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

The lemon season in Argentina is progressing but facing some severe difficulties. The unstable weather conditions during the fruit’s development, the workers’ strikes, the harsh conditions imposed on exports to Europe and the growing competition with South Africa are some of the major obstacles faced by Argentinian lemons. This caused high pressure on volumes and prices in the market.

The weather has been one of the decisive factors. The lack of rainfall in Tucumán, the main producing area in Argentina, during the fruit setting and growth phases has taken its toll on production, reducing fruit size and harvest forecast in the province. However, timely summer rains facilitated a partial recovery in lemon production resulting in a larger than initially expected volume. Argentina’s 2020/2021 fresh fruit production is estimated to be 1.15 million MT, up 12% from prior estimates.

The start of Argentina’s lemon season has also been hit by a series of strikes in Tucumán. Self-organising workers blocked roads in different points of the province and prevented the passage of trucks transporting citrus. The blockades also took place at the access to farms and packing plants. These two factors have delayed the lemon harvest and created a shortage in volume.

The European Commission has lifted, as of 1 May 2021, its ban on citrus imports from Argentina. Trade was suspended last August following a number of interceptions of citrus black spot in shipments. Argentina’s plant health authority, SENASA, agreed with the EU new product traceability requirements. These measures and conditions for the re-entry of citrus fruit to the EU include additional actions that must be carried out both by the different actors of the private and public sectors, which are so high that it is estimated that it will affect the quantities to be exported.

Moreover, the suspension of Argentinian citrus imports to Europe from August 2020 to May 2021 was beneficial for other global players, such as South Africa, which absorbed part of the import quota of the EU’s main lemon supplier. The challenging domestic economic conditions in Argentina do not help, making Argentina less prepared to compete with other exporters from the southern hemispheres, mainly South Africa.

In this context, lemon exports are forecast to decrease to 180,000 MT, a decrease of 10,000 MT because of larger fruit supply in the northern hemisphere, the strong competition from South Africa, and the uncertainty about stringent EU sanitary measures restricting imports of fruit, as stated above. The fresh lemon export business remains profitable; however, with production costs, such as labour, inputs, energy, inland and ocean freight increasing, and high inflation rates, the competitiveness of the lemon sector has been affected. Furthermore, although the continuous depreciation of the Argentinian peso and the elimination of export taxes make exports more price-competitive in foreign markets, a decrease in export rebates and high interest rates, partially offset that advantage. Despite the tough situation faced by the lemon sector, growers and processors continue to invest in new production and technology, with 70%-75% of total production directed to exports.

Fresh lemons for processing are forecast to increase to 831,000 MT, up by 13.5% from the previous forecast, due to the increase in production and the decline in exports of fresh fruit. Nevertheless, this represents a decline of 23% in processing levels compared with last year.

The COVID-19 pandemic has not had a major impact on the activity of the citrus industry. Although the national government enacted a mandatory quarantine in 2020, which has continued in 2021 on an intermittent basis, the citrus harvest was declared an excepted activity, allowing the packing and processing industry to continue working under a stringent protocol to guarantee the safety of workers in the citrus sector, and prevent transmission of the virus.

Global demand for lemon oil is lower, in part because of COVID 19 and lower beverage consumption. Despite reduced Argentine production, supply appears to be in equilibrium with demand and price stable, with the anticipated price increase not having materialised. Nevertheless, the global shortages of reefer and dry containers are increasing transport costs for citrus oils and leading to shipment delays from many origins.

ARGENTINA : LEMON PRODUCTION, PROCESSING AND EXPORTS (‘000 MT)

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

Lemon myrtle has been a very successful product and has seen increased demand especially from the aromatherapy industry.  Currently there is more demand than supply. Lemon myrtle prices will remain at a high level.

Sandalwood Oil Santalum spicatum Harvest: March - October

The COVID-19 pandemic did throw a spanner in the works for this oil. There were some production challenges due to a shortage of manpower and hands to work the fields. Demand remains good. Fortunately, this was fulfilled by the reasonably adequate availability of old stocks that buoyed the prices.

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

Tea tree oil was one of the best-selling essential oils during the pandemic due to its antibacterial properties. As a result of this most of the old season material from 2020 is sold out and there is no carryover left. Prices for material for part shipments is expensive due to logistic delays. New season seems to be good.

Organic farming of tea tree has increased and this year Australia will produce close to 40-50 tons of organic tea tree oil. The demand for tea tree oil is expected to increase over the next few years.

Golden Grove Naturals has made a lot of improvements and additions this year. Brand new state of the art distillation equipment has been installed replacing old ones with larger and better yield.

Use of pesticides has reduced considerably. GGN’s in-house nursery is used to grow new saplings and replant old plantations.

Eucalyptus Oil Citriodora Eucalyptus Citriodora Harvest: May - November

It has been a month since harvest is underway. Work is progressing well and harvesting will continue till the next rainy season. Processing too is progressing normally. Demand is steady, even during the lean season. Available, in-stock volumes are being used up to cater to the off-season demand. This has impacted prices which have moved up slightly but remain steady.

