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

Tucumán along with Salta and Jujuy are the main lemon-producing areas of Argentina with Genova and Eureka being the prominent varieties. Lemon has grown to become a speciality crop in Argentina, with enhanced investments, new producers and sustained efforts to increase the area of cultivation. The new plantations started to bear fruit and thus entered into production and the sector has grown to become a flourishing and profitable one. The future area under lemons is not expected to expand significantly in part because of competition from sugar cane and urban expansion in Tucumán Province. Replacement of old plants with new ones is being undertaken with increases in the number of plants per hectare. New genetic planting material should improve yields and raise production as well as minimise the effects of frosts.

Argentina has HLB-free status with only very isolated cases of greening being detected. A considerable amount of work has been done and it is under control but as we have seen it has affected several countries, including neighbouring Brazil, and has the potential to be a big threat for the citrus industry.

Unlike most other countries, a large proportion of lemons grown in Argentina is for processing. Tucumán Province is a long way from the port which can make fresh fruit exports difficult. Hence the vital importance of processing which gives growers and plantation owners a very different mindset from many other lemon producers. In contrast to other producing countries, domestic fresh lemon consumption is only 110,000 MT, and exports of fresh fruit account for approximately 200,000 MT, usually some 10% and 25% of production. Clearly lemon is grown to service the processing industry with usually in excess of 1 million MT going to the processing industry However, estimated lemon production for 2020/21 is 1.03 MMT, a fall of 30% from 2019/20. Extreme cold temperatures and subsequent aridity had a particularly unfavourable outcome. Only an estimated 731,000 MT of fruit will be sent for processing. This will substantially reduce the amount of lemon oil produced and put further upward pressure on prices.

The effect of the pandemic has been minimal and not affected the industry to the same extent as other businesses. Although there was a reduced demand for some products overall demand kept reasonably stable, while lemon’s market image improved as people recognised its health benefits and vitamin C content. The lemon sector has experience with safety and handling issues and this helped considerably in coping with the new protocols and restrictions that were imposed. Thus, harvesting, processing and shipping were able to maintain an almost normal rhythm. Prices recovered after a huge drop in 2019 when prices fell to levels not seen for a long time.

Orange Oil Citrus sinensis Harvest: March - June

Citrus fruits are sensitive to extreme temperature swings. This year Argentina’s citrus crops, including orange, have been affected by aridity and harsh cold. The 2020/21 orange forecast puts the crop figure at 700,000 MT. Exports are pegged at 80,000 MT for oranges, a historical low if compared to the export figures of the last few years.

Despite the escalating demand for citrus, and orange in particular during the COVID-19 pandemic, Argentina has been unable to hold its own against its other biggest competitor, South Africa. 

Tangerine Oil Citrus reticulata Harvest: April - June

Tangerine production in Argentina has been encouraging with crop figures moving up to 360,000 MT. This is a heartening increase o 50,000 MT from last season’s figure. Tangerine exports are expected to touch 35,000 MT in 2020/21.

Buddawood Oil Eremophila mitchellii Harvest: March - October

Buddawood oil reserves are low, and there is limited available inventory. This is quite a favoured ingredient in aromatherapy. With the decrease in aromatherapy activities in the wake of the COVID-19 pandemic, demand for buddawood oil has also gone down drastically. As a result of this subdued demand, very low volumes of oil are being produced.

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

Lemon myrtle has been doing well but continues to face one inherent challenge. The market prefers the dried leaves and so these fetch better returns. Consequently, most farmers and producers are inclined to trade in the dried leaf variety. It is not easy to procure dried leaves, and many of the distillers are loath to process the limited quantities available.

Orange Oil Citrus sinensis Harvest: March - June

Australia’s major orange production areas lie in Riverina in southern New South Wales around Griffith and Leeton, the Murray Valley in the northwest of Victoria and Riverland in the northwest of South Australia.

