Assalammualaikumwarahmatullahiwabarakatuh and I hope you are doing well and are safe.
It has been my privilege and honour to lead the IPC Secretariat for more than a year now. For me personally, it has always been a wonderful start to an exciting journey in the pepper industry. I like to think there are positives to be drawn from the issues and challenges we have found ourselves in the industry. The displays of kindness, empathy, and perseverance that our entire IPC family has demonstrated has made us stronger, more resilient, more caring and more agile than ever before.
As we are closing in to the penultimate month of 2022, the world undergoes variety of developments. The dreading global pandemic of COVID-19 which started in late 2019 has only started to ease up as we see more and more countries treating COVID-19 as an endemic and opening their border fully. Thus, ignite the sparks of tourism and traveling to a new height.
However, despite the great news of the improvement of the global pandemic of COVID-19, the world must prepare themselves of the looming threat of the global recession in 2023 which inadvertently slow down economic growth. We are now facing a major turning point in the global economy and society that will change the way we all do business including the pepper industry. As for the 3rd Quarterly Report (QR3) 2022 for the global pepper industry, the interest rates continue to rise to tame the inflation, war in Ukraine pushes price of essential commodities, the European energy crisis and global credit crunch have caused most currencies of consuming countries to depreciate which has led to higher cost of import.
These factors and the fact that China still implements the zero-COVID policy with lockdowns has caused demand erosion for pepper. Furthermore, along with the convergence of Brazil and Indonesian harvest, the unsold Viet Nam's inventory following the China's lockdown as well as the demand of the western European and US being covered, the global pepper industry expects bearish sentiment.
The global pepper supply is expected to be on the safe side as harvest record reported by Brazil and surplus of the end of the year stock which devalue the price of pepper. As we are heading towards the new crop in 2023, it would be best to take extra care in estimating the condition. It is best to pay more attention on the demand as the supply expected to be on the plus side. During this condition, it is of the view of the IPC that it is recommended to move forward by selling and buying in tranches instead of extreme speculating.
Furthermore, as you may be aware of that China as one of the highest pepper consumers in the world has greatly influence the pepper movement with the lockdown implementation. It is with high hope that China will lift the lockdowns and start buying pepper. Let's use this opportunity to maintain the promotion of pepper across the markets in order to boost the consumption so as to offset the surplus inventory caused by China. For full report of the QR3 2022 and other related information on the global pepper industry, please subscribe to our website.
With all the current situation and outlook of the pepper industry this year, rest assured that IPC could not do so much if not supported by the Member Countries and all of the crucial stakeholders of the pepper industry. Let's join hands to work together in making sure the sustainability of the pepper industry and the prosperity of all stakeholders.
We look to you for guidance and advice on how we in the Secretariat can better support all the IPC Member Countries and all Stakeholders as we still have a long road to travel in order to sustain the global pepper industry.
50 years of Transformation. Together We Are Stronger. We will overcome challenges in the pepper industry with strength and resilience.
Sincerely and Salam Hormat,
Firna Azura Ekaputri Hj. Marzuki