Lemon Oil Citrus limon (L.) Burm. F. Harvest: May - July

Due to the lack of rain during the spring of 2020/2021 that affected fruit setting and growth of the fruits, the size of the lemons was expected to be smaller, and the volumes were expected to be 30% less than the previous crop. However, timely rainfalls during the summer allowed lemon trees to recuperate, and the new estimate for 2020/2021 production increased from 1.03 to 1.15 million metric tonnes.

Because of the larger crop size and the decline of exports of fresh fruits, lemon for processing is expected to increase 13.5% from initial estimate, to 831,000 metric tonnes.

Despite crop size being better than anticipated, Argentina faced many difficulties with the current crop for several reasons.

Internally, labour strikes in Tucumán slowed down production and export of fruits; domestic economic contraction has negatively impacted the lemon sector; the competitiveness of the lemon sector in Argentina has been affected by production costs constantly increasing due to high expenses and high inflation rates; investment and expansion have decreased following poor financial performance after having to discard fruit in MY 2018/19.

Externally, supply seemed to be higher than demand. The predictions of a lower crop size triggered a buying frenzy, and as a result, most companies covered their requirements and this could be the main reason for a lower demand. Last year’s suspension of Argentine lemons / citrus exports to Europe because of citrus black spot was beneficial to other origins such as South Africa. Even though Europe suspended the ban in May 2021, Argentina may suffer difficulties in regaining business which was lost. Processors have large stocks of processed lemon products because of the oversupply of fruit in the previous season when Argentina voluntarily withdrew from the EU market approximately 20,000 MT of fresh lemons, which were reoriented to processing and/or exported to non-traditional markets like the United States. New crop lemon oil prices from Argentina are up but have not increased to their post-decline level.

The new crop 2021/2022 is expected to start around March/April of 2022 and, so far, there is no indication at this time as to the crop size, because processors and growers are hesitant to provide a forecast. However, since the time for frost and freeze have passed, a typical crop is expected for next season.

Argentina Historical and Current Lemon Production (‘000 MT)

Blue Cypress Oil Callitris intratropica Harvest: All Year

Australia’s signature blue oil continues to garner unwavering attention from the aromatherapy sector. With a stable market, production remains constant with Australia producing about 1,000 kg of oil per year.

Buddawood Oil Eremophila mitchellii Harvest: March - October

Buddawood has found increased favour in the fine fragrance industry. However, with the shutting down of the duty-free sector, luxury items are a low priority. Consequently, demand is weak. Production in Australia is stable with 2 MT produced this year.

Eucalyptus Oil Citriodora Eucalyptus citriodora Harvest: June - October

Despite a steady demand and constant market, Australia produced less than 6 MT of this variety this season.

Eucalyptus Radiata Oil Eucalyptus radiata Harvest: April - November

There have been no major upheavals or fluctuations in the market. With robust demand, this year Australia produced more than 6 MT of the Eucalyptus radiata variety.

Kunzea Oil Kunzea ambigua Harvest: September - January

The aromatherapy market is a strong growth-driver of this oil. Even now, this oil enjoys robust demand from this segment with Australia producing over 1,000 kg per year.

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

This beautifully fragrant oil has been getting quite some attention from aromatherapy companies due to its growing use in the sector. Production and processing in Australia is progressing at a steady pace and this year the production volumes have touched 3 MT.

Lemon Scented Tea Tree Oil Leptospermum petersonii Harvest: July - September

Driven by a strong demand and stable market with not much fluctuation, Australia produced 1,000 kg of lemon-scented tea tree oil.

Manuka Oil Leptospermum scoparium Harvest: All Year

Manuka enjoys a longstanding demand, especially due to its favoured status in the aromatherapy industry. The market is stable and prices for this oil remain at steady levels with not too much change.

Rosalina Oil Melaleuca ericifolia Harvest: April - November

This year Australian output is over 1,000 kg with robust demand and a steady market. Rosalina is quite a favoured oil in aromatherapy.

Sandalwood Oil - Northern Queensland Santalum spicatum Harvest: March - October

This is another oil that has, over the years, found acceptance in the fine fragrances industry. The market remains stable but demand has dwindled due to closure of the duty-free segment.

Sandalwood Oil Album Santalum album Harvest: March - November

A perfumer’s favourite and a coveted Australian essential oil, sandalwood album is also significantly down on demand despite a stable market.

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

Tea tree oil continues to command a reasonably good demand. However, Australian farmers are facing increasing competition from the varieties flooding the markets from other sources. Last year, due to flooding, tea tree oil production was significantly reduced to 700 MT in 2020. This year, the outlook is improved with a crop production of 1,000 MT with stable prices.