Orange Oil CP Citrus sinensis Harvest: July - December

The total Brazilian orange crop for 2021/2022 (July/June) is forecast at 390.8 million boxes (40.8 kg), an increase of 7% relative to the current season. Although citrus trees are in the on-year of the production cycle, adverse weather affected the production potential for the upcoming season. An estimated 274 million boxes will be delivered to processors, an increase of almost 13%. The commercial area of the state of São Paulo and the western part of Minas Gerais, which accounts for approximately three-quarters of Brazilian production, should produce 294.17 million boxes. This includes:

• – 51.37 million boxes of Hamlin, Westin and Rubi
• – 16.87 million boxes of Valencia Americana, Seleta and Pineapple
• – 84.66 million boxes of Pera Rio
• – 107.07 million boxes of Valencia and Valencia Folha Murcha
• – 34.20 million boxes of Natal

According to Fundecitrus, compared to the final forecast of 268.63 million boxes for the 2020/2021 (July/June) crop, the current projection for the São Paulo commercial citrus belt represents an increase of 9.5% although is still below the average of the last ten crop seasons (see graph). Production from other states is projected at 96.6 million boxes, up roughly 1 million boxes from the previous season.

Brazilian orange has 4 blooms per season, with each bloom representing a unique portion of the overall crop, with the first and second blooms being the most important for the crop. Brazil’s third and fourth blooms tend to yield smaller fruit sizes, as well as reduced production per tree. For the 2020/2021 crop, the São Paulo commercial citrus belt faced erratic behaviour of the climate and poorly marked seasons, with prolonged droughts and high temperatures at a time critical to the two main blooms. There was a third bloom in many groves in December 2020 and January 2021, and a fourth bloom as of February 2021. This year, the third and fourth blooms stand out as accounting for greater percentages of the crop, due to the unfavourable climate conditions in the early post-flowering stage. Rains became scarce once again in April and May 2021, which was felt by orange trees, and evidenced by the small size of stripped fruits in this crop. The water deficit was significant and it was the major reason for the decrease in the 2020/2021 crop size. Rains are forecast to be scarce until October 2021, repeating the scenario observed last year.

The effects of these unfavourable climate conditions are already included in this crop forecast, with small weight of the oranges at harvest, and a projected average drop rate of 20.5%, distributed as follows: 12% for the early Hamlin, Westin and Rubi varieties; 12% for other early varieties; 22% for the mid-season Pera Rio variety; 24% for the late Valencia and Valencia Folha Murcha varieties; and 23.2% for the late Natal variety. This rate has been increasing in Brazil over recent years due to heightened greening rates as well as long-term drought effects. If the 2021/2022 drop rate is confirmed, with greening rates that went from 19.02% in 2019 to 20.87% in 2020, it will be the second highest drop rate in the historical series.

The lower 2020/2021 crop size, together with a limited supply (lower than expected) and with demand on the increase, has triggered price increases for orange oil, terpenes and d’limonene.

BRAZIL *: ORANGE PRODUCTION FROM 1988-1989 TO  2020-2021 AND 2021-2022 CROP FORECAST

Lavender Oil Lavandula angustifolia Harvest: July

Low temperatures in March-April have delayed the harvest of the lavender crop till mid-July. Sources suggest that the yield is expected to be good. Currently, lavender prices are at an all-time low. Even though the demand has been stable this could be due to large quantities stockpiled and good production volumes. Organic lavender is in stock, as the market for it has been slow. Most of the lavender oil is being exported. Thus, overproduced oil stock is being utilised.

Melissa Oil Melissa officinalis Harvest: July

Melissa fields with long term contracts are the only ones surviving in Bulgaria. The last couple of years have witnessed limited demand for the oil in the international market. This has drastically brought down the price. As a result, most of the melissa oil fields have been destroyed in Bulgaria.

Rose Oil Rosa damascena Harvest: May - June

Annual production of rose oil in Bulgaria is usually in the range of 3,000 kg. This year production is expected to be around just 1,200 kg. This is partly because demand for the oil has drastically reduced due to the pandemic. Carryover stock from last year is still available in the market. Thus, many producers have forgone rose oil production in 2021. This could lead to rose fields being eradicated in some areas. It will also impact the production of rose petals, and ultimately rose oil in the coming 3-5 years. Rose oil is also expected to witness a fall in price in the next 12 months.

Cold weather conditions can be suitable for a good crop, leading to a properly spaced supply of blossoms. However, the colder spring led to the harvest season being both delayed and the harvest length shortened by about a third. Another major problem was the shortage of rose pickers leading to labour shortages, increased picking prices, and some rose fields being unharvested. Field yields were lower, and substantially fewer rose petals were processed.

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

Since November last year the oil price has witnessed an upward trend. There is shortage in the market. The production in the 2020 autumn cycle was expected to be 400 tonnes. But only 100-150 tonnes were produced

Citronella Oil Cymbopogon winterianus Harvest: June - December

Competition from the Indonesian market has affected demand. Domestic production has been falling annually. The main production areas of citronella are in Yuhan, which is close to the border. A few of these border areas have been hit by the pandemic, making it difficult for the oil to flow into the Chinese market, though with volumes coming in from Burma the crop will still be in the range of 300 MT.

Eucalyptol 1,8-Cineole

With the sea freight prices going up, and the CNY exchange rate appreciating, the export price of eucalyptol has increased. This even after a fall in demand has brought raw material prices down.

