White Pepper Price Development in Indonesia

White Pepper Price is different and volatile around the world, but in its producing country like Indonesia, the price is really cheap and stable. As you know, Indonesia has the richness of natural resources. Because of that reason, the Indonesian Archipelago has become an important trade region since around the 7^th century. One of the most famous natural resources that have been traded in the international market from hundreds of years ago is one kind of spices, also named as “ The King of Spices ” , produced from a plant that grows in tropical climate called pepper. Indonesia pepper is famous for its high quality which makes Indonesia white pepper price worth it.

White Pepper Price in Indonesia

The Price of White Pepper. In Indonesia, pepper has grown in Sulawesi, Java, and in Sumatra Island. Indonesia white pepper is mostly cultivated in Bangka Belitung traditionally. Black pepper is a smallholder estate crop and labor-intensive commodity mostly cultivated in Lampung. The data from IPC (Indonesia Pepper Community) said that pepper plantation in Indonesia is estimated at approximately 120,000 hectares which have decreased gradually from more than 150,100 hectares in the 1990s. And 500,000 farmers. It is mostly caused the problem of pest and disease. And the low Indonesia White Pepper and Black Pepper Price in early 2000 which discouraged farmer to maintain the cultivation. However, as the good price in the recent years have motivated the farmers to cultivate back pepper vine.

White Pepper Price Value . In Lampung, black pepper is mainly cultivated and produced in the North Lampung and East Lampung Regions. While in Bangka Belitung, all regions in this Province cultivate and produce white pepper plant . Because Indonesia is an important trade region, it makes sense that almost all pepper from Lampung, called Lampung Black Pepper, and Bangka Belitung , derived from Bangka Island known as Muntok White Pepper, is for export. Meanwhile, black and white peppers from other producing areas such as Kalimantan and Sulawesi are traded locally and inter-island mostly for local Consumption . From the data of IPC, it is explained that the price of Indonesia white pepper and black pepper is different either local price or FOB price .

White Pepper Valuation & Determination : FOB Price versus Local Price

The Valuation of White Pepper Price . The two types of pepper are distinguished by the different way of processing. Some efforts have been made to improve the quality of pepper by improving the traditional method. Even though black pepper and white pepper come from the same plant, as the processing way is different from each other. They also have a different price. In order to produce black pepper, it is picked from completely developed berries which are 6-7 months after it is bearing flowers. White pepper is made from reddish color well mature berries which are 8-9 months after it is bearing flowers. Indonesia white pepper is more expensive than black pepper.

From the data from IPC, actually Indonesia White Pepper Price is  more expensive than black pepper. The price is also increasing almost every years significantly. The development of pepper price in Indonesia is mainly influenced by price development in Vietnam, the largest producing and exporting country. In 2006, Indonesia white pepper’s local price was around 24,036 IDR per kg. Meanwhile, its FOB price (export) is around $ 2,924/Mt. In 10 years, The Local Price of White Pepper in IDR/kg reached 140,853, while FOB price in US$/Mt. reached 12,067.