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SPICES MARKET INSIDER

Market Insider

Spices Building awareness and assisting developing countries with access to trade and market information has been at the heart of the International Trade Centre (ITC) work. The Market Insider is a newly branded global public goods service built on a "blog" interface to provide just-in-time content on market prices and industry developments focusing on forward-looking intelligence in anticipation of market opportunities, market dynamics, quality issues, trade events and sector-specific intelligence on commodities of interest to developing countries.

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INDEX SPICES NEWS AND UPDATES......................................................................................................... 1 MARKET DYNAMICS ......................................................................................................................... 4 PRICES IN THE MARKET PLACE ..................................................................................................... 5

Spices .............................................................................................................................................. 5 PRICES IN THE MARKET PLACE ..................................................................................................... 8

Herbs ............................................................................................................................................... 8 STATISTICAL INFORMATION AND RELATED RESOURCES ........................................................ 9 EVENTS ............................................................................................................................................ 13

1 Market Insider

Spices

Spices News and Updates

Doehler launches natural herb and spice extracts Doehler, the Germany-based producer and marketer of natural ingredients to the food and beverage industry, has launched a new range of natural herb and spice extracts and natural blossom flavours on the market. According to their press release Doehler is meeting the rapidly increasing demand for botanical flavours in the food and beverage industry with a new portfolio of natural herb & spice extracts and natural blossom flavours. Although herbs and spices are found in every kitchen these days, they still offer plenty of scope for new and attractive taste creations. That is why herb and spice notes are becoming increasingly popular in every segment of the food and beverage industry – including some previously untouched ones – and top the list of trendy flavours. There are no limits on the creative options! As a provider and producer of natural ingredients and ingredient systems, Doehler has proved this with a whole series of innovative application examples. The wide variety of products ranges from Prosecco with a strawberry-basil taste to refreshing soft drinks with a fine rosemary note. “It is easy to explain the reason behind the success of these flavours. For instance, cardamom from the Himalayas, oregano from Italy or coriander from Morocco all transport consumers to far-away worlds of taste. This results in both interesting taste combinations and great product positioning,” says Daniel Courtehoux, Head of Business Unit Flavours at Doehler. However, not every type of herb and spice is suitable for producing authentic, natural extracts and flavours - no matter how tasty they may be when fresh. For this reason, Doehler has identified the very best raw materials for its products. At its own facilities, the company thus obtains a wide range of premium quality extracts characterized by a particularly pure and intense taste. The portfolio contains flavours from oregano, rosemary, coriander, caraway, cardamom, marjoram, chili, pepper, sage, thyme and basil. The new Doehler botanical range also includes a selection of natural blossom flavours such as rose, violet, lavender, lotus blossom and hibiscus.

Government initiatives raise Zanzibar clove output The Daily News of Tanzania reported (http://tinyurl.com/kmk3r77) on government initiatives to reinvigorate the clove industry of Zanzibar. “After more than four decades of decline and stagnation, clove, the Isles’ once economic backbone, is on track following various promising initiatives by the government to bring new life of the industry” writes the Daily News reporter. The Government of Tanzania has acted to regenerate production through policy and law reforms as well as reforms to the “Zanzibar State Trade Corporation” (ZSTC). The initiatives, which include supporting the purchase of cloves from farmers, exports and production of essential oils, have resulted in increased production. Since 2011/12 cloves production has been increasing at an average of 3,910 tonnes annually. Simultaneously prices have risen 180 percent. Farmers are paid 80 percent of the world market price; the price promotes society welfare and motivates farmers to grow more and has reduced clove smuggling. The measures are part of the implementation got the government’s ten-year Clove Development Strategy (CDS). ZSTC supports farmers by providing incentive schemes and packages to improve farm husbandry and managements. In 2012, 500,000 new clove seedlings were distributed to farmers wile in 2013/14, the number doubled to 1,000,000. All seedlings are provided free of charge. The goal is to provide 1,000,000 plants per year for the next three years.

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According to the Managing Director of the ZSTC, Ms Mwanahija Almas Ali, there are plans to brand the cloves to differentiate Zanzibar from other origins such as Madagascar and Indonesia. In addition, the MD observed that Zanzibar has been an exporter of essential oil since the 1930s and was the dominant supplier to the market for the following 40-50 years. “Today is remains an exporter of clove oils and is progressively developing a portfolio of non-clove oils”, she said adding that non-clove oils produced and exported are lemongrass oil, cinnamon leaf oil, and eucalyptus oil (citriodara and camalduensis) and sweet basil oil. Further efforts on extension approaches to sustain clove production are called for, making use of seminars and workshops, demonstration plots and field schools to promote education production and plantation management.

