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

Citrus productions in Argentina have faced a difficult season in 2018/2019, and for the current year will also have to overcome a complex economic scenario. Inputs are kept in USD, generating an extra cost compared to the previous season. Moreover, there is a sharp rise in production costs and freight prices, alongside high tax pressure.

On the 1st of July, the National Service for Agrifood Health and Quality (Senasa) decided to suspend the export of fresh lemons from Tucumán to the EU, after verifying the presence of the disease known as “black spot”. Black spot is a disease caused by a fungus that manifests itself by spots of this colour on the skin of the fruit. It does not affect its safety for human consumption but the European Union considers it a quarantine pest that needs to be excluded. This decision has a strong economic impact for Argentinian producers and exporters, as well as for the country due to the fall in foreign exchange earnings. An investigation has now begun to identify the causes that led to this situation. Argentina is the major supplier of fresh lemons to the EU, as well as Argentina’s main export market. In 2019, 126,863 MT were exported to the EU; that is, 54% of Argentina’s total exports and around 25% of total European imports. It is estimated that around 100,000 MT of Argentine lemons have already entered the EU market since the start of this campaign in March 2020 to date.

USDA ESTIMATED ARGENTINIAN LEMON PRODUCTION, SUPPLY AND DISTRIBUTION 2016/17 TO 2019/20 (‘000 MT)

Orange Oil Citrus sinensis Harvest: March - June

There are no carryover stocks from last year, and with the pandemic the consumption has soared. As a result, raw materials are constrained with inadequate supplies for processing. The prices have gradually firmed up and the market is expecting a further tightening on this oil.

Anise Myrtle Oil Syzygium anisatum Harvest: All Year

The demand for this oil has dwindled and stagnated. The crop was severely affected by the drought and so the total crop is greatly reduced. Efforts are on to scale up the capacities for increasing production of anise myrtle but as of now, prices are hovering at high levels.

Blue Cypress Oil Callitris intratropica Harvest: All Year

Blue cypress oil is harvested throughout the year. Over the last few years, production facilities have been enhanced to cater to the steadily escalating demand that this oil has been commanding. Brilliant blue in colour, this has grown to become one of Australia’s signature plant products. With improved facilities and an established supply chain producers are able to fulfil growing demand.

Buddawood Oil Eremophila mitchellii Harvest: March - October

Buddawood oil distillation has been significantly impacted by the bushfires that ruined and laid waste much of the farmlands and devastated wildlife. The harvesting season takes place from March to October with timber collection being underway at present. Production has started again albeit slowly but supplies are insufficient to meet market requirements.

Eucalyptus Horistes Oil Eucalyptus kochii Harvest: April - November

The practice of crop rotation over the last few years has resulted in a healthy increase in the eucalyptus crop size. April to November is the conventional harvesting season but the COVID-19 pandemic threw up numerous logistical challenges. Distillers found it a challenge to transport biomass to the producing units, resulting in input costs shooting through the roof.

Eucalyptus Oil Dives Eucalyptus dives Harvest: July - October

Peppermint eucalyptus is Australia’s new kid on the block. Demand patterns over the last few years show an upward curve, but existing production facilities are unable to keep up. In addition, the volumes of oil output have been significantly depleted by the erratic weather and dry spells of the past year. This has prompted producers to establish additional plantations to ramp up production quantities.

Eucalyptus Oil Staigeriana Eucalyptus staigeriana Harvest: July - October

July to October is the crucial time for eucalyptus. This is the time when harvesting takes place and processing of the oil commences. Staigeriana is a new variant which is finding favour and demand has been escalating. However, it will take time to mitigate the widespread impact of last year’s extreme dry weather. Many of the important distillers are undertaking measures to bring new plantations into the fold, but predictions for this year are rather subdued.

Kunzea Oil Kunzea ambigua Harvest: September - January

The kunzea harvest begins in September and continues till January. Efforts are on to augment processing capacities and develop the segment into fully-fledged production from its present status as an indigenous cottage industry. This will allow standardisation and enable distillers to offer better quality material.

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

Quite a few additional plantations for lemon myrtle oil were set up and started contributing to the yield. In the past there was some cause for concern since several samples of lemon myrtle were C14 tested and found to be adulterated with synthetic compounds. Lemon myrtle has always enjoyed a favoured status in the culinary culture of Australia.

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

Harvesting takes place from July to September and the extraction of this oil continues on a modest scale. Recent measures to add new plantations have been successful and the market hopes that the volumes of oil produced will go up substantially.

Rosalina Oil Melaleuca ericifolia Harvest: April - November

Australia is known for two distinct varieties of rosalina oil. The Southern variety, wild harvested from Tasmania, contains a lower percentage of linalool and higher cineole content. The rosalina oil Northern variety however, is cultivated and displays an increased

linalool component and lower cineole content. The overall production is limited but new plantations are being added. These are thriving and were predicted to contribute to the total oil output in 2020. Unfortunately, the dry spells of last year compounded by the aridity of the early part of 2020 affected many of the plants. The raw material is drastically reduced and procuring biomass for production continues to be a huge stumbling block.

Sandalwood Oil Album Santalum album Harvest: March - November

Over the years Australia’s production of sandalwood album oil could never match demand. One of the leading names in the sector has established a transparent and sustainable supply chain, and now, after procuring wood, is ready to distil and test a trial batch. The minimum wage system poses a challenge to manufacture the oil at a competitive price. However, this works out to be in favour of customers since a sustainable source offers a better playing field for the players and opportunity for customers to exercise their choice.

Sandalwood Oil Lanceolatum Santalum lanceolatum Harvest: March - October

This is another Australian natural that is fast climbing the popularity charts, despite the fact that it is generally perceived as a weed. The wood is wild-harvested but procuring the wood ran into several difficulties. In order to build a reliant supply of raw material, many of the producers came together to enter into a collaborative woodharvesting agreement. The yield from the harvest was supposed to be available in the market this year, but with the COVID-19 outbreak posing innumerable logistical challenges, things remain uncertain.

Sandalwood Oil WA Santalum spicatum Harvest: March - November

Though there are apprehensions about the future, harvesting of the sandalwood has been under way since March and should continue until November, which will mark the end of the season. The market seems to be at an equilibrium with existing supplies matching the demand. Endeavours to augment oil production have been shelved for the moment.

