Market Report AUTUMN 2019

1929 – 2019

Almost a century and we are just getting started
Oils and all their essentials

Browse and discover all the latest on over 115 key essential oils from 25 growing regions around the world. The Ultra Autumn Market Report is a special addition as it contains the story of our 90 year legacy. In addition, our download is packed full of additional articles including:  The Perception of Natural: Lessons and Predictions, The Sanganeria Foundation for Health and Education (SFHE): Gifting Dreams and many more…

Digital version available. Click to DOWNLOAD and save it as your favourite pdf so you have everything you need to know offline and on the go!! 

Want to print this report page by page? Then click the PRINT button in the top left corner!

Argentina

Lemon Oil

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

Argentina, like some of its other citrus counterparts, is reeling under erratic weather patterns and climate change and this has affected the lemon trees. Furthermore, there is increased channelling of supply into the fresh fruit market, which actually brings good returns in the USA market. This is because the crop from coastal California has gone down and Argentine lemon exports to USA fetch good prices.  Mexico, Brazil, Vietnam and Indonesia are the new entrants to the Argentine lemon export market and are expected to offer substantial orders.

The season began well with ideal weather and rising hopes. The current 2019 crop was expected to be higher than last year. However, April brought prolonged showers, in fact copious rainfall for 50 days thereby impeding harvesting. The extensive delay in harvesting impacted the fruit in terms of colour and size. The quality of fruit did not meet export parameters and was thus rejected. This substandard fruit was channelled into the processing industry; distilleries were unable to cope with such large volumes in the time available. Much of the fruit was discarded. Argentine farmers continue to harvest and distill their crop but have overshot timelines. Spain, Turkey and some of the newer players have completed big harvests so now the markets are depressed. Lemon essential oil has seen some spot sales but now slowly the markets seem to be rallying with some requests for bulk orders.

USDA HISTORICAL AND FORECAST FOR LEMON OIL PRODUCTION IN ARGENTINA

Market price USD 22.00/kilo

Australia

Anise Myrtle Oil

Anise Myrtle Oil Syzygium anisatum Harvest: All Year

Production is severely impacted due to the prevailing weather conditions despite a marked increase in demand.

Market price AUD 470.00 /kilo
Blue Cypress Oil

Blue Cypress Oil Callitris intratropica Harvest: All Year

The market is steady and not much change has been reported.

Market price AUD 495.00 /kilo
Buddawood Oil

Buddawood Oil Eremophila mitchellii Harvest: March - October

The market seems stable with no major fluctuations.

Market price AUD 495.00 /kilo
Eucalyptus Horistes Oil

Eucalyptus Horistes Oil Eucalyptus kochii Harvest: April - November

The high cineol content of 90% makes this a coveted oil across the sectors. However, the current setup is ineffectual in meeting demand. It is hoped that the sustained efforts to augment production capacity will soon bear fruit and up the production considerably.

Market price AUD 28.00/kilo
Eucalyptus Radiata Oil

Eucalyptus Radiata Oil Eucalyptus Radiata Harvest: April - November

There is potential for this oil to become a fast-moving commodity since demand is quite high. However, the weather is not conducive and production is on the wane. Steps are being taken at farm level to augment the cultivation and develop Eucalyptus radiata to meet rising global requirements.

Market price AUD 65.00 /kilo
Fennel Oil Sweet

Fennel Oil Sweet Foeniculum vulgare Harvest: April - May

Demand is increasing while production in Australia is decreasing due to the weather and the lack of production.

 

Market prices AUD 320.00 /kilo
Kunzea Oil

Kunzea Oil Kunzea ambigua Harvest: September - January

There is not much activity on this front. Golden Grove Naturals and the farmer community are actively collaborating to develop this oil. Weather conditions in Australia are not favourable, and this is hampering the work. There will be more clarity on the development of this oil in some months from now.

Market price AUD 585.00/kilo
Lemon Myrtle Oil

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

Lemon myrtle has been very well received and has seen an impressive rise in demand. With focussed and increased investments and enhanced plant capacities at Tucki Tucki, the production of lemon myrtle is expected to go up. However, with the weather playing truant and the crop largely affected, the market predicts a weakening in the quantity of oil produced compared to last year.

Market price AUD 375.00/kilo
Lemon Scented Tea Tree Oil

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

Globally, this oil is on the rise. The demand is good but production is predicted to go down. This is because the weather has been too dry; and the arid period has not augured well for the plants. The picture is not very encouraging for tea tree oil; and if this is the situation then a price hike is on the cards.

Market price AUD 140.00 /kilo
Peppermint Oil

Peppermint Oil Mentha piperita Harvest: January - March

Peppermint oil production in Australia is still in its nascent stages. Current production is extremely low; and Golden Grove Naturals has involved the farmers in taking corrective measures to augment production of the oil. Though it is taking some time for the results to show, it is hoped that the situation will improve over the next few years.

Market prices USD 45.00 /kilo
Rosalina Oil

Rosalina Oil Melaleuca ericifolia Harvest: April - November

Stable market however production might decrease due to the weather issues in Australia.

Market price AUD 325.00/kilo
Sandalwood Oil Album

Sandalwood Oil Album Santalum album Harvest: March - November

Sandalwood album is being affected by the competitive crossfire between two of the major Australian stakeholders in this oil. There has been a radical drop in prices at source.

Market prices USD 2700.00 /kilo
Sandalwood Oil Austrocaledonicum

Sandalwood Oil Austrocaledonicum Santalum austrocaledonicum Harvest: March - October

The oil has dwindled somewhat in terms of demand and as a ripple effect of the price drop of the album quality.

Market price Euro 1900.00 /kilo
Sandalwood Oil Lanceolatum

Sandalwood Oil Lanceolatum Santalum lanceolatum Harvest: March - October

Sandalwood oil Queensland is garnering a reasonable amount of interest from the aromatherapy and fragrance industry. Currently, it is available wildly but holds immense potential for development.

 

Market prices USD 1050.00 /kilo
Sandalwood Oil Spicatum

Sandalwood Oil Spicatum Santalum spicatum Harvest: March - October

Sandalwood spicatum oil commands stable prices at source with no major activity in the market.

Market price USD 1450.00/kilo
Tea Tree Oil

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

Erratic weather patterns during latter half of 2018 and early 2019 had already hinted at the possible trend of things to come. A period of aridity heightened by prolonged drought was the first of a series of setbacks to plague tea tree farmers. Copious rainfall in the months of March and April 2019 brought some respite and a ray of hope. Market sentiments improved considerably and predictions pointed towards a healthy figure of 800 MT. However, June came with an extreme frost that ruined much of the crop in New South Wales. Several producers, who had delayed the harvest in order to capture the late growth, were faced with largescale crop damage. Consequently, market sentiments are rather subdued with crop predictions pegging the figure at 648 MT, a substantial plunge of 360 MT or 35.71%. Farmers have commenced activities to complete the interrupted harvest; and going by early reports a reduced crop is certain. Reports coming in from the North Queensland growing region indicate no change in yields. In a strong market with overall production below the heavy global demand, the industry is gearing up for an anticipated price rise.

Market price AUD 64.00 /kilo

Brazil

Orange Oil CP

Orange Oil CP Citrus sinensis Harvest: July - December

There is good news from Brazil. Total orange crop production estimates are 26% higher than the previous crop and set to touch 494 million boxes. The São Paulo region, Brazil’s star performer in this category, is set to deliver 389 million boxes as against last year’s 286 million. It may be safe to deduce, then, that the rise in crop production is from São Paulo and that the rest of the orange growing areas have recorded negligible or no change in the figures.

