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

Though there have been some hurdles in the smooth harvesting of the lemon crop, the situation is now under control and news is reassuring. The crop is delayed because of heavy rainfall leading to floods in the main production areas. The producers’ woes have been compounded by a labour strike. Despite the accumulation of flood water, the copious rainfall and delay in harvesting have resulted in a longer time for the fruit to mature and, subsequently, produce a larger fruit size. Argentina’s exports to the USA, as well as Europe, have seen a significant rise and this augurs well for the Argentinian industry. Supply has exceeded demand which has exerted a downward pressure on prices. This has enabled prices to be at a reasonable low. Fresh fruit demand is set to increase and prices may move up too.

Blue Cypress Oil Callitris intratropica Harvest: All Year

This beautiful, vivid cobalt-blue oil is much in favour and increasingly becoming a sought-after commodity. There is a backlog of orders and this has created a bottleneck in the seamless supply of the oil. The sector has seen proactive steps undertaken to increase production and expand the processing of blue cypress. These efforts have paid off – now there is another available stock flow that is consistent and dependable. However, as of now the augmented supply stream is nil and no dramatic increase is expected until June or July, when the new oil is likely to hit the shelves. With this, Australia is now set to produce more than 2 MT of blue cypress oil annually.

Buddawood Oil Eremophila mitchellii Harvest: March - October

This is the one oil that is slowly gaining momentum and slowly coming to the forefront. Its production continues on a steady and reliable pace. Small volumes of the oil are already in stock. There is an encouraging rise in the number of enquiries for new formulations. The Australian industry is trying to streamline production so as to maintain an uninterrupted supply to the market.

Eucalyptus Horistes Oil Eucalyptus kochii Harvest: April - November

News about the eucalyptus production indicates that processing is continuing at a steady pace. Current demand is adequately met by the supply. Producers are looking to step up their production but the issue of the logistics of transportation of biomass to production, costs, and time is disrupting efforts to augment production. Current supply and production is sourced from established plantations, which are practising continual crop rotation. Given this scenario, it is predicted that the eucalyptol content of the product may gradually even out to an average of approximately 80% eventually.

Kunzea Oil Kunzea ambigua Harvest: September - January

Kunzea production capacities are humble and are pursued only through wild-harvesting. It flourishes in remote regions of Australia and enjoys the status of a cottage industry. Currently, there is almost no oil available. The weather has not been conducive and therefore volumes are low. The established plantations of Golden Grove Naturals (GGN) continue to work towards oil production but the volumes are expected only by 2020.

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

There is negligible quantity of authentic oil available and the market has seen an influx of a significant volume of synthetic grade oil. Subjecting various samples to the C14 test have revealed synthetic adulterations. Most of the plantations of note have shifted their endeavours towards production of culinary dry leaf over oil production, since this brings premium returns. Overall, natural lemon myrtle is being produced in low volumes. GGN has taken a positive initiative and entered into contract harvesting and plantation management. The company has added 60 hectares of plantation, thereby adding volumes and easing availability in the market.

Manuka Oil Leptospermum scoparium Harvest: All Year

Reserve stocks of manuka oil are limited; and with a healthy surge in demand there is almost no availability of stock. This plant is mainly wild harvested and continuous rainfall is making harvesting a challenge in remote areas. The high demand and tight supply has given way to change in the quality markers for this oil. With the superior grade +25% and +30% beta-triketone product becoming rare, the market is preparing for receiving greater volumes of the lower +20 % beta-triketone product. It is anticipated that the 25% b-triketone product that was previously obtainable, will slowly be phased out, and will not be available as the market matures. Producers are trying to establish new plantations of manuka, but are unable to do so because of the prevailing high temperatures and adverse weather conditions that are certainly not conducive to new plants.

Market price AUD 995.00 /kilo Min 25 beta-triketone
Market price AUD 845.00 /kilo Min 20 beta-triketone

Rosalina Oil Melaleuca ericifolia Harvest: April - November

Stocks of rosalina have dwindled to almost nil. The production at present is rather small, but GGN has established additional plantings of rosalina. Operations have commenced and the market expects to receive this additional volume by 2020. With this, GGN has become the largest supplier in the world. Plant observations have shown two specific varieties, the Northern rosalina that has higher linalool, and lower cineole content as compared to the genetics of the Southern rosalina variety.

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

There are large quantities of synthetic sandalwood oil in the market with very low amounts of the authentic variety. Low volumes of natural supply are being produced since the major players are looking to culinary dry leaf production as a richer source of revenue. GGN has achieved a milestone with the commissioning of a new boiler and foray into plantation management and contract harvesting. The company produces limited volumes of the oil, thus contributing effectively to the increased availability of sandalwood oil.

Sandalwood Oil Lanceolatum Santalum lanceolatum Harvest: March - October

Sandalwood oil production continues to be firm with supplies ably meeting current demand. This plant, considered a weed in many parts of pastoral Australia, is processed through wild-harvesting in a sustainable manner. Although there is a little amount of stock in reserve, production is on to replenish the current reserve. Australian eastern sandalwood oil, not to be compared to the other varieties, is quite popular due to its unique floral overtones and spicy woody notes.

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

The reserves of tea tree oil are totally depleted and there are no stocks. The weather has been unyielding with a harsh drought affecting much of the crop. The drought is the worst one recorded, and production has plummeted by 30% compared to a normal year. This year’s forecast puts the crop size at approximately 600 MT.

Several large plantations began their harvesting operations a tad early in the hopes of opening their stocks early in the oil market and thereby quoting higher prices. Production is set to begin by July and August, which gives the plants adequate time to recover from recent extremely hot temperatures shooting to 43°C.

GGN decided to withhold from an early harvest, which has turned out to pay rich dividends. Spurred on by isolated regular rainfall in the Tucki Tucki area, and the ground temperature remaining warm, the plantations recorded uncharacteristically good growth towards the end of the season. Now with the imminent winter bringing down the temperatures, the plants are preparing to hold over for winter by increasing oil storage in their leaves, and shutting down growth. This is an opportune time to harvest to ensure optimal returns and yield of oil. There is some talk in the market of offshore Chinese manufactured tea tree oil being brought back, and sold as the Australian grade tea tree oil.

