The domestic industry is confronted with significantly increased raw material prices for spices, which will subsequently also affect customers in the supermarket. The price of pepper alone has almost doubled since the beginning of the year, warns the chairman of the Spice Industry Association Erwin Kotanyi. The main triggers are crop losses due to extreme heat, floods and increased freight costs as a result of the war in the Middle East. Next year, price increases of five to seven percent, and even more for some products, can be expected in retail. “We can no longer compensate for that,” says Kotanyi. In his company of the same name, pepper makes up around 20 to 25 percent of the total quantity, and pepper is also used in many spice mixtures.
Caraway and bay leaf
The extreme heat in Brazil has already caused severe losses in the coffee harvest and is also leading to a 40 percent lower harvest prospect for pepper. “In Vietnam, the world’s largest pepper producer, a harvest is also forecast to be around 15 percent smaller,” says Kotanyi. When it comes to laurel leaves, the growing area in Turkey has not yet recovered from the fires in 2021. This situation also leads to rising prices. The significant increase in the price of cumin – plus 40 percent – was again strongly influenced by exceptional demand from India, as the cumin harvest there was poor.
In addition, the freight costs of many spices have “increased significantly” because the Suez Canal had to be bypassed. Overall, there is no sign of an easing of the situation. The cost of herbs such as marjoram and basil, grown in Egypt, is at an all-time high – also due to extreme heat.
Peppers are also becoming more expensive: “Top prices are demanded on the raw material markets for good qualities,” says the association. The costs for garlic granules are also increasing, as the harvest was significantly lower in quantities relevant for drying. At the spice producer Almi in Oftering, the development is identical. “The situation is challenging due to unforeseeable environmental influences and price fluctuations,” says managing director Karl Reingruber.