Tea Tree Organic Melaleuca alternifolia Harvest: May - November

There is stiff competition from oil from other origins. This year Australia produced 8 MT of tea tree oil of the organic variety.

Orange Oil CP Citrus sinensis Harvest: July - December

According to Fundecitrus, the 2021-2022 orange crop forecast update for the state of São Paulo and the western Minas Gerais citrus belt is 267.87 million boxes of 40.8 kg each. This represents an 8.9% reduction from the previous estimate in May of 294.17 million boxes. These lower figures bring the crop forecast to be about the same as the last crop, which ended at 268.63 million boxes, even though it should have been a better crop due to the alternate bearing phenomenon. But because of continuing drought conditions, which has reduced the moisture level in the soil and caused low water levels in rivers, lakes and reservoirs in what is considered the worst water crisis in 91 years, combined with successive frosts in June and July, the larger crop will not come to fruition.

These unfavourable weather conditions have caused a decrease in the quality of the oranges, since some of the fruits affected by the frosts are dry and crystallised in the inside; a significant reduction in the amount of fruits per trees; the fruits to be smaller and weigh less than the usual oranges resulting in a smaller number of boxes produced; and the highest drop rates of oranges ever seen in recent history. In view of this data and the perspective of climate conditions remaining adverse until harvests end, fruit should present the most critical size and drop rate in historical data. All varieties considered, the average size projected in May 2021, of 259 fruits to fill a 40.8 kg box, which corresponds to an average orange weight of 157.5 grams, is now updated to 283 fruits per box, equivalent to a weight of 144.2 grams per fruit, which is 14.7% lower than that of the last five crop seasons. The projected fruit drop rate increases from 20.5% to 20.9% average, all varieties considered, due to the intense water deficit, frosts and the pressure of pests and diseases, all affecting the physiological activities of orange trees.

Brazil : Citrus Belt Orange Crop Forecast by Variety

The lower crop size has triggered price increases for orange oil, terpenes and d’limonene and all other products generated during the processing of oranges. The supply is limited and lower than expected and demand is on the increase. The prediction is that price will continue to increase and a price release is not expected until March 2023. Moreover, in August 2021, the United States Environmental Protection Agency (EPA) released a final rule revoking all “tolerances” for chlorpyrifos, which establish an amount of a pesticide that is allowed in food. This is causing many quality control rejections, and thus making a difficult situation even worse. According to growers, chlorpyrifos will remain in the trees for at least 2 to 3 years.

It is too early for a 2022-2023 orange crop forecast, but considering it will be an “off” year according to the alternate bearing phenomenon cycle, and the extreme adverse weather conditions which may affect the fruit setting for the new crop, together with a late start for the next crop, as blooming has not fully started yet, a potential crop of 300 million boxes is expected.

Brazil Citrus Belt : Orange Production 1989/90 to 2022/23 (million boxes )

Lavender Oil Lavandula angustifolia Harvest: July

Extremely cold weather conditions delayed regular lavender operations. This led to a reduced output and production. Farmers are waiting to see the price scenario to decide on the future of the fields. Earlier the low price of lavender pushed farmers to destroy fields and stop the harvest. If price continues to be low, farmers are expected to repeat the trend. This will make lavender production unsustainable. 2021 witnessed lower production compared to previous years.

The demand for lavender is extremely high, and distillers are finding it difficult to keep up with demand. The market for the oil has been extremely active in the last few months.

Melissa Oil Melissa officinalis Harvest: July

Market for melissa oil is slow. There is no fluctuation in the demand for the product.

Rose Oil Rosa damascena Harvest: May - June

COVID-19 based restrictions and regulations across the globe are expected to determine the market situation in the coming months. Currently, lack of field workers to hand pick roses has impacted production. Unfavourable weather conditions have affected the yield too. 2021 witnessed limited production of rose oil. While the demand for the oil has improved, labour issues are bound to affect production and price. Most companies do possess stocks from previous years.

Balsam Fir Oil Abies balsamea Harvest: April - November

There are around 1 to 2 tonnes of oil available in the market which is fast depleting.

Balsam Fir Oil - Organic Abies balsamea Harvest: April - November

Reasonably adequate supplies of this oil are available in the market.

Black Spruce Oil Picea mariana Harvest: May - August

Black spruce oil from Canada has reasonably good demand, but stocks are limited. Prices have inched up.

Cedar Leaf Oil Thuja occidentalis Harvest: March - October

Cedar leaf oil stocks are limited, prices are escalating.

Cedar Leaf Oil Organic Thuja occidentalis L., fam. Harvest: March - October

There are very limited volumes of this oil on the market. Market estimates point towards a price rise.