Eucalyptus Citriodora Corymbia citriodora Harvest: June - October

The oil price has gone down. Most of the inventory has been exhausted too. The crop yield is expected to go up to 150-160 tonnes this year.

Eucalyptus globulus Eucalyptus globulus

Due to the appreciation of the CNY exchange rate, along with high sea freight charges, the oil export price has gone up. Limited supply of raw materials has also increased their price. Local farmers are unwilling to distil at the current market price. Also, the interest of farmers in tobacco has reduced eucalyptus oil production. The majority of farmers are planting flue-cured tobacco.

Garlic Oil Allium sativum L. Harvest: April - May

The current oil supply is of many grades. To ensure pure and natural oil, farmers are distilling from their own farms. The demand and supply of the oil is balanced, and the market is stable.

Geranium Oil Pelargonium graveolens Harvest: May - September

Carryover stock from last year has been exhausted. The next cycle is expected to produce in the range of 50-60 tonnes. The global economic downturn has shifted customer interest towards the Egyptian variety.

Ginger Oil Zingiber officinale Harvest: January - April

There is a shortage of ginger oil, ginger powder, and fresh ginger in the market. Heavy rains in the summer of 2020 spoilt the crop, as most of the root was broken. In 2019 hardly any farmers grew the crop, since the price was at its lowest in 2017-18. Currently, due to the short supply, the price is rising.

Ho Wood Oil Cinnamomum camphora Harvest: September - January, March - June

The market for the oil is stable. Production continues throughout the year, and supply is consistent. China has huge fields of howood.

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

There has been a spurt in global demand for the oil. Production in 2020 wasn’t up to the mark. As a result, the price has seen an upward curve since August last year. More information will be available once the new crop season commences in July.

Magnolia Flower Oil Magnolia alba Harvest: February - June

The oil is used in perfumes, fragrance, aromatherapy and flavouring. South China has huge fields of magnolia. The market for the oil is stable.

Neroli Flower Oil Citrus aurantium Harvest: April - May

There is a consistent demand and supply of the oil. The new crop season has commenced, and 70-120 kgs in a year can be expected from producers.

Osmanthus Oil Concrete Osmanthus fragrans Harvest: September - November

The oil market is stable. It is mostly produced in south China. It is used in aromatherapy, fragrance, flavour, and perfumes.

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

There is a shortage of raw material. Last season witnessed low yield, due to which the raw material price shot up.

Tea Tree Oil Melaleuca alternifolia Harvest: May - August

Production and supply of the oil is stable but the price has gone up since February. The oil is produced year-round, and the market is expected to stabilise in the coming months.

Wintergreen Oil Gaultheria procumbens Harvest: July - September

The new crop commenced in May, though the volumes are expected to shrink by one-third from 2020. Due to the risk of contamination, farmers are reluctant to distil the oil. Demand for the oil continues to be stable, but 100% natural and pure oil is available in limited supply. Most of the carryover stock from last year belongs to the adulterated variety.

Amyris Oil Amyris balsamifera Harvest: All Year

Small distillers in Haiti that utilise fossil fuels have been shut down. Also, the government in the Dominican Republic has imposed a 50% increase in the minimum wage. Wood harvesting permits are also difficult to come by, even after amyris oil is distilled from dead wood. This has increased the cost of production. The oil demand from India is of high quality, though at a comparatively lower price. The Indian economy has been adversely impacted by the pandemic. Large volumes of unsold inventory are still available, as the oil demand is low. The price is also down 20%. Even after these adverse factors, the production of amyris oil is sustainable at previous price levels.

Juniper Berry Juniperus communis

The majority of the demand for juniper berry is fulfilled by imports from Pakistan but currently the imports are affected. This has shifted consumer interest towards the Indian variety. This can improve the future of the crop in India, where the crop is mostly grown in Himachal Pradesh. Due to COVID-19 lockdowns, Himachal is witnessing labour problems. The harvest season will continue from April till November. Also, the crop has been good this year.

Geranium Oil Pelargonium graveolens Harvest: June - July

Egypt enjoys the leading position as the world’s largest producer of geranium oil. Traditionally, the plant is intercropped with garlic and cultivated annually. The period of bulk distillation and before it hits the markets, that is, the time from June to mid-July, is the ideal time to procure. The oil continues to garner overwhelmingly high demand, even in the face of the pandemic. The season is about to begin. There is a significant decrease in volumes of the carryover stocks as compared to last year. Predictions for this year peg the carryover stock size at approximately 5% with an estimated crop size of 250 to 280 MT. This is close to the crop size for 2020. Prices have maintained their steady levels due to the deficiency of carryover stocks and is expected to remain unaffected for some time now. Market reports suggest that prices may surge after the next season in August.

Lemon Oil Citrus limon (L.)

European Union lemon production is predicted at 1.6 million MT an increase of 11.7% compared to the last crop. This is because of better crop sizes in the main producing areas and also as a result of more area being planted especially in Spain. Lemon for processing is expected to increase to 362,000 MT for the current crop as compared to 288,000 MT from the last crop.