With the weather as an ally for excellent blooming, fruit setting as well as fruit development, Brazil has recorded a higher number of fruits per tree. Another factor that has contributed to this tremendous harvest is the vegetative regeneration of trees due to lower production from last year. The processing industry is looking forward to an impressive rise of 93.0 million boxes of fruit for processing. There is more than sufficient supply because of the increase in crop size and prices have plummeted by a whopping 60% compared to early 2018.

Out of the 494 million boxes, around 362 million are earmarked for processing. The mood is optimistic regarding the total crop that is around 30% higher than last season. The demand for orange oil has been declining in the domestic, as well as global arenas. Some manufacturers of d’limonene are looking at creating new formulations by using dipentene as a solvent in industrial applications. Brazilian manufacturers are currently wooing the industrial sectors like the resin industry, and other institutional buyers of orange oil. Material is being offered at cheaper rates. Other traders and smaller processors have also joined the low-price bandwagon in an effort to expend old stock before the new batches hit the shelves. An uncertain market fraught with instability and volatility has prevailed over the orange oil market. Demand has weakened and this has been further fuelled by the reformulations of the oil by many producers. Clients are hoping for prices to slide further before booking their requirements; but the time has come for the top-notch players to book material. In this context, prices are expected to firm up and the market is hoping for stability.

USDA FORECAST FOR BRAZIL ORANGE PRODUCTION AND PROCESSING DATA (1 BOX = 40.8 KG)

Market price USD 3.80/kilo

Bulgaria

Lavender Oil

Lavender Oil Lavandula angustifolia Harvest: July

The lavender market is currently marked by a prevailing feeling of trepidation among farmers. A significant jump in the number of lavender plantations compounded by a surplus carryover stock from last year has led to plummeting prices of lavender oil. Despite reasonably good weather and soil conditions, and blossoms flourishing as expected, prices have dropped due to higher production. The harvest period is not over yet, but evidently prices are not going to touch even last year’s figures. Farmers are apprehensive that they may drop further. Some of the current prices are lower than the basic production costs, with distilling and logistics expenses being borne by the producer. In this scenario, it is natural that farmers are reluctant to sell bulk stock, and are hoping for a price correction in the coming months.

In hopes of cashing in on the popularity of lavender, many planters began harvesting at a time when the flowers do not contain seeds. The resultant output was substandard both in quality and quantity. Though there are oil supplies available in the market, clients are asking for prices which are below the expenses of distillation. Many of the established buyers in areas like Shumen are not ordering lavender. In this scenario farmers are prone to holding their stocks till December before selling.

Market price Euro 65.00/kilo
Rose Oil

Rose Oil Rosa damascena Harvest: May - June

Roses thrive in the historic and iconic Rose Valley, just south of the Balkan Mountains surrounding the Stryama and Tundzha rivers. Much of the harvesting is done here in and around the towns of Kazanlak, Karlovo, and Pavel Banya. In fact, the lion’s share of the world’s total rose oil production happens here.

The rose crop was plentiful this year with lots of blossoms and therefore prices are expected to be stable. It is also possible that price levels slightly drop later in the year due to existing stock levels.

Market price USD 7400.00/kilo

China

Cassia Oil

Cassia Oil Cinnamomum cassia Harvest: May - July, October - December

The traditional quality cassia oil commands a firm pricing of USD 36 to USD 37/KG. The Vietnamese producers are unable to meet this standard but are putting up quite a bit of competition for the cassia oil quality extracted by the new method. The demand for the Chinese variety is quite weak. The USA has levied 25% duties on cinnamic aldehyde natural and benzaldehyde natural and their derivatives, so these products are commanding higher prices than before in America.

Market price USD 37.00 /kilo
Citronella Oil

Citronella Oil Cymbopogon winterianus Harvest: June - December

With a citronellal content of about 31% China has been a key player in the citronella market in the last five years. A significant portionof this, around 300 MT, is local production but consignments from Vietnam, Myanmar and Laos also find their way to the Yunnan border. In the light of the recent rains posing challenges for delivery, a marginal drop in prices is on the cards, especially in October when the rainy season ends.

ESTIMATED PRODUCTION OF CITRONELLA OIL

Market price USD 21.00 /kilo
Eucalyptus Oil

Eucalyptus Oil Eucalyptus globulus Harvest: July - October

This year looks encouraging with a healthy eucalyptus crop compared to last year. In a direct fallout of last year’s rather high prices, several farmers moved to the colder climes of the hills to distill eucalyptus leaves. This is one of the key contributors to the current large crop size. Since June this year, however, a weak demand has led to slow sales and slipping of eucalyptus crude oil prices. Naturally the mood is subdued. Added to this are the woes of procuring raw materials; and now some distillers have already depleted their supplies. In this scenario, some of them have even ceased quoting their rates; and the market is expecting prices to move up. Though clients are hoping for low prices, farmers are reluctant to let their raw material go at the prevailing low prices.

ESTIMATED PRODUCTION OF EUCALYPTUS OIL

Market price USD 17.00 /kilo
Garlic Oil

Garlic Oil Allium sativum L. Harvest: April - May

The prices of raw garlic shot up by almost 20% in recent times in stark contrast to the lowest pricing seen last year. This is because production is much lower than what was initially predicted leading to an upsurge in prices. With the significant increase in supply, there was a marked drop in price from its zenith. Prices dropped drastically to basic production costs. China’s strict environmental policies have made it difficult for the polluting plants to resume normal operations.

Market price USD 155.00 /kilo
Geranium Oil

Geranium Oil Pelargonium graveolens Harvest: May - September

The rains have hit Binchuan, the main geranium producing area in China. Oil with geraniol content of above 6% is now available. Following the trend of increased pricing in the last few years, this year many suppliers hoarded their stocks for releasing when prices soared. Despite the fact that this year has seen a better output of geranium compared to the last few years, prices are estimated to continue their upward trend.

Market price USD 178.00 /kilo
Ginger Oil

Ginger Oil Zingiber officinale Harvest: January - April

China has enforced strict environmental compliances and producers must work in keeping with the new protection policy. This is still causing some uncertainty in terms of pricing, but, as of now, rawmaterial availability, as well as the price of oil, is stable.

Market price USD 67.00 /kilo
Litsea Cubeba Oil

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

The crop season spans from January to December. The rains are playing havoc with flooding reported from many regions. If this kind of rainfall continues throughout the later period of the year the overall content and output are sure to be affected. In the eventuality that bulk quantity orders decline, then naturally output will also  decrease considerably. It will be a challenge to predict prices.

Market price USD 37.00 /kilo
Star Anise Oil

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

Star anise raw material supplies are tight with a significant drop in crop output by almost 40%. The new oil is expected to be available for buyers only in September, so there are no price upheavals in the market as such. Now is a good time to book your orders since there is a good chance of a price increase in the later half of the year.

Market price USD 23.00 /kilo
Tea Tree Oil

Tea Tree Oil Melaleuca alternifolia Harvest: May - August

Australian tea tree oil is not easily available at the moment. Clients are looking for alternatives and the Chinese origin tea tree oil has come as the answer. However, customers must be careful that both origins are different and chances are that the lower price Chinese material could be adulterated. This growing demand for Chinese material is pushing up prices from their current steady levels.

Market price USD 29.00 /kilo
Valerian Root Oil

Valerian Root Oil Valeriana wallichii Harvest: September - October

January to December is the usual crop season for this oil. Valerian root oil is more in demand in the medicinal sector rather than the fragrance industry. The new oil has been available to clients in August; as such, there is a bit of uncertainty regarding prices and their stability afterwards.

Market prices USD 565.00 /Kilo
Wintergreen Oil

Wintergreen Oil Gaultheria procumbens Harvest: July - September

Last year we did not see too many customers making a beeline for wintergreen; so the current purchase prices remain more or less similar to previous years. The production season is now in full swing. Previous stocks are totally consumed, and supply is a tad tight at this time. Though the market eased somewhat due to a marginally bigger crop size in July, with a healthy demand in the later period of the year prices will definitely increase.