Eucalyptus Oil Citriodora Eucalyptus Citriodora Harvest: May - November

January 2019 witnessed a period of arid weather and drought but the crop revived with the onset of the rains. The weather has finally cleared and the crop season has begun in full swing. With a confirmed appreciation in demand in these months, already the stocks are depleted. The small producers have raised their prices by around 15% but no significant modification in prices is expected in the coming months. There are authentic reports of maintenance and planting of new areas. The markets are hoping that the constraints in stocks will be alleviated in the near future and a stable supply assured.

Orange Oil CP Citrus sinensis Harvest: July - December

Brazil reports a period of stress during the initial months. January witnessed extremely dry weather conditions leading to drought-like conditions. Water was scarce in the entire citrus belt except the southwest, leading to a drop in the yield in the groves. This erratic weather has been persisting for some time, in fact as far back as 2017. The spring rains, which were long overdue was one of the reasons behind the late blooming of the orange trees. Growth was hindered, eventually resulting in a sharp plunge in the number of oranges per tree. The rainfall during the fruit development and harvesting period from May 2018 to March 2019 was also deficient, at least 3% below the historical average. Followed by soaring mercury levels after the flowering, the fruit set and size was affected. There is a marked deviation between final average size in April 2019 against what was projected in May 2018. However, the aberration for each orange variety is attributed to irregular rainfall distribution during fruit harvesting season. The largest margin of deviation was observed in early varieties. This was a direct result of the dearth of water at the beginning of the crop season, which coincided with the harvest of these particular orange varieties. In comparison, the size variation was the least in the Pera Rio variety.

Brazil’s orange crop estimates for the year 2018/19 by Fundecitrus are close to 285.98 million boxes of 40.8 kg each. This figure is a drop of almost 28.2% compared to the previous crop of 398.35 million boxes in 2017-2018 – 11.6% below the crop average in the last decade. The Hamlin, Westin, and Rubi varieties are pegged at 50.70 million boxes with the other early season varieties steadying at 14.66 million boxes. The Pera Rio orange saw an upward jump of 0.58% to touch 79.12 million boxes. Valencia and Valencia Folha Murcha oranges were predicted to deliver 107.91 million boxes, an increase of 0.26%; while the Natal variety anticipates a significant drop of 1.08% to deliver 33.59 million boxes.

The final crop total figures include:
50.70 million boxes of Hamlin, Westin, and Rubi varieties
14.66 million boxes of Valencia Americana, Seleta, and Pineapple orange
79.12 million boxes of Pera Rio
107.91 million boxes of Valencia and Valencia Folha Murcha oranges
33.59 million boxes of Natal orange

Out of the total orange crop, approximately 16.02 million boxes were produced in West Minas Gerais. Brazil has seen some losses this year due to adverse weather. More than the fruit drop, it was the fruit borer and fruit flies that inflicted severe damage. This year these pests have more than doubled in comparison to the other crops. The higher proportion of fruit from the third and fourth blooms, the fruits hanging on the trees for a longer time and delayed harvest have been conducive to the life cycle of these pests. The São Paulo production for the 2019-20 season is anticipated to be as much as 40% higher than the last crop due to the increased productivity of the trees.

Fundecitrus published its first crop estimate for the 2019-20 orange crop on May 10th 2019. The crop size forecast is above expectation at 389 million boxes signalling an increase of around 36 percent from 2018-19 crop.

The prices for orange are still soft. There are no sharp fluctuations in demand but several buyers are holding out in expectation of a further fall in prices. The higher productivity of the trees comes as a reason to cheer since this implies that the unit cost of production is lowered. This year’s new bidding prices are considered to be lower compared to the input expenses. This, of course, curbs the revenue income and is rather demoralising for those who are solely dependent on sales in the spot market. As far as the fruit volumes go, most of the available stock is traded through previous contracts or already negotiated for in late 2018. But, there is hope yet for some stock availability from several smaller farmers who have been waiting for prices to be fixed this year in order to sell their fruits.

Lavender Oil Lavandula angustifolia Harvest: July

Bulgaria is a leading lavender oil producer and there will be better clarity on the market situation, price, and quantities by the middle of July. Stocks are still available from previous season and the new crop looks promising. Lowering of prices can be expected for the new season.

Rose Oil Rosa damascena Harvest: May - June

The price of natural and authentic Bulgarian rose oil holds their previous high price positions at €6,800-7,000. Some quantities are left over from the 2018 supplies; however most producers of repute have found buyers for their stocks. Going by weather conditions, the new crop looks very promising. If there is a bounty of rose, then prices of rose oil will be in check at around €7,000 as it was in 2018. Customers should note that rose oil offered at prices lower than prevailing market rates are often diluted or adulterated.

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

With ideal weather conditions, favourable reports are coming in for the June to August crop. The cassia market has stabilised but prices are inclined to be on the softer side due to demand and the devaluation of the Chinese yuan. It could be argued that any meaningful purchases may cause prices to firm up. Therefore, we recommend our customers give us their estimates for the next six to twelve months in order to obtain best prices.

Clary Sage Oil Salvia sclarea Harvest: July - August

The factors that affect prices hinge on the raw material stock supply and the output of the same series of products. In addition to conventional clary sage oil, the plant also produces another favoured F&F product, ambroxide. The change in international demand will dictate the change in output from this botanical.

Eucalyptus Oil Eucalyptus globulus Harvest: July - October

Last year, China produced around 10,000 MT of eucalyptus oil. This year the demand has fallen due to the completion of earlier orders and a drop in prices for crude oil. This has somewhat dampened the enthusiasm of farmers and made crop collection rather challenging. Some factories are now lacking enough raw materials for distillation and prices are showing an upward trend.

Garlic Oil Allium sativum L. Harvest: April - May

Having returned from an extensive trip in China, we concur that, for many reasons, it is difficult to understand garlic oil. However, the most compelling reason to be well-covered is that the Chinese government is taking a more hardline stance on pollution control. This policy severely limits the amount of reputable processors able to distill garlic. In recent months, prices have continued to soften. However, it is recommended to seriously look at contracting annual needs now, as prices may have just bounced off this year’s low.

Geranium Oil Pelargonium graveolens Harvest: May - September

There is an influx of high content oil in the market, and this had a stabilising effect on prices. Currently, there is not much action since production has just begun and most customers have taken a wait-and-watch attitude. Carryover stocks are low and farmers are unlikely to make concessions on price at the moment. However, a price correction is expected in the following weeks.