EUROPEAN UNION – LEMON PRODUCTION , PROCESSING AND EXPORTS (‘000 MT)

Vetiver Oil Vetiveria zizanioides Harvest: February - May

The demand for vetiver oil has plummeted in the last few months. Haiti exporters are facing immense challenges. There is civil anarchy in the capital as the country faces severe political unrest. In this situation distillery operations face disruption and production is erratic. Transportation of the oil drums to the airport or ports poses several hurdles.

Ajowan Seed Oil Harvest: January - March

There is consistent demand for the product. In the short term supply of the crop will be stable. The oil price has seen a slight decrease. It is expected to reach its earlier levels by mid-term.

Basil Oil Holy Ocimum sanctum Harvest: November - February

Two varieties of holy basil are harvested, wild, and cultivated. Large volumes of oil are produced from the wild variety, as compared to the cultivated one. Thus, the price is essentially determined by the quantity produced from the wild crop. If less oil is produced from the wild crop, then the oil from the cultivated variety becomes expensive. The wild crop is harvested from December to January or February, while the cultivated one can be distilled all through the year, except the monsoon season. It is difficult to predict the quantity of oil produced during the harvest season. Estimates are only available once the season is over.

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

It is advisable to stock up on raw materials; while the price of black pepper oil is stable, raw material availability is an issue. If the situation persists, the price could increase further.

Borage Oil Borago officinalis L.

Currently the oil price is stable in the market, though there is a massive shortage of raw material. This can potentially increase the prevailing prices. Thus, it is advised to stock up on requirements.

Cardamom Oil Elettaria cardamomum Harvest: September - December

Harvest is halted during the monsoon. The period between August and January gives the best oil yield. The crop season is primarily from June-July till February. During this period the pods are plucked five times.

The cardamom oil price is stable in the market, however raw material availability is an issue. This could lead to a spurt in the oil price. It is best to stock up on requirements. Pure cardamom oil is hard to come by.

Carrot Seed Oil Daucus carota

Due to COVID-19 lockdowns, various parts of India are facing labour issues. This has affected harvest and plucking. The crop is harvested between May and August. Once the harvest is completed a clear picture of price will emerge. The USA is a major importer of carrot seed oil. It is also very popular in the flavour industry. Currently, the crop seems stable.

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

Consistent demand is expected in the coming months. The oil price has seen a significant increase from its current level. In the short term the price is expected to remain stable.

Coffee Coffea arabica L. / Coffea canephora Harvest: November - January

Two commercial varieties of coffee are harvested, arabica and robusta; the former is sweeter and the latter has a higher caffeine content. The robusta crop has been good, and the harvest season is over. While robusta is harvested from December to April, the arabica season is from November to January.

Cumin Seed Oil Cuminum cyminum Harvest: May - June

The oil price is in the same range as last year. With enough product in stock, the price is expected to remain stable.

Cypriol Oil Cyperus scariosus

Once the domestic market opens up and restrictions are eased, demand is expected to increase. As of now, the export market is stable, and prices will remain firm in the short term. The supply chain has been hit, which has impacted the market scenario.

Davana Oil Artemisia Pallens Harvest: February - April

Low yield has reduced the interest of farmers in davana oil. Thus, there is limited supply of the product in the market. The crop season has ended and there was a decent yield.

Dill Seed Oil Anethum graveolens L. Harvest: December - January

Restrictions in most markets and growing areas have impacted the arrival of fresh crop.

Fennel Oil Foeniculum vulgare Harvest: March - June, October - November

The fennel oil price is at its lowest at the moment. It is a good time to stock up on the product. Supply is stable.

Fennel Seed Oil Foeniculum vulgare Harvest: March - June, October - November

The market is expected to remain strong in the near future. Limited availability of raw material has not affected the demand. This is primarily due to the demand from other countries. The price has recovered slightly, and will remain stable for the coming months.

Frankincense Oil Boswellia serrata

The demand and price for the oil is stable. The harvest season has ended and the crop was good. The oil and crop’s resins are both used by the fragrance and pharmaceutical industry. North, central and south-west India are home to this wild tree.

Ginger Grass Oil Cymbopogon martini Harvest: January - April

Consistent high demand for the oil can be expected in the market. Last season saw a strong oil price. In the short term the price could increase, but will mostly remain stable. Once restrictions are lifted production will resume.

Jasmine Absolute Jasminum sambac & Jasminum grandiflorum

During the harvest cycle flowers are used to produce concrete. Absolutes are produced as per market demand. The sambac crop is stable and harvested between March and August or September. The grandiflora crop is good too, and will be harvested from July till November.

Karanj Oil Millettia pinnata

There is an increase in the price of the oil. This price rise can be linked to a spurt in demand. Raw material is available in abundance.

Lavender Oil Lavandula angustifolia Harvest: September

The oil is in stock, and the price is at its lowest level. It is a good time to stock up, as the price is starting to increase. oil. This price rise can be linked to a spurt in demand. Raw material is available in abundance.

Lemongrass Oil Cymbopogon citratus Harvest: July - November

Global demand for the product is consistent. This has led to a spurt in price compared to 2019. There is stable supply and price of the product from north and central India. The conventional variety found in south India has doubled in price over the past year. This is due to climate patterns. Climate change has altered the monsoon pattern and made it unpredictable. Constant rains hamper the harvest and distillation of lemongrass oil. It is either slow, or completely halts whenever it rains. This has lowered the yield. The monsoon has commenced in the south, and producers are waiting to see its impact on crop yield.

