Brazil - Drought may compromise 2010 pepper output

From February 12 on, two big celebrations will paralize the peppertrade worlwide: The Carnival in Brazil and the Lunar New Year in China, Vietnam and most of the Far-East.
Following these events is the Gulf Food Show in Dubai, from 21 to 24 February, and than the month has goone and that´s when the year 2010 will really begin.

January & February were month´s with nothing to report about the market. While Importers were waiting, prices in Vietnam were droping steadily and in Brazil the prices were steady until the last couple of weeks when the dollar rate allowed prices to slide down a little. Not many deals happend anyhow with all eyes on next Vietnamian crop which should start to arrive at the beginning of the March.

The weather in Brazil was terrible however. Unusual heavy rains and thunderstorms hit the southern zone for more than 30 days. In the city of São Paulo rained every single day for 45 days, with terrible floods every day. Nevertheless in the northern part of the country, where the pepper plantaions are actualy, there was very little rain unsuficient for pepper development.

The worst are was Espirito Santo state with more than 40 days of drough at temperature averaging 35 to 40 C and burning sunshine. According the last reports from the area, Pink Pepper outcome this year may fall by 60% while Black Pepper although irrigated will suffer a big loss too. So, the predicted crop of 35 K tons for 2010 season may drop substantially. Further, irrigation has a cost and when used increase the final cost of the pepper.

PEPPERTRADE EDITOR