Eucalyptus Oil Eucalyptus globulus

Prices are at a historic low, influenced both by demand and the pandemic. Meanwhile, the increase in freight rates and the appreciation of the RMB is putting upward pressure on the export price. Oil supply is low in part because the low oil price has led to farmers only collecting the product after orders have been confirmed.

Garlic Oil Allium sativum L. Harvest: April - May

Production is being planned as per the orders received. The demand for the oil is low.

Ginger Oil Zingiber officinale Harvest: January - April

There is no interruption in production and it is planned as per orders. The market for ginger oil is stable.

White Spruce Oil Organic Picea glauca (Moensch) Harvest: May - August

The market for this oil seems to be stable with steady stock supply.

Citronella Oil Cymbopogon winterianus Harvest: June - December

Competition from Indonesia has reduced demand for the oil. The crop season is nearing a conclusion and there is limited supply of the product.

Domestic crude oil prices have fallen, which has led to a reduction in production. Restrictions due to the pandemic have hit the two major crude oil producing areas in Yunnan. The oil source has witnessed a price reduction.

Currently, the oil is priced at its lowest this year. Sales volumes are small. Farmers are looking to trade stocks with cash.

Geranium Oil Pelargonium graveolens Harvest: May - September

High quality products in the market are geranoil > 5.5% and betaguaiadiene > 6%. There is good demand for the oil. But with the crop season almost over availability has become an issue.  The oil price is expected to rise around the Chinese national day, though it should adjust with the fall in temperature and reduction in availability after the festival period. This price reduction will not be significant since the quantities are limited. Due to the low labour price planting has been minimal this year. Around 400-500 kg of the oil is available weekly. These quantities are bought by collectors, who hoard them till the price goes up.

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

The oil price has seen a massive spike. Limited supply has led to this price rise. The crop season has also concluded. Seed harvest of litsea cubeba was not optimal this year. With high demand and low availability, customers are recommended to make procurement plans soon.

Star Anise Oil Illicium verum Harvest: March - May, November - December

The new crop is expected to bring the oil price down. Harvest will commence in 4-5 weeks.

The oil price has spiked. Shortage of raw material supply from last season has escalated the price. Suppliers have mostly exhausted their inventory, and the situation is not expected to improve after the next harvest.

Wintergreen Oil Gaultheria procumbens Harvest: July - September

Adulteration has become a massive issue. There is almost no supply of the oil because of it. The unadulterated quantities are priced extremely high.

With farmers spending their time on flue-cured tobacco, the production of wintergreen oil has taken a hit. Demand for the oil has been affected by the high price of crude oil, though recently the oil price has been stabilising. Reduced output from the plant leaves has also brought down the distillation frequency. 

Basil Oil Ocimum basilicum Harvest: March - October

The last two basil crops fetched prices which were lower than expected. Since there are adequate carryover stocks available in the market, production of the new crop is progressing but in limited quantities.

Chamomile Blue Oil Matricaria chamomilla Harvest: March - May

This year the number of chamomile cultivations was reduced compared to last year. As a result, the supply of fresh flowers from the crop in February to April was significantly curbed and prices for raw material rose considerably. Oil production, too, was largely restricted.

Citronella Oil Cymbopogon winterianus Harvest: May - December

There is a decrease in production of citronella as the price of the oil was low and farmers lost interest in production. The current demand is consistent, but the prices are escalating due to limited supply clubbed with increased logistical costs. The price for cintronella oil may continue to rise further in the next few months.

Clove Oil Eugenia caryophyllata Harvest: January - February

The price of clove essential oil is stable and no major fluctuations have been reported. But, with no dry season, the price of crude clove oil is expected to keep rising till the end of 2021. A rise in crude prices is also expected to affect the price of derivatives. With the short timelines a dry season now will not help increase the production of crude clove.

Cumin Seed Oil Cuminum cyminum L. Harvest: May - June

There is demand for cumin oil but distillers are facing a deficit of seeds in the market, both domestic and imported varieties. Consequently, seed prices have escalated. Naturally, this has also affected oil prices which are inching up. Industry watchers predict that cumin seed prices will continue to move up till the next crop in April and May 2022.

Geranium Oil Pelargonium graveolens Harvest: June - July

And this year is no different. Prices have settled. As has been observed over the years, the prices of geranium decline after the new crop reaches the market. However, this year prices did not plunge to their usual low levels. The new crop has hit the shelves but prices have been stable. Since demand continues to be steady, reports indicate that prices will hold their positions and will not fall further.