Sandalwood Vanuatu Oil Santalum austrocaledonicum Harvest: March - October

This oil has been faring well in the markets. In consideration of the healthy demand, sufficient investments and preparations have been undertaken to ramp up production, and offer improved and standardised grades of the oil. There are small volumes of oil available with the distillers and they are able to fulfil the current requirements.

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

2019 and 2020 seem to be testing the sheer tenacity of the Australian farming community with numerous problems one after another. The savage wildfires that ravaged land and life have gone down in the annals of history. The bushfires blazed for months and eventually died out but left scorched wastelands in its wake. Tea tree being a hardy plant, withstood the onslaught of the fires but was soon lashed by the torrential rains in February. Several of the tea tree farms were flooded though it was contained in many others. Following this debacle, the plants were infected by the plague of pyrgo beetle which left many of the crops damaged. Ground realities were far different from crop estimates and production forecast predicted a steep decline of 40% compared to the previous year.

Traditionally, May to November marks the harvest season. But the industry, riding on the hopes of a robust crop, commenced harvesting earlier. It was limping back to some semblance of normality when the world was pushed into disarray due to the COVID-19 outbreak. There are hardly any carryover stocks and heightened demand has put pressure on the increased supply.

White Cypress Oil Callitris intratropica Harvest: All Year

Australian producers are endeavouring to step up their production capacities so the all year round harvest can be put to optimum use. However, the demand for white cypress is not what it used to be. There has been a gradual decline.

Orange Oil CP Citrus sinensis Harvest: July - December

The Brazilian orange crop, which started in July 2020 and is expected to end in June 2021, is forecast at 382.8 million boxes (15.6 million metric tonnes – MMT), a decrease of 19% compared with the previous season. The decline is due to the alternate bearing phenomenon in the São Paulo citrus belt, i.e. a reduction in crop size after the previous large production season because nutrient reserves are less, resulting in fewer fruits per tree; and weather related issues, mainly high temperatures in September and October 2019 affecting the setting of young fruits and less rainfall in March and April 2020 resulting in smaller fruit sizes.

According to Fundecitrus, the commercial area of the state of São Paulo and the western part of Minas Gerais, which represents approximately 75% of total production area, should produce 287.8 million boxes (11.74 MMT), a significant 100 million boxes reduction from the previous season. The forecast takes into account the following varieties: Hamlin, Westin, Rubi, Valencia Americana, Valencia Argentina, Seleta, Pineapple, Pera Rio, Valencia, “Folha Murcha” Valencia, and Natal.

According to the Brazilian Geography and Statistics Institute (IBGE), production from other states is projected to go down 2 million boxes from the previous crop to 95 million boxes (3.87 MMT). Total Brazilian orange consumption is expected to go down to 120 million boxes (4.9 MMT), while total oranges for processing is expected to be reduced by 25% to 262 million boxes (10.7 MMT). The demand for orange oil remains high, especially with COVID-19 increasing demand for cleaning and home care applications, and the future production predictions have triggered price increases for orange oil, terpenes and d’limonene. Moreover, little oil carryover from the previous season and the effects of social distancing measures due to COVID-19 resulting in slower picking of fruit and additional costs of transporting pickers to and from farms, is causing the market to rise at a faster rate than initially anticipated. In addition, reduced availability of containers and shipping vessels is creating additional logistical difficulties putting further upward pressure on prices. The below average rainfall from March onwards has impacted fruit development and could create reduced crop availability and further upward price pressure.

Brazil’s production of orange juice is forecast to drop 22% to 1.022 MMT. The decline is due to expected lower supply availability of fruit for processing. The São Paulo industry is expected to process 238 million boxes of oranges for orange juice production, accounting for 942,000 MT of juice. Other producing states should deliver 24 million boxes, accounting for 80,000 MT of juice. Consumption and stocks are both estimated slightly higher while exports are forecast 15% lower with the drop in production. Even with lower supplies Brazil remains the largest producer and is projected to account for over three quarters of global orange juice exports.

Lavender Oil Lavandula angustifolia Harvest: July

The 2020 campaign was not good and an initial unofficial estimate suggested production about a third lower than in 2019. It will be difficult to procure good quality lavender oil this year. Farmers are expecting a high price in the market this year, or else they are willing to destroy the crop, which will reduce supply in the years ahead. Some fields will probably be left unharvested, since farmers are not in a position to bear the cost of harvest and distillation. This is the result of low yields and price. The prolonged drought has drastically affected the crop yield. The production season is almost over and yields are around 40 kg/hectare of lavender field. This is half of the quantity produced last year. But new fields harvested for the first time this year will compensate for the deficient amount. Also, the quantities in stock from 2019 will help fulfil market requirements. While the COVID-19 crisis has not directly impacted the production process, it may reflect on the markets for lavender oil in the months to come as demand is reduced.

Melissa Oil Melissa officinalis Harvest: July

Most of the oil produced has already been purchased in the market. Contracts are also being negotiated for the next harvest. But, there is no guarantee of production, since yields are extremely low. The drought has majorly impacted the crop.

Rose Oil Rosa damascena Harvest: May - June

The COVID-19 crisis has immensely impacted the market for rose oil. The closing down of airports and shopping malls has severely hit demand, although, due to the cool and rainy climate, the yield for high quality rose oil this year has been good. With overproduction of the oil, the price for rose blossoms has come down compared to 2019.

With producers having stock from previous years, there is enough rose oil in the market to meet demand. But, the pandemic has affected the harvest of the oil. Owing to social distancing regulations imposed by government, and low international demand, the harvest was not undertaken on most fields. Also, distilleries operated at reduced capacities.

Balsam Fir Oil Abies balsamea Harvest: April - November

Producers have found that balsam fir oil can also be extracted from the distillation of the bark of the fir as well as from the needles. The essential oil distilled from the bark contains a higher composition of α-pinene. Increasingly being recognised for its effective antimicrobial and anti-inflammatory properties, the demand for this oil has escalated in the last few months. It originates in the Quebec province of Canada. International orders are on the rise since balsam fir oil is increasingly being used in several protection and hygiene products. Stocks are currently limited but production has been stepped up to cater for increased demand.

