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Why Global Bulk Clove Distribution Collapse in June 2022?

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As of June 2022, the global distribution of cloves in bulk has experienced a sharp decline at a total export value of USD 569.83K. By comparison, the global cloves in bulk export value was never reported below USD 11M since 2019.

Clove is considered a high-demand commodity. The total production volume shows positive growth yearly. Specifically for Indonesia as the most significant bulk clove supplier. Thus, this case raises the question about the imbalance between the supply and demand of bulk clove in the global market. What happened behind it, actually?

In this article, you’ll further discover:

Inside The Biggest Clove Producer Country

Indonesia was expected to score a resounding total export valuation throughout the year. However, Indonesia’s total export valuation in June 2022 was reported at only USD 47.24K. The lowest compared to other total bulk clove export valuations from 2019 until this year. Based on today’s Indonesian bulk clove price, technically, only 1 20ft container was exported from Indonesia for the whole month.

The total bulk clove production volume in Indonesia is registered at 151.706 tons, an increase of 14.064 tons compared to the previous year. If cloves in bulk production flourishes despite the price remaining stable or decreasing, it’s highly possible that there’s no clove shortage in Indonesia. Therefore, the substantial drop in global clove distribution has nothing to do with any shortage.

Indonesia is the world’s leading clove supplier, which consumes 90% of its production for domestic consumption, leaving only 10% to export to the destination countries, which still covers the majority of global cloves in bulk demand. The most significant amount of domestic bulk clove consumption is occupied by cigarette factories. These days, it’s common for these cigarette industries to secure the cloves in bulk in their factory’s warehouses, which can last for 2-3 years. As the price of a commodity is a result of buyer and seller interaction, with the most significant buyer no longer playing in massive purchases for a certain period, the other buyers won’t need to compete over the limited supply, which decreases the cloves in bulk prices. Additionally, a similar situation was reported in 2017.

Clove Global Distribution was Deteriorated as Clove Suppliers over imported in the Previous Months

Indonesia, Tanzania, Madagascar, and Sri Lanka have significantly supplied global bulk clove demand during February and March. For this reason, the demand for cloves in bulk from April to June 2022 decreased. Companies worldwide purchased enough stock in February and March, making them no longer purchase cloves in bulk for the next 3 months. As the global market demand increased, the global bulk clove price drastically declined. However, the global bulk clove market is forecasted to rise again in Q4 2022, from October to December.

Where to Buy Clove Wholesale at the Most Competitive Prices?

Indonesian Clove Supplier

Regardless of the seasons, supply capability is the most crucial factor when choosing a spice supplier. Therefore, it is highly recommended to consider the origin of your spice supplier. A country that provides a persistent supply allows you to secure your stock if the shortage happens.

In support of your business growth, Essence Food & Beverage, LLC is a trusted clove supplier that supplies food manufacturers in the U.S. with excellent quality whole cloves in bulk. We have built a deep relationship with our reliable farmers for over 20 years. Hence, that’s our key in providing you with clove wholesale at the most competitive prices possible for the long-term period.

Purchase cloves in bulk directly from the country of origin through our secured online shop now.

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