Lime Oil Distilled (Key) Citrus aurantifolia Harvest: September - December

The oil is in stock and the price is at last year’s levels. The market is stable, and fluctuations in price are not expected.

Linseed Oil Linum usitatissimum

There is huge demand for the oil in the market. This has led to a spurt in the price. Raw material availability is not an issue.

Mentha Arvensis Oil Mentha Arvensis Harvest: July - December

There is constant domestic and international demand. For the oil produced from the 2020 mentha crop the demand is expected to be around 45,000 MT. Total production is expected to be 55,000 MT, along with a carryover stock of 10,000 MT. After meeting all the demand, the surplus to be carried over to 2021 will be in the range of 20,000 MT. There is no reduction in exports due to COVID-19. The quantities exported in the first half of the year are comparable to last year, though, surprisingly, India has imported a record 4,200 MT of synthetic menthol this year.

The price of mentha arvensis is low and stable in the market. The price is expected to pick up and could increase anywhere between 10%-15%. The crop in 2021 will determine the oil price from the second quarter onwards. If the yield is similar to last season, and supply of synthetic menthol is maintained, there will be a surplus in the market. This could see a drastic fall in price. Alternatively, if farmers decide to reduce the crop size, prices could firm 10-20% above current level.

Palmarosa Oil Cymbopogon martini Harvest: January - June

The future of the crop depends primarily on the monsoon cycle. It propagates throughout the year, except during the monsoon. The monsoon season has commenced. Currently the supply and price of the oil is stable.

Peppermint Oil Mentha piperita Harvest: April - July

The price is stable in the market. Though good quality oil is likely to be exhausted, and only limited quantities may be available in the future. It is advisable to stock up.

Spearmint Oil Mentha spicata Harvest: July - August

Similar to last year, the oil prices are stable. Pure spearmint is difficult to procure in the market. Once the interest of farmers in planting a new crop is clear, the market will get a direction.

Star Anise Oil Illicium verum Harvest: September - November

The tree is native to southern China and northern Vietnam. It is primarily used in these regions for cooking. In India, only Arunachal Pradesh has conditions conducive to growing star anise. It flourishes in spring. Supplies from China affected the price of the product a few months back. But now the price has stabilised. Star anise is an evergreen tree that can grow up to 26 feet. The fruit produced by the tree is a valuable spice and smells like liquorice.

Turmeric Root Oil Curcuma longa Harvest: March - May

The product is extremely popular in the flavour industry. It is utilised globally by the pharma and cosmetic industries. The demand and supply for turmeric oil is constant throughout the year. The crop was good this season, and harvest completed in February-March. Unfortunately, supply was affected for a couple of months in April and May due to the COVID-19 lockdown.

Vetivert Oil Vetiveria zizanoides Harvest: All Year

Different varieties of vetiver have different customers and price. The oil is popular in the tobacco, perfumery and flavor industry. The varieties grown in north and central India are harvested between January and March. The product from south India is different.

Citronella Oil Cymbopogon winterianus Harvest: October - February

In the near future, the price of citronella oil is expected to remain stable. It has stayed slightly over the production cost for the last 18 months. Due to the efforts of government to promote citronella fields in deforested areas and abandoned mines, supply is not an issue, though demand may witness a slight fall. Over the years demand for citronella oil has peaked in the first two quarters and tapered thereafter. Last year saw a major spurt in the oil demand because of its use in sanitisers and other hygiene products.

Clove Oil Eugenia caryophyllata Harvest: May - September

The oil price remains stable with no significant change expected in the near future. An expansive product portfolio with a variety of CBO qualities has increased the market share of producers.

Clove Oil Eugenia caryophyllata Harvest: May - September

Since the beginning of 2021, the price of clove has significantly gone up. Heavy rainfall has badly impacted the crop, and farmers are not expecting a good yield.

Nutmeg Oil Myristica fragrans Harvest: All Year

An increase in the price of nutmeg generally leads to inferior quality oil in the market. Distillers add terpenes from turpentine, which compromises the quality. Currently, the price has risen, due to a delayed crop. This was a result of wet conditions. These prices are likely to prevail till October, when the next crop season commences.

The price of nutmeg oil is mostly stable, and no major fluctuations are expected, though demand for the oil currently exceeds supply. Producers are working to identify new and reliable sources. Production capacity and sales have doubled in the first two quarters, and the trend is expected to continue. Maintaining the highest quality during distillation is the biggest challenge. Producers and distillers are working together to solve this issue.

Patchouli Oil Pogostemon cablin Harvest: All Year

The new harvest season has commenced, and different grades of patchouli will be made available to customers. From patchouli 28%, patchouli 30%, patchouli 32%, iron free, non-iron free, and colour spectrum from light (Gardner 10-12) to dark (Gardner 13-16), are all part of the product range. Demand for the oil has seen a spurt since 2020. Production capacity has doubled to meet this demand. Since February major fluctuations were witnessed in the price of patchouli oil for over two months. Only large-scale exporters benefit from such oscillations. To bring stability to the market, and protect the interests of small stakeholders, major F&F players and representatives of the Association of Essential Oils stepped in. This helped curb price variations.