Black Spruce Oil Picea mariana Harvest: May - August

A coveted natural neuro tonic and general tonic, the popularity of black spruce oil is on a meteoric rise. Its mood-boosting, antiinfectious and anti-inflammatory properties are increasingly being recognised the world over. Naturally and in the wake of the COVID-19 pandemic, the demand for this oil has shot up significantly with USA, Europe and Asia emerging as key markets. The Canadian boreal forest abounds with this conifer, and distillers in the northern Quebec region are veering towards distillation of black spruce oil.

Cedar Leaf Oil Thuja occidentalis Harvest: March - October

Cedar leaf oil is largely used in perfumery but of late demand has slackened. Production is ready to ship. However, if the perfumery segment books lower volumes than earlier, prices are expected to fall.

Hemlock Oil Tsuga canadensis Harvest: March - September

Hemlock oil has peaked dramatically to reach the highest price level in its history. Along with exorbitant prices, the market is facing limited available stocks of the oil.

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

COVID-19 did not impact the production of crude cassia oil but the duty imposed on natural cinnamic aldehyde and natural benzaldehyde by the USA government has had an effect. This has given Vietnamese cassia oil a price advantage. Thus, production has consequently moved to Vietnam.

In terms of numbers, traditionally the annual oil output ranges around 800 MT, with the spring crop amounting to 500 MT, while the autumn crop comes to 300 MT. This year due to the low price, the spring crop has only been around 200-250 MT. Recently there has been around a 10% increase in the price of crude cassia. If the price continues its upward trend, the autumn crop will witness an increase in production, or else it will decline about 50% similar to the spring crop.

Citronella Oil Cymbopogon winterianus Harvest: June - December

The price offered in the market currently is way lower than the start of the year. The crop has been good. The new season, which begins in October, may witness output drop from the quantities of last year. The low price being fetched in the market has made farmers reluctant to distil the oil. Competition from Indonesia has seen production drop to less than 300 MT.

Eucalyptus Oil Eucalyptus globulus Harvest: July - October

The price fetched by this product is one of the lowest in the last five years. The market is mostly stable with low global demand. The second quarter witnessed low demand, since customers overstocked the product in the first quarter, due to the large demand arising from the COVID-19.

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

The common consensus is that the price for the oil will go down in the coming days. The new crop is ready, though oil is not being produced right now. Stocks are also running low at the moment.

Valerian Root Oil Valeriana wallichii Harvest: September - October

The current market price for this product is at par with production costs, hence leaving no scope for profit. Producers project that the future market demand could decrease as well. As a result, they are only maintaining some small quantities for old customers.

Wintergreen Oil Gaultheria procumbens Harvest: July - September

The price of the oil is on an upward trend, as the quantities produced have reduced. This is because even though the season for wintergreen oil has commenced, farmers are reluctant to distil and sell the crude oil. The rains in Yunnan province and the low price the oil is fetching in the market has prompted this less than enthusiastic response from the farmers.

Amyris Oil Amyris balsamifera Harvest: All Year

The political situation in the Dominican Republic and the COVID-19 pandemic have adversely affected oil production. Firstly, plants were shut down in March and wood collection permits were not issued. The defeat of the ruling party in the Presidential elections is another blow to producers. With a new government taking office, entire staff at all levels is expected to be replaced. This means producers will have to build new relationships, and convince people in authority who tend to favour workers over businesses.

Basil Oil Linalool Ocimum basilicum L Harvest: June - September

Production seems to have gone down compared to other years. It is difficult to make any predictions at this stage. However, we will be in a better position to shed some clarity on this oil in the next month.

Chamomile Blue Oil Matricaria chamomilla Harvest: March - May

Last season the oil fetched prices that were below production expenses. There were some carryover stocks and therefore production was on a restricted scale. The new season will commence in 2021 and the market is anticipating a surge in prices until the new crop arrives.

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

The weather has been quite favourable for cumin and this has resulted in increased production. Prices are steady.

Marjoram Oil Origanum majorana Harvest: August - September

Marjoram for a long time was not favoured by farmers. However, this year’s prices for marjoram oil have shot up by 30%. This is significantly higher than previous years, and these prices are expected to hold till May 2021.

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

Production has touched a healthy 1.8 MT this year. The quality is far superior to that of the oil produced in the last few years. Market watchers attribute this to the stringent standards embraced by both farmers and producers, and meticulous selection of raw materials.

Petitgrain Mandarin Oil Citrus reticulata Harvest: October - January

Egypt has a considerably large petitgrain mandarin production and this season has witnessed a surplus. This is despite production falling compared to last year. However, this has moderated the prices for petitgrain oil and kept it at a reasonable level. The market is hoping that 2021 is a better year with higher demand, which will in turn pull up the prices.

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

The production area of lavandin has witnessed a significant increase all across France. This has ultimately resulted in higher levels of oil production. Adequate rain and absence of hail at the time of the harves also contributed to a great crop this year. There was a massive decrease in the price of the oil. It is now available at its traditional price. This reduction in price resulted in most of the crop being sold even before the harvest.

Vetiver Oil Vetiveria zizanioides Harvest: February - May

There is a shortage of the oil in the market. This has led to an increase in price. This is in contrast to conditions prevalent at the beginning of the year, when the price came down due to a shortage of demand. Due to this decline a lot of Haitian producers preferred to shut down operations rather than sell at a low price. Without obligations like banking, these producers have no qualms in letting their plants sit idle. Currently, depending on how the pandemic and economic situation pans out, the price of the oil will probably continue its upward swing.

Basil Oil Ocimum basilicum Harvest: November - February

Indian basil oil is in heavy demand for immunity booster products. The new crop is expected in October, and could help bring the oil price down. Currently, there is hardly any stock in the market, and this has led to a massive rise in the price.

Ginger Grass Oil Cymbopogon martini Harvest: January - April

The market for the oil is stable at the moment. With demand mimicking the low crop availability, prices are staying steady.

Lemongrass Oil Cymbopogon citratus Harvest: July - November

The market is witnessing a slight downward turn. For the past couple of months, demand for the oil has been high. The price has increased as buyers also approach multiple vendors for the product resulting in additional demand.