Jasmine Absolute Jasminum grandiflorum L. Harvest: June - November

As work resumes post COVID-19 reopening, the factories have resumed work but are operating at less than half their capacities. Initial market reports estimated a healthy jasmine crop but, contrary to predictions, fresh flower volumes have plunged to their lowest in the last two years. The crop has hardly been adequate to fulfil requirements; and flowers of a sub-standard quality are being used in production. This has exerted immense upward pressure on the prices of jasmine concrete and absolute.

Marjoram Oil Origanum majorana Harvest: August - September

The planting for marjoram will commence from next month. This oil has brought in lower margins and farmers are reluctant to cultivate. However, there is apprehension that this situation may change since lower cultivation will immediately push up prices for the oil.

Neroli Oil Citrus aurantium var. amara Harvest: March - April

Production is unable to keep up with the reasonably good demand of neroli oil. Consequently, neroli oil stocks are depleting while prices are rising.

Nutmeg Oil Myristica fragrans Houtt. Harvest: June - August

The demand of nutmeg is higher than the existing supply. It is almost impossible to find min 10% myristicin material and the new standard is between 8-9%.

To further add to the challenge, the logistical issues in the area are mounting, leading to restrained availability. The price of nutmeg oil is getting firm at source.

Patchouli Oil Pogostemon cablin

Price of patchouli oil went up substantially last year. This increase made it attractive for farmers to plant and grow patchouli again. However, this increase in production has caused an increase in supply and led to a decline in the current price.

Vetiver Oil Vetiveria zizanioides Harvest: February - May

Due to low price, the growing of the crop became unsustainable for farmers. With production coming to a standstill, the price has increased by almost 100% in the last 3 months. Haiti is the main producer of vetiver oil worldwide, and is the preferred scent. However, the geopolitical issues in Haiti come as a hindrance. Meanwhile, the demand for the oil remains steady. Even though the Indonesian vetiver oil scent has a smoky burnt note, with demand like the current scenario, it could replace the Haiti vetiver oil in some formulas.

Basil Oil Holy Ocimum sanctum Harvest: November - February

Except during the monsoon season cultivated basil is distilled throughout the year. With the end of the monsoon season in the plantation region a new crop is expected soon. The wild crop is expected in the winter season between December and March. The herbage obtained depends on various factors and so it is not possible to predict the oil quality that will be produced.

Cardamom Oil Elettaria cardamomum Harvest: September - December

The market is looking positive due to favourable weather conditions. On the other hand, there are reports about the crop being impacted by nematode infection. Price is stable at the moment, but an upward trend is expected in the coming months.

Citronella Oil Cymbopogon winterianus Harvest: October - February

The oil price has stabilised. Production has commenced and volumes will increase soon.

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

Consistent oil demand is expected in the coming months. Market and price are expected to remain stable too.

Cornmint Oil Mentha arvensis Harvest: May - July

Buyers are advised to keep quantities in stock. There could be a potential rise in oil price due to the sustained demand for DMO (dementholised mint oil). There is enough carryover stock to meet global demand of the product. Synthetic menthol supply is also uninterrupted. At present, the demand for Indian mint products is on track with regards to exports to China. Currently 7,300 MT of menthol have been exported by India. Extrapolating this figure, the annual demand is expected to be 22,000 MT. This is in tune with last year’s volumes. This could potentially lead to a slight rise in price. Majority of mentha oil supply is in the hands of stockists and investors this year.

There is a slight upward curve in the price post the harvest season. The harvest and distillation processes are over, though incessant rains are delaying the arrival of farmers to the market.

Cumin Seed Oil Cuminum cyminum Harvest: May - June

Some growing areas experienced temperature fluctuations. The resulting crop is expected to be 5-10% smaller than estimates. The harvesting season is complete. Supply shouldn’t be impacted because of last season’s carryover stock. Currently the price is stable.

Cypriol Oil Cyperus scariosus

Price will be stable in the short term. There has been an increase in demand for the oil, especially from Europe. The crop season has ended. Major crop belts have received good rainfall.

Davana Oil Artemisia Pallens Harvest: February - April

The price is stable. There is scarcity of raw material with adequate davanone content. There is abundant carryover stock in the market due to hoarding in the earlier period.

Frankincense Oil Boswellia serrata

The crop is good but the harvest season is yet to commence. There is decent demand for the product from the home care and aromatherapy industry. The price of the oil is stable. The wild crop is mostly found in north, south west, and central India. The pharmaceutical and fragrance industry make use of both the oil and resins.

Ginger Grass Oil Cymbopogon martini Harvest: January - April

In the short term the price will remain stable, but continue its bullish trend. The demandsupply dynamics are consolidating, though there has been a slight increase in oil demand.