Market price USD 53.00 /kilo

Egypt

Basil Oil Linalool

Basil Oil Linalool Ocimum basilicum L Harvest: June - September

There are two variants available in the basil category; and the quality of material is a key factor that dictates market dynamics. The paucity of true basil grand vert 50% linalool has led to its exorbitant price in the market. There is an abundance of the other mutated variant with 42% linalool. This year, there is a predicted reduction in basil planting due to disappointing prices last year. However, no major upheavals are expected since prices will be buttressed by carryover stock from last year.

Market price USD 120.00 /kilo
Cassie Concrete

Cassie Concrete Acacia farnesiana L. Harvest: May - August

This product has been seeing reasonable demand and most of the supplies produced this year have been accounted for. There is some available stock, prices of which will be firmed up once there is a specific enquiry.

Market price USD 550.00 /kilo
Chamomile Blue  Oil

Chamomile Blue Oil Matricaria chamomilla Harvest: March - May

Farmers are in despair over the prices that blue chamomile has been fetching in the last two seasons. For the previous consecutive seasons the prices have been dismal with farmers selling blue chamomile at almost 30% loss. The additional supply of carryover has contributed to downward pressure on prices. It is evident that in the coming season farmers will be reluctant to plant and there is an anticipated marked reduction in blue chamomile plantations in the coming year.

Market price USD 595.00 /kilo
Coriander Herb Oil

Coriander Herb Oil Coriandrum sativum L. Harvest: January - February, June - July

The market for this seems stable with no major fluctuations. Supply is steady and readily available and stable.

Market price USD 135.00 /kilo
Cumin Seed Oil

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

This sector has been stable for some time, both in terms of seed prices as well as oil prices. Some producers are offering good quantities based on quantity and destination.

Market price USD 125.00 /kilo
Geranium Oil

Geranium Oil Pelargonium graveolens Harvest: June - July

The new crop production commenced some time ago. The weather gods were gracious, and the yield is anticipated to be a good one this year. A normal, healthy crop is expected. With about 50 MT of carryover, production is pegged at 180 MT. Demand for geranium is weak but surged somewhat in the last couple of weeks. Local trading prices have softened, but the Egyptian Pound has increased by about 8% against the US dollar. This prevented an increase in export prices and as a result there is no change in price levels.

Market price USD 105.00 /kilo
Jasmine Absolute

Jasmine Absolute Jasminum grandiflorum L. Harvest: June - November

This year’s jasmine production stands at 7 MT. With the season just beginning in June and the demand already high, the market seems to be a little strained. However, the ample carryover stocks from last year will see it through and prices will remain stable at similar levels to 2018. Producers of jasmine absolute have kept a watchful eye on the quality of fresh flowers received for distillation. Consequently, with the better quality of flowers, an improved quality of concrete / absolute is predicted.

Market price USD 3450.00 /kilo
Leek Oil

Leek Oil Allium ampeloprasum Harvest: March - April

There has been a healthy demand for this oil. Most of the oil produced this season is already booked.

Market price USD 2700.00 /kilo
Marjoram Oil

Marjoram Oil Origanum majorana Harvest: August - September

Even before the cultivation of the next crop, the news that is doing the rounds is that this year the marjoram crop is very limited. As a result, prices have already started escalating.

Market price USD 75.00 /kilo
Neroli Oil

Neroli Oil Citrus aurantium Harvest: March - April

For many years now Egyptian neroli oil is known and coveted. Thousands of trees are bearing flowers year on year and so oil production has been consistently good. This year industry pundits predicted 2 MT of oil compared to the previous year’s 1.4 MT. 2018 saw a huge upturn in prices following heavy demand. Prices peaked and this year expectations were riding high. However, the weather put an unexpected spanner in the works. With the turning of the weather, the yield from the flowers has fallen drastically, even though it is more than last year. The estimated figure is about 1.6 MT. The market is hopeful of bumper crops and better production in the coming years.

Market price USD 5600.00 /kilo
Onion Oil

Onion Oil Allium cepa Harvest: April - June

This summer there was no onion oil production. Compared to the last few years, there is limited availability of fresh onions; and prices are prohibitive. Prices are expected to firm up following specific demand.

Market price USD 1650.00 /kilo
Parsley Seed Oil

Parsley Seed Oil Harvest: September - October

This year’s demand has been reasonable and production has been at par. Prices are expected to firm up.

Market price NA
Petitgrain Mandarin Oil

Petitgrain Mandarin Oil Citrus reticulata Harvest: October - January

Going by past trends, Egypt typically produces around 40 MT of oil dictated by a usually healthy demand. Habituated to predicting demand figures two to three months prior to the season, distillers may produce larger quantities despite the fact that substantial stocks of oil are easily available. There seems to be no change in pricing which so far has been unwavering.

Market price USD 46.00 /kilo
Violet Concrete Oil

Violet Concrete Oil Harvest: May - June, August, October, December

The demand for violet is gradually on the rise and supplies are inadequate to meet requirements. The first crop batch is out for production and has yielded a limited supply of oil. As a result, prices have shot sky-high. Violet is being less cultivated because of the deteriorating prices against mounting cultivation expenses.

Market prices USD 550.00 /kilo

France

Clary Sage Oil

Clary Sage Oil Salvia sclarea Harvest: June - July

Cultivated in the main areas of Haute Provence, the crop for clary sage is almost ended and harvesting has begun. Considering initial estimates, the average yield across the entire production area shows a drastic plunge of 50% over the last few years. Fortunately, there have been some new plantations and it is expected that the yield from these will offset a portion of this 50% loss. Propelled by healthy demand and good returns the cultivated area for clary sage has been expanded. However, hit by rainfall deficiency and drought, the flowers have not bloomed as expected and production has taken a hit. At present, sales are nil but the market anticipates a price surge in September. Prices have fallen due to the reduced demand for distilled herbs for sclareol extraction.

Market price Euro 90.00 /kilo
Lavandin Grosso

Lavandin Grosso Lavandula hybrida var. grosso Harvest: July - August

Lavandin grosso has seen a meteoric rise. With a robust demand and more farmers switching to cultivating grosso, it still queens it over the other varieties with 85% of cultivated areas. The other varieties, lavandin super and lavandin sumian, play second fiddle with each representing only 6% of the lavandin surface area. The fields show reasonable balance and equitable distribution of ‘fine’ lavender and ‘clonal’ varieties. But a sizeable portion, nearly half of the total traditional lavender population that is lavender abrialis, is over six years old. This has been replaced by the newer clonal variety. The total areas under lavandin remain stable at around 21,000 hectares.

In 2018, the leafhopper insect wreaked havoc due to ‘stolbur phytoplasma’ and massive quantities of lavender had to be uprooted. Farmers had to undertake intensive efforts to control damage and replant in order to regain traction and lost ground. 2018 to 2019 experienced a stretch of mild weather throughout the autumn and winter months, thus shielding the lavender from extreme freezing or heavy downpours. However, subsequent months were not so kind. The key lavender growing regions experienced intense drought in June with rainfall finally making an appearance in the following month. The total precipitation did not exceed 8 to 11 mm, and is not adequate. Overall the lavandin flowers look rather sunburnt. Distillation has commenced but yield has been abysmally poor, around 30 to 50% below expectations. With the advent of the rain, farmers have decided to stop production and adopt a wait-and-watch strategy.

In the current situation, there are few quantities of oil and it does not seem likely that more will be available in the next few weeks. Despite the augmented cultivation, yields have not matched up with predicted production levels. In the meantime, current available stocks are also being depleted. These factors, fuelled further by widespread speculation, have pushed lavandin grosso prices to exceptionally high levels. In the wake of an unfounded speculative environment and the magnitude of the price rise, the French Interprofessional Organisation (CIHEF) has appealed for reasonable pricing by the lavandin players.