Mentha Arvensis Oil Mentha Arvensis Harvest: July - December

The low price of Mentha arvensis oil has sparked interest from farmers and stockpilers. The government’s imposition of lockdown and the limited number of guests allowed at gatherings has significantly reduced the expenses of farmers. With the requirement of cash going down, farmers are happy to hold the produced oil. The same is true for stockholders as well. Investors are using this opportunity to increase their M. arvensis oil stock at the low price floating in the market right now. The consistent supply of synthetic menthol has also been a factor in the downward price trend of M. arvensis oil. It has also affected the demand for menthol. The demand for DMO (dementholised mint oil) and liquid mint products has grown, and the trend is expected to continue.

Pre-monsoon showers caused several disruptions to the distillation process but it is now 90% complete. This year the average yield is 50 kg/acre, significantly lower than last year. Estimates peg production this year to be around 55,000 MT. With 10,000 MT of stock from last year, supply should not only meet the global demand, but also carry surplus to 2021.

Palmarosa Oil Cymbopogon martini Harvest: January - June

Compared to the last three years, the price of the oil has gone down. But, if demand picks up, the price will witness an upward trend too. Currently, the availability of the oil is limited. The carryover stock from last year is low, and the next cycle of production will commence after the monsoon in October-November. This has led to an upward trend in the market.

Peppermint Oil Mentha piperita Harvest: April - July

Cheap substitutes with cornmint (M. arvensis) are flooding the market. Once cornmint distillation is complete, the price of the oil could see a sharp increase due to the cash flow situation in the market. Buyers are being advised to keep their requirements covered. The crop has been extremely low this year. Oil with a high concentration of menthofuran is being sought in the market. Unfortunately, the limited quantities produced are low in menthofuran. The first cut of the crop is complete and second cut distillation is underway. The demand is tremendously high and several customers have undertaken coverage of the oil this year.

Sandalwood Oil Santalum album Harvest: March - November

There is a major gap between demand and supply. One of the primary reasons for this is the constant unavailability of genuine wood for distillation. Logistical issues are also affecting production. Manufacturing facilities have been hit by labour migration. Thus, expected, the price of the oil has not come down. It has severely hit the industry and prices are likely to be high for a while.

Spearmint Oil Mentha spicata Harvest: July - August

Production is expected in the range of 200 MT this year. With the distillation process over, low production and discouraging yield have led to an increase in the price of the oil, though the low price of synthetic L-Carvone is likely to moderate the price rise.

Cananga Oil Cananga odorata Harvest: June - August

The price of the oil has been stable in the last year. Significant change in price is not expected, but some can be attributed to the volatile nature of forex. Demand and supply in the market are currently aligned.

Citronella Oil Cymbopogon winterianus Harvest: October - February

The use of citronella oil in personal care, hand sanitiser and hygiene products has led to a surge in demand in the past six months. For the next 3-5 months the supply and price of the oil is expected to be stable. The scale of production in Indonesia makes it a stable crop. In the last 18 months there has been a significant increase in production and the exports in the first half of 2020 exceeded 700 MT. With the current oil price just above the production cost, there is hardly any room for the price to go down. Plantations remain largely unaffected.

Clove Oil Eugenia caryophyllata Harvest: May - September

With major exporters maintaining substantial stocks of clove leaf and stem oils, the market was stable for the last 3-4 months but stocks are depleting now and this could result in a price increase. However, this will be a short-term occurrence and should be resolved when the new collection season commences. This is possible only after the monsoon. Currently, constant rain has adversely affected production. Dry leaves and stems are used to produce clove oil, but due to the rain farmers and distillers are unable to procure dry raw material. Madagascar is facing a similar situation, as rains hamper production activities.

Nutmeg Oil Myristica fragrans Houtt. Harvest: All Year

There is limited supply of raw material in the market, which makes it difficult to maintain the quality of the oil. Increased vigilance activities are being undertaken to ensure there is no compromise on quality of nutmeg oil. Limited oil supply and consistent demand will probably push the price upward. Till now the demand and price of the oil have been stable in the first half of 2020. The slight price fluctuations can be attributed to volatile forex. There was a 15% devaluation of IDR in February and March.

Patchouli Oil Pogostemon cablin Harvest: All Year

Oil prices are firm at the moment. This is primarily because of the delayed harvest due to monsoon. Most regions of Sumatra and Sulawesi are experiencing constant rainfall. Regions of Southeast Asia received excess rain in July, resulting in flash floods and crop damage. Thus, there is no timeframe on the harvest currently, since this unexpected change in weather is difficult to predict.

Just under 1,000 MT of patchouli oil was exported in the first half of 2020. This makes it the most valuable essential oil to be exported in Indonesia. There is lack of availability in the market right now. Big F&F companies at farmer and aggregator level are buying the available product at premium prices. Thus, there is hardly any product left for the open market.

Vanilla Vanilla spp. Harvest: August - September

Indonesian vanilla production this year is predicted to be around 200 MT, possibly higher. Also the reduction in early picking of the green beans should facilitate an improvement in both yields and quality. Material is still being imported from neighbouring Papua New Guinea and blended with Indonesian vanilla for the extract market. However, the continued downward trend in prices, combined with logistical problems created by COVID-19, is likely to reduce imports from PNG, where output is at a similar level to Indonesia. 

Vetiver Oil Vetiveria zizanioides Harvest: January - July

Due to the COVID-19 pandemic the demand for fine-fragrance applications has gone down. One of the primary uses of vetiver oil is in this segment. Thus, the price of the oil is fluid in the market even as the crop is between harvest cycles.

Orange Oil CP Citrus sinensis Harvest: March - May

Following Spain’s footsteps in the production of orange, Italy is the second largest European orange producer. Sicily and Calabria, the primary orange growing regions, account for 63% and 19% of the total orange crop respectively. This year the total crop production is expected to remain stable and this includes all the varieties of oranges – Tarocco, Moro, Sanguinello, Naveline, and Valencia. The new varieties of Ippolito and Meli cultivars are fast gaining popularity.