Turmeric-based herbal supplement sales rise rapidly in the US The American Botanical Council reports in their annual Herbalgram herb market report that sales of herbal dietary supplements in the United States increased by 7.9% in 2013, reaching a total estimated figure of 6 billion dollars for the first time. Sales in the mainstream market channels increased by 7.7%, while sales in natural food stores rose by 8.8%. This is the tenth consecutive year that sales have risen. The annual Herbalgram herb market report is based on herb supplement sales statistics from the Nutrition Business Journal (NBI) and market research firms IRI and SPINS. The report covers only retail sales of herbal dietary supplements and does not reflect sales of most herbal teas, botanical ingredients in natural cosmetics, or government-approved herbal drug ingredients in medicines. In the natural food stores, the five top-selling herbal supplements by primary ingredient were turmeric and curcumin extracts, wheat and barley, flaxseed, aloe vera and spirulina/blue-green algae. Sales of turmeric-based herbal supplements showed a 26.2% increase in 2013 to USD21.3million to take the top rank in the natural channel. In the mainstream multi-outlet channel cinnamon sales were up 12.2% to USD29.5 million, ginger based supplements rose 2.2% to USD16.2million while sale of garlic based supplements fell 3.8% to USD14.5 million. Turmeric based products rose to USD4.4 million.

Damage to Kashmir saffron crop The Business Standard reports extensive damage to the saffron crop in Kashmir during flash floods last month. Abdul Mujid Vani, president of the Saffron Growers Association at Pampore told the Business Standard that in the low lying areas of Nahma, Katapur, Basru and Sambura, the floods had destroyed the crop. Saffron is grown on 3,200 hectares of land in Kashmir, scattered in the districts of Pulwama, Budgam and Kishtwar. Last year, approximately 11 tonnes of saffron was produced. The major saffron growing pocket of Kashmir, Pampore in Pulwama, grows almost 90 per cent of the total crop. The annual consumption of Saffron in India is about 40 tonnes and the deficit is made up by supplies from Iran. The Indian crop area is reportedly declining and an initiative in 2012 was established to encourage more farmers to grow the crop through subsidies and support.

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Spices

Indian spice exports rise in quarter 2 Figures from the Indian Spices Board, reported in the Hindu Business Line, indicated a 10 percent increase in spice exports during April to July 2014. Export of all major spices such as pepper, chilli, ginger, turmeric, seed spices and value added products grew in both quantity and value. A total of 271,280 tonnes of spices and spice products was exported valued at USD720 million as against 246,060 tonnes (USD680 million) during the corresponding period last year.

Cinnamon extracts and the control of blood sugar A group of French researchers report (BMC Complement Altern Med. 2014 Sep 23;14(1):351. doi: 10.1186/1472-6882-14-351) the results of investigations the acute effect of a specific Ceylon cinnamon hydro-alcoholic extract (CCE) on carbohydrate digestion and post-meal blood glucose reduction. High blood sugar following a meal is a known risk factor for the development of several health disorders including type 2 diabetes, obesity, oxidative stress, and cardiovascular diseases. One encouraging approach for a better control of so-called postprandial glycemia is to reduce carbohydrate digestion. Cinnamon extracts have been known for managing blood glucose. The researchers report that their results suggest that Ceylon cinnamon hydro-alcoholic extract (CCE) may provide a natural and safe solution for the reduction of postprandial hyperglycemia and therefore help to reduce the risks of developing metabolic disorders.

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Market Dynamics Pepper – Prices continued firm through September despite slack demand. Vietnam is more or less sold out. Stocks in destination markets are reportedly quite low, and the opportunities for spot buying are limited, but with much of the trade carried out in direct purchasing the open market is less important. Price movements during the month were more influenced by currency than by funadamentals. The International Pepper Community (IPC) reported domestic prices in producing countries as follows: Producer Prices in US$ / tonne*

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Prices in the market place Spices