Market price Euro 30.00 - 32.00 /kilo
Lavender Diva

Lavender Diva Lavandula angustifolia var. Diva Harvest: September - October

Lavender diva’s high resistance and generous yields make it quite popular with distillers. However, its uses are rather restricted from a chromatography point of view. Lavender diva volumes look encouraging and likely to reach significant levels. If this variety turns in a bumper harvest and oil yield, it could create a price imbalance and a negative impact on lavandin grosso in times to come.

Market price Euro 145.00 /kilo
Lavender Oil

Lavender Oil Lavandula angustifolia Harvest: September

In recent times, there have been planned expansions in the cultivation of lavender as well as lavandin grosso. The north of the Loire and the Rhone Valley has emerged as the new planting grounds for lavender and varieties of new lavender clones.

Market price Euro 110.00 /kilo

Guatemala

Cardamom Oil

Cardamom Oil Elettaria cardamomum Harvest: September - December

This market is in turmoil at the moment. The abysmally poor cardamom crop of 2,500 MT resulted in an acute deficiency of raw materials for processing. Producers are searching around to procure cardamom seeds, while demand is transcending supply by leaps and bounds. Prices were already at high levels but now, given this situation, may escalate further.

Market price USD 380.00 / kilo

Haiti

Vetiver Oil

Vetiver Oil Vetiveria zizanioides Harvest: February - May

The spring months were not good for vetiver with some farmers suspending production. It proved to be an uphill task to collect vetiver roots amidst the spring rains, and yields of essential oil during distillation were also impacted. However, work picked up towards the end when weather conditions were more favourable. In addition, some of the less prominent distillers have started production, though there is difference in the quality of the material produced by each. Some qualities are turning out to be superior to others. Some unsold stocks of vetiver from last season have also entered the market. There are adequate supplies of vetiver and global demand remains relatively stable.

Market price USD 355.00 / kilo

India

Ginger Oil

Ginger Oil Zingiber officinale Harvest: January - April

It was a year that saw cyclones and extreme flooding in parts of India. The ginger season has closed, and the crop has plunged by almost half the previous figure. The market seems to be finding its footing with prices firming up but are predicted to go up further in the next few months.

Market prices USD 115.00 /kilo
Jasmine Absolute

Jasmine Absolute Jasminum grandiflorum L. & sanbac

The way things look, a price hike for jasmine is imminent. The price of flowers has escalated to record a 50% jump compared to last year’s prices. This has made it difficult for distillers to procure fresh flowers for processing, even though the crop season is well under way. As far as carryover stocks go, there are none since it was a smaller crop and orders have been booked.

Market price USD 2250.00 /kilo
Lemongrass Oil

Lemongrass Oil Cymbopogon citratus Harvest: July - November

Towards the end of 2017 there was a deficiency in the supply of synthetic citral. This led to a slight price hike, but the rates have fallen once again. This year material in the market is restricted, though lemongrass production is quite healthy. Current production of citral is average, though demand has decreased since there is a shift in usage of synthetic citral. However, current prices have touched rock bottom in the last three years; and from here can only move up.

Market price USD 19.75 /kilo
Mentha Arvensis  Oil

Mentha Arvensis Oil Mentha Arvensis

There is good news on the harvest and production front. The current crop is 60,000 MT with almost 1,500 MT of carryover stock. Going by the yield of the first cut, there is about a 25% increase in the yields/acre. This is by far a much better yield in comparison to the last few years. There is also a marked improvement in the quality of the oil. This year the potato and wheat crops have brought in good returns for farmers. As a result, they are holding the Mentha arvensis oil and refusing to sell at low prices. A lot also depends upon supplies from the BASF plant from Malaysia. If the stocks come in then there are expectations of M. arvensis oil prices remaining steady till the next quarter.

Market price USD 23.00 /kilo
Olibanum Oil

Olibanum Oil Boswellia serrata Harvest: August - October

A rising aromatherapy industry has buoyed the demand for this oil. India also has a ready supply, and this has led to a stable pricing regime.

Market price USD 42.00 /kilo
Palmarosa Oil

Palmarosa Oil Cymbopogon martini Harvest: January - June

Palmarosa is a versatile botanical that flourishes in well-drained loamy soil at best. However, it also grows happily in poor fertile soils, slopes, gravel and even in coarse sand. Hot and humid weather is ideal for this plant to grow. For some years, production of palmarosa was rather low, and so were the prices. But of late the market has seen a gradual revival of prices, thereby encouraging farmers to increase cultivation. Demand had lost a bit of traction due to the prices inching up over the last two years. However, currently the situation has normalised with reasonable demand, good availability and steady prices.

Market prices USD 43.00 /kilo
Peppermint Oil

Peppermint Oil Mentha piperita Harvest: April - July

The first harvest of the season is completed and the second one is just beginning. At 590 MT this season’s crop output is somewhat lower than last year’s crop of 750 MT. India holds second position (after the USA) among the M. piperita mint producing countries with an annual production of 500-750 MT. The claims on Indian peppermint oil seem to be rather weak as there is little demand from the US markets. However, requirements from Europe, China and other key markets are coming in and demand from these quarters seems to be encouraging.

Market price USD 35.00 /kilo
Spearmint Oil

Spearmint Oil Mentha spicata Harvest: July - August

Indian spearmint is facing low demand and consequently prices too have fallen. The new crop of 150 MT has come into the market but does not have many takers. This year’s crop is remarkably lower than last year’s production figure of 215 MT.

Market price USD 42.00 /kilo

Indonesia

Black Pepper CO2 Oil

Black Pepper CO2 Oil Piper nigrum L. Harvest: December - February

Conventional black pepper oil has been a part of the Van Aroma repertoire for some time now. Now with technologically advanced equipment and supercritical fluid extraction, Van Aroma offers black pepper oil and oleoresins of different percentages with zero residual solvent. The use of pharmaceutical grade CO2 under high pressure yields pure black pepper oil with higher terpene content than a conventional variety.

Market price USD 58.00 /kilo
Cananga Oil

Cananga Oil Cananga odorata Harvest: June - August

Cananga oil has been growing in popularity as a unique alternative to ylang ylang. As such this oil has seen an escalating demand from the aromatherapy sector. This year the rains have played havoc with the flower crops, and as a result the oil production too has been impacted. The cananga harvest is not taking place as frequently, and demand has overtaken production. Prices are predicted to go up in the next few months.

Market price USD 175.00 /kilo
Citronella Oil

Citronella Oil Cymbopogon winterianus Harvest: October - February

Indonesia retains its foremost position as the largest producer of citronella oil. Sumatra, Java and Sulawesi are key producing regions with secure supply streams. Being a perennial grass, it is expected that there will be an uninterrupted supply of raw material leading to fairly stable pricing throughout the country. Consequently, there is a more than sufficient supply of citronella oil, which does not seem to be abating anytime in the future. Not all exporters follow the ISO specified standard, so buyers must be wary of oils that are not up to the mark being offered at cheaper rates. Though the prices are fairly competitive the rates are lower than previous years’, and are anticipated to remain so for the imminent future.

Market price USD 19.75 /kilo
Clove Oil

Clove Oil Eugenia caryophyllata Harvest: May - September

The clove leaf market is rather subdued. With excessive rainfall there is a shortage of dried clove leaves for distillation; and so, the oil output too has been low. Past crop patterns have shown that Indonesia sees a big clove harvest every fourth year. In keeping with the trend, this year too is set to have a robust harvest that can last for two to three months. In comparison to the leaf, clove buds have brought in better prices for farmers and distillers. The bud harvest season has begun and the markets are abuzz and waiting. The shift in attention from leaf to bud may result in decreased oil quantities, as well as a potential hike in prices. However, Van Aroma is holding adequate stocks and can fulfil any bulk order. While the price for eugenol and eugenol derivatives are at a low, clove oil rates will remain on the higher side till the clove bud season is over and, once again, stems and leaves are the cynosure of all eyes.