Vanilla Vanilla planifolia Harvest: August - September

Madagascar dominates world natural vanilla production. Initial projections for the 2019 crop were in the 1,100 – 1,200 MT range but others believe it is closer to 1,500 MT. Meanwhile, the 2020 crop could be as high as 2,000 MT, with both quality and vanillin content higher than 2019. The COVID-19 pandemic, combined with actions by the Madagascar government, has limited the substantial decline in vanilla prices, which have fallen by more than 50% since their peak in 2018. In early 2020 the Madagascar government set a minimum export price of USD 350/kg. The government, which has been taking a more active role in the sector, is endeavouring to control the opening and closing dates for harvesting and exporting vanilla, with the objectives of supporting both quality and prices.

Meanwhile, the industrial vanilla market which accounts for approximately 80% of the natural vanilla trade benefitted from the increase in home cooking and associated greater grocery shopping encouraged by the COVID-19 lockdowns. In sharp contrast, demand from the food service and institutional sector, which consumes mainly black/gourmet vanilla and accounts for approximately 20% of global sales, has been decimated because of the global lockdown. With the anticipated surge in vanilla exports in the last quarter of 2020 it is anticipated that there will be further downward price pressure, suggesting that buyers should only cover their short-term requirements.

Key Lime Oil Citrus aurantifolia Harvest: May - October

Mexico’s lime crop is expected to be 9% lower than last season at 2.199 million metric tonnes (MMT) mainly because of drought conditions in the growing regions.

Key limes are mainly grown in the state of Michoacan, with about 75% of total volume, and Colima, representing about 20-25% of the total of total Key lime volume in Mexico. High season has started in June; the volume of fruit available from Michoacan state is expected to decrease during August and September, and availability to rise again starting November. In Colima state this year’s availability is expected to reach its peak during the month of September.

COVID-19 has certainly impacted both the processing and the fresh fruit market, and has also impacted consumer trends. The price of industrial limes has increased substantially. This cost increase is mainly due to the high demand for fresh limes both domestically and for export, and also strong competition between processors as a result of the current high Key lime oil demand in the market. With demand for distilled and cold pressed Key lime oil very firm worldwide, prices are increasing and this trend is expected to remain, as there is a possibility that this extra demand will not be met in full due to the limited Key lime available for processing.

Persian limes are mainly grown in the state of Veracruz. The lime harvest in Veracruz has been delayed because of COVID-19 resulting in disruption in the supply chain, leading to increased prices in the local market. Similar to the Key lime market, strong demand from the fresh fruit market is making fruit prices higher for processing. Moreover, the damage from the 2019 drought will lead to the total volume of fruit processed in 2020 being less than in 2019. As a result, price for Persian lime oil is on the increase.

USDA ESTIMATED MEXICAN LIME PRODUCTION, SUPPLY AND DISTRIBUTION
2016/17 TO 2019/20 (‘000 MT)

Orange Oil Citrus sinensis Harvest: August - September

Mexico’s orange production is expected to fall 45% this year to 2.53 MMT, one of the lowest outputs since the early 1990s. A sustained drought, high temperatures and a lack of irrigation are factors attributed to the failed harvest. The ongoing drought and high temperatures have affected orange production more drastically than other citrus fruits because many orange trees are older and require more water to produce fruit. The intense temperatures and lack of rain throughout the growing season resulted in widespread fruit quality deterioration, with diminished size in most producing states. Mexico is also facing problems with citrus greening. Consumption is anticipated to drop by one-third to 1.6 million MMT and fruit for processing is estimated to drop nearly 60% with the drop in supplies to 900,000 MT.

Mexico’s orange juice production is expected to drop by more than half to 90,000 MT as a result of fewer oranges expected to be available for processing. Exports are predicted to reach 104,850 MT, against 195,000 MT the year before.

Average aldehyde levels in CPOO this season struggled to even get close to 1.1% which is the lowest processors have seen in the last five years. The demand for orange oil remains high while Mexico and other markets are forecasting lower crops compared to last year, and therefore prices are projected to increase. However, Mexico has experienced more consistent rainfall since March which bodes better for the future.

USDA ESTIMATED MEXICAN ORANGE PRODUCTION, SUPPLY AND DISTRIBUTION
2016/17 TO 2019/20 (‘000 MT)

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

It was a standard production cycle with normal crop.

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

The crop is still being harvested. The raw material (seeds) is being sold at a high price. The implication of this price rise on the oil will only be clear by the month of September.

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

The process of oil distillation is currently underway in Eastern Europe, on first impression it seems the quantity will be lower than last year.

Manuka Oil Leptospermum scoparium Harvest: April - October

New Zealand imposed early lockdown with the onset of the COVID pandemic. Agriculture is categorised under essential services, so the plantations were able to resume operations without too many hitches and so it is business as usual for manuka worldwide.

The plants grew well all throughout the summer and autumn months but winter was a tad difficult with sluggish production. The plantations in East Cape have thrived and year-on-year the yields have been on the rise. The producer successfully completed invitro testing on the MBTK 20+ manuka oil. This test has determined the efficacy of 20% triketone oil in comparison to 25% triketone oil. It has been found that 20% triketone is twelve times more effective on acne than tea tree oil. There are adequate supplies of this available at the moment.

Cabreuva Oil Myrocarpus frondosus Harvest: All Year

The impact of the pandemic was felt largely in the production of cabreuva oil with operations disrupted for almost a month. However, production has resumed although at a slow pace. Stocks of cabreuva oil are limited but producers are hopeful of covering lost ground over the coming months.

Guaiacwood Oil Bulnesia Sarmientoi Harvest: All Year

Currently there is an EU embargo on this oil. Paraguay producers have already filed for CITES certification. They are awaiting revertal on this and the 2020 export quota which is expected to be announced in August. Production has continued as usual but the CITES certificate will enable producers to ship globally except to the EU and UK. However, the market is hopeful that September will bring some positive news of the lifting of the embargo.

Petitgrain Oil Citrus aurantium ssp. Harvest: All Year

Petitgrain production has not been disrupted by the impact of the pandemic but there are challenges in shipping since air travel is affected. Petitgrain production is continuing on its usual track though at present there is a lull in activity considering it is winter. The main production season will commence from September-October and will continue through till February. Production will go up and consequently there will be a revision in prices.

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

A multitude of reasons led to a slight rise in the price of the oil. In order to keep the workforce intact, they needed to be paid appropriately. Also, the price of technical equipment for distillation and transportation costs increased.

Juniper Berry Juniperus communis Harvest: September - October

This year the oil is priced higher than previous years. This is primarily because after the disaster of the crop last year, production has been slightly better in this cycle.