Ginger Oil Zingiber officinale Harvest: January - April

Due to the low quality of supply, the oil price has gone up. There is a shortage of extraction grade RM in the market. In the coming months price will mostly remain stable, but continue its bullish approach.

Jasmine Absolute Jasminum sambac & Jasminum grandiflorum

For jasmine sambac the last harvest period between August and September is in progress. The crop has been good in this cycle.

For jasmine grandiflora the crop and price are expected to remain stable. The crop season will continue till November. Absolutes are converted as per requirement. But concrete conversion happens during the crop cycle.

Juniper Berry Juniperus communis

The biggest produce comes from Himachal Pradesh where the crop was bad poor. There were problems importing raw material from Pakistan too. The harvest is in progress and will end in November. A poor crop and non-availability of material is bound to increase the price.

Lemongrass Oil Cymbopogon citratus Harvest: July - November

In the short term the price is expected to remain stable, though increasing demand is expected to result in a consistent price rise.

Currently the market is stable with respect to demand and supply. Oil production has increased in growing regions in southern parts of India.

Nutmeg Oil Myristica fragrans Harvest: June - August

The market is expected to remain stable in the short term. The price for extraction grade RM is firm, though in the coming months high price fluctuations are possible due to erratic supply dynamics. Shortage of quality raw materials and lengthy lead times continue to pose a challenge.

Palmarosa Oil Cymbopogon martini Harvest: January - June

In the coming months the oil price is expected to increase. Production will commence after monsoon around October- November. Raw material availability is unable to meet expectations. In the short term the market will remain stable or witness a bullish trend.

Sandalwood Oil Santalum album Harvest: March - November

Suppliers with stock of sandalwood oil are dictating the price. This trend is not expected to continue as buyers are moving towards other varieties of the oil. Synthetic substitutes have become popular because of economic implications, and to avoid scrutiny by authorities. The situation can only improve when private plantations get a go-ahead to produce and sell wood, oil, and powder in the market.

Raw material availability is an issue. No fresh auction of wood has been undertaken by the three forest divisions. Sourcing authentic, sustainable, and legal sandalwood has been a constant issue for buyers. The oil price is steady and on an upward trajectory.

Spearmint Oil Mentha spicata Harvest: July - August

It is advisable to cover requirements with small purchases. High demand and low production have led to a massive spurt in spearmint oil prices. Currently 100% pure and natural spearmint is being sold at extremely high prices.

Star Anise Oil Illicium verum Harvest: September - November

Star anise is heavily used in local cuisine in its native regions of southern China and northern Vietnam. Arunachal Pradesh has conducive soil and climate for the propagation of the crop. It is the only region in India that produces star anise. The crop is grown during the spring season. With supplies from China hit a few months back the price was affected. Now they have normalised. Star anise is an evergreen tree, which occasionally grows up to 26 feet. Its fruit has a fragrance similar to liquorice.

Turmeric Root Oil Curcuma longa Harvest: March - May

Declining demand and availability of carryover stock have settled the price at support level. Since the price is expected to remain low, the upcoming crop will be reduced in size.

Bergamot Oil Citrus bergamia Harvest: November - March

The extreme heat and erratic rains have likewise impacted the bergamot crop in Italy. It is evident that the crop size will be significantly reduced, but the main challenge is the quality of fruit and not so much the quantity. Initial predictions anticipate a sharp 30% decline in the bergamot crop size, though the quality of fruit directed into the fresh and processing markets is compromised.

Lemon Oil Citrus limon (L.) Burm. F. Harvest: November - January, April - July

The citrus market in Italy this year is rather subdued and anticipating a steep fall in the crop, almost a 40% drop from last year. In a marked deviation from the usual weather patterns, Italy and some of its main citrus growing areas like Syracuse experienced a hot and arid summer. With the mercury shooting up to an unusual 50°C, fruit production and fruit size are both affected. It is not clear whether this will impact the fruit channelised for processing since even small sized fruit can be directed into the fresh fruit market or for processing. The industry has adopted a wait-and-watch approach for better clarity. Estimates of lemon oil production continue to vary with most ranging between 600 and 700 MT.

Mandarin Oil Citrus reticulata Harvest: February - May

It is a similar story with mandarin as well. though the mandarin season is just poised to begin and the collection of green mandarin will begin soon. It is evident that the crop will be below expectations. Green mandarin is the driver of the market forces since the quality of red mandarin is dependent on the quantities of green mandarins collected.

Orange Oil CP Citrus sinensis Harvest: March - May

Italy’s orange farmers have a similar story to tell and are grappling with a drastically reduced crop size. Weather has not been conducive and market estimates point towards a 40% drop in crop size for the next harvest.