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

The crop season begins in January and continues through till December. Initial signs were indicative of a good harvest but heavy rainfall and flooding put a spanner in the works. A large portion of the berries were damaged and availability was so brutally affected that many pickers moved to the mountains to collect berries on high ground. It is reported that litsea volumes are down 300 MT from even last year’s off-crop. In addition, China’s strict environmental protection policy and newly imposed duties could have a significant downstream lasting effect on the output this year. The enforcement of the country’s strict environment protection laws will compel many of the smaller factories to stop production. At the same time, some new factories that have commenced operations have added to the competition for raw materials. Today, prices are at high levels with extremely limited availability of litsea cubeba oil and natural citral. In fact, with the higher costs of disposing waste residue and wastewater, prices are set for further elevation. The next ten months are crucial with the new oil expected to come in by August. It is advised that clients lock in requirement volumes and prices now, since availability could become worse until the new crop. The market is hoping for better news from the next harvest in August-September 2019.

Magnolia Flower Oil Magnolia alba Harvest: February - June

Supplies of fresh flowers are constrained; and this limited supply of raw material available in the market has put pressure on raw materials that can be used for oil production. As a result, prices are skyrocketing. The flower tea market commands top priority for the fresh flower suppliers, and then comes the essential oil industry. Naturally, due to the dwindling output and greatly depleted oil yield, the price of magnolia flower oil is poised to soar.

Magnolia Leaf Oil Magnolia grandiflora Harvest: All Year

Magnolia leaves are collected only after the completion of collection of the flowers. The factories require around 15 MT leaves daily. Magnolia leaves are picked only at one time, and yield is high only from the older leaves. The newly-picked leaves are best distilled after 2 to 3 days after which they fade. So the output of leaf oil is very limited, and it is anticipated that prices will rise further.

Neroli Flower Oil Citrus aurantium Harvest: April - May

April is the main season for neroli flower oil. The bitter frost in 2016 impacted the crop and led to a low yield in 2017. Consequently, output too has plunged with suppliers unable to meet market demand. Output this year is predicted to be around 1.4 MT across the entire Fujian province, with factories having zero surplus stock. It will be a tight situation for sales afterwards and for fulfilling preorders.

Osmanthus Oil Concrete Osmanthus fragrans Harvest: September - November

The supply for this product is relatively tight at present. There are almost zero inventories with most of the suppliers, and a resultant price hike is on the cards. New material is expected by the end of this year. The collection of osmanthus flowers commences only after the Mid-Autumn Festival; thus it is something of a challenge to predict prices so early. Judging by the weather conditions so far, the output of flowers will not deviate too much from last year’s figures. Rising labour costs will also lead to a corresponding upward trend in the cost of flower collection; consequently, the price of new material is also anticipated to be on the ascent.

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

Cultivated primarily in the Yunnan Province of China, star anise is distilled twice, once from April to June and again from October to December. Last year witnessed a sharp escalation in prices due to frost and snow damage to the trees. In October, the peak harvest season, output of star anise oil was far below the usual levels. As a result of lower output and devaluation of the Chinese currency, prices remain high. Buyers are advised to cover their requirements for the coming six to twelve months.

Clary Sage Oil Salvia sclarea Harvest: June - July

Clary sage has seen a significant increase in plantings during spring 2017, which was harvested for the first time in July 2018. This year, a lower crop is anticipated since theseplots will be less productive due to the second harvest cycle. Also the area of plantings in hectares has come down considerably this spring.

 

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

Many parcels were torn off after the drought of 2017, leading to a sharp rise in lavandin prices. Recovery efforts of plantations since November 2018 became extremely challenging due to the dry end of winter and beginning of spring. Things are on the mend with the rains during end-April coming as a welcome relief. It is still too early to forecast the harvest since the weather from mid-June to mid-July is the most important influencing factor for the lavandin crop.

Basil Oil Ocimum basilicum Harvest: November - February

The demand for Indian basil has diminished considerably. With not many orders coming in, the market scenario remains unchanged.

Cornmint Oil Mentha arvensis Harvest: May - July

The market was quite stable in March 2019 with not much activity. The crop was overdue as a result of late harvesting of potato, mustard, and sugarcane. Present indications point towards an estimated 20% to 25% increase in crop figures as compared to 2018. That means an impressive 45,000 MT. However, carryover from 2018 is nothing to write home about. Of late the market has seen an influx of synthetic mint that is being produced in India. Coupled with additional capacity of synthetic menthol coming live this year, the total availability of menthol is poised to overtake the demand by a considerable margin. While the situation is expected to leave a significant carryover for the 2020 crop year, it will also have a lowering effect on prices. If production is on track, with no unexpected surprises or disruption in synthetic supply, producers and end users can be tension-free this year.

Adulteration is becoming a big challenge with very poor availability of clean material right now. Many customers are confused by the low prices natural material offers, which is in fact highly adulterated with synthetic menthone and menthol. On the other hand, farmers are becoming very strong in India with better financial power to hold the material, and to wait for higher prices.

DMO (dementholised mint oil) continues to be in short supply. Lower processing, and a better margin in converting menthone to menthol is key to the shortage. 2020 may be a tight year for DMO again, as it is a major byproduct of menthol powder production. With the Malaysian synthetic plant, assume reduction in demand for menthol from China, which means lesser production in 2019-20 for DMO.

Davana Oil Artemisia Pallens Harvest: February - April

Davana is a sensitive botanical and produces a high yield only when weather conditions are just right. The harvest in March did produce a good yield due to a combination of good weather and the amount of acreage planted. Unfortunately, the farmers planted too much and this resulted in softer prices. In view of the depressed prices, it is likely that farmers will drastically cut down on acreage and look to other crops to whittle down the excess inventories from last year. Prices seem to be touching a trough; it is an opportune time to cover long-term requirements.

Lemongrass Oil Cymbopogon citratus Harvest: July - November

Lemongrass commands steady prices at the time of writing this report. The supply of synthetic citral is improving significantly; thus hope for a price correction in the coming months is on the rise.

Palmarosa Oil Cymbopogon martini Harvest: January - June

This oil has been severely limited in India. There is now another manufacturer of note who is supplying a stream of new oil, transformed into aromatic geranyl acetate and geraniol natural.

Peppermint Oil Mentha piperita Harvest: April - July

Indian peppermint oil prices from June 2017 to May 2018 receded to levels just slightly below the North American oil. The main factors for this are the somewhat confusing GST tax regime and new currency changes in 2017-2018. The Indian rupee continues to weaken against the US dollar. Prices should remain around the levels of today but are positioned to firm up. Overall the rates are similar to last year with a modest firming due to many factors.