Market price USD 14.00 - 17.00 /kilo
Korintje Cassia Bark Oil CO2

Korintje Cassia Bark Oil CO2 Cinnamomum cassia Harvest: July - December

Van Aroma is proud to introduce cassia bark oil extracted from Cinnamomum burmannii from the famed Kerinci in Sumatra. With hints of sweet notes, this oil abounds in cinnamic aldehyde, the compound that gives cinnamon its distinctive flavour. The oil profile obtained by this extraction method also captures several water-soluble compounds, which are lost in the traditional steam distillation of the bark. In the western world, cassia cinnamon oil is a much-favoured ingredient, providing almost 70% of the cinnamon flavouring.

Market price USD 375.00 /kilo
Nutmeg Oil

Nutmeg Oil Myristica fragrans Houtt. Harvest: All Year

A good grade of nutmeg oil is free of allergens safrole and methyl. A significant portion of the Van Aroma nutmeg oil production is dedicated to manufacturing safrole-free pure nutmeg oil. The raw materials – that is, the unripe kernels used for oil processing – are unusually low in supply, so prices are inching up steadily, and this trend is predicted to continue for some time. The dominance of the spice industry and the increasing use of oleoresins have led to a marked change in the demand-supply equation.

Market price USD 62.00 /kilo
Patchouli Oil

Patchouli Oil Pogostemon cablin Harvest: All Year

Patchouli requires adequate rainfall to grow, but a dry spell prior to harvesting. Severe storms and floods in the producing areas are preventing the leaves and twigs from drying. Several factories including Van Aroma’s Kolaka facility were under water for over four days. However, things were soon brought under control and adequate measures taken to handle the backflow when the river breaks its banks. The floods have damaged quite a substantial portion of the crops and have been an impediment to the planned harvest schedule. Farmers are reluctant to harvest when it rains copiously and with the recent flooding it will take time for them to recover their losses. May, the holy month of Ramadan was an addition to the rain woes, and all put together, supplies as well as production have been severely hampered. Given this situation, coupled with inclement weather the already tight supply situation is further strained. The worst is over, and things are looking up. Prices are showing signs of recovery, but in light of the uncertainty and inflow of orders there is nothing to arrest the price ascent.

Market price USD 45.00 - 65.00 /kilo
Sumatran Coffee Arabica Oil CO2

Sumatran Coffee Arabica Oil CO2 Coffea arabica L. Harvest: November - January

Van Aroma’s latest offering is a unique essential oil extracted from carefully roasted premium Sumatran coffee beans that have been sustainably procured and meticulously ground. Once again, the supercritical fluid extraction method is used – high pressures and close to room temperatures yield rich full-bodied coffee oil with a beautiful aroma. Sample batches are available for those who are interested.

Market price USD 135.00 /kilo
Vetiver Oil

Vetiver Oil Vetiveria zizanioides Harvest: January - July

Indonesian producers have been active with implementation of sophisticated equipment and improved distillation units. Naturally, there has been a significant improvement in the quality of the Indonesian variety. Van Aroma now offers vetiveryl acetate, a unique derivative of vetiver oil Java. Indonesian vetiver oil commands stable pricing, though lower than its Haitian counterpart.

Market price USD 205.00 /kilo

Italy

Bergamot Oil

Bergamot Oil Citrus bergamia Harvest: November - March

It is a catastrophic year for Italian bergamot farmers. More than 70% of the bergamot flowers in one of the most important growing areas, Reggio Calabria, have been wiped out by a heat wave. With no more flowers left and little chance of the plants flowering again, farmers have reconciled themselves to this drastically reduced crop. Prices are expected to rise.

Market price Euro 225.00 /kilo
Lemon Oil

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

This year’s lemon production remained the same as that of 2018. Last year, the crop was at around 500,000 MT. Going by past trends, usually 20 to 30% of the total crop is earmarked for the processing industry. This time, demand for the fresh market has dropped significantly. The Italian oil industry, which is largely influenced by the dynamics of the fresh fruit sector, saw a corresponding rise in availability of processed lemons. Lemon oil prices last year fetched much better prices compared to this year.

Market price Euro 24.00 /kilo

Madagascar

Black Pepper Oil

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

For a long time, Madagascar pepper oil was produced in very limited quantities and was difficult to obtain. However, with this oil increasingly becoming a favourite for perfumers and preferred over other qualities, steps have been taken to establish pepper plantations. Consequently, supply of oil has gone up, and is now more consistent than before. Madagascar pepper oil has unique notes and commands somewhat higher prices than other origins. However, the current small batch of oil is available at prices competitive to Vietnam pepper.

Market price USD 52.00 /kilo
Clove Leaf Oil

Clove Leaf Oil Eugenia caryophyllata Harvest: August - October

The clove crop last year was arguably the smallest that the market has seen in the last ten years. Naturally, this year’s expectations are riding high. If all goes well in the growing regions without the ravages of storms and typhoons, the coming three months will see production in full swing. No significant distillation is happening since it is in the middle of the crop season. Producers are hoping for demand to increase since prices will inch up from an all-time low since the end of 2016/2017. This year’s higher production from Sulawesi is also cause for tension for Madagascar farmers. Clearly, in the wake of weak demand, requirements are coming in from traders and clients who renew and replenish their existing stocks in anticipation of a price rise.

 There is another curious albeit rather chaotic development on the Madagascar clove oil front. A parallel circle has been established with the arrival of some new players, and this has added some chaos to the situation. A certain section of reliable, reputed traders book orders from distillers, analyse the material and then deliver the standard oil that customers have been receiving for years from that origin. Another group of new entrants is offering clove leaf oil at markedly discounted rates. However, it should be noted that this is oil that has failed to meet standards and has been discarded by traditional exporters. Recently, several containers were returned to Madagascar. Though the lower prices are tempting, it is advisable to check before accepting material.

Market price USD 17.50 /kilo
Geranium Oil

Geranium Oil Pelargonium graveolens Harvest: June - July

In the 1970s the Bourbon quality set a precedent and became the much-touted benchmark for geranium oil. Nudging out the Bourbon variety, this particular oil from Madagascar is slowly making its place. The market has seen a strengthening demand with prices firming up. In view of the swelling clamour for Madagascar geranium oil, production is expanding annually but is falling short of meeting the entire requirement.

Market prices Euro 245.00 /kilo
Ginger Oil

Ginger Oil Zingiber officinale Harvest: January - April

Earlier ginger oil used to be considered a by-product. Now there is a concerted effort to cultivate and produce ginger oil either from fresh or dried roots. Production has expanded in order to cater for the rising demand.

 

Market price Euro 115.00 /kilo
Ylang Ylang Oil

Ylang Ylang Oil Cananga odorata Harvest: February - October

Prices for ylang ylang now seem within reach despite still being very high. The last few months have seen a bit of easing out of the price situation in Comoros and Madagascar. However, it is difficult to determine whether this is a result of a drop in demand or an increase in production, or a combination of the two.

Market price Euro 225.00 /kilo

Mexico

Key Lime Oil

Key Lime Oil Citrus aurantifolia Harvest: May - October

Key lime oil distilled has been in a downturn for the past couple of years. After a long period of slowdown, the demand for key lime oil has revived. This has come as an impetus for the main growing regions Colima and Michoacan to expand their cultivating area, which has gone up to cover approximately 6,000 hectares of land. Naturally production too is set to go up by an estimated 10% in around three to four years. The cold pressed key lime oil market is largely influenced by the fresh fruit industry; and currently is balanced with steady supply and strong prices that are expected to remain firm.