Black Pepper Oil Piper nigrum L. Harvest: December - February

The black pepper crop is considerably reduced as a result of the drought in the growing regions. This has also affected the quality; there is a variation in the composition with respect to the standards of beta-caryophyllene content. Prices for this oil plunged to their nadir in a record low in 2020 but rallied again due to demand inching up. Current prices are attractive for black pepper oil from this origin.

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

The material coming into the markets from Indonesia is posing stiff competition to Madagascar clove bud oil. There is a difference in the quality due to the eugenol and eugenyl acetate content. Prices are at an all-time low.

Clove Leaf Oil Eugenia caryophyllata Harvest: August - October

This oil commands a steady average price despite the lull in the market. If demand in global markets picks up prices can move up.

Ylang Ylang Oil Cananga odorata Harvest: February - October

The demand for this oil seems to be tepid, and there is excess supply available in the markets. The market is stagnant and producers are unable to sell their existing stocks even at reduced prices.

Lime Oil Citrus aurantifolia Harvest: May - August

Key Lime- Citrus aurantifolia 
Persian Lime-Citrus latifolia 

The lime season is coming to an end for both varieties of lime, Key and Persian. Lime production is expected to increase compared to the last crop due to improved weather conditions in the growing regions. However, limes for processing are expected to be less than the last crop because of the high demand for fresh fruit globally owing to the growing interest in their health benefits. This has generated an increase in exports and fresh domestic production and the supply of lime oil being not enough to keep up with demand, leading to prices for all qualities and varieties of lime oils to increase substantially.

The total production for lime in 2021 is estimated to be 2.87 million metric tonnes but only 15% of this volume will go for processing.

While the lime industry is growing significantly, making the product available throughout the year during both peak and off seasons continues to be a challenge. A global container shortage represents another factor that affects the supply this year. This situation has not changed in the past months and it is likely to continue until 2022 with freight rates up 50-70% compared to last year as well as shipment delays given the limited equipment availability.

Fresh Mexican limes: production, supply and distribution (1,000 metric tonnes)

Clary Sage Oil Salvia sclarea L. Harvest: July - August

Prices have come down after the harvest, since the crop was good.

Coriander Seed Oil Corriandrum sativum L. Harvest: July - August

Coriander seeds are in high demand from the spice market. Efforts are being made to source adequate high-quality quantities for distillation. Currently the raw material price is on the higher side.

Lavender Oil Lavandula angustifolia Harvest: July - August

Raw material is available because of a good crop. The market is stable.

Manuka Oil Leptospermum scoparium Harvest: April - October

There has been an immense amount of research on manuka oil. Its powerful antibacterial properties, several times more than that of tea tree oil, has made it a current trending ingredient in the cosmetics and personal care sectors. The oil has shown excellent results in various experiments with shominis, the bacteria causing body odour and can be used extensively in body wash and deodorant products. In another landmark development, manuka essential oil is making headlines as a key ingredient in filter media used in face masks and ventilation systems to inhibit coronavirus.

Manuka production has been augmented with the addition of more plantations and enhanced capacity. This will enable distillers to fulfil the growing demand generated by these new avenues and markets.

Fir Needle Oil Abies sibirica Ledeb. Harvest: April - September

Demand is high and quantity available is limited for several reasons. Russia is facing price issues on most products, including production equipment. Immediate relief is not expected.

Pine Oil Pinus sylvestris Harvest: May - August

There is no change in the market scenario. It is stable in terms of demand, supply and price.

Thuja Oil Thuja occidentalis Harvest: July - September

Quantities are available in stock. Thujoncontaining products are in high demand, due to shortage on Cedar Leaf oil and Thuja oil.

Lemon Oil Citrus limon (L.) Burm. F. Harvest: November - July

Spain is Europe’s largest lemon producer and the largest producer of oil, each year processing between 20%-25% of output. There are approximately 48,000 hectares of lemon with an estimated 14 million trees. Despite wide annual fluctuations, lemon production over recent decades has shown an upward trend. Over the past decade production of organic lemons has been increasing quickly and is estimated to account for 15% of current hectarage.

The AILIMPO lemon crop estimate for the 2021-2022 season forecasts production in Spain of 1,035,000 MT, which represents an overall decrease of 24% compared to the 2020/2021 season that closed with a record production of 1,370,000 MT.

The decline is due to adverse weather conditions in 2021 with episodes of cold, wind and excessive rain that affected flowering and fruit set in some production areas. The production of the Fino variety, which is predominantly used in the processing industry, is expected to decrease by 16%, while the Verna variety, which is mostly sold as fresh, is expected to be 40% less compared to the last crop.

A greater use of lemons for the fresh market is expected, with a consequent decrease in volumes for processing.