There is a trend of immature plants being harvested in certain areas. This produces low grade essential oil. To improve the quality further rectifications are required, which ultimately increase the price. Good quality raw materials are hard to come by. This has created a vast gap between entry level and premium quality oil. Farmers are also well versed with market scenarios. They ensure raw material prices don’t drop drastically, even after a dry period. Regarding price, opinion is divided in the market. While some are expecting prices to fall, others are not inclined in that direction.

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

Italy is Europe’s third largest producer of lemons, behind Turkey and Spain. Approximately 85% of Italian lemons are grown in Sicily on about 23,000 ha of land, with most of the rest grown in Calabria and a small quantity in Amalfi. More lemons are produced in the winter season, which runs from November until January, while the summer season is from April until July. Sicily produces 86% of Italian lemons. The main varieties of lemons grown in Italy are Femminello Commune (53%), Monachello (10.2%), and Zagara Bianca (23.5%). The current crop of lemon production is predicted at 491,000 MT, an increase of 10.3% compared to the previous season. Lemon oil production is estimated to be approximately 650 MT.

Lime Oil Citrus aurantifolia Harvest: May - August

Citrus aurantifolia – Key lime
Citrus latifolia – Persian lime

Lime production in Mexico is expected to increase as compared to the last crop because of improved weather conditions in the growing regions. Despite droughts that have been affecting citrus production, Mexican lime production has been growing year after year. Production is forecast to reach 2.87 million MT this year, a 6% increase from last year. While Mexico expects to increase lime production this year, the global market is seeing an overall decrease.

Limes for processing in Mexico are expected to be fewer than the last crop because of an increase in exports and fresh domestic production. Prices for the fresh fruit market have risen due to the high fresh fruit demand that continues limiting the availability for the industry. Although Persian lime has year-round seasonality, it experiences a low season from February to April. With this in mind many Mexican growers decided to wait to increase the volume and quality of their harvest resulting in lower quantity and quality of Persian limes and thus an increase in its global price. But with the low season coming to an end, the volume and quality of limes are improving, and growers have resumed production and export. Thus, the situation is looking to improve in the coming months with the beginning of the main season in Mexico, and it is expected to increase processing volumes in those months both for Key lime and Persian lime.

Another factor which may affect the supply this season is the container equipment shortage. This shortage, which is affecting transit and delivery times, is expected to remain until 2022. This global situation has led to an increase in sea freight charges by about 30% and extra charges for producers as their cargo is stuck at the ports.

On the market side, demand for lime juice and oils is likely to remain tight with very low inventories from previous seasons and expectations for the current season to remain firm, putting pressure on price levels. Prices for Persian and distilled lime oil are both on the increase.

MEXICO – LIME PRODUCTION AND DISTRIBUTION (‘000 MT)

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

Availability/demand is stable. Plants in the fields look okay but it’s too early for a detailed forecast. Winter was okay but there was a late and cold spring. In case of hot temperatures in the following weeks it’s not clear how this will affect the crop and the quality.

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

A good crop can ease the pressure on price, though farmers may be reluctant to lower the price, as crop sustainability is the responsibility of the entire supply chain. The political situation is gradually improving too. The build-up of Russian troops on the Ukraine border has eased, preventing any unforeseen supply disruptions. Currently, good quality seeds at a sustainable price for distilling are available in limited quantities. As stocks go down importers in the UK and EU are meeting customer demand. This has led to a price rise.

The new coriander crop is expected late July to mid-August, and the oil will be available only post mid-September, after which one can expect a fall in price. It is advisable to stock product to meet demand till December. Market conditions will take a few months to settle post the crop harvest.

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

The cold and long spring could have an impact on the upcoming crop. It is too early to predict the outcome; the quantity and quality of oil produced is yet to be seen.

Lavender Oil Lavandula angustifolia Harvest: July - August

Same weather conditions in Russia/ Moldova as described (normal winter, long & cold spring). In Bulgaria there was a dry spring and in June it was cold and rainy. This might cause a lower yield and increasing prices for this year’s production. After the crop there should be a clear picture available.

Blue Tansy Oil Tanacetum annuum Harvest: August - October

Initial reports indicate that the market is on track with regard to harvest and estimated quantities to be processed. Therefore prices are expected to remain at their previous levels. There are some volumes of organic blue tansy and conventional material available from last year’s stocks.

Cedarwood Oil Atlas Cedrus atlantica Harvest: All Year

Cedarwood oil volumes are predicted to touch 50 to 60 MT this year. The industry has been insulated from major upheavals due to timely regulations put into place by the government. The cedarwood market continues to be stable and sustainable

Neroli Oil Citrus aurantium Harvest: April - May

There is some good news on this oil. Neroli essential oil yield is up by 1.85% compared to last year. The weather has been conducive and there is a slow semblance of stability returning to the fields, albeit with COVID-19 protocols. The harvest has been a good one with an increase in volumes of oil.

Rosemary Oil Rosmarinus officinalis Harvest: All Year

Rosemary oil continues to command steady prices. Though availability of raw materials continues to pose a challenge for distillers, there are adequate volumes of oil available in the market. There is not much change in the volumes and pricing.