The crop is predicted to be delayed this year due to the late harvesting of potato which has impacted the usual crop cycle. Another significant factor is the 30% reduction in crop acreage. Despite these initial hurdles, the crop is progressing well. With extremely low carryover, it is going to be a tough road ahead this year, but distillation time promises to bring some respite with easing of prices, though this might be a temporary phase. Hope is pinned on a good demand, which will nudge the price of the pure Indian peppermint variety upwards.

Spearmint Oil Mentha spicata Harvest: July - August

There is not much activity in the spearmint arena. Demand for the oil is rather feeble and consequently, prices have plunged. The new crop is less than last season’s.

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

Van Aroma’s conventional black pepper oil is well-known. Now clients can also consider black pepper oil and oleoresin obtained through supercritical fluid extraction. The process involves the use of pharmaceutical grade CO2 under high pressure and low temperature. This results in a clean black pepper profile unlike the conventional pepper oil, which contains more terpenes. Production has been increased to deliver pepper oleoresins of various percentages with zero residual solvent.

Cananga Oil Cananga odorata Harvest: June - August

Citronella Oil Cymbopogon winterianus Harvest: October - February

Indonesia has bounced back to reclaim its numero uno position as the largest producer of citronella oil. There is a steady stream of supplies coming from Java, Sumatra, and now Sulawesi, leading to competitive low price levels. The ISOspecified material is not common among all exporters; and it is important that buyers are cautious of unspecified material being offered at much lower prices. Citronella prices are predicted to be steady at these levels for the foreseeable future. Given that it is a perennial grass, the availability too is expected to remain constant for the time being.

Clove Oil Eugenia caryophyllata Harvest: May - September

An abundance of rainfall and slow down during the month of May has seen a parallel slowing in the production for clove oils. There has been a considerable dearth of dried clove leaves, which meant fewer raw materials for processing. Prices have held their low thresholds with crude clove leaf oil hovering around levels of USD 14- 16/kg. In the imminent clove bud season, there has been a shift in focus from leaves to buds, which brings better returns for farmers and distillers. Consequently, a drop in production of clove leaf oil is anticipated along with a corresponding rise in clove oil prices until the bud harvest ends. Then focus will shift again to clove stems and leaves.

Market price USD 14.75 /kilo 80% rect
Market price USD 14.25 /kilo 82% crude
Market price USD 16.25 /kilo 85% crude

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

It is interesting to note that cassia cinnamon constitutes more than 70% of the cinnamon flavouring used in the west. Under the Van Aroma banner, cassia bark oil now makes its debut in the market. Our cassia bark oil is processed from Cinnamomum burmannii procured from the famed Kerinci region in Sumatra. The oil is sweet, and abounds in cinnamic aldehyde. In addition, it contains several water-soluble components, which are otherwise difficult to capture in the steam distillation process.

Massoia Bark Oil Cryptocaria massoia Harvest: September - May

Massoia bark oil is among the expensive Indonesian essential oils. The plant is mainly harvested from June to September, when the nutmeg and mace harvests slow down. Interestingly, if nutmeg prices are favourable and supply bountiful, the production and harvesting of massoia bark can be shortened.

Market price USD 400.00 /kilo 50-60% lactone C10
Market price USD 690.00 /kilo 90% lactone C10
Market price  USD 760.00 /kilo 95% lactone C10

Nutmeg Oil Myristica fragrans Houtt. Harvest: All Year

Nutmeg has been witnessing escalating prices due to the lack of availability of immature fruit and nut for distillation. The nut is garnering more attention as a spice and use for oleoresins. Van Aroma’s nutmeg oil production is focused on making a special grade of nutmeg oil that is allergen-free of safrole and methyl eugenol.

Patchouli Oil Pogostemon cablin Harvest: All Year

There have been incessant rains and storms leading to excessive flooding in and around the key producing areas. This has created a grim situation on the patchouli front. Crops have been damaged; harvest has slowed down, as has the pre-distillation drying process. The Kolaka facility of Van Aroma was submerged and critically affected by floodwaters for over four days in the past month. Fortunately there were adequate preparations to handle the overflow from the river adjacent to the property and the plant recovered and soon got back to its previous footing. May also happened to be the holy month of Ramadan; this was one of the factors influencing the slowdown in patchouli production.

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

Our newest offering from the Van Aroma stable is a unique essential oil extracted from carefully roasted and ground Sumatran Coffea arabica beans. Taking utmost care to procure raw materials sustainably, this arabica coffee oil is processed through the SFE (supercritical fluid extraction) method. The beans are subjected to high pressure close to room temperature, yielding a rich full-bodied aroma of coffee. Samples are available for interested buyers.

Vanilla Vanilla spp. Harvest: August - September

After Madagascar, Indonesia is the world’s second largest producer of vanilla, one of the world’s favourite flavouring (and to a lesser extent, fragrance) materials. The Indonesian supply chain remains fragile in part because of the series of earthquakes and tsunamis in the vanilla growing areas of Sulawesi and Lombok in the second half of 2018, causing an estimated USD 1 billion plus damage in the region. As a result, in excess of 15% of the Indonesian vanilla crop was destroyed, leading to reduced export levels in 2019.

The high vanilla prices of recent years have led to an expansion of Indonesian vanilla production, and domestic output in 2019 is estimated at 100 – 125 MT. With the recent extensive plantings combined with rising yields, production is expected to increase further. The majority of production is lower grade vanilla although some high quality gourmet and food service quality is produced. Efforts are being made to expand the quality and sustainability of Indonesian production.

In addition to local production, an estimated 40 – 50 MT are brought over the border from neighbouring Papua New Guinea, which is also increasing its vanilla production. The vanilla imported into Indonesia from PNG is often vacuum-packed and only partially cured. In Indonesia, this vanilla is finished and re-exported, often as vanilla of Indonesian origin. This vanilla is very different from the vanilla that is directly exported from PNG.

In 2018 vanilla bean prices peaked at around USD 600/kg but have fallen significantly since then. Nevertheless, by historic standards, prices remain high and are likely to fall further. But, if prices continue to remain attractive to growers then it is probable that Indonesia will continue to expand production and assist in diversifying the supply chain.

