Market Briefing: Spices and Exotics -18 Feb 2022
– 27% increase in the Indian cardamom crop
– Global demand for vanilla is estimated at 3,000 tonnes, exceeding the supply
– 17% growth in Cuban honey exports
– There is still underlying concern that there might be damage to the Madagascan vanilla crop, after the latest storms in Madagascar, due to the excess moisture that was the inevitable result of the adverse weather. The current (2021-22) global crop is available in good volume, being estimated at 2,200-2,300 tonnes of cured beans.
– India’s 2021-22 cardamom crop is expected to rise by 27% y/y to 28,000 tonnes, due to acreage expansion with farmers encouraged by high prices reached in 2020.
– Cuba’s 2021 honey crop has grown by 28% y/y to 10,500 tonnes, according to the Cuban honey company (Apicuba). This expansion was due to favourable weather and rising prices paid in the international market.
– The annual global demand for vanilla is estimated at 3,000 tonnes, exceeding the current supply
– Demand for spices and essential oil is completely recovered as processors’ results reveal. The US processor Sensient Technologies has reported that its revenues rose by 10% to $229.7 million in Q4 2021. IFF’s net sales reached $3.03 billion (+139% y/y) in Q4 2021, bringing 2021 sales to $11.65 billion, 129% more y/y, once the company has completed the merger with Nutrition & Biosciences (N&B).
– Middle East importers of cardamom are raising purchasers to cover the high demand for this spice during the Ramadan festival (April).
– India’s 2021 cardamom exports increased by 85% y/y in volume to 11,290 tonnes, a record, valued at $206.6 million, up from $206.8 million.
– Indian pepper exports increased by 26% y/y in volume to 21,980 tonnes, worth $98.5 million (+48% y/y) in 2021.
– Cuba’s honey exports reached 8,529 tonnes in 2021, 17% more y/y.
– For the time being, the Madagascar government set minimum official vanilla price remains at $250 per kg fob. However, buyers are looking for extraction grades around $175/kg fob and gourmet grades around $195-200/kg fob. Some of these bids are proving successful.
– India’s cumin seed spot prices averaged INR20,441.20/quintal ($270.1/quintal) at the Unjha market (Gujarat, North West) on 14 February 2022, 19% more than on 17 January.