The drought in 2019 was ruinous for all crops and especially citrus which requires temperate weather to thrive. The overall quality of the MY 2019/20 crop was also substandard with skin blemishes on the fruit. Consequently, larger volumes of navel oranges were diverted to the processing industry for being processed for juice. In 2020 the timely rain showers across the orange groves came as a blessing and proved to be immensely beneficial. It promoted good bud burst and fruit set, eventually resulting in a strong crop. Growers were able to apply, prior to the commencement of the irrigation season, additional nutrients to the trees to encourage fruit growth and minimise the impact of reduced fruit size. Reduced fruit size is a normal phenomenon when there is a heavy crop. Orange production forecast for 2019/20 now stands at 485,000 MT. In 2020/21 considering the change of weather conditions, the forecast for fresh orange has been revised to 535,000 MT clocking a 10% ascent on the previous estimates of last year. The revised forecast is also announced keeping in mind two key factors. Australia has added plantations of navel and red flesh orange varieties and undertaken proactive endeavours to improve crop irrigation water availability and announce a slew of initiatives to help lower costs in the key production regions.

Sandalwood Oil Santalum spicatum Harvest: March - October

Australia’s sandalwood oil production has been severely affected by the outbreak of the COVID-19 pandemic. Travel, hospitality and perfumery are some of the worstaffected business sectors. As a result, the demand for this oil has plummeted.

Tangerine and Mandarin Oil Citrus reticulata

The largest mandarin producing area in Queensland is in the Central Burnett area in the south eastern part of the state. The regions around Gayndah and Mundubbera abound in mandarin plantations, but they are also produced in Emerald in Central Queensland and Mareeba in Far North Queensland. Other small mandarin producing areas are in northern New South Wales, Northern Territory and Western Australia.

2019/20 was a year of drought. Almost all the tangerine/mandarin producing areas recorded low to below-average rainfall, directly impacting the crops. The arid climate has been detrimental for the citrus but with the advent of rains in 2020 several key tangerine and mandarin producing areas have recorded average to above-average rainfall. The young tree age profile entering production is a bonus. The production figure for 2020/21 forecasts 175,000 MT, a 9% increase over the previous year’s forecast of 160,000 MT.

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

Tea tree thrives in mild, temperate climatic conditions and soil which has good moisture-holding capacity. This year, weather has played truant and this has impacted most of the plantations. There have been several bushfires and the problem of rising mercury has been compounded by extreme aridity. Much of the tea tree crop has been affected. As a result, forecast figures for both crop production as well as essential oils are not encouraging and are expected to be lower than usual.

Tea Tree Organic Melaleuca alternifolia Harvest: May - November

New plantation of tea tree has come into operation this year as a result of the consistent efforts to increase cultivated area. Around 80 drums of essential oil from the new entrant have added to the existing inventories.

Orange Oil CP Citrus sinensis Harvest: July - December

The forecast for the current orange crop (Brazil marketing year 2020/21), which includes the areas outside of the main citrus belt is at 365.4 million boxes. The current crop is estimated to be below the average crop size for the past decade and is 23% less than the previous 2019/20 crop of 473 million boxes. The decrease in crop size was mainly in the citrus belt which included São Paulo and west south west Minas Gerais region which produced 375 million boxes in 2019/20 but is estimated at only 269.4 million boxes this year. The forecast for the areas outside of the citrus belt is projected at 96 million boxes which is only 2 million boxes below the last crop. Fruits allocated to processing is expected to be reduced by approximately 30% to 249 million boxes compared with 352 million boxes the previous year, thus leading to a substantial reduction in orange oil production.

Several factors are cited for the decrease in the current crop. These include:

• A significant reduction in the number of fruits per tree
• The alternate bearing phenomenon, whereby there is a reduction in crop size after a previous large production season because the nutrient reserves are less
• High temperatures in September and October 2019 affected the setting of young fruits
• Less rainfall in March and April 2020 resulted in smaller fruit sizes. The lack of water was significant and a major reason for the decrease in crop size.

The substantially reduced crop size has led to price increases for most orange products including orange oil, terpenes and d’limonene. Supply is limited and demand is rising.

The forecast for next year’s crop size, starting in June-July 2021, is more optimistic at 415 million boxes. This is a decent 14% improvement over the current crop considering normal mid-December weather conditions conducive to fruit setting and development of the second blossoming. The São Paulo belt is expected to process 275 million boxes of fruit for orange juice production. In the wake of the current reduced orange crop for 2020/21, expectations for the coming crop are rather subdued. This scenario and paucity of good quality, inexpensive orange oil from countries outside Brazil led to upward pressure on prices of Brazilian orange oil. Early reports and indications of delay of the 2021/22 crop only reinforces and buoys the inflated prices of oranges of early 2021.

