Spice companies warning about possible shortage and price hike

It might become harder and more expensive to find a basic spice used in every Australian household as brands declare a shortage.

It might become harder and more expensive to find a basic spice used in every Australian household as brands declare a shortage that could soon filter down to supermarkets.

Ian Hemphill, the managing director of Herbie’s Spices, said that a variety of factors — including monsoon seasons in Vietnam — have led to a shortage of black pepper.

“As you would appreciate, pepper being an agricultural commodity, it is always effected by the things that effect anything that’s grown, harvested, processed,” he said.

“And so the changes we’re experiencing — the monsoons have been unpredictable, they’ve been either too low or too heavy. And that’s what fertilises a pepper crop.”

He said from what he’s seen, lower crop yields across countries such as Vietnam, Brazil, Indonesia and India, have seen a lack of availability. He said this is normally when prices go up.

Black pepper shortages are predicted.

“I’ve been in the spice business for 50 years, and over that time pepper has fluctuated probably more than any other spice commodity,” he said.

He said other factors, such as the current global unrest in the Middle East, will also play a part in supply shortages and price spikes. Mr Hemphill said this doesn’t necessarily directly impact shipping, but it’s been disturbed globally and impacted the cost of shipping.

Jordyn Evans, the woman behind Mingle Seasoning, said the brand is working to limit any potential impact on products.

“Being a 100 per cent natural product, our ingredients can sometimes be affected by seasonal shifts, like the current global pepper shortage,” she said.

“Citrus Pepper is one of our top sellers in Coles, and while we do anticipate some supply pressure, we are doing everything we can to keep it on shelves.

“This will not affect pricing as we are committed to delivering the best value to our customers. While these challenges can be frustrating, they are sometimes part of working with real, natural ingredients.”

Major supermarkets in Australia — Woolworths, Coles and Aldi — are all understood by news.com.au to not have been impacted by the shortage just yet. But Mr Hemphill said that it would be at least two to three months before Australians saw an impact at their local grocery store.

Jordyn Evans, the woman behind Mingle Seasoning, said the brand is working to limit any potential impact due. Picture: Instagram/Mingle Seasoning

“What you have to remember is the length of the supply chain. If you look at the big companies, they would pack 10 to 20,000 packets at a time,” he said, before the items would be stored in a warehouse and the distributed to retailers.

“In many respects, you’re probably looking at pepper that was purchased way back when the price was lower. You will also find the bigger organisations will speculate, look at the climatic conditions, and stock up for a buffer.”

He said that because black pepper is a dried product, that allows for this to happen. But he was firm on the fact that prices will rise — and warned that lower grade material may become more readily available.

“I’d like to finish up by saying — and I think this is a really important message — is that when it comes to the amount of pepper you use in your food, it is probably one of the lowest cost ingredients that go into the meal,” he said.

“Yes, you have to pay $7 when you buy it but it will last you for a month or more. When you grind it onto your food, it’s only a couple of cents worth.

“It’s nature’s greatest economical flavour enhancer.”

Originally published as Spice companies warning about possible shortage and price hike