The first half of the year from January to June was quite a heartening time, with a significantly healthy crop of 130,000 MT. Producers are expecting to sign off 2019 with a bang and touch a crop level of 250,000 MT shared between all processing plants. The market hopes for a normal crop on a par with last year’s figures. The fresh fruit market is quite strong and this has put an upward thrust on price levels. Raw material prices are scaling up and will soon touch USD 0.51/kg. In turn this has impacted the prices of industrial lime, which has escalated. The robust key lime demand has led to large scale booking of orders; and currently stocks are somewhat restricted. This is bound to push up prices.

Market price USD 34.00 /kilo

Morocco

Neroli Oil

Neroli Oil Citrus bigaradia Harvest: April - May

Weather disturbances have caused a marginal drop in production figures compared to last year. The flowers thrived in the dry weather at the beginning of the year and matured well. Harvest began as usual by the end of March but was ruthlessly inhibited by hailstorms, rain and a sudden drop in temperatures in early April. This resulted in a 20% loss of raw material. Producers had to resort to staggered picking which thereby led to a rise in costs. Despite the hitches, producers are hopeful that their strong collaborative setup of many years will enable them to meet the requirements of clients. Currently there are two varieties of material available in the market – the conventional variety as well as an organic variant.

Market price Euro 5000.00 /kilo
Rose Oil

Rose Oil Rosa damascena Harvest: May - June

2018 witnessed inconsistent weather with drought and spring frost. After this complicated cycle, 2019 opened with lower temperatures in which the rose bushes flourished. The cold was beneficial and truly helped through the protracted, lasting spell of warm weather that followed soon after. The season closed with a reasonably acceptable harvest. Prices of rose oil remain at par with those of last year.

Market price NA

New Zealand

Manuka Oil

Manuka Oil Leptospermum scoparium Harvest: April - October

This oil, once only sourced through wild harvesting, has become one of New Zealand’s signature commodities. With an escalating demand and with a view to sustainably farming this plant, the first plantation was established in 2016. Local Māori landowners were approached and in collaboration with scientists established the first commercial plantation. Today New Zealand boasts multiple specialised plantations and is developing many more. Production has more than doubled since 2016 and this year forecasts reveal a 70% increase compared to last year’s crop. Over 80% of manuka oil is obtained from plantations in the East Cape of New Zealand.

Unique with the distinction of being the first place on earth to see the sun, the East Cape of New Zealand is quite sparsely populated and remote from urban activity. The land is primarily owned by the Māori and Hapu families, the indigenous habitants of the place. To them manuka is taonga, a revered and sacred gift from the land. What makes the oil produced here unique and of far superior quality is the presence of high beta-triketones of 20% and above. This imparts a high antimicrobial property and makes it an especially valuable ingredient in cosmetic and medical applications requiring targeted efficacy for gram positive bacteria such as P. acne, S. aureus, T. mentagrophytes and M. canis at very low dilution rates.

The remote location of the East Cape and limited employment opportunities make it difficult to sustain the communities. There are no individual ownership rights for the land or whenua in the local dialect. In most cases, land blocks are jointly owned by the Māori and Hapu family generations who live off it and benefit from the revenue it generates. Sometimes the land is never sold and there are hundreds of family member owners in a single land block. However, the tides are changing as the operational manuka plantations have become a source of sustainable livelihoods for the descendants of the original occupants of the land. Now, with companies implementing long-term partnerships, a ‘fair share’ programme, local up-skilling, and employment focus for local people, new opportunities have opened up for these remote rural communities.

Demand for this product is outstripping supply. The material with higher beta-triketone is scarce. Demand is increasing for material with lower beta-triketone levels as well. Prices are increasing as no major changes in supply are expected.

Market price AUD 995.00 /kilo (25% beta-triketone)
Market price AUD 895.00 /kilo (20% beta-triketone)

 

Paraguay

Guaiacwood Oil

Guaiacwood Oil Bulnesia Sarmientoi Harvest: All Year

Paraguay’s export orders had run into a roadblock a few months ago. The mid July consignments had not been approved by the authorities. However, our sources indicate that CITES certificates have been given to most suppliers and they are able to export. In the current situation Guaiacawood is in a comfortable position with adequate availability.

Market price USD 27.00 /kilo
Petitgrain Oil

Petitgrain Oil Citrus aurantium ssp. Harvest: All Year

The on going winter months are a lean time for production but this is no aberration. The busy crop season peaks around October. Farmers are apprehensive of the plants being affected by frost if cut earlier than necessary.

Market price USD 61.00 /kilo

Peru

Pink Peppercorn Oil

Pink Peppercorn Oil Schinus molle Harvest: May - July

The Huanta region, where this crop is grown, is susceptible to stormy rains. It has good fertility, which yields fleshy and well-formed fruit. The harvesting of pink peppercorns is relegated to the backburner since maize and tara command priority. The individual collectors follow their own methods in keeping with the optimum conditions. Harvesting is underway; but with 30% of the total forecast production it remains rather low. Going by past instances, Tara spinosa has raked in better profits for farmers in comparison to Schinus molle, that is pink peppercorn. This is one of the key reasons that this sector urgently requires a boost with the help of sustainable crop measures and policy support.

Market price Euro 135.00 /kilo

Russia

Artemisia Taurica

Artemisia Taurica Artemisia taurica Harvest: July - September

The rain has played truant, so a lot of fields are affected. Some of the fields look promising but others are worse than the previous year. The crop season will start only in September or October, so there will be more clarity at that time.

Market price NA
Clary Sage Oil

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

Insufficient rainfall in the growing regions has reduced the crop by almost 20% this year.

 

Market price USD 120.00 /kilo
Coriander Herb Oil

Coriander Herb Oil Coriandrum sativum L. Harvest: May - June

More than sufficient carryover stock from last year is enough to meet current requirements. Oil production has been negligible this year.

Market price USD 77.00 /kilo
Coriander Seed Oil

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

As has been the trend, the demand from the spice industry drives the market for coriander seed oil. During harvest time, this demand surges and generally farmers quote higher prices. Due to the spice industry taking precedence, most producers have no choice but to wait for good quality seeds for distilling.

The new harvest season has begun but mixed reports are filtering in from Russia. The regions of Rostov, Volgograd, Samara, Belgorod, Kursk and Voronezh have been struggling to cope with drought during the late spring and summer months. As a result, market sentiments are also subdued with low expectations of crop returns. On the other hand, Crimea, Krasnodar and Stavropol have fared better. It is hoped that the bonus yield from these areas will balance out the dismal crop performance of the other regions. Some quantities of oil from previous batches are up for sale, but this seems to be of inferior quality. Also, some European importers, who are sitting on carryover stocks, are waiting for the new crop oil to hit the shelves before they adjust their rates and release their supplies.

Market price USD 55.00 /kilo
Dill Weed Oil

Dill Weed Oil Anethum graveolens L. Harvest: July - September

There is a marked reduction in total crop output this year. Due to lack of interest in precontracts, many producers did not go ahead with dillweed crop cultivation. Those who did reported a much pared down crop with around 70% output due to inadequate rainfall.

Market price USD 41.00 /kilo
Fennel Oil

Fennel Oil Foeniculum vulgare Harvest: March - June

With the look of the fields currently, market sentiments are rather subdued and output is expected to be lower than usual.

Market prices USD 43.00 /kilo
Fir Needle Oil

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

The Siberian region has witnessed several forest fires this year and this is bound to have some sort of impact, especially availability of raw material. Though production seems to be at a decent level, prices are set to go up.

Market price USD 34.50 /kilo
Lavender Oil

Lavender Oil Lavandula angustifolia Harvest: July - August

Crop and production are reasonable, but the extreme heat and sparse rainfall has affected total output this year.

