Spice Reports
Summer 2008
Whether you are looking for new seasoning concepts or duplications of existing blends, the BDS Research and Development staff is available to assist with your unique seasoning blend requirements. Our Product development expertise includes seasonings for applications such as Bakery Goods, Meat Products, Frozen Foods, Seafood, Canned Foods, Instant Soup, Hot Sauces, Chips, Pretzels, Nuts, Popcorn, Salad Dressings, Extruded Bars and various Snack Foods.
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Anise Seed
We have seen the price of Anise Seed double since last summer. This was initially caused by the very hot summer in Syria and Turkey. The Crops were small and the quality was poor. Syria is sold out until the new crop in July, with shipments expected to arrive in the US in August. Early indications are for a 50% increase in crop over 2007. The Turkish crop will mainly be utilized by the internal Raki Industry (Turkish alcohol drink).
Basil
Early reports show that the new crop being collected in Egypt will have about a 30% decrease in size. The quality is not affected; however the size of the crop will certainly cause an increase in prices. We have already seen an over 33% rise in prices over the last three months. This will continue to move up as the World relies on Egypt for the majority of the dehydrated commercial Basil. Basil also grows in California, but the product is different than the Egyptian. We strongly recommend a long position through the first half of 2009.
Celery Seed
India had the worst crop in over 20 years due to the poor rains and lack of planting. The price tripled, and the farmers were rewarded with high prices. The 2008 crop is reported to be normal. However, because of the farmer’s high prices in 2007, they are reluctant to bring the Celery Seed to market. We are seeing shortages for June shipments from India, which produces the majority of Celery Seed used in the American market. Prices are expected to slowly ease in the last quarter of 2008.
Chilies/Cayenne
China has stopped being a major exporter as their internal demand continues to increase with the new middle class demanding more sophisticated foods. China still exports the Whole Red Chilies, Tientsin, which is a very bright Red Chili. The Indian S-4 market has had to pick up the demand from China, which makes India the World's major source for Chilies. India produces nearly one million tons a year, and most of the crop is for the internal Indian market. In April there was a fire at the largest warehouse for Chilies destroying over ten thousand tons. As a result, prices have been moving up.
Cinnamon
The prices have been slowly moving up over the last 6 months, which is the result of the weak dollar and the cost of getting goods shipped from Indonesia to our market. It should be noted that 10 years ago the price of Cinnamon was nearly double than where it is at today, so as a Spice it remains a very good value. The Cinnamon from Vietnam and China has also been moving up in price for the same reasons as the Indonesian Cinnamon. Indonesia supplies approximately 95% of the Cinnamon used in the US.
Fennel Seed
The Egyptian crop will be smaller in 2008, and prices are already moving up. Traditionally the Indian Fennel has been sold as a premium over the Egyptian; however we are seeing the Indian selling at a large discount over the Egyptian this year. The Indian crop is reportedly large. We strongly recommend taking coverage at current market levels through early 2009 because India us expected to move their prices up the second half of 2008. The quality from India has been very good the last 2-3 years because there is more modern cleaning equipment available.
Oregano
With 2007 record prices on Turkish Oregano, we are expecting some price decreases on new crop. This will happen as long as the weather does not repeat the record high temperatures from the previous two years. Turkey is also cultivating far more Oregano than ever before, but shortages of water at the farm level could be an issue. As the prices increased last year, we had reports of Oregano being adulterated with other leafy items found in that area. Mexican Oregano is also tight as it is getting harder to find people to go out and collect this wild harvested crop. Expect pricing to remain firm.
Sage
BDS did a trip to Albania this year to see where they have come to in the collection and cleaning of Sage. We can report that the cleaning equipment is beginning to arrive and get set up, but the problem is getting people trained to use the new technology equipment. Due to the Albanians gaining more freedom, it is getting harder for Sage traders to find people to go out and find the wild harvested Sage. Prices are moving up and we are likely to see some shortages in the second half of 2008. Quality will be better and will increase as the new technology comes on line.