Covid continues to be a big issue worldwide. Sri Lanka is in lockdown until the first week of June. India has sustained problems with Covid. Some ships no longer sail to India. Parts of the country are still in lockdown. In Vietnam, there are problems with new mutants and lockdowns in sub-regions. China is closing its borders. There will be disruptions to the movement of goods.
The current freight prices are still at a high level. From China, 20 feet of containers currently cost around 5000 USD. These high prices are also price drivers for garlic peppers etc.
We do not expect a rapid decline in freight prices!
Harvest is mostly completed. Prices in the origin rise again. This is on the one hand due to freight prices and on the other hand to the high demand. You have to keep in mind that this cassia is largely needed for the Christmas season.
Pepper black and white
Pepper prices has risen in the last week by about 7% in the origin. The farmers are currently holding back pepper stocks to sell later at higher prices. They speculate that prices will continue to rise. Their Income is secured; coffee prices increased, too. Especially the smaller farmers grow both coffee and pepper.
In addition, China has been active in buying in Vietnam for 2 weeks. This also drives the price further! It must be remembered that China has just closed its border to Vietnam. Vietnam has put Ho Chi Minh City currently in lockdown. Many exporters have their offices there! It remains exciting!
Weather, during the last few weeks, was favourable. Rain and mild temperatures. These weeks of higher temperatures play into the hands of growth and harvesting. It looks like a good year for kitchen herbs!
Again, prices have risen over the past few weeks. Demand from all countries is high. In addition, harvest in Indonesia looks like a decline of about 20-30%. The reason for this is, among other things, the rain! This expectation drives the price. In the Christmas business, the prices will be at a high level!
There is currently a high demand. We noticed that the new harvest has not yet arrived EUROPE. Prices are high. Prices are not expected to go down! The rain in Indonesia will also drive these prices higher! We expect that demand and supply will lead to very high prices.
On our own behalf
Organic is the new conventional – the segment is developing very well. After having invested a lot in organic products for a few months, we can dispose of larger quantities in the origin. We have been passing the price advantage on to you for some time now and offer organic products very cheaply.
In return, we now have to increase the minimum purchase quantity to 200 kg per order for cost reasons. (A combination of different organic articles in one order is possible.)
We ask for your attention.
AKO The Spice Company! certified according to FSSC22000.