Clove Prices Explained
Clove prices remain stable in the market as well as its supply output despite the concerning crop conditions from the world’s primary clove-producing nations such as Indonesia, Comoros, Madagascar, and Sri Lanka.
The unpredictable weather owing to climate change openly affected these countries’ clove output. As a result, market analysts forecasted that the Indonesian clove will decrease to 30%-35% in the coming years.
Why are clove prices fluctuating?
1. Low Production in Producing Countries
Low production levels in Indonesia, Madagascar, and Tanzania have a domino effect on the global supply chain, causing fluctuations in clove prices worldwide.
This is because the producers in Madagascar reduced their production due to the low prices for two or three consecutive years.
Additionally, due to the elevated prices in Indonesia, imports from Madagascar experienced an increase in costs, consequently raising the overall expenses for Madagascar.
2. Weather Conditions
Unfavorable weather conditions hurt clove trees, disrupting the harvesting schedule and leading to delays or insufficient harvesting.
Generally, cloves are harvested only twice a year, in October and November and in March and April. As a result, the dynamics of pricing largely stem from this change in the timing of market inputs.
3. Quality and Grading
High-quality cloves, characterized by superior flavor, aroma, and overall excellence, naturally pose greater demand among both consumers and industries.
Additionally, producers set higher prices for these premium products, driven by increased demand resulting from the perceived value of superior-quality cloves.
Overall, this variation has a big impact on clove pricing and market dynamics.
4. Harvesting and Processing Costs
The labor-intensive process of harvesting and processing cloves adds pressure to its costs.
Thus, the expenses associated with these activities add to the overall costs incurred by clove producers. When it costs more to produce cloves, the price you pay for them is likely to go up.
Which variables impact the price of clove?
- Low Production in Producing Countries
- Weather Conditions
- Quality and Grading
- Harvesting and Processing Costs
- Government Policies
- Supply and Demand
Where does clove come from?
The Maluku Islands, also known as the Spice Islands is a significant source of various spices, including cloves. Additionally, the well-known spice is made from the tiny reddish-brown flower buds that the clove tree produces.
Here are the typical steps in cloves harvesting:
1. Timing – Its harvesting period must be specific as it should take place every two years to provide the best flavor and quality. The first harvest is from September to December and the second harvest occurs from April to July.
2. Sun Drying – After harvesting, cloves are sun-dried which is essential for giving them their distinctive brown color, flavor, and scent. Additionally, it takes a few days for the cloves to completely dry.
3. Sorting and Grading – After drying, the cloves are sorted and graded according to size, color, and quality. This is an important step as it keeps things consistent and follows market standards.
4. Packaging – After sorting and grading, the cloves are packaged for distribution. It’s done to protect the cloves from moisture and to maintain their quality during transportation.
What are the uses of cloves?
Cloves are rich in antioxidants, vitamins C, K, E, calcium, and magnesium in their nutritional composition.
Also, their phytochemical composition and bioactive characteristics make them valuable in a wide range of industrial uses.
1. Food and Beverage Industry – Clove extract has a strong flavor and antibacterial properties that make it a natural food flavor enhancer and preservative. This component is frequently found in chewing gum, baked foods, and different drinks.
2. Pharmaceutical Industry – Eugenol, a phenolic chemical with numerous pharmacological actions, such as analgesic, anti-inflammatory, antibacterial, and anesthetic qualities is present in clove extract. Additionally, it can improve the solubility and bioavailability of specific drugs.
3. Cosmetic Industry – Clove extract can be used as a fragrance and a skincare agent, as it has a pleasant aroma and antioxidant properties. Additionally, it helps treat acne, skin infections, and wounds.
4. Agriculture industry – Also, its extract is used as a natural insecticide as it has a strong repellent and toxic effect on insects.
What is the future price of clove?
Demand for cloves increases as a result of consumers’ shifting preferences toward herbal and natural goods because they are considered to be more effective and have no negative side effects.
Additionally, they are used as natural ingredients in toothpaste, perfumes, skincare, hair care, and scents. Thus, the global surge in consumption is fueled by the growing recognition of cloves for their medicinal properties. Overall, the price of cloves will reach $11.2 to $15.6 per kilogram in 2028.