BRAZIL : ORANGE PRODUCTION AND PROCESSING (MILLION BOXES)

 

Lavender Oil Lavandula angustifolia Harvest: July

The stock coming from Bulgaria is in abundance, though it is still difficult to find lavender oil with good analysis and odour. Since the season began the price has been decreasing. With over-production another factor, the price is expected to continue its downward turn. Due to the fall in price, the demand for lavender oil has gone up.

The lavender oil price is at its lowest in the last two decades. Due to the presence of large quantities of poor quality oil, there aren’t many takers even at this price. With a large number of farmers ploughing their lavender fields this trend is expected to reverse. In the next couple of years overproduction of lavender can be curtailed and its volumes return to 2017 levels. It was during 2017 when Lavandula angustifolia witnessed a massive price spike, and the production fields expanded dramatically.

Melissa Oil Melissa officinalis Harvest: July

Most of the melissa oil produced locally is purchased by aromatherapy companies. They have long term contracts and the situation is expected to be the same this year as well. There is some export demand for the oil, but over the last couple of years production has reduced significantly to 2,000 kg/year.

Rose Oil Rosa damascena Harvest: May - June

The market for rose oil is expected to be slow till the pandemic is brought under control. There is overproduction of oil in the market and stock from previous seasons is available in abundance. Looking at the current situation, distilleries could stop production of the oil for the year. Rose oil is a product used extensively for high-end cosmetics and exclusive fragrances, the demand for which has fallen considerably. Thus, COVID-19 has had a major adverse impact on the industry.

The price of the oil is at a historic low. Many are selling it below the production value to obtain cash and keep the business afloat, though this practice will hurt supply in the longer term. Rose fields will stand neglected, lowering yield. This will increase production costs and reduce supply in the next few years. At present, there is approximately 3,000 kg of rose oil in Bulgaria. Exports are down to one-third of the volume last year.

Balsam Fir Oil Abies balsamea Harvest: April - November

Fast becoming popular, there is healthy demand for this oil. Distillers are able to meet the demand and stocks are available.

Balsam Leaf Oil Abies balsamea Harvest: April - November

Balsam leaf supplies are very tight on the market and stocks are limited.

Black Spruce Oil Picea mariana Harvest: May - August

Producers are trying to meet the demand for Black Spruce oil. However, availability is low and there are limited stocks.

Cedar Leaf Oil Organic Thuja occidentalis L., fam. Harvest: March - October

The needles and twigs of this coniferous tree are in demand for the oil. There are enough orders for this oil; however, supplies are constrained.

Red Pine Oil Organic Thuja occidentalis

Production cycles have been disrupted and supplies of this oil are low.

White Spruce Oil Organic Picea glauca (Moensch) Harvest: May - August

Adequate quantities of this oil are available with the supplier.

Citronella Oil Cymbopogon winterianus Harvest: June - December

Demand is witnessing a constant increase. Due to Indonesia’s low priced citronella oil, Yunnan’s oil price has seen a constant decline.

Eucalyptus Citriodora Corymbia citriodora Harvest: June - October

The Chinese variety of Eucalyptus citriodora is available in limited quantity. There are numerous buyers in the market, but farmers are unwilling to produce the oil due to the low price.

Eucalyptus Oil Eucalyptus globulus Harvest: July - October

With the Chinese New Year holiday over, supply has restarted. The last few weeks witnessed tight supply. Farmers were not willing to sell product at the low price in the market. The price of crude oil has now risen compared to the previous period. Traders no longer have reservations and are willing to sell their product.

Garlic Oil Allium sativum L. Harvest: April - May

The market for the oil is stable. There is enough carryover stock from last season. Add the current production, and the two can easily meet demand, though there was a decrease in demand due to the pandemic.

Geranium Oil Pelargonium graveolens Harvest: May - September

The oil supply is stable, though demand is not strong. The oil is currently not in production. The new season will begin in May.

Ginger Oil Zingiber officinale Harvest: January - April

Raw material for ginger oil production is available all through the year. Thus, the oil supply can meet any incoming demand. Due to the pandemic the demand for oil has seen a spurt compared to previous years. Production is underway normally, due to the large domestic demand.

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

The product is facing the problem of tight supply due to limited stock. Farmers are unwilling to distil the oil at the prevailing low price, though there is strong demand from overseas buyers. If the demand continues, the oil price will rise due to the limited supply. It will only stabilise after the next crop. New oil will only be produced in July and hit the market by August.

