US spice processor McCormick has reported its net sales rose by 11.4% y/y to $1.54 billion in the quarter ending on 31 August, bringing year-to-date sales (December 2020-August 2021) to $4.58 billion in the FY2021 (December-November), thanks to a robust spice home consumption and hospitality recovery. Asian markets have been the drivers of growth, with a 20% increase in sales.

Trade
– Argentina’s international honey sales fell by 8% y/y in volume to 49,470 tonnes but increased by 32% in value to $165.5 million. Brazil’s honey exports in January-August rose by 20% y/y in volume to 37,490 tonnes and doubled in value to $128.6 million.
– India’s cumin seed exports rose by 5% y/y to 175,150 tonnes, worth $345.2 million, 7% more y/y in value, from January-July 2021, according to customs data.
– Indian sesame seed exports were 152,100 tonnes, worth $233.7 million, in January-July 2021, 11% less y/y in volume and 18% less in value.

Prices
– On the eve of the Anuga fair (Cologne, 9-13 October) the German Spice Association is concerned about CO2 shortage and sea transport fares, forecasting high prices up to H2 2022.. Traditional spices such as pepper, paprika, ginger, nutmeg, cinnamon, cumin and turmeric are the most affected, especially when the demand is at high levels since the Covid-19 pandemic.
– India’s new sesame seed (whitish) spot price was INR10,400 per quintal ($140.3/quintal) at Unjha wholesale market (Gujarat, North East) on 29 September, INR100 more than on 1 September. The daily futures market prices on NCDEX were stagnant at INR8,540/quintal for deliveries between October-December from 1-28 September. Meanwhile, the minimum support price (MSP) is at INR7,307/quintal in the 2021-22 season.

Source: https://vietnamentrepreneurs.com/market-briefing-spices-and-exotics-01-oct/