Vetiver Oil Vetiveria zizanioides Harvest: January - July

Prices of Indonesian vetiver oil are stable and low compared to the Haitian variety. The quality of the Indonesian product has seen a drastic improvement with the use of newer, sophisticated distillation equipment. Van Aroma now offers vetiveryl acetate, a unique product derived from vetiver oil Java.

 

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

October 2018 witnessed extreme damage to crops caused by heavy rains. However, it was fortuitous that lemon trees were relatively unaffected compared to other citrus varieties. The blood orange was seriously affected and the market continues to reel under the pressure of excess demand and low supply. The lemon crop achieved a normal 500,000 MT out of which around 100-150,000 MT is supplied for processing into oil. The Italian market is also subject to the dynamics of the fresh fruit sector; and industry fruit prices have risen to very high levels. This continues to pose a major hurdle for the domestic processors. Distillers and processors face stiff global competition from other regions that are offering significantly lower fruit prices. Italy is facing a challenge in terms of the current lemon crop. There is an acute shortage this summer as the farmers grapple with bouts of the black spot disease of citrus crops. Prices for the fresh fruit continue to be exorbitant; and this is one of the reasons that traders are turning to South American and South African supplies. Eastern Sicily farmers too are having a tough time dealing with the Mal Secco fungal disease that is plaguing the lemon harvest. Coupled with unfavourable climate changes in the region with low temperatures and strong winds, the news of lemon production is not too reassuring.

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

Another oil that is generating considerable market interest is black pepper. After several years of tension on pepper prices, the rates have plummeted following the global trend of falling prices. Current price levels are at par with previous levels of 2007-2008. Traders are hopeful that this may help in reviving the interest in the Madagascar variety of black pepper oil, which is largely appreciated in perfumery.

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

The clove bud oil situation is an interesting one. Last season’s clove crop was considerably smaller than expectations standing at less than 4,000 MT. Some reports even pegged an extremely low figure of 1,000 MT compared to 15,000 MT for a good strong crop size. In such circumstances, there should be no leftovers like off-sizes or sifting residues for the distillation. 2019 promises to be an eventful year for clove bud oil with the industry anticipating a bit of tension. Surprisingly, so far, there has been no change or reaction on the price and availability front. The market is on tenterhooks and awaiting developments.

Clove Leaf Oil Eugenia caryophyllata Harvest: August - October

The distillation for clove leaf oil has slowly resumed from March. Normally, distillation should go on increasing if demand is there, until June/July. As a result of the lull in global markets in April, sales reduced, as did the local prices. The nearby local stock has fetched comparatively higher prices from exporters. This may lead to a possible resistance to a possible further easing of prices, until the market picks up again. A word of caution though; buyers must be careful about sub-standard oil quality. There have been complaints about the goods exported. In fact, market hearsay cites the instance of a container that was sent back to Madagascar. This is a result of traders exerting extreme pressure on prices; not batting an eyelid to working with outsiders or newcomers who are either not scrupulous or vigilant about quality.

Vanilla Vanilla planifolia Harvest: August - September

Madagascar dominates world natural vanilla production, usually accounting for 60% to 80% of global output depending on its annual production. The very high vanilla prices of recent years have led to efforts to expand production in other countries including Papua New Guinea, Indonesia, Uganda, Tahiti, Reunion, Comoros, French Polynesia and India. Nevertheless, Madagascar, Indonesia and PNG still account for over 90% of world output.

Vanilla production in Madagascar is concentrated in the northeastern Sava region, where the best climatic growing conditions are combined with the availability of low cost labour. An estimated 60,000 vanilla farming families and hundreds of thousands of seasonal workers produce the vanilla, which is vital to the wellbeing of both the region and the country. The region’s susceptibility to climatic variations, including cyclones, can lead output to fluctuate considerably. Thus, the crop in 2016 was estimated at 1,100 MT compared with 1,600 – 1,800 MT in 2018. Yields improved considerably in 2018 thanks to the maturity of the beans and better curing raios, while reduced pre-financing and lower demand for quick-cured beans also helped to raise the volume of high-grade beans versus low-quality beans. The higher production and increased exports put downward pressure on prices, which had peaked at approximately USD 600.00/kg in 2018. By the end of March

2019 some 1,200 MT had been exported but there are still sizeable quantities of good quality 2018 vanilla beans in stock, estimated at 100 – 200 MT. This in part reflects the ability of end-users in recent years to utilise lower quality vanilla, thus lowering demand for higher quality material. Meanwhile, demand for vanilla is wider and more broad-based than in previous decades and this should help to reduce price volatility. Most industrial vanilla users keep inventories as low as possible and adopt short and medium term buying strategies.

Harvesting has commenced in northern Madagascar and, while it is impossible to give an accurate production forecast, the 2019 crop will almost certainly be lower than the previous year. This should help reduce downward price pressures, and there may even be some shortterm supply problems. Fortunately there was no serious cyclone damage this year, but flowering was both later and less abundant and it will be difficult to maintain the quality levels of 2018. Nevertheless, the new government has been more pro-active towards the vanilla sector and if the range of initiatives is implemented this should assist both quality and stability in the sector. Government measures include: a June 1st cut-off date for the export of undeclared stocks; strict regional harvesting dates to try to improve bean maturity and minimise quick curing, discouraging theft, speculation and pre-financing. Exports of the 2019 crop are expected to begin in late October.

It is far too early to estimate the crop size for 2019. A lot will depend on the ability of the government to enforce the aforementioned measures, which could easily improve crop yield and quality. However, we can say with relative certainty that crop size in 2019 will be smaller than 2018.

Despite the price falls over recent months, the current high prices are not sustainable in the longer term and it is likely that further downward correction will take place during 2019, in part because of rising production outside Madagascar.

Key Lime Oil Citrus aurantifolia Harvest: May - October

Mexico holds second position in lime production after India with annual production slightly more than 2.5 million MT. Exporting its fruit to twenty-eight countries across the world, the USA remains Mexico’s largest buyer of key limes. The district of Buenavista in Mexico leads in lime production with more than 21,000 hectares planted and a harvest of more than 420,000 MT. Citrus production is concentrated in the region of Tierra Caliente and the municipalities of Apatzingan, Aguililla, Tepalcatepec, Paracuaro, La Huacana, Mugica, and Gabriel Zamora. Reports indicate that there are about 6,731 lime orchards registered in the Mexican state of Michoacán. In addition, 5,915 hectares are dedicated to grapefruit plantation, 126 hectares for orange, and 353 hectares for lemon. Each hectare is estimated to produce 19 MT of fruit.