Wild Chamomile Ormenis mixta Harvest: May

Wild chamomile enjoys a good and steady demand. Weather and other conditions have improved considerably compared to last year. Although it is a tad early to comment on the harvest, initial estimates point towards a robust demand that will once again overtake supply.

Spikenard Oil Nardostachys grandiflora DC. Harvest: April - May

The government of Nepal has extremely stringent rules for the collection of raw material for spikenard oil. Import of the oil is also banned in Europe, though spikenard oil continues to be available for export. The price of the oil is low, but stable.

Timur Berry Oil Zanthoxylum armatum

Production and demand of the oil are in tune with last year.

Wintergreen Oil Gaultheria procumbens Harvest: July - September

High demand for the oil has exponentially raised the price. The crop was mostly spoilt due to the pandemic, and production is expected to be low this year.

Cabreuva Oil Myrocarpus frondosus Harvest: All Year

There are sufficient volumes of the oil available in stock and prices remain steady.

Guaiacwood Oil Bulnesia Sarmientoi Harvest: All Year

All the available volumes of guaiacwood oil have been depleted. At present, there are no stocks; the market is awaiting replenishment of stocks and new material to be available.

Petitgrain Oil Citrus aurantium Harvest: All Year

With the onset of warmer, winter months, petitgrain is facing some trouble. Prices are escalating as the availability comes under stress.

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

Coronavirus cases in Russia are expected to have an adverse impact. Cost of production has risen, and so has the demand. There is limited supply of the product. All these factors will increase the price further.

Laurel Leaf Oil Laurus nobilis

Market for laurel leaf oil remains the same. There aren’t many changes.

Pine Oil Pinus sylvestris Harvest: May - August

Oil is produced depending on the consumer demand in the market. Demand and supply are stable at the moment. 

Thuja Oil Thuja occidentalis Harvest: July - September

The market for the oil is stable. It is procured from Asia.

Grapefruit Oil Citrus paradisi Harvest: December - April

According to USDA, production of grapefruit is estimated to increase by 8% to 373,000 MT in the 2020/21 MY, from 344,626 MT in the 2019/20 MY. This is based on normal weather conditions, good rainfall received in the main growing areas, and the increase in area planted, which now totals 8,700 hectares. Domestic consumption of grapefruit is very small, and an estimated 260,000 MT of fresh grapefruit will be exported, with the EU and Asia being the dominant markets. Citrus has seen a surge in demand due to the assumed benefits of vitamin C in boosting immunity against COVID-19. However, South Africa continues to face challenges in entering the EU market due to citrus black spot (CBS) and false codling moth (FCM).

Some 30% of grapefruit is processed into juice and concentrate, while the left-over pulp is an important source of grapefruit oil used to flavour soft drinks. Grapefruit peel oil is extracted from the peel and used in fragrances. Also extracted from the peel is the bitter tasting naringin, which is used to flavour tonic water. Increasing quantities of grapefruit are processed, with an estimated 105,000 MT processed in 2020/21 an increase of 12% on the previous year.

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

According to USDA, the production of lemons is estimated to marginally increase by 1% to 625,000 MT in the 2020/21 MY, from 619,522 MT in the 2019/20 MY and this is because of an increase in the area planted. The increase was expected to be higher but drought in part of the growing region offset the increase.

Lemons and limes for processing will increase by 1% to 139,000 MT in the 2020/21 MY, from 138,000 MT in the 2019/20 MY, because of the increase in production.

The exports of lemons and limes is estimated to increase by 1% to 461,000 MT from 457,886 MT in the 2019/20 MY, based on the increase in production, and growth in demand from the Middle East and Asian markets.

Orange Oil CP Citrus sinensis Harvest: June - September

Orange is the largest citrus crop grown in South Africa, and the current 46,000 hectares under orange account for almost half the citrus area planted. The trend in plantings and production has been steadily upward over the past decade. Orange production in 2020/21 MY is estimated to increase by 2% to 1.65 million MT based on normal weather conditions, good rainfall in the main growing regions, the rise in area planted, better water management techniques by farmers, and new plantings of high yielding and late-maturing varieties. Nevertheless, drought conditions and hail damage have had an impact in some growing areas. Oranges are normally harvested between March and September, and, to date, the impact of COVID-19 on production, harvesting and labour has been minimal. South Africa prioritises fresh fruit exports and almost 80% of production is exported as fresh oranges. Fruit that does not meet export standards is processed and in 2020/21 MY estimated fresh fruit exports will be 1.28 million MT, (a 3% increase from 2019/20 MY), while 285,000 MT will be processed.

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

The AILIMPO lemon crop estimate for the 2020-2021 season forecasts a total production of 1.29 million MT, broken down into 947,000 tonnes of Fino lemons and 343,000 tonnes of Verna lemons.

The commercial supply of Fino lemons for the fresh market will be lower in the second part of the season, which could put pressure on the sales market, while the harvest of Verna lemons guarantees supply throughout the summer of 2021.

Spain will continue to consolidate its commercial position in Europe with its quality and phytosanitary guarantees. Following Argentina, Spain is the second largest lemon producer in the world but the first global exporter of lemons for fresh consumption. Spanish lemon production is concentrated in the regions of Murcia and Valencia, and the provinces of Malaga and Almeria in Andalucía. In recent years Spain increased its total planted area for lemons standing at around 46,000 ha in 2019.