All prices are quoted in US$/Kg

MARKET → USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE

This Week 2 Month ago

1 Year Ago

This Week

2 Month ago

1 Year Ago

This Week

2 Month ago 1 Year Ago

Black Pepper

Spot 550g/l 12.12 Sarawak 12.00 11.00 7.30 Sarawak 9.40

Mal MG1 13.44 Mal MG-1 13.30 15.20 8.70 FAQ 550g/l 10.60 8.40

FAQ 500g/l 11.02 Lampung FAQ 500g/l 10.20 10.03

Steam treated 550g/l 10.10 Brazil

White Pepper

Muntok FAQ spot 15.43 12.85 Muntok 15.30 15.00 Muntok FAQ spot 13.70 13.45

Sarawak 17.00 16.25 11.50 Steam treated Muntok spot 14.88

Vietnam 12.90 Vietnam 13.90 11.40

Aniseed Whole China star 6.83 Vietnam Star 6.28 Turkish/Syrian 4.75 4.08 Syrian 1% 4.45

Caraway Canadian 2.54 2.20 FAQ Dutch European 2.03 1.97

Cardamom Fancy Green 16.75 5.76 India AGS1 MYQ 5.20 3.00 Mixed Green India AGS Whole, green 18.30

Cassia

Korintji B 3.00 ML/SVO 2.87 2.47 China whole 3.70 3.00 2.90 Korintji B Br & Cl 2.86

Vera C/W AA 4.97 4.52 China broken 3.50 2.80 2.65 Vera AA 4.21

Vietnamese 5ML/SVO Vietnam QNV 3.80 3.15 3.00

Celery Indian spot 2.00 Indian Indian 99% 2.52

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MARKET → USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE

This Week 2 Month ago

1 Year Ago

This Week

2 Month ago

1 Year Ago

This Week

2 Month ago 1 Year Ago

Chili Indian S4 2.55 2.54 Indian Sanna S4 grade African fukien 3.97 3.97 Chinese African Bird’s Eye 5.50 6.73

Cinnamon Ceylon H2 10.36 Sri Lanka C5 SP Sri Lanka c5 cut 20.60

Cloves

Sri Lanka hand picked 20.40 17.90 Madagascar 13.50 15.50 15.00 Comores /

Madagascar 11.29 14.50

Zanzibar 14.35 Zanzibar 15.00 16.00 15.50 Indo stems

Coriander Bulgarian 1.90 98% East European 1.89 2.59

Canadian 1.87

Cumin Turkish 2.95 2.76 Turkish 98% Syrian Syrian 99% 2.98 4.50 Indian Indian Indian 99%

Dill Indian 1.77 Indian 99% 2.50

Fennel Fancy Egyptian 2.55 Egyptian99% 3.30 Indian ASTA 2.30 Indian Indian 99%

Fenugreek Turkey 1.30 1.10 Indian 99% 1.75 1.55

Garlic Ch. Powder 2.65 2.38 Flakes 2.00 3.80 Ch. Granulated 2.85 2.60 Powder 1.30 2.33 Granules 2.70 2.52

Ginger

Cochin 5.29 5.29 Cochin Cochin Chinese sliced Chinese sliced Chinese sliced 4.68 6.40 Chinese peeled 4.85 463 Chinese whole Chinese peeled 5.00 5.10 Nigerian 3.53 3.20 Nigerian 2.78 2.30

Mace Siauw No 2 siftings 32.00 35.27 Siauw whole 22.50 22.50 27.00 PNG Broken 18.20 29.44

Indonesian 24.91

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MARKET → USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE

This Week 2 Month ago

1 Year Ago

This Week

2 Month ago

1 Year Ago

This Week

2 Month ago 1 Year Ago

Mustard No 1 Yellow Canadian 1.57 1.57 Canada Yellow 1.26 1.80

Brown oriental 1.54 1.54 Canada Brown 1.21 1.87

Nutmeg E.I. ABCDs 20.39 20.39 Indo 110's 19.50 20.00 21.00 Indonesian SS 16.50 29.25 E.I. cracked 16.00 18.19 WI 110's EI ABCDs

Onion Egypt pow Powder 2.38 2.85 India pow Flakes 3.03 3.80

Paprika

Spanish 120 ASTA 5.18

Spanish visual Spanish 80 ASTA 3.30

Hungarian 6.83 6.83 Hungarian 100 ASTA

Peru ASTA 3.39 2.09 Peru HT90 ASTA

Pimento Mexico/Guatemala 5.07 4.30 Mexican 5.00 4.80 5.00 Guatemala 4.12 5.55

Jamaica 8.70 6.95 Jamaica 7.00 Jamaica 7.98 7.50

Poppy Dutch Turkish

2.75 2.82 Dutch 3.03

Sesame

Indian Natural

Indian hulled 3.26 Indian Hulled 2.90

Turmeric

Madras fingers 1.80 1.80 1.50 Madras fingers 3.80

Alleppey 5% curcumin 3.53 Alleppey fingers

Vanilla! Bourbon 53.00 Extract/ Gourmet 45.0/ 55.0 1 Vanilla – the prices given here are indicative of the value of bulk sales at origin. Selling prices within Europe are substantially higher as they reflect much smaller quantities that may be specially packaged.