The 2018 crop season in Mexico saw a marginal fall in prices. Production, too, took a plunge due to a drop in demand leading to several producers reducing their inventories. Colima witnessed new grove plantings last year and expectations of a robust crop again rose with the young trees maturing and bearing fruit. Few growers are planting more trees per hectare in order to counter the effects of citrus greening in anticipation of a shortened life span for those trees.

Though some of the major distillers in Michoacán were not very active this past season, it is expected that they will join in the production if there is a surge in demand for the oil. Considering cold-pressed (expressed) lime oil from both Key limes as well as Persian limes, demand and supply were in harmony.

Currently, the Mexican distilled lime oil supply chain is having trouble finding its footing. Industrial fruit prices have skyrocketed to almost double the prices in Peru. The demand for dry peel as well as the essential oil plunged. It is only juice that remains unwavering in these volatile situations. Information from the Michoacán region points towards a sharp drop in volumes. Smaller processors are facing difficulty in procuring fruit for processing even as the larger players consume the limited stock. The veiled implications and dilemma that arise with these developments are worrying. Will these contributing revenue streams of juice, dry peel, and essential oil complement each other and become more sustainable? Is there a pattern of subtle and gradual decline in the light of this fluctuating supply and demand change? Being under the impression that demand has slackened, will growers opt out of planting limes? Whether this is a temporary state of affairs brought about by a correction in supply chain inventories or not, the market is shrouded in uncertainty. Naturally, all stakeholders in the supply chain are concerned. Forecast yields for this season are lower than 2018, the reason being the fact that the trees are past their prime. In addition, thrips that damage and scar fruit continue to pose a threat to healthy crops; though it does not seem that there is any reduction in crop size so far.

The market is gearing up for a normal crop season in 2019 with approximately 350,000 MT of fruit for processing. The fresh fruit market still commands the lion’s share of fruit, almost 90%, and continues to exert pressure on the industry. This year Michoacán lime production has shot up by an impressive margin of more than 60%; from 711,000 MT to more than 1,300,000 MT obtained from about 64,000 hectares devoted to this crop.

The demand for distilled lime oil has seen a slowdown for the last two years as a result of stock re-adjustment in the market. This year however, the signs are quite positive and seem to be gaining some strength in the first quarter. The price for the oil is more stable than the fluctuations seen last year. Though the supply and demand scenario in the second half of 2019 will influence the price trend, the demand for CP lime oil is looking to be stable. Consequently, prices too are expected to be firm throughout the year. Distilled lime oil with the beautiful green colour is best produced during the early and high season. It is advised that those with a large requirement book their orders since it might be difficult to find this oil later.

Artemisia Taurica Artemisia taurica Harvest: July - September

This year production is pegged at very low levels since the absence of adequate rainfall has severely impacted the crop.

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

Production was disheartening; and the quality is considerably sub-standard. However, the excellent French crop quite reasonably offsets the depressing performance of Russian clary sage.

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

The crop fell short of expectations, but there is still carry over stock available from last season.

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

Carryover stocks are still available. Due to bad weather conditions, this year’s crop was quite distressing. The low prices of 2017 impacted the farmers’ willingness to plant; this year they planted less than before. As a result prices from origin shot up by almost 50%.

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

The weather conditions were unfavourable and the crop did not live up to expectations. However, this is offset by the good USA crop.

Lavender Oil Lavandula angustifolia Harvest: July - August

A severely affected crop led to a drastic increase in prices of Russian lavender oil.

Blue Tansy Oil Tanacetum annuum Harvest: August - October

A couple of years ago blue tansy was known to command an astronomical price of USD1,600/kg. Since then, due to oil offers being bigger than the demand, prices have plunged to almost one fourth from before. Most of the producers are regretting their decision to plant blue tansy and are now suffering losses. Naturally, they are contemplating a stop in production; sentiments in the market indicate a price rise at some point this year.

Neroli Oil Citrus bigaradia Harvest: April - May

This year Moroccan farmers are facing deficient rains. Depending on the temperatures of the coming weeks, there is not much to write home about. Production is set to be average compared to other years. On a parallel track, the market is looking forward to increased volumes since this year there are more producers, and projects launched seven years ago are expected to contribute to the yield. These two phenomena together have the potential to balance prices and bring about a stability compared to last year; or at the most a slight decrease.

Rosemary Oil Rosmarinus officinalis Harvest: All Year

May to November is the ideal harvesting season for rosemary. Each year the bustle commences in May but before that things are rather quiet. The tenders open in April and there are five to seven lots as opposed to the thirty or thirty five that used to be launched earlier. The yield from biomass to leaves is around 25%-33% depending on the time of the harvest. The demand for rosemary leaf continues to escalate due to antioxidants extraction since most of the essential oil production is carried out on the “waste” resulting from sifting the biomass.

Manuka Oil Leptospermum scoparium Harvest: April - October

Considerable efforts have been made to expand production and plantations now cover approximately 300 hectares. Continuous efforts towards building a sustainable supply of New Zealand manuka oil have borne fruit including employing and empowering local people from the indigenous communities. Our local partners, New Zealand Manuka Group experts and independent advisors have been able to make a difference in these areas of poverty by empowering and upskilling the locals, with their technical advisors working alongside Maori landowners. New Zealand is the world’s leading producer of manuka oil and as its leader, is striving to encourage research and development of the genetics of the manuka plant in order to ensure high beta-triketone content. Extensive work is also being undertaken to create manuka oil as a more sustainable product to satisfy the demand for this highly efficacious oil.

The last year witnessed copious rainfall; both cultivated plantations as well as the wild harvesting operations were affected. This has lead to the adjustment of plantation harvest times in such a manner as to avoid the wet rainy seasons. This year marks another milestone as one of the largest plantations of our partner will be coming into its second harvest in the coming two months. Indications from wild harvest operations are also favourable, and recording a steady increase. In addition, new partnerships with landowners are being explored, alongside investments in sophisticated infrastructure.

Market price AUD 995.00 /kilo Min 25 beta-triketone
Market price AUD 845.00 /kilo Min 20 beta-triketone

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

There are adequate supplies in the market.

