5/14/2013 1 Creating value is our business Capsicum Market Capsicum Market Report Report – China & US China & US Vinay Vinay Sreekumar Sreekumar May 16, 2013 May 16, 2013 Creating value is our business Important Species usually, higher the pungency, lower the color. Characteristics Distribution Capsicum frutescens High Pungency. Low flavor Tabasco, Most Indian Varieties Capsicum annum Capsicum chinense Extremely Hot, Fiery Capsicum pubescens Small regions in S.America Capsicum baccatum Medium-High pungency Species Low to Medium Pungency, good color Some Paprika as well as Indian Color chillies. Popular in U.S Habenero,Jamaican Hot, etc. Not common in India. Not very common. Little is known Not grown in Asia, Mostly grown in S.America. Family : Solanaceae Genus : Capsicum
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5/14/2013
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Creating value is our business
Capsicum Market Capsicum Market Report Report –– China & USChina & US
Vinay Vinay SreekumarSreekumar
May 16, 2013May 16, 2013
Creating value is our business
Important Species
usually, higher the pungency, lower the color.
Characteristics Distribution
Capsicum frutescens High Pungency. Low flavor Tabasco, Most Indian Varieties
Capsicum annum
Capsicum chinense Extremely Hot, Fiery
Capsicum pubescens Small regions in S.America
Capsicum baccatum Medium-High pungency
Species
Low to Medium Pungency, good color
Some Paprika as well as Indian Color chillies. Popular in U.S
Habenero,Jamaican Hot, etc. Not common in India.
Not very common. Little is known
Not grown in Asia, Mostly grown in S.America.
Family : Solanaceae Genus : Capsicum
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Major ProductsMajor Products: Color, Heat and Flavor : Color, Heat and Flavor
Capsicums20-27 species
100(0)s varieties
Paprika - Color
Primary Origins: China, Peru, US
Secondary: Spain, Israel, Zimbabwe
Hot Red Pepper
Primary Origins –India, Pakistan,
Bangladesh
Secondary: Mexico, Africa
Mild – Medium Hot Red Pepper
Primary Origins –
India, China
Specialties – Flavor Jalapeno, Chipotle,
Ancho, Guajillo, Green
Chile & others
Origins: Mexico, Peru
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Standard Pod Size
- generally, smaller the pod size, higher the pungency.
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2012/ 13 Market – Overview Capsicums
• Overall Global Production of Paprika is UP
� Chinese Paprika Production is UP
� Good US crop
� Peru – trending low to previous years
• Continued Strong Demand
� Higher than normal growth rate in destination markets
� Whole Pods, Oleoresin Strong demand
� Specialties on the rise.
• Market Pricing trend is Lower
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2012 Global Production - Paprika432MM lbs ( 196,000 MT)
61%15%
12%
3%
2%7%
MM lbs
China
Peru
US
Europe
Africa
Others
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2012 Paprika End Usage by Type
49%
33%
17%
1%
Ground
Oleo
Whole
Others
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2012 Global Demand by Region ( 190,000 MT)
40%
29%
17%
9%
5%
MM lbs
US + Canada
Europe
China
Mexico
Others
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China – Key Market Characteristics
• Second largest Capsicum producer in the world.
• Largest Paprika producer
• High 2012 crop of ~120,000 MT
• Large crop of Medium quality ( 160 – 200 ASTA)
• High level of transformation – Whole to
Crushed/Ground: VAT impact
• High favorability among Spanish buyers
• Meets EU requirements
• Low pricing
• High Oleoresin production
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Sweet Paprika
Linear Chili
Linear Chili
Jinta ChiliYidu ChiliJinta Chili
Yidu ChiliJinta Chili
Yidu ChiliAmerican Red Chili
These areas primarily plant Sweet Chili, American Red Chili,
Yidu Chili, Jinta Chili, and Linear Chili.
These areas primarily plants Chaotian Chili in the Hebei, Henan,
Guizhou, Yunnan, and Hunan Province.
Chili Planting Areas in China
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Creating value is our businessCreating value is our business