Product Bulletin - Nutmeg & More May 20, 2016

It’s all go go go in Indonesia at the minute. Thankfully the main exported products in Clove, Patchouli and Citronella are all stable which is great for the market! Unfortunately the same can’t be said for some other items like Nutmeg, Cananga and Vetiver so we’re bringing you this brief update to keep you informed!

Cananga Oil

Cananga Oil Indonesia Cananga odorata Harvest: June - August

Local prices are rising but are pure speculation as there are no raw materials available to buy. Prices seem to be 10% higher month of month since March but this isn’t tangible when there are no supplies to produce fresh batches of oil for sale.

Market prices USD 85.00 /kilo
Nutmeg Oil

Nutmeg Oil Indonesia Myristica fragrans Houtt. Harvest: All Year

Supplies remain slow from all regions and with stocks amongst major traders diminishing and large multinationals jumping in to secure supplies, the overall situation remains one of concern.

To understand the reasoning behind this we need to backtrack 18 months to recall the previous market conditions and then what happened during 2015 to prices after the introduction of new plantation material.

Back in 2014 prices of Nutmeg where averaging around $120 /kilo – too high and damaging to any new development work. Last year the introduction of new plantations significantly shifted the dynamics of the market with the oversupply of raw materials. This pushed prices down to unsustainable levels with many farmers abandoning their plantations.

At those low price levels collections slowed down and in time stocks have dried up. Today we find that supply cannot keep up with demand and the obvious patterns continue. Finding a balance seems to be a big problem which is always the case when the markets are unregulated with little to no cohesion at origin when it comes to long-term perspectives.

Can prices continue to climb? Well the feeling locally is yes. Our advice – cover as far as you can as today’s prices, despite feeling high compared to several months ago are likely to remain the best prices available for some time.

Please cast your minds back to our analysis and predictions back in July & October 2015 expressing concerns over the (at that time) fast falling prices.

Market prices USD 55.00 - 60.00 /kilo
Vetiver Oil

Vetiver Oil Indonesia Vetiveria zizanioides Harvest: January - July

We’ve been almost repeating ourselves now since Q4 2015 with the month on month situation continuing to get worse. Supplies are at an all time low with local prices soaring for any available stocks. It is likely to be July before we are in a position to offer again but if you do need stocks please let us know so we may try to plan your needs accordingly.

Market prices N/A