Increasingly initiatives are being undertaken in the Spanish lemon sector facilitating greater  sustainability and helping combat climate change. Spain has been undertaking a range of sustainability initiatives overing environmental, social and economic aspects. In 2021 AILIMPO provided carbon footprint data for the lemon sector showing that it annually captures more than 300,000 MT of CO2.

Measurements of CO2 emissions were taken along the value chain from growing, transportation, packaging, and processing. Lemon groves have a high capacity to capture CO2 through carbon fixation, and AILIMPO estimated the crop captures the equivalent of 360,550 MT each year. The high CO2 fixation figures are due to the implementation of increasingly sustainable practices by producers (e.g. low soil tillage, use of residues and localised irrigation systems leading to reduced water consumption, growth of organic cultivation, use of renewable energy and electric vehicles). Currently, the sector emits an estimated 49,300 MT of CO2 a year – 18,122 MT in transportation, 19,705 MT at packhouse level and 11,472 MT in processing plants. This gives a net CO2 saving of 311,250 MT a year.

Cinnamon Bark Oil Cinnamomum zeylanicum Harvest: May - December

Restrictions and logistical issues related to COVID-19 have had a negative impact on production volumes, but raw material is available in abundance. Even the delay in harvest has not impacted the crop. The Sri Lankan currency has also depreciated in terms of US dollars. This has eased oil prices this quarter. The price is expected to maintain its level till the end of the year.

Cinnamon Leaf Oil Cinnamomum zeylanicum Harvest: March - August

COVID-19 restrictions and uncertainties regarding fertilisers have subdued the regular drop witnessed in the second quarter. Raw materials are easily available with cinnamon peeling in progress. The oil price has also eased from the previous quarter, though it is expected to rise.

Citronella Oil Cymbopogon nardus Harvest: May - December

The last 3-4 years have witnessed stable oil prices in the market. Favourable weather conditions have positively impacted the production of citronella oil. The price has fallen marginally from the first quarter.

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

Clove crop volumes see a significant rise in alternate years. In December 2020 there was a bumper crop, so volumes are expected to be low this year. A negligible impact of yield on price is predicted. Clove oil prices tend to decrease in November and then pick up at the end of the first quarter. The third quarter witnesses the highest price, before the harvest season when the price falls around November-December.

Nutmeg Oil Myristica fragrans Houtt. Harvest: February - May

Competition from Indonesia has been adversely affecting the local industry. Mid-year crop will be available from the end of the second quarter to mid-third quarter. No fluctuations in oil price have been observed in the last few quarters.

Laurel Leaf Oil Laurus nobilis Harvest: January - April

Laurel leaves are usually harvested during the months of September through November. Turkey has made a name for itself as a primary producer of laurel leaf oil, and the product commands considerable demand in the global markets. Initial indications point towards a good crop, and prices are expected to remain stable.

Lemon Oil Citrus limon (L.) Burm. F. Harvest: July - November

In 2020/21, Turkish lemon production reached 1.1 million MT, some 13% higher than 2019/20. The area under lemon cultivation has been increasing in recent years and now stands at 41,000 hectares. While producer prices increased slightly the cost of inputs, including energy, chemicals and fertilisers increased by 60-90%. In 2019/20 lemon exports decreased by one third because of low yields and government export restrictions. In 2020/21 exports are predicted to increase by 49% to 570,000 MT reflecting both growth in demand and production. An estimated 50,000 MT of lemon production is processed. While Turkey is a major global producer of lemons and thus influences global supply and demand, its importance in the lemon oil market is substantially smaller.

Orange Oil Citrus sinensis Harvest: November - February

Extremely high temperatures at the time of the blooming of the orange trees in May have impacted the Turkish orange crop. There was a parallel 60 to 90% jump in the prices of fertiliser and other overheads such as electricity and other chemicals. Market outlook is rather subdued with exports estimated to drop about 10% to 263,000 MT. Correspondingly, orange production is also forecasted to be a whopping 23% lower than last year; at 1.3 million MT. An estimated 105,000 MT of orange will be processed in 2020/21, approximately 5% on the previous year. Pesticide levels are still a source of concern.

Oregano Oil Origanum vulgare Harvest: July - September

The season for oregano commenced last June. The crop is in season and prices are stable.

Rose Oil Rosa damascena Harvest: April - June

Widely used in luxury fragrances, rose oil is a perfumer’s delight. However, post- COVID-19, there is a marked fall in demand for luxury fragrances and consequently demand for rose oil has dipped. The crop was good and harvesting is complete. However, due to the current situation where the market is slow for luxury goods, prices for rose oil have plummeted.

