In a Stew: the Price of Black Pepper on the Rise

For many, spices are an important ingredient in daily cooking. 

 

When the price of a certain spice soars high in the global stock exchange, it will certainly affect its consumption among the general public.

 

We met with the CEO of Pereg Spices Co., Guy Pereg, who explains why black pepper is traded at the global stock market and why its prices are updated daily.

 

[Guy Pereg, CEO, Pereg Gourmet Spices]:

“Chinese people consume black pepper a lot, and they simply have a strong hold on the market. This has already caused prices to soar in hundreds of percents."

 

Guy Pereg says Israel has not yet seen a shortage in black pepper, despite its prices having risen 400 percent..

 

[Guy Pereg, CEO, Pereg Gourmet Spices]:

“In the past, Chinese people consumed Chili peppers, which are fresh and a little bit harder to get. This alternative gives almost the same pungency effect.”

 

Black pepper was once a spice which was very widespread—used by kings and beggars—but today it can be considered a luxury.

 

[Guy Pereg, CEO, Pereg Gourmet Spices]:

“In weaker economies people don’t buy it, because it is too expensive. The price of black pepper per ton stands on about $7,600 nowadays, and it is not expected to drop… 2 years ago, it was about a quarter of the current price.”

 

The CEO from one Israeli chain store who sell spices, gives another explanation on the current situation of black pepper in the world. 

 

[Eli Talbi, CEO, “The Toaster”]:

“Black pepper is stored in extremely big warehouses. Since there has been a rise in annual consumption, the warehouses were unable to supply the product according to the demand, and the prices went up.”

 

Black pepper is harvested only once a year, making it difficult to predict a shortage ahead of time.

 

Reporter:Janet Zrian       Photographer:david bershadsky

NTD News, Israel