Market Briefing: Spices and Exotics -22 Aug

Aug, 2021 Quản Trị

France’s hemp planted acreage to peak at 30,000 hectares after Cassation Court has legalised the sale of CBD
Strong demand for India’s guar gum from animal feed industry
Gradual rise in Vietnam’s black pepper prices

Production

Rising production costs are hitting Argentina’s processors as the citrus grower and processor Ledesma’s results reveal. Ledesma reported that its operating profit fell by 16.1% y/y to AR$3.89 billion ($40.1 million) in the FY2020-21 (June-May) due to Covid-19 restrictions and rising production costs. It produced 376 tonnes of essential oils.

France’s hemp planted acreage reached 17,900 hectares in 2020 and is expected to peak at 25,000-30,000 hectares in 2030, according to the USDA, after the Cassation Court has overturned a rule which banned the sale of CBD in June 2021, despite EU legalisation.

Demand

Rising US demand for CBD has made the fresh supplier Village Farms International acquire the CBD processor BHB for $75 million.

Robust demand from the animal feed industry is fuelling India’s guar gum prices.

Strong recovery in US and European demand is pushing up sales of essential oil and flavour multinational companies such as Firmenich (Switzerland) and Symrise (Germany).

Trade

Indian guar gum exports were 68,000 tonnes, worth $86.7 million, in January-April 2021, 3% y/y more y/y in volume but 6% less y/y in value.

Peruvian ginger exports rose 9% y/y in volume to 21,670 tonnes and by 17% in value to $43.6 million in January-July 2021.

Vietnam’s pepper exports were 180,210 tonnes, worth USD591.4 million, in January-July 2021, 2% less y/y in volume and 48% more in value, thanks to gradual growth in prices since January.

Brazilian pepper international sales fell by 9% y/y in volume to 51,620 tonnes and by 32% in value to $145.5 million in January-July 2021.

Prices

Vietnam’s black pepper prices closed at $4,100 per tonne cif nw Europe for min 550 g/l in the first half of August, $100 more than in July and $200 more than in June.

Guatemala’s cardamom prices have stabilised at $16,000 per tonne cif for mixed yellow quality 360 g/l between May-July.

India’s guar gum spot price was INR8,363 per quintal ($112.6/quintal) at the Jodhpur wholesale market on 16 August, 24% more than on 19 July, due to strong demand from the animal food industry.

Source: https://vietnamentrepreneurs.com/market-briefing-spices-and-exotics-22-aug/