Market price USD 79.00 /kilo

South Africa

Eucalyptus Smithii Oil

Eucalyptus Smithii Oil Eucalyptus smithii Harvest: July - October

The global demand for this oil has been on a downturn. Though some intermittent supply streams are making their way into the market, efforts are on to control supply dynamics and contain oversupply. Producers and traders are monitoring the situation closely to try to ensure that there are no major price fluctuations and that prices remain viable for farmers and distillers.

 

Market price USD 22.00 /kilo
Grapefruit Oil

Grapefruit Oil Citrus paradisi Harvest: December - April

Fresh fruit market

Leading the pack among the grapefruit producing states is Limpopo. The province contributes around 59% of total production. Mpumalanga follows with 22% and KwaZulu-Natal with 10%. A mere 6% comes from the Northern Cape with the Western Cape contributing less than 1% of grapefruit. The Star Ruby variety, commanding the highest demand on a global scale, forms the bulk of the produce with 84% of production. The Marsh variety makes up 13%; with negligible amounts of the Rose, Redheart, Pomelit, Ja Shaddock, Flame, and Fe 1(Jackson) varieties.

Global demand for grapefruit, especially in Asia and the Middle East, is on the rise. The South African farmers have increased their cultivation of this rather profitable crop from 7,950 hectares in 2017/18 and covered almost 8,200 hectares in 2018/2019, an increase of 3%. In the face of higher than normal temperatures and severe aridity, the size of the fruit is smaller than average. Furthermore, since grapefruit follows a cyclical production pattern and 2018/19 corresponds with a lean period, the total production has fallen by a marginal 1% at 415,000 MT. The 2017/18 production was 419,000 MT. The decline in production has been somewhat mitigated by the increase in cultivation. However, the water levels in the dams, and prevailing drought conditions in some growing regions such as Letsitele in Limpopo, will severely impact the 2019/20 crop if there is inadequate rainfall by November 2019.

Processing

The EU is a major importer of grapefruit juice and concentrate. A favourite in the food industry for jams, fruit preserves, and marmalades, the inner peel is a source of pectin and citric acid. Many a beverage and soft drink use leftover pulp following commercial juice extraction as a preferred flavouring ingredient. Tonic water gets its signature flavour from naringin obtained from grapefruit peel, while the essential oil from the peel is used in scented fragrances. This year’s market forecasts a 26% jump to 160,000 MT of fruit delivered for processing as opposed to last year’s figure of 127,000 MT. The main reason behind this increased volume is the smaller fruit size and, with the increased production, a significant quantity of fruit that has not met the export criteria has been channelled into processing.

Market price USD 54.00 /kilo (White)
Market price USD 28.00 /kilo (Pink)

Orange Oil CP

Orange Oil CP Citrus sinensis Harvest: June - September

Fresh Fruit Market

Once again Limpopo takes first place in orange production, accounting for 49% of the total area planted. The Eastern Cape follows a close second with 25%. The Western Cape and Mpumalanga fill in with 15% and 8% percent respectively. KwaZulu-Natal, Northern Cape and the North West Province contribute 1% each. Out of the total area dedicated to orange, 61% is the famed Valencia variety, while navel oranges cover 39% of the area.

Production

Overall there has been a rise in the area of orange cultivation. With a perceived shift towards late blooming, high yielding orange crops and improved water management techniques, the crop size is predicted to be on the higher side. In fact, industry predictions peg the orange crop at 1.60 million MT in 2019, a 3% jump from 1.55 million MT in the last year. This however, will be evened out by the crop damage due to hail, dry weather and small fruit sizes. It is estimated that the area under orange plantation will expand by around 2% to reach 45,000 hectares in 2019 due to an increase in planting of the seedless orange variety. Parity, however, is on the cards as the Western Cape and Limpopo gradually turn their attention away from oranges to soft citrus farming.

Market price USD 4.00 /kilo
Rose Geranium Oil

Rose Geranium Oil Pelargonium roseum Harvest: April - June

2018 witnessed an increase in plantings and these will now bear fruit. The market is confident about the availability of additional material this year; but even this is expected to be limited. Reports of further crop trials in several different parts of the country have filtered in. As a result, there will be a marked increase in the annual supply but this is only an incremental hike at this stage. There is no change in the prices for this oil as compared to last year’s rates.

Market price USD 255.00 /kilo
Tagette Oil

Tagette Oil Tagetes erecta Harvest: June - August

Tagette oil is one sector where the market remains unwavering in terms of demand and supply as well as the resultant prices.

Market price USD 164.00 /kilo
Tea Tree Oil

Tea Tree Oil Melaleuca alternifolia Harvest: October - January

The clamour for tea tree oil continues to be high, with a growing need for an organic variant. In the context, it must be mentioned, that there are extensive cultivations catering for conventional, as well as organic plant material. Despite meeting client requirements across geographies, there is some supply of oil left over.

Market price USD 38.00 /kilo

Spain

Cistus Oil absolute

Cistus Oil absolute Cistus ladaniferus Harvest: June - October

Andalusia and Seville are renowned for their rich and quality harvest leading to excellent yields. The season commenced in May with a sunny and mild spring, especially the key growing region of  lmadén de la Plata. However, as the weather became hotter and more arid with the absence of rain, initial reports indicate some cause for worry. Nevertheless, considering that the harvesting areas have increased, the distillers are confident of adequate quantities of cistus branches for higher yields, thereby meeting requirements.

Market prices Euro 635.00 /kilo
Grapefruit Oil Pink

Grapefruit Oil Pink Citrus paradisi Harvest: December - April

The season for grapefruit commenced in October. Market predictions for 2018/2019 peg the production figure at 76,000 MT, hardly any change from the last crop. Even for processing there is no change expected in the quantity or volumes of fruit. Last year around 10,000 MT of fruit was received for processing.

Market prices Euro 45.00 /kilo
Lemon Oil

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

With an estimated lemon production of 1.1 million MT Spain is set to once again win the crown of being the world’s numero uno producer of lemons for fresh consumption. This figure released by AILIMPO is an upsurge of 19.0% from last year’s crop, though of late Turkey has emerged as a stiff competitor with viable price points. Producers have undertaken efforts to expand the areas under lemon cultivation and, backed by exemplar weather, literally, their efforts have borne fruit. Excellent flowering and very good fruit setting have produced good quality fruit. However, the challenge from Turkey has cast a shadow over Spanish farmers. Driven by the apprehension of losing out market share to their Turkish counterparts and be left at a price disadvantage, many growers have decided to slow down the harvest by leaving much of the fruit on the trees. Another factor that has led to this decision is the drop in processing of lemon by the industry.

EUROPEAN UNION-ESTIMATED LEMON PRODUCTION (MT)

 

Market price Euro 20.00 /kilo (Low AR)
Market price Euro 15.00 /kilo (Normal AR)

 

Sri Lanka

Cinnamon Bark Oil

Cinnamon Bark Oil Cinnamomum Zeylanicum Harvest: May - December

The months of April through May are when there is no dearth of raw materials, as the abundance of rain contributes to the process of peeling, and work resumes after the festivities. The demand for cinnamon bark oil is on the rise with its popularity across various industries. However, supplies are a tad low due to a robust demand for cinnamon spice powder. May and June witnessed a slight slump in global cinnamon spice prices but this did not affect the prices of raw material that is earmarked for processing. There may be an eventuality where prices dip further to levels below the average cost of production. In this situation peeling and production work may be interrupted, and distillers may face a scarcity of raw materials. The Sri Lankan currency is rather weak at the moment. The descending prices of cinnamon in the global market, coupled with ample availability of oil grade materials, mean cinnamon bark oil prices are estimated to fall. However, with apprehensions of restricted raw material availability prevailing in the market, it is advisable to plan purchases in advance. No significant price fluctuations are expected until the end of this year.