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

Factories do not produce star anise oil for inventory purposes. They produce as per incoming orders only. At present the oil is out of stock, and raw materials are difficult to procure.

Wintergreen Oil Gaultheria procumbens Harvest: July - September

Stock has been exhausted and is difficult to procure raw material at the moment. There is an increase in demand for the oil, which has led to a rise in price, though this is not the season for wintergreen oil. New production will only commence in April. Last season farmers found it uneconomical to produce oil. The price for wintergreen oil was low and labour costs were increasing. Thus, there wasn’t much enthusiasm among farmers and the market witnessed limited transactions.

Clary Sage Oil Moldova Salvia sclarea L. Harvest: June - July

Demand and supply of the oil is stable. The crop last year was normal. The oil is being sold at a consistent price in the market.

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

This season the crop was average. Raw material availability is not an issue.

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

Demand and supply of the oil is stable. It is being sold at a consistent price in the market.

Fir Needle Tyrol Oil Abies balsamea Harvest: March - September

Several factors including inflation in Russia, the effect of COVID-19, heavy snow, and huge demand have all led to an increase in the price of fir needle oil. No relief from the high price is expected in the near future.

Laurel Leaf Oil Laurus nobilis

Oil is available in the market.

Lavender Oil Moldova Lavandula angustifolia Harvest: September

Several distillers have stopped production of lavender oil. Those who are still in the market are waiting for the price to increase, so as to bring them some profit from production. There is a decent supply of the oil in the market. The price remains extremely low.

Pine Oil Pumilionis Pinus Sylvestris

Due to the heavy winter experienced in 2020-21, the oil price may increase. Currently, the market for the oil is stable.

Orange Oil Citrus sinensis

Good weather, conducive to good fruit setting, complemented by sustained efforts to increase cultivation areas have seen a successful orange crop in Egypt. The forecast puts the figure at 3.38 MMT. Consumption and volumes for processing are also up.

Ajowan Seed Oil Harvest: January - March

There is a stable supply of raw material in the market. This has helped in keeping volatility at bay. The new harvest season has begun. The oil price is stable in the market.

Basil Oil Holy Ocimum sanctum Harvest: November - February

Holy basil oil is obtained from the wild and from cultivated crops. The yield from the wild crop is more than the cultivated one. Except during the monsoon season, the cultivated crop is distilled throughout the year. The wild crop, on the other hand, is harvested from December to March. It is difficult to predict the quantity of oil produced, since herbage depends on various uncontrollable factors. The oil price depends essentially on the wild crop. If oil produced from the wild crop is low, then the price of cultivated oil goes up.

Cardamom Oil Elettaria cardamomum Harvest: September - December

Both the domestic and international market for cardamom oil is witnessing an upward turn. Consumption of the oil increased during COVID-19. The price is recovering at a fairly decent rate.

Carrot Seed Oil Daucus carota

Due to COVID-19 the demand for the oil went down in the local market. The harvest was impacted as well due to the lockdown. The oil is primarily used by the flavor industry. Significant volumes are exported to the USA as well. The harvest results for this cycle are still awaited. Suppliers resisted the urge to distil and stock the oil. The next harvest cycle is from May to August.

Citronella Oil Cymbopogon winterianus Harvest: October - February

Raw material availability is an issue. Oil production has stopped temporarily. Demand for citronella oil continues to be high. This has led to an increase in price. The market is expected to witness consistent demand in the coming months too.

Clove Bud Oil Eugenia caryophyllata Harvest: January - February

Healthy raw material availability has kept the price in check. Demand is stable and expected to remain consistent in the coming months.

Cumin Seed Oil Cuminum cyminum Harvest: May - June

With sufficient rainfall a good crop is expected. Demand and price for cumin seed oil are stable.

Cypriol Oil Cyperus scariosus

Cyproil is being perceived as a substitute for vetiver oil in the market. This has bolstered the demand for the oil. With strong demand, the price has hit a new high. The upward price trend is expected to continue in the coming months.

Davana Oil Artemisia Pallens Harvest: February - April

Once the harvest season commences in April suppliers will have a clearer picture of availability. Due to unfavourable climatic conditions, davana oil supply has been disturbed. They only manufacture quantities that have confirmed orders. For the last couple of years the price of davana oil has been fluctuating.

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

There is limited demand for the oil in the market, though raw material availability is not an issue. The price for the oil is stable. 

