Indonesian Market Update - Jan 09, 2013

Patchouli | Clove | Cajeput | Nutmeg

There is no doubt that Indonesia provides the market with the most volatile conditions on a regular basis. This is largely due to climatic conditions, the market demand for the products and the ability for local producers to dictate to the market how much of their production they will have access to.

During 2012 prices of Clove, Patchouli, Nutmeg and Pepper all fluctuated on a regular basis providing little consistency to market pricing, often for unexplained reasons providing buyers with many dilemmas as to when to buy.

As we start 2013 prices show little sign reducing on clove as the rainy season takes hold. This could change from March as production and transportation resumes as the weather improves. Unfortunately it isn't the weather dictating the dynamics of the Patchouli market. Prices had fallen to unsustainable levels in 2012 so supply into the market was controlled to push prices upwards which are likely to continue over the coming months. We do not anticipate prices falling during 2013 and todays levels may still prove to be the lowest of the year.

Nutmeg prices will remain firm at least until the next harvest. Whilst over the past 6 months prices have been firm they have been stable but contamination issues have caused problems for all concerned, however recent indications suggests controls have been found to improve these conditions.

The other serious consideration at the moment remains the inconsistency of the quality for Cajeput as many adulterated qualities are infiltrating the market. We experienced similar challenges in late 2011 so ABP will remain vigilant in ensuring we maintain our high standards of quality through our comprehensive testing. Learn more about our lab tests.

Remember you can download our crop calendar here to help you plan your next purchase.

News tags : Market

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