In relation to processing, it is estimated that approximately 25% of the harvest is destined for processing, producing a wide range of juices, essential oils and dehydrated peel. Lemons for processing are expected to increase because of higher production and because there is less demand for fresh fruits because hotels and the tourism industry are operating at well below capacity.

Spain’s organic lemon acreage has almost quadrupled in the past decade, reaching 8,300 ha last year. It now accounts for 17% of total planted area, producing 172,642 tonnes in 2020. The GlobalG.A.P. and GRASP certifications are key elements this season as part of the strategy to differentiate Spanish lemons and to promote sustainable production with a triple focus on economic, environmental, and social impact. AILIMPO predicts that, in the short term, organic lemons will make up a quarter of total acreage.

Cinnamon Bark Oil Cinnamomum zeylanicum Harvest: May - December

The price of raw materials, and consequently the oil, remains stable. Large distillers and exporters generally keep stock of raw materials and oil during the off-season, but this year due to the COVID-19 pandemic, large volume of stocks isn’t available.

Cinnamon Leaf Oil Cinnamomum zeylanicum Harvest: March - August

Shortage of raw materials has impacted the supply of cinnamon leaf oil. Additionally, the oil price is also on the higher side. Harvest season has been put on hold due to the lockdown because of COVID-19. Limited availability of raw materials has been offset by low demand. This has resulted in the easing of the price slightly from the previous quarter. The first quarter of 2019 witnessed cinnamon leaf oil being traded at record low prices.

Citronella Oil Cymbopogon nardus Harvest: May - December

Sri Lankan citronella oil has witnessed a spurt in demand since the end of February. This is reflected in an upward price trend from the previous quarter. Favourable weather also aided the production of the oil.

Clove Bud Oil Syzygium aromaticum Harvest: January - February

The oil is being sold at a high price in the market. This is primarily due to the high demand for the spice, which has reduced the availability of raw materials for oil distillation. The crop harvested last year was available till February, but with no fresh raw materials in the market, the price is expected to stabilise at its current level.

Clove Stem Oil Eugenia caryophyllata Harvest: January - February

The oil price is expected to solidify as fresh raw materials are no longer available in the market. The crop from the December 2020 harvest was being sold in the market till February.

Nutmeg Oil Myristica fragrans Harvest: February - May

The local nutmeg industry has been adversely impacted due to the competition from Indonesia. Along with the abundant supply of raw material, oil price is expected to be low. Crop from the previous harvest is still available.

Cedarwood Oil Texas Juniperus mexicana Harvest: All Year

The USA homes the three distilleries that contribute the lion’s share of cedarwood oil Texas to the global market. The plants are undergoing repair and upgrading for capacity expansion. As a result, distillers are unable to work the plants to their optimum capacity. A bigger challenge, however, is the severe shortage of skilled and unskilled talent. There are strong political undercurrents which are impacting the trade. Employers are forced to double the minimum wage to induce people to return to work. The oil commands a robust demand which is soon reaching levels of desperation. Suppliers are working to produce adequate volumes but are unable to meet requirements. This has caused prices to skyrocket.

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

California dominates US lemon production, with the USDA forecasting Californian production in 2020-2021 of 21.5 million boxes out of US production of 23.8 million boxes, Arizona accounting for the remainder.

USA: ESTIMATED LEMON PRODUCTION 2018/19 TO 2020/21 (‘000 BOXES )

Orange Oil Citrus sinensis Harvest: February - May

Total USA orange production in 2020-21 is expected to be 105.75 million boxes. The forecast for non-Valencia oranges (early, midseason and navel varieties) in all USA production regions is 65.7 million boxes. This breaks down into Florida’s production at 22.7 million boxes, California’s remaining at 42 million boxes and Texas remaining at 1 million boxes. Regarding Valencia oranges, the forecast is a total of 40.05 million boxes, with Florida increasing 1 million boxes from the previous forecast to 30 million boxes, California remaining at 10 million boxes and Texas remaining at 50,000 boxes.

Orange production continues to decline in Florida because of greening and fruit drop has severely impacted orange yield. According to the USDA citrus crop forecast, the estimate of fruit drop for early/midseason and Valencia oranges was 43% and 34% respectively. Orange production in Texas was less because of a severe winter storm which damaged a good portion of the crop, while California is catching up with Florida’s production and may surpass it in the new crop.

Consumption, exports, and fruit for processing are all forecast to be down with the drop in production, though imports are expected to be up. Orange juice production is forecast down 16% with the drop in available oranges for processing. Consumption and stocks are expected to be down because of lower production and despite higher imports. Thus, while supply is limited, demand is strong and prices are increasing.

USA: ESTIMATED ORANGE PRODUCTION 2018/19 TO 2020/21 (MILLION OF 40.8 KG BOXES)

USA: ORANGE PRODUCTION AND PROCESSING TREND

Peppermint Oil Mentha piperita Harvest: July - September

Of late, the returns on peppermint and spearmint have been lower than expected. This has nudged farmers to turn to other options in corn, soybean, and wheat crop competing for plantation acreage. As a result, the total plantation area for peppermint and spearmint has gone down. Other crop harvests bring in better prices than mint and will tide the farmers over till the mint prices inch up to acceptable levels.