Pine Oil Pinus sylvestris Harvest: May - August

Demand for oil in the market will drive production volumes. Currently, availability and price are stable.

Thuja Oil Thuja occidentalis Harvest: July - September

There are no fluctuations in the oil price. Production volumes are determined by demand. If demand increases, production can be escalated as well.

Buchu Leaf Oil Agathosma betulina Harvest: February - March, October - November

The National Environmental Management Biodiversity Act of South Africa has recently implemented stringent export parameters. The country’s buchu oil exports have been affected under the Bioprospecting, Access and Benefit Sharing (BABS) Regulations. The new regulations make it mandatory for producers to hold valid Integrated Export and Bioprospecting permits, thus making it difficult for exporters.

South Africa imposed a national lockdown. Agriculture however, coming under the purview of an essential service, was permitted to continue with strict precautions. As a result, though actual buchu oil production continued unabated, there were challenges with distribution. Freight issues with limited operational airports and double the usual freight costs were some factors disrupting the buchu market. The crop this year has been encouraging with new plantations adding to the volumes. However, production continues to fall short of the demand, and taking advantage of the situation, some agents have quoted astronomical sums. It is hoped that with the gradual replenishment of raw materials prices should level off over the coming months. The winter rains are in full swing and the market is looking forward to a good crop next season.

Eucalyptus Oil Radiata Eucalyptus Radiata Harvest: August - October

This winter was an unusually cold one with an unprecedented dip in temperatures. This has led to leaf damage in many plants. However, the spring and summer production is looking optimistic and is expected to cover the loss. The oil has found favour for relief of respiratory discomfort amid COVID-like symptoms. Naturally, the global demand for E. radiate has shot through the roof. New areas of planting with healthy plants can help close the gap between demand and supply. New supplies of organic oil are also being marketed. Prices have escalated by 5% to 8% from their previous levels.

Eucalyptus Smithii Oil Eucalyptus smithii Harvest: July - October

Amidst the pandemic, eucalyptus’ powerful anti-microbial properties make it a preferred ingredient in many disinfectants and oral care products. Therefore, there is a healthy demand for this oil. There are several new plantations that have come into the fold and are producing oil. The enhanced yield from the additional areas helped producers meet this sudden spike in demand. Currently, prices are stable but are anticipated to go up in early 2021.

Grapefruit Oil Citrus paradisi Harvest: December - April

Grapefruit production is forecast to go up by 4% to 387,000 MT this year compared to 371,849 MT in 2018/19. Considering normal weather conditions and sufficient rains, the yields are expected to improve. Grapefruit is harvested between March and September and Limpopo province is the leading growing region accounting for 58% of the total area planted of 8,000 hectares planted. Because of international demand, the Star Ruby variety dominates production, accounting for 84% of the area planted. The Marsh variety accounts for 12%. It was a bumper crop for grapefruit pink last season but, as expected, this year’s crop is considerably less by around 40%.

Grapefruit is not very popular in the South African domestic market and a large proportion of production is exported as fresh fruit. Out of the total production, traditionally about 29% of the fruit is earmarked for processing into essential oil. This year’s estimates indicate a 3% increase to 110,000 MT for the year 2019/20. Grapefruit is processed to juice and concentrate, the majority of which is exported to Europe. Following juice extraction, the left-over pulp is an important source of grapefruit oil, used mainly to flavour beverages. Grapefruit peel oil is used in scented fragrances.

The KwaZulu-Natal region is inching into greater prominence as a producer of white grapefruit. An international company has partnered with local suppliers to bring 9 large-scale and 96 small-scale Zulu farmers under the banner of a cooperative. Technological equipment for a production line enabling recycling of side streams that would otherwise go to waste, has been set up. Though the facility specialises in grapefruit processing, it has the capacity to process up to 50,000 MT of citrus fruit per year. It also intends to invest in long-term partnerships with local farmers, ensuring best agricultural practices and good yields, delivering high quality products while supporting local families. White grapefruit is increasingly becoming a sought-after raw material for sweets and drinks. The establishment of the unit will improve the environmental footprint as well as help expand the existing citrus range with the addition of the unique flavours of white grapefruit.

USDA ESTIMATED SOUTH AFRICA GRAPEFRUIT PRODUCTION, SUPPLY AND DISTRIBUTION
2016/17 TO 2019/20 (‘000 MT)

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

South African lemon production in 2019/20 is expected to increase to 579,000 MT, a rise of 18% compared with the previous crop. This is because of the increased output coming from the expanded area of production during the past five years. Similarly the number of lemons processed is forecast to increase by 15% to 140,000 MT in response to the increased demand for lemon products. Processed lemons are used to flavour beverages as well as a food ingredient in confectionery and dairy products. In the cleaning industry, lemon is used as a degreaser and disinfectant, due to its high concentration of citric acid which can inhibit the proliferation of some moulds and bacteria.

 USDA ESTIMATED SOUTH AFRICA LEMON PRODUCTION 2017/19 TO 2019/20 (‘000 MT)

Orange Oil CP Citrus sinensis Harvest: June - September

Over the past decade the South African orange sector has seen a steady upward trend in the area planted to reach 44,500 hectares in 2019/20, half of which is in Limpopo province. Valencia variety accounts for about 64% of the total area planted and Navels 36%. Oranges are normally harvested between March and September, and crop production in 2019/20 is expected to be flat at 1.60 million MT. Exports seem to be faring better with a record breaking 1.28 million MT with the EU and China being the primary markets. With the demand for fresh orange increasing the last year has seen a sizeable decline in the volume of oranges being processed, falling to 247,000 MT.

USDA ESTIMATED SOUTH AFRICA ORANGE PRODUCTION 2017/19 TO 2019/20 (‘000 MT)

Tagette Oil Tagetes erecta Harvest: June - August

With meticulous planning, South Africa has successfully increased the area under tagette cultivation by 50% to 60%. The new plantations are expected to contribute substantially to the crop for 2021. This year the tagette crop is of a superior quality but business is sluggish due to the prevailing COVID-19 restrictions.