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

There is enough supply of fennel seed oil in the market, but the demand is slightly low. The new crop is expected to hit the market soon. With a good harvest predicted, the price of the oil will fall in the short term. Currently, the oil price is stable.

Frankincense Oil Boswellia serrata

The harvest is currently in progress, as the cycle is from November-May. The crop is looking good this season. The oil supply and price seem stable. Demand is picking up too. Last year demand dropped as the fragrance industry was impacted due to COVID-19. The tree generally grows in north, central, and south-west India. Its oil and resins are used by the fragrance and pharmaceutical industries.

Ginger Grass Oil Cymbopogon martini Harvest: January - April

Demand for the oil is increasing and the trend is expected to continue. The price is stable and will continue to be on a similar level in the coming months.

Ginger Oil Zingiber officinale Harvest: January - April

A 20% rise in the upcoming crop cycle is expected. With a bumper crop coming up, the price is witnessing a downturn in the short term. There is a consistent growth in the demand for the oil. The trend is expected to continue in the coming months.

Jasmine Grandiflorum Jasminum grandiflorum Harvest: July - September

The season for grandiflora is between July and November. The concentrate is prepped during this period. The absolutes are produced as per requirements.

Jasmine Sambac Jasminum sambac Harvest: March - October

Jasmine sambac harvest commences around March end and goes on till September-October. The season is going on and the crop supply is stable.

Juniper Berry Juniperus communis

Himachal Pradesh is the major producer of juniper berry in India. Since the crop was poor in Himachal, and imports of raw material from Pakistan were hampered, the oil supply was heavily affected. COVID-19 had a serious impact on the crop. Due to the low availability of raw material, oil prices almost doubled. The next harvest cycle is between April-November.

Lemongrass Oil Cymbopogon citratus Harvest: July - November

There is constant demand for the oil. This year, due to the supply bottlenecks the price is expected to be higher. In the last two months, the oil price has spiked 10-12%. While the crop has been good, labour issues in Kerala have affected the harvest.

Mentha Arvensis Oil Mentha Arvensis Harvest: July - December

It is too early for a harvest forecast. Major volumes are sown via transplanting post the wheat harvest, which is a while away, though sowing is expected on similar lines as last year.

Despite large volumes of carryover stock, material is not floating in the market. Farmers and investors are holding product at the moment. After the reopening of markets in January, Mentha arvensis did not receive an enthusiastic response. With 60% of Indian menthol being exported to China, the price is heavily reliant on the Chinese market. China purchased significant inventory at a low price. The oil price is expected to recover by July 2021. Thus, it is best to keep stock for the coming few months and procure the rest after the price correction.

Mentha Piperita Oil Mentha piperita

The weather is currently ideal for peppermint plantations. The crop is expected to be good if the weather persists. Peppermint fields have increased due to the high price the oil is fetching.

Non-availability of stolon may have a negative impact on acreage, though estimates suggest a 10-15% increase in the current crop. Currently, the sowing of the new crop is in progress. Indian peppermint is in high demand and prices are unlikely to come down in the coming months. The next crop cycle in May-June 2021 may have an impact on the price. It is advisable to keep stock for the next 5-6 months. Currently, the price is stable.

Nutmeg Oil Myristica fragrans Harvest: June - August

Demand and supply of the oil are stable. The new crop season is expected to commence from April 2021. The oil price is maintaining a consistent level.

Palmarosa Oil Cymbopogon martini Harvest: January - June

Low demand has brought the price down, though there is a slight recovery in the oil price. While the market is expected to stay stable, unexpected demand can increase the price.

Spearmint Oil Mentha spicata Harvest: July - August

Sowing volume continues its downward trend. Farmers are no longer keen on the product. Large quantities of oil available in the market have synthetic L-Carvone.

Star Anise CO2 Oil Illicium verum Harvest: September - November

Arunachal Pradesh is the only state producing a viable star anise crop. It is native to southern China and northern Vietnam. The soil and climate of Arunachal Pradesh are conducive for the crop. Star anise flourishes during the spring. At the moment the price is stable.

Thyme Oil

There is a stagnation in thyme oil prices. They are at their lowest, and it is advisable to stock up on the product.

Turmeric Root Oil Curcuma longa Harvest: March - May

Heavy rain led to some crop damage in low-lying areas. Oil demand is stable with an expectation of a slight increase. Unlike previous years, price of the oil has seen a downward curve, though it is expected to recover in the coming months.