Market price USD 285.00 /kilo
Cinnamon Leaf Oil

Cinnamon Leaf Oil Cinnamomum zeylanicum Harvest: March - August

Past trends have shown the prices of cinnamon leaf oil dipping in the months of December and January, with a resurge around April. The recognition of safrole as a carcinogen has come as a severe drawback. It impacted the demand; this year seeing a marked decline and consequently lowering of prices. The market is hoping for a price revision around the months of September and October. The smaller distillers mainly produce cinnamon leaf oil. Though there is good availability of raw material because of cinnamon peeling, the rock-bottom prices of the oil have stalled the leaf distillation. A serious scarcity of supply is on the cards unless demand picks up.

Market price USD 17.50 /kilo
Citronella Oil

Citronella Oil Cymbopogon winterianus Harvest: May - December

Rainfall has been quite good, and this has been favourable for a good citronella crop. While there is abundant available raw material for distilling, this year has seen bumper production. Consequently, both demand as well as prices have plunged by drastic margins. The situation is expected to remain status quo, as there seems to be no improvement in demand. The oil from Java continues to offer the Sri Lankan variety a run for its money, but there is a gradual improvement in demand for Sri Lanka citronella this quarter. No major upheavals are expected on the price front, but prices will not reduce further since the market looks encouraging for the next few months.

Market price USD 24.50 /kilo
Clove Bud Oil

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

Right now, the harvests have been consumed and a fresh harvest is expected to come in by the end of the year. At this point it is difficult to predict the prices. The 2018 harvest was not up to expectations, and so raw material is difficult to come by. This puts the pressure on the prevalent rates. However, this year’s favourable weather has fuelled hopes for a better clove harvest; and farmers are pinning their hopes on the current crop. The prices remain unchanged compared to the earlier quarter.

Market prices USD 82.00 /kilo
Clove Stem Oil

Clove Stem Oil Eugenia caryophyllata Harvest: January - February

Since the clove harvest is not scheduled to come in before the end of the year around December, there is limited supply. Prices of raw materials have not yet stabilised; and clove stem oil prices remain comparatively high.

Market prices USD 34.00 /kilo
Nutmeg Oil

Nutmeg Oil Myristica fragrans Harvest: February - May

The Sri Lankan nutmeg crop is almost finishing but a small harvest is expected in September. Following its usual yearly graph, the prices of raw material have escalated but has now stabilised. In comparison, Indonesian nutmeg commands lower prices, which puts the Sri Lankan producers under pressure to compete. Prices have inched up recently.

Market price USD 50.00 /kilo
Pepper Oil

Pepper Oil Harvest: December - February

In general, the prohibitive prices of Sri Lankan pepper have made it a costly and unviable item for many markets. However, the market is seeing activity in the pepper market due to some demand from India.

Market prices USD 42.00 /kilo

Tunisia

Neroli Oil

Neroli Oil Citrus aurantium Harvest: April - May

April commenced with the first neroli crop. However, the months were fraught with cold; and heavy rains hindered the timely blossoming of the flowers. The coastal and specific regions sheltered from the rain and cold have fared better, with the flowers in full bloom. What is encouraging is that the weather too has cleared up; so now the farmers are hoping for a strong crop season. Supply remains steadfast and stable; but prices are moving in an upward direction amidst the mounting pressure of intensifying demand.

Market price Euro 6200.00 /kilo
Rosemary Oil

Rosemary Oil Rosmarinus officinalis Harvest: All Year

Sufficient and frequent rainfall from the months of September through to March has helped the plants to thrive. The imminent sunny weather is also beneficial for a good, strong yield of oil. If initial indications are anything to go by, then the rosemary scenario looks quite encouraging and points to a healthy crop size. Though there is quite a bit of carryover stock from 2018, this is not expected to affect the current prices.

Market price Euro 65.00 /kilo

Turkey

Lemon Oil

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

Last year’s bumper lemon crop which was an all-time high of 1.1 million MT set a benchmark for this year’s forecasts. This was further strengthened with the onset of a prolonged period of favourable weather conditions. Market calculations anticipated an increase of 10% compared to the last crop. However, throwing predictions into disarray was the sudden hailstorm that struck in the spring and hampered flowering. Revised calculations estimate a fall of 8% in the total crop figure compared to last year.

Market prices NA

USA

Grapefruit Oil

Grapefruit Oil Citrus paradisi Harvest: December - April

The July forecast has come with good news for Florida farmers. Compared to last year’s crop of 3.88 million boxes, this year’s crop is set to touch 4.51 million boxes, according to the USDA. White grapefruit seems to be a little tight on the supply front with a prediction of a crop size of 0.770 million boxes only. The coloured grapefruit variety is set at 3.74 million boxes.

Market price USD 65.00 /kilo (White)
Market price USD 43.00 /kilo (Pink)

 

Lemon Oil California

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

Arizona reported a good crop and increase in production from last year. Combining this with the output from California, the USDA forecasts the combined volumes at 22.390 million boxes. This is a slight increase from last year’s 22,200,000 boxes. Currently, the quality of oil is good and this is bringing in reasonable prices.

Market price USD 35.00 /kilo
Lime Oil

Lime Oil Citrus aurantifolia Harvest: March - October

This oil is seeing some difficulties due to overproduction and a surplus supply. An increase in the plantation area has resulted in a surfeit of limes, which, released into the market, has led to saturation. However, this augurs well for the processing industry since a larger volume of fruit is now earmarked for distilling into oil. In the face of weak demand, supply is adequate but prices have plunged to their nadir in the last five years.

Market prices NA
Orange Oil

Orange Oil Citrus sinensis Harvest: February - May

Orange production in 2018/19 is set to outshine the previous crop with an increased output of 4.2 million MT leading to an estimated global production of 51.8 million MT. As a result, fruit for processing will go up to an estimated 21.2 million MT this year. USA’s combined orange production from Florida, California and Texas is estimated at 124.09 million boxes.

Florida, the USA’s biggest orange-producing state and third largest orange producer in the world has been plagued by the dreaded citrus greening disease and hurricanes. The state, which once boasted a peak production of 244 million boxes in 1998, has dwindled by a mammoth 70% over the last decade. Citrus greening is fatal for the trees. The bacteria impact the vascular systems of citrus trees, hinder nutrient uptake and naturally, adversely affects yield, fruit size and quality. The cost of production also goes up. After concerted steps were taken to battle this disease, the industry has slowly limped back to normal. Despite weather setbacks, crop production this year looks promising with an estimated increase from last year.

The USDA pegs the total Florida orange crop for 2018/2019 to be 71.6 million boxes, a sharp upsurge of 26.55 million boxes from last year’s crop. Hurricane Irma coupled with citrus greening had brought down the last crop (which ended in July 2018) to 45.05 million boxes. This year, out of the predicted 71.6 million boxes, 30.4 million boxes are expected to be the early, midseason and navel oranges while the remaining 41.2 million boxes will be the Valencia variety.

Approximately 95% of Florida’s orange bounty is sent for processing. The 2018/2019 Florida total orange crop is somewhat reduced from the initial 76.5 million boxes forecast in April; it is still a significant improvement. This year will bring relief to several farmers who were struggling to come to terms with the massive, 75-year-low precipitated by Hurricane Irma.

Market price USD 4.50 /kilo
Peppermint Oil

Peppermint Oil Mentha piperita Harvest: July - September

Considering the weather problems faced last year, this year has been quiet and reasonably strong in terms of weather. There have been no major disturbances. The harvest, following its year-on-year pattern, points to average yields and is proceeding as planned. In fact, farmers in the Northwest have completed the harvest for the first cut; those in the Midwest are still continuing amidst good weather. Going by the initial reports so far from the harvest, as well as the condition of the fields that are yet to be harvested, forecasts do not anticipate any upheavals or change with regards to demand and prices.

Market price USD 50.00 /kilo