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

2018 has not augured well for South African farmers. Severe wild fires and droughts have been the plague of the 2018 buchu crop. Supplies plunged drastically by over 50%, accompanied by a corresponding dramatic price hike. 2019 brings hope in terms of near-normal availability and easing of prices. In the face of unpredictability, it is always wise to cover any imminent requirements.

Eucalyptus Smithii Oil Eucalyptus smithii Harvest: July - October

E. Smithii has slowly and steadily nudged its way as a favoured substitute for other eucalyptus oils that face erratic supply issues. The demand for this oil continues to be on an upward trend, and is in short supply. Prices have seen a phenomenal rise in the last two years. However, currently with adequate available material, prices are expected to remain steady at this stage.

Market price USD 18.00 /kilo crude 70%
Market price USD 20.00 /kilo rect 80%
Market price USD 22.00 /kilo rect 90%

 

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

South Africa has seen a rise in lemon cultivation and this has produced the desired result – an encouraging increase in lemon production. Though a large proportion of the country’s newer orchards are still not in production, planting has continued, and total lemon production has soared. Compared to last year, this year South Africa has more than doubled its lemon crop to touch 473,000 MT. The prices for lemon, however, are rather weak.

Marula Oil Sclerocarya birrea Harvest: April - October

The 2019 season opened on a positive note with adequate availability of material. The hair and skin care industries have made breakthroughs with new applications of marula oil. This has fuelled a healthy demand and it is on the rise. Market watchers predict a slight surge in prices this year as input costs of production have also risen somewhat.

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.

Tagette Oil Tagetes erecta Harvest: June - August

A robust supply is on the cards for tagetes oil in 2019. The demand has been consistent and is on an even keel with essential oil supply. No shortages are anticipated this season and prices are expected to hold their position in the coming months.

Tea Tree Oil Melaleuca alternifolia Harvest: October - January

In the global scenario, this oil commands a healthy demand. Market predictions point to an anticipated product shortage in 2019, especially for the organic material. But, there has been news of extensive plantings this year; and it is hoped that this will help tide over the projected shortage over the next couple of years.

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

The lemon market in Spain has been on a roller coaster ride, though recent reports look promising. Estimates for this year’s crop predicted a significant increase in numbers for the Fino and Verna varieties. Currently, the crop stands at 3, 80,000 MT, a bumper crop in the last decade, and keeping with the industry forecast. Naturally, this augurs well for the Spanish farmers; and once again Spain consolidates its numero uno position as the biggest lemon supplier for the European markets. However, when the season opened from October to December 2018, Spanish growers faced stiff competition from the fresh fruit influx from Turkey and South Africa. As a result, large quantities of the fruit were left unpicked. The favourable weather was a critical factor contributing to the superior quality of Verna lemons.

Traditionally, around 2, 00,000 MT of fresh fruit is earmarked for processing. This year there is a serious drop of 20%; an additional setback for the processing industry, which is largely dependent on the dictates of the fresh fruit market and its fluctuations. Most of the fruit is processed between January and May. Now the industry is hoping to recover a percentage of their losses in 2019. Much is dependent on the pricing pressures, especially those commanded by the fresh fruit sector.

Ailimpo has come as a ray of hope in this plagued industry. It has successfully created a platform where players involved in the fresh fruit production and those in industrial processing have come together for a better understanding and handling of market dynamics. They are also pooling their efforts to etch out the best strategies and work together for Spain to retain its crown in the global arena.

 

Orange Oil CP Citrus sinensis Harvest: October - May

The Spanish orange oil market has witnessed a lot of turmoil in the recent past. The “Per la defensa de la nostra citricultura” i.e. “Defending our own citrus sector” movement gained momentum until last April; about four thousand farmers and growers of oranges participated in a street protest in Valencia. The objective of the demonstration was to highlight the plight of indigenous Valencia farmers and call for effective measures to counter the crisis in the industry. Many of the recent trade treaties between the EU and third party countries are to the advantage of the outsider nation. The resultant influx of cheaper citrus fruits into the EU has created instability in terms of stiff competition; and all but displaced the local Valencia production. The protesting farmers have also initiated a signature campaign and will petition the highest representatives of the Spanish and European administrations. A manifesto presented at the end of the demonstration appealed to the government and public authorities to reconsider the situation and reassess priorities. It puts forth some points for consideration covering such aspects as direct aid and compensation to citrus growers; a review of external EU agreements; improved labelling; enforcement of quality, phytosanitary, labour, environmental and safety standards and checks.

Rosemary Oil Rosmarinus officinalis Harvest: February - June

Rosemary commands expectations of a strong harvest and prices.

Sage Oil Salvia officinalis Harvest: May - October

The crop in the current year was advanced in comparison with the previous year. The harvest started in August, and finished in September. The yield has been satisfactory, with an average yield of 40 kg/hectare. Prices remain stable as does demand.

Thyme Oil Red Thymus vulgaris Harvest: June - August

2019 has fared well for red thyme and the crop is predicted to be a strong one this season.

Cinnamon Bark Oil Cinnamomum zeylanicum Harvest: May - December

The rains have started in Sri Lanka and so has the cinnamon peeling. The dry climatic conditions during the month of January through to March interrupt cinnamon peeling as it becomes difficult to remove the inner bark from the wood. There is usually a slight decline in raw material availability during this time; and now the products will make their way into the market, albeit slowly. Most of the experienced distillers are prepared for this and maintain large stocks of oil in reserve for this annual period of limited raw material availability. The season for cinnamon bark oil is set to commence from mid-June. Powdered cinnamon has seen a spurt in popularity with increased usage in several industrial applications. As a result, at present the demand for raw materials is pretty steep. At the moment, prices are holding their positions given the exchange rate favouring overseas buyers as well as stability in global essential oil demand. As of May 2019, raw material availability continued to be an issue, till the monsoons hit, and peeling started. It is advisable to buy if immediate requirements exist.

Cinnamon Leaf Oil Cinnamomum zeylanicum Harvest: March - August

Likewise for cinnamon leaf oil, the season begins mid-June. Cinnamon peeling has somewhat curbed the supply of the requisite amount of cinnamon leaves for distilling. However, because of lower than usual demand since December 2018 and restricted production, cinnamon leaf oil prices maintain their low price points.