Sage Oil Sage offcinalis Harvest: May - October

August to September marks the harvesting season for sage. This year the crop is healthy and harvesting is now in full swing. Prices are stable and expected to remain so.

Tangerine Oil Citrus reticulata Harvest: April - June

Turkish tangerines performed well with favourable weather conditions and timely rainfall. The harvest was good and tangerine production is forecasted to go up by around 14% to 1.6 million MT. Exports grew by a significant 8% from the previous season; Turkey exported about 890, 595 MT in April 2021 to Russia, Ukraine, and Iraq.

Thyme Oil Thymus vulgaris Harvest: June - August

The weather has played truant this year and this has impacted Turkey’s thyme production. The harvest season kicked off in June, but market prices are expected to go up considering the reduced crop. Market estimates indicate that prices for thyme oil will be higher this year in comparison to last season.

Grapefruit Oil Citrus paradisi Harvest: December - April

In 2021-22 Florida grapefruit production is forecast at just 3.8 million boxes, down from 4.1 million boxes in 2020-21. This represents a 7% decline in the crop. Red varieties are at 3.2 million boxes, while white is at 600,000 boxes. The forecast for California grapefruit production, 3.9 million boxes, is unchanged from last season and slightly higher than the Florida grapefruit forecast. Texas grapefruit production is expected to increase, from 2.4 million boxes last season to 3.1 million boxes this season.

Similarly to what happens with orange production in Florida, not only greening contributes to the decrease in grapefruit yields but also the older tree inventory and the declining fruit per tree. Nearly 70% of red grapefruit trees are more than 14 years old, which affects negatively in the number of boxes produced per tree.

Lemon Oil Citrus limon (L.) Burm. F. Harvest: May - July

California produces 80% of US lemons, giving coastal lemon oil, while Arizona accounts for the remainder, giving desert type oil. Lemon production is dominated by one large co-operative which, together with one other large processor, makes up the lemon oil producing industry. Production for the fresh fruit market dominates production, with approximately 30% of production being processed. In 2020-21 lemon production declined substantially in Arizona from 1.8 to 0.8 million boxes, and in California from 25.3 to 21.3 million boxes, making a total production figure for 2020-2021 of 22.1 million boxes. However, in 2021-22 Arizona lemon crop is forecast to increase to 1.3 million boxes, while California lemon production is forecast to be flat at 22.3 million boxes.

Orange Oil Citrus sinensis Harvest: February - May

USA citrus utilised production for the 2020-2021 season totalled 6.90 million tonnes, down 12% from the 2019-2020 season, in part reflecting the decline in acreage. Of those, all oranges account for 4,426 million tonnes (1,683 million tonnes fresh and 2,743 million tonnes processed), down 16% from last season. The value of the 2020-2021 USA citrus crop was down 3% from last season, to US$ 3.31 billion, while the value of orange production decreased 7% from last season, to US$1.59 billion.

The USDA final 2020-2021 Florida orange forecast is 52.8 million boxes. Initially California’s orange production was forecast above Florida’s but came out at 50.1 million boxes and Texas remained at 1.05 million boxes. This adds up to a total USA orange production in 2020-21 of 103.95 million boxes.

The final Florida orange total is comprised of 22.7 million boxes of non-Valencia oranges (early, midseason and Navel varieties), unchanged from June forecast, and 30.1 million boxes of Valencia oranges, up slightly from the June forecast of 30 million boxes. California non-Valencia fell from 43.3 to 40.6 million boxes, while Valencia dipped from 10 million to 9.5 million boxes.

Orange production continues to decline in Florida because greening and fruit drop has severely impacted orange yield. Old tree inventory and declining fruit per tree are contributors to projected yield declines. Nearly 57% of round orange trees are more than 14 years old. Since 2010 older trees have seen dramatic reductions in the number of boxes produced. In recent years, trees have yielded only about 1.5 boxes per tree, down from more than 5 boxes per tree before HLB. Insufficient tree replacement rates are also contributing to fruit production shortfalls.

Fuelled by consumers who continue to seek out foods and beverages that support health, as well as by sustained use of e-commerce, in the last 4-week period ending on 11 September 2021, retail sales of total orange juice were up by 13.1% compared to 2019 values. While the average year-over-year sales of not-from-concentrate (NFC) increased by 1.1%, NFC orange juice sales are up by 20.3% compared to 2019 values.

In mid-October the USDA released its first forecast for the 2021-22 season and orange production showed

another substantial decline to the lowest levels on record. The total USA orange production forecast for the 2021-22 season is 3.88 million tonnes, down by a dramatic 12% from the final 2020-21 final utilisation. As the table illustrates, all three growing states, Florida, California and Texas showing sizeable crop reductions.