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Prices in the market place Herbs

All prices are quoted in US $/Kg

USA EUROPE PRODUCT GRADE PRICE GRADE PRICE

This Week

2 Month Ago

1Year Ago

This Week

2 Month Ago

1Year Ago

Basil

Egyptian FAQ 3.09 3.09 Egypt 3.65 3.82

Egyptian Extra Fancy Egypt fines

Bay leaves

Turkish Fancy FAQ

Turkish semi select 3.86 3.86 Turkish semi-select 7.57 7.97

Chervil German 9.35 9.84

Dill weed Egyptian 7.17 1.85 Cut 2.80 2.61 Californian 13.90

Marjoram Egypt Fancy 3.97 3.97 Egypt 5.03 5.29

Mint Spearmint 6.50 6.50 Egyptian 4.58 5.02

Oregano Turkish 30# 3.31 6.28 Turkish 5.03 5.29

Parsley Israeli 6.50 7.00 European

2mm 6.17 6.49

USA 8.16 8.16

Rosemary Morocco 1.96 1.96 Morocco Spanish Spanish 2.35 2.47

Saffron Spanish 2,425 Iranian 2,500 2,650

Sage Albanian 5.07 5.07 Turkish 5.92 6.23

Savoury Albanian 3.30 3.53 German 6.05 6.36

Tarragon French 27.56 27.56 French 22.59 23.77

Thyme Spanish 4.08 3.88 Spanish 3.50 3.68 Moroccan 3.85 3.88 Moroccan

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Statistical information and related resources Source: UN COMTRADE (http://comtrade.un.org/ ) and IPC

0

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Exports of pepper from Brazil

2010 2011 2012 2013 2014

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Exports of pepper from India

2010 2011 2012 2013 2014

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Exports of pepper from Indonesia

2010 2011 2012 2013 2014

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Exports of pepper from Madagascar

2010 2011 2012 2013 2014

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Exports of pepper from Sri Lanka

2010 2011 2012 2013 2014

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Exports of pepper from Malaysia

2010 2011 2012 2013 2014

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Exports of pepper from Vietnam

2010 2011 2012 2013 2014

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Events Event Start Date End Date Country City URL Food Ingredients Asia 15/10/2014 17/10/2014 Indonesia Jakarta www.foodingredientsglobal.com/asia-indonesia/home SIAL 19/10/2014 23/10/2014 France Paris www.sialparis.com 42nd Session and Meetings of IPC

27/10/2014 30/10/2014 Vietnam Ho Chi Minh City

www.ipcnet.org

World Food Kazakhstan 05/11/2014 07/11/2014 Kazakhstan Astana www.worldfood.kz IFEA 05/11/14 07/11/14 South Africa Johannesburg http://www.ifea.co.za/ Gulfood Manufacturing 09/11/2014 11/11/2014 UAE Dubai www.gulfoodmanufacturing.com World of Food Beijing 26/11/2014 28/11/2014 China Beijing www.worldoffoodbeijing.com Horecava 12/01/2015 15/01/2015 Netherlands Amsterdam www.horecava.nl/ Gulfood 08/02/2015 12/02/2015 UAE Dubai www.gulfood.com Prod Expo 09/02/2015 13/02/2015 Russia Moscow www.prod-expo.ru International Food & Drink Event

22/03/2015 25/03/2015 UK London www.ife.co.uk

China International Food Exhibition

04/06/2015 06/06/2015 China Guangzhou http://www.ifechina.com

Food Ingredients Asia 09/09/2015 11/09/2015 Thailand Bangkok www.foodingredientsglobal.com/asia-thailand/home IBA 12/09/2015 17/09/2015 Germany Munich www.messe-duesseldorf.de ANUGA 10/10/2015 14/10/2015 Germany Cologne www.anuga.de Food Ingredients Europe 01/12/2015 03/12/2015 France Paris www.foodingredientsglobal.com/europe/home