Citronella Oil Cymbopogon nardus Harvest: May - December

Citronella oil enjoys a stable market scenario. Adequate supplies are available since production takes place every four months and there are no issues with the crop or the harvest. The dry weather has been conducive to citronella production, but aridity is not beneficial for re-growth of grasses. Prices have inched up somewhat since the last quarter but remain unwavering in their position. The oil from Java continues to remain competitive; however the demand for the Sri Lankan material is observed to be increasing in the quarter. Prices are not expected to fluctuate significantly in the near future.

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

Clove crops harvested at the end of 2018 were below expectations. As a result, raw material availability is also strained and exerting pressure on raw material prices. There is no way that Sri Lankan clove bud oil prices can close the gap and be at par with the rates commanded by the Indonesian competition.

Clove Stem Oil Eugenia caryophyllata Harvest: January - February

The crop for December 2018 was below the prospective figures with negligible price correction for clove stems. Therefore, it is safe to assume that there will be no amendments to the price levels for clove stem oil.

Nutmeg Oil Myristica fragrans Houtt. Harvest: February - May

More than sufficient stocks of raw materials are available from the year-end harvest of the last quarter. Local market prices are predicted to remain low in view of the profusion of raw materials and stiff competition from Indonesia.

Neroli Oil Citrus aurantium Harvest: April - May

It is almost the close of the harvest season for neroli, and prospects look bright. Ideal growing conditions and good rainfall in the last few months have contributed to an abundance of flowering plants. Initial reports are very encouraging and market sentiments are buoyant. 2019 is expected to deliver an exceptional harvest.

Rosemary Oil Rosmarinus officinalis Harvest: All Year

Availability of rosemary oil continues to be an issue. Its antioxidant properties have made it extremely popular; and recent harvests in Morocco and Tunisia have not been able to keep up with the increasing demand. Good quality oil will continue to be an elusive commodity.

Nigella Seed Oil Nigella sstiva Harvest: July - August

Initial reports from Antalya in Turkey predict the expected quantity of cold pressed oil of nigella seed to be at 20 MT. This oil contains 54.72% concentrate of linoleic acid and 24.45% oleic acid. It is harvested during the months of July and August.

Organic Juniper Berry Oil Juniperus communis Harvest: August - October

With a concentrate of 90% alpha-pinene, the ideal harvesting time is from late December through March. Proper ripening of the berries is dependent largely on the weather, the slightly lower temperatures being pivotal for the ripening. This year, the quantities of available material in season are set to soar to 1,000 kilos.

Organic Laurel Leaf Oil Laurus nobilis Harvest: September - January

With the cineole-1.8 content ranging from 55-59%, laurel leaves are harvested in late September and continues till the colder temperatures of January. Under normal market conditions, the weather plays a critical role in the easy availability of raw material of this product. The predicted crop report put the figures at 3 MT, up from last time’s figures.

Organic Origanum Majorana Oil Juniperus communis Harvest: June - September

This essential oil is the material containing 70%-75% carvacrol and 6%-7% linalool ct. The harvest season is set to commence in June and continues till September. This year, market pundits are pegging the available quantity at 2 MT.

Organic Sweet Origanum Majorana Oil Juniperus communis Harvest: July - September

This oil with 67% linalool and 24% carvacrol is harvested from June to September. The crop is up to an expected quantity availability of 1 MT.

Origanum Vulgare Oil Origanum vulgare Harvest: July - August

Organic oregano oil containing 70%-75% carvacrol and 4%-5% linalool is harvested from July through till October. Reports from the warehouses are good; the estimates put the improved output figures at 20 MT.

For the conventional variety with 70-75% carvacrol and 5-6% linalool, expectations are up and figures are pegged at 20 MT in season.

Grapefruit Oil Citrus paradisi Harvest: December - April

There is a slack in demand for grapefruit oil. The industry has seen quite a high price range for this oil, especially due to the reformulation work that has been undertaken. The availability of superior quality fruit from Florida has dropped significantly, and naturally this has affected the production of the oil. The USDA’s May production forecast puts the availability of white grapefruit at 780,000 boxes and that of red grapefruit at 3.8 million boxes – rather disheartening figures for the grapefruit market where the supply has been waning over the last twenty years and the fall-off is almost 90%. Grapefruit oil with very low nootkatone is available in other parts of the world. However, even this grade of oil is available in limited quantities and is constrained by lack of fresh fruit supply due to demand from the local markets. It is known that the return on investment on fresh fruit is more than that of essential oil. This, coupled with a robust demand, is the key influencer that dictates the choice of citrus fruit cultivation for growers.

Market price USD 70.00 /kilo (White)
Market price USD 40.00 /kilo (Pink)

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

Globally lemon stocks are on the upswing across most markets, with demand being quite steady as it has been in the last two years. Naturally, lemon prices have slackened considerably considering the increase in supply and stable demand.

USA grows lemons around the year across the three key varieties, i.e. desert, valley, and coastal. Lemon prices have seen a decline albeit a modest one. The drop in demand holds the potential of further easing out of prices, unless bad weather in the citrus districts of California upsets the applecart. Last year witnessed a substantial fall in crop production by almost 20% due to excessively high July temperatures. Farmers were hoping to avoid this situation this year since weather predictions indicate average normal temperature. Their prayers were answered as this year’s California lemon harvest volume swelled by 10%-20% compared to last year. As a result, the size of the fruit is large and the quality much superior. The USA remains a strong consumer of fresh fruit and this is the segment that is the pivotal driver for the region. The demand for the oil remains resilient and similar to last year since it is a premium quality and coveted globally. This year could prove a great equaliser since supply and demand is set to compensate and etch out price stability in the sector. Predictions for the lemon crop for the USA is said to touch 21.3 million boxes for the period 2018-2019.

Orange Oil Citrus sinensis Harvest: February - May

Overall the weather in the USA growing belts, especially Florida, has been ideal and conducive to the recovery from last year’s debacle of a diminished crop size. The Florida market has bounced back and consequently the first six months of the current season witnessed a steep fall of almost 30% of the Brazilian import of frozen concentrated orange juice (FCOJ).

The May estimates of the USDA puts the Florida all-orange production forecast at 72.4 million boxes. This represents a 5% decrease from the April forecast of 76.5 million boxes. This figure takes into account 30.5 million boxes of non-Valencia oranges (early, midseason, and Navel varieties), harvesting of which has been completed. With almost 70% of the harvest completed, the Valencia crop forecast is substantially lowered to 42 million boxes, some 9% lower than the April forecast.