Tea Tree Oil Melaleuca alternifolia Harvest: October - January

The South African commercial community is facilitating several new, smaller farmers to cultivate tea tree. Seedling control is implemented to ensure good quality for the new oil coming into the market. This includes both organic as well as conventional grades in roughly equal quantities. Tea tree is also an effective disinfectant and antimicrobial. Its usage in COVID-19 preventive household products has ensured a strong and steady demand for both organic and conventional varieties of oil. As a result, prices this year are about 10% to 12% higher than last year and are predicted to hold their place throughout the year. There are several new plantations that have come into the fold and are producing oil. The enhanced yield from the additional areas helped producers meet this sudden spike in demand. Currently, prices are stable but are anticipated to go up in early 2021.

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

The 2019/2020 European Union lemon crop is expected to decrease by 16% to 1.4 million metric tonnes (MMT) compared to the previous year. This is mainly due to a drop in production in Spain and Italy, the two largest lemon producers in Europe, because of unfavourable weather conditions. According to the latest data from the Spanish Ministry of Agriculture, Fisheries, and Food (MAPA), Spain’s 2019/2020 lemon production is forecast at 923,000 MT, a decrease of almost 20% compared to the previous year.

The reduction in Spanish lemon production has resulted in less fruit for processing. In addition, the industry has also experienced a further reduction in fruit for processing as a result of the fresh market taking advantage of Turkey’s reduced lemon presence in Eastern markets. On the other hand, having experienced additional demand in the fresh market with the COVID-19 outbreak in March as consumers reverted to fresh lemons for their high Vitamin C content, the impact of COVID-19 was reversed during May by reducing fresh fruit demand from the closure of the food service sector, making more fruit available for processing. It is possible that the 2019/2020 season could conclude with approximately 250,000 MT of processed lemons.

With regards to lemon oil, after the significant price decline there is a trend shift and prices have slowly started to go up from early 2020. Spanish lemon trees were hit after the blossoming stage and therefore a reduction in yield is forecast compared to last year. This, together with constant demand, is slowly but constantly pushing prices upwards.

AILIMPO’s initial forecasts for the 2020/2021 new crop beginning in September estimate 1.25 MMT of lemons will be harvested, exceeding the projected final figure for 2019/2020 by 10%. This initial estimate will mainly depend on the availability of water during the summer and the autumn rains.

In the case of Fino lemon variety production, accounting for 70% of total production and predominantly used for processing, it is estimated at 950,000 MT, an increase of 14% over the current year. In making these forecasts AILIMPO considered the effect of the progressive entry into production of the new plantations carried out in recent years and the situation of the size of the lemons at the present time, which is considered optimal thanks to the good availability of water.

Regarding the Verna lemon variety, representing 30% of total production, the first forecast points to a harvest of 300,000 MT in 2021, which would represent a volume very similar to that of the current 2020 campaign with a slight decrease of 2%.

SPAIN: LEMON PRODUCTION 2019/2020 COMPARED TO FORECAST
2020/2021 CROP (METRIC TONNES)

Orange Oil CP Citrus sinensis Harvest: October - May

Over the last decade Spain’s orange plantations have gone down by 9% but despite that it remains the foremost orange cultivator in the EU with 139,132 hectares. Valencia and Andalusia are the country’s leading orange-growing regions contributing a whopping 90% of the total production. Spain’s prominent orange varieties include Naveline, Navel, Navelate, Salustiane, Valencia and Sanguinello. Producers generally follow a tradition of cultivating and alternating early as well as the late blooms to prolong the availability of fruit throughout the year. Most oranges like the Navelina and Navelate are preferred fresh while the essential oil is extracted from the Valencia late varieties.

The orange orchards have been parched by soaring temperatures in summer and buffeted by heavy rains in the fall of 2019. Consequently, Spain’s orange crop is expected to plunge by a significant 15.2% to an estimated 3.3 million MMT. Like many other citrus producing nations, Spain too has seen a sharp rise in domestic fruit consumption. The sudden demand and consequent shortage of supplies has led to price inflation.

Spanish exports have also moved upward. Demand propelled by increased consumer consumption has led to higher exports to Canada as well as the EU, the March 2020 figures being at a record-breaking high. In the initial phase of the pandemic – that is, the first quarter of 2019/20 – Spain notched up a 7% increase. As stated, Spain also holds the distinction of being Europe’s foremost orange processor with about 20% of Spanish orange earmarked for processing.

Cinnamon Bark Oil Cinnamomum zeylanicum Harvest: May - December

In order to ensure unhindered supply of the oil, buyers are being advised to enter into contracts with suppliers. This would provide a guarantee to all parties and negate the uncertainties in the market due to the pandemic. Distillers can stock up raw material to ensure unhindered production with surety of demand on the other side.

The peak harvest season is between April and June, but considering the limitations on movement, farmers have not been able to provide raw materials to distillers. This has affected the production of the oil.

Cinnamon Leaf Oil Cinnamomum zeylanicum Harvest: March - August

At the start of the year many buyers entered into contract agreements with producers or stocked up on the oil. Due to the low price many distillers discontinued operations, but suddenly demand has picked up and this has resulted in a major escalation in the price..

Citronella Oil Cymbopogon nardus Harvest: May - December

For a few years there has hardly been demand for citronella oil, but it it has recently started picking up. With certain markets averse to buying Chinese products, the demand has shifted to Sri Lanka.

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

Till a few weeks back distillers in Sri Lanka were struggling, but an increase in global demand for the oil has resulted in some demand coming Sri Lanka’s way as well. Otherwise, this is a market where the low price of oil from Indonesia makes it very difficult to compete.

Clove Stem Oil Eugenia caryophyllata Harvest: January - February

Due to an increase in the global demand for the oil, buyers are eyeing Sri Lanka as a supplier. Otherwise, it is difficult to compete with the offers made by Indonesia. The price of clove stem oil is stable. The December harvest of the new crop resulted in high levels of raw materials and saved the price from fluctuating.

Nutmeg Oil Myristica fragrans Houtt. Harvest: February - May

The low price of Indonesian oil has affected the demand for the Sri Lankan variety. With the harvest season commencing later in the year, currently there is no crop available for distilling. The limitations of raw materials may result in price fluctuation.

African Sandalwood Oil Osyris lanceolata Harvest: All Year

The COVID-19 pandemic has dealt a severe blow to the luxury perfume segment where African sandalwood oil is an ingredient. On the other hand, other personal care items and industrial segments have widely accepted this oil as a good substitute for sandalwood flavouring requirements. Though production was at a standstill for about 15 to 20 days in the month of May, Tanzania has fortunately avoided the worst of the virus. Local impact on industry has been minimal. Barring the closure in May, production continues and is catering to the demand which is on an upward swing. This comes as a ray of hope for Osyris lanceolata since Santalum album and Santalum spicatum are commanding astronomical prices. The market anticipates good demand in coming months and a steady growth for this oil.

Laurel Leaf Oil Laurus nobilis Harvest: January - April

Just as oregano oil, laurel leaf sees an increase in sales. Its usage in flavour seasonings has led to the rise in demand. The quantity of the oil exported from Turkey has declined.

Orange Oil Citrus sinensis Harvest: November - February

The heat wave in May 2019 took its toll on the orange blooms and ultimately the fruit as well. Consequently the crops are forecast to be lower than last year. Turkey’s production is estimated to fall to 1.54 MMT, a drop of 11% due to the marked drop drop in availability of fresh fruit. In a ripple effect of this, exports are also affected.

Oregano Oil Origanum vulgare Harvest: July - September

An increase in the sale of packed food items has had an impact on the demand for oregano oils and laurel leaf. Their usage in flavour seasonings is a major reason for the 15-17% rise in the demand for these oils.

Tangerine Oil Citrus reticulata Harvest: April - June

Turkey’s total crop for tangerines as well as mandarins is down. Extreme cold during the blooming period has resulted in lowering the crop size to 1.27 MMT. This is a plunge of 15% in total production. Considering restricted supplies of fruit, consumption is also on the decline. Exports, however, are anticipated to move up with Russia continuing

Cedarwood Oil Texas Juniperus mexicana Harvest: All Year

The onset of the Corona pandemic has resulted in a sudden spike in the demand for disinfectants and an increased usage of the oil in insect repellent and pesticides for organic farming. The distillation and production of this oil falls under the essential service category and so plants were operating at full capacity. Prices are expected to increase.

Grapefruit Oil Citrus paradisi Harvest: December - April

According to the final USDA forecast, USA grapefruit production ended at 13.05 million boxes, which represents a more than 10% decrease from last year’s crop which was at 14.71 million boxes, mainly due to unfavourable weather conditions. With Florida’s total production slightly higher than the last crop, totalling 4.85 million boxes (4.06 million boxes of red/pink grapefruit and 790,000 boxes of white grapefruit varieties), both California and Texas production has decreased to 3.80 and 4.40 million boxes respectively. The reduction in California production is mainly due to general crop cycles.

Regarding grapefruit oil, the excess supply in the market of red/pink grapefruit oil is decreasing and there are indications that the price is starting to stabilise. Meanwhile, the white grapefruit oil price is stable though volume continues to be limited and this trend may continue in the future.

USA ESTIMATED GRAPEFRUIT PRODUCTION 2017/18 to 2019/20 (‘000 boxes )

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

The 2019/2020 total production of lemons in the USA is forecast at 22.9 million boxes, lower than the last crop despite higher production in Arizona. Californian lemon production is forecast at 21 million boxes down from last season’s 23.7 million boxes.

The demand for fresh lemons has decreased because of COVID-19 due to the shutdown of schools, restaurants, cruise lines and other commercial food-service operations. This has generated changes in the amounts of fruit intended for fresh consumption and fruit for processing. Where previously 85-90% of the lemons were going to the fresh fruit market, this disruption in the food-service might generate the split likely to be 70% fresh fruit and 30% fruit for processing.

Orange Oil Citrus sinensis Harvest: February - May

The USA total orange production 2019/2020 is estimated down 5% compared to last season to 119.999 million boxes. The USDA final forecast for Florida’s orange crop is 67.650 million boxes, which is lower than last season’s crop. This total is comprised of 29.65 million boxes of non-Valencia oranges (early, midseason and Navel varieties), and 38.0 million boxes of Valencia oranges. Meanwhile, the forecast for California all oranges is 51.0 million boxes, almost unchanged from last season, with 42.0 million boxes of non-Valencia oranges and 9.0 million boxes of Valencia oranges. Finally, the forecast for Texas all oranges is 1.34 million boxes, almost half compared to last season, with 1.15 million boxes for non-Valencia oranges and 190,000 boxes for Valencia oranges.

In Florida, the reduction may have been the result of heavier than usual fruit drop due to COVID-19, with processors limiting intake of Valencia oranges, and weather conditions that might have favoured citrus greening. Meanwhile in Texas, Hurricane Hanna in July caused significant damage to the citrus industry, with estimates suggesting a 30% crop loss. However, there has been some positive news coming from scientists at the University of California, Riverside who claim to have discovered a naturally occurring antimicrobial peptide capable of controlling citrus greening.

USA orange consumption and exports are both up, while fruit for processing is expected to be lower with the decline in production. USA orange juice production is estimated down 10% to 297,000 metric tonnes with the drop in oranges available for processing. Slightly higher exports and lower imports are anticipated to bring down stocks.

USA ESTIMATED ORANGE PRODUCTION 2017/2018 TO 2019/2020 (‘000 BOXES)

Peppermint Oil Mentha piperita Harvest: July - September

The global demand for peppermint oil escalated at the beginning of the lockdown in the month of March. However, it has gradually eased out and demand has now regularised. The effects of the pandemic are yet to be ascertained, but it is evident that demand will be impacted in the long term. Though there were COVID-19 restrictions in place, farms were operational; harvesting and distillation continued as usual. All in all, the crop is healthy and yielded sufficient volumes of oil. However, there is less oil on offer with many producers keeping a tight rein on their stocks in hopes of better prices.

Tangerine and Tangelo Oil Citrus reticulata & Citrus reticulata x C. paradisi Harvest: April - June

Tangerine production in the USA is forecast to go down by 20% to fall to 22.0 million boxes. The reason behind this not-so-encouraging crop is the unfavourable weather that had an adverse effect on production. California dominates production and its forecast production in July was 21 million boxes compared with 26.5 million boxes in 2018-19. Meanwhile, Florida tangerine and tangelo forecast production has remained constant at 1.02 million boxes.