Vetivert Oil Vetiveria zizanoides Harvest: All Year

Major rains in crop growing belts have delayed the harvest cycle. A consistent demand is expected in the coming months. Price is also recovering after a slight fall.

Cananga Oil Cananga odorata Harvest: June - August

The demand for fine fragrance ingredients has gone down. This has led to a reduction in the price of cananga oil in the last few weeks. Most of cananga is produced in Blitar, in east Java, though several cananga plantations have come up across Sumatra and Java in the last couple of years.

Citronella Oil Cymbopogon winterianus Harvest: October - February

The price is not expected to go down from its current level anytime soon. It has been a common trend that farmers stop cultivating and distilling the oil if the price goes below a sustainable level. At present the production and supply of the oil is stable. Rains have had minimal impact on the harvest and distillation of citronella oil.

Clove Oil Eugenia caryophyllata Harvest: May - September

The production of clove-based aroma chemicals, especially eugenol, has been affected by the high raw material price of clove leaf oil. While the raw material (RM) price of the oil is stable, it is higher than normal. Considering the rainy season in Indonesia, the RM price of the oil is not expected to go down till mid-2021.

Essential oil producers in Indonesia have to compete with local cigarette manufacturers for raw materials. Also, due to heavy rains, there is hardly any clove leaf available for distillation. This is going to impact the price, but it is unlikely to return to early 2020 levels. Compared to previous years, clove leaf oil production has reduced 10%.

Nutmeg Oil Myristica fragrans Harvest: All Year

Global demand for nutmeg oil has reduced. This will directly affect the prices, which can go down further. Currently, nutmeg harvest is on, and raw material availability has improved. As a result oil production has increased. The oil price remains stable at source.

Patchouli Oil Pogostemon cablin Harvest: All Year

Customers are tentatively waiting for the new crop. The next crop cycle is expected anywhere from March to April. Compared to last year, the demand for patchouli oil has increased, though since the Chinese New Year fewer inquiries have come in for the oil.

With a favourable exchange rate, the Indonesian rupiah (IDR) has strengthened against the US dollar. This has resulted in higher USD oil price. Constant rain and a global freight crisis have increased the lead time from source. The oil price remains stable at source.

Vetiver Oil Vetiveria zizanioides Harvest: January - July

There are several stocks of oils with high acid value, and burnt notes floating in the market. While these varieties are lower in price, they are not as per specifications. Demand and supply for superior quality vetiver oil is stable and so is the price.

Grapefruit Oil White Citrus paradisi

Grapefruit has been enjoying reasonably good global demand, especially red and white grapefruit. Earlier, farmers were reluctant to cultivate grapefruit owing to slow demand. However, over the last few years, demand has picked up, with Japan, Korea, and China increasing grapefruit imports. This was an opportunity for Israel and it added 580 hectares of new grapefruit plantations. The two severe heatwaves have played havoc with citrus, and as a result, 2020/21 grapefruit production is anticipated to remain low at 130,000 MT. The outbreak of the pandemic also posed on-ground challenges since January 2020 and Israel faced difficulties in sending shipments. However, increased demand from Russia enabled Israel to export 59,000 MT and chalk up a 9% increase over the previous year’s export figure. Due to the closure of open-air markets and the hospitality sector, additional volumes of fruit were channelised to the processing industry.

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

Similar to the other citrus, the lemon crop was also affected by the arid weather and extreme temperatures. The 2020/21 production figure is pegged at 70,000 MT. This is significantly lower than the 2019/20 figure. However, lemon, unlike its other citrus cousins, enjoys a longer shelf life and harvest season. This is the critical factor that insulated the lemon crop harvesting cycle from the COVID-19 restrictions and disruptions. Due to demand taking a fall in the international as well as domestic markets, consumption of fresh lemon and exports cut a poor figure at an estimated 66,000 MT for domestic consumption. However, things began to look up, attributed to the boom in home cooking during the pandemic. In 2019/20, the processing figure for lemon was at 9,000 MT, up 5,000 MT from previous estimates.

Mandarin and Tangerine Oil Citrus reticulata

Israel grows more than 15 varieties of mandarins and tangerines representing 41% of total citrus cultivation. Among the varieties of tangerine, the Israeli Or Orri is popular and commands a strong demand in both domestic and international markets. It is estimated that Orri cultivation constituted almost 73% of the total tangerine production in 2020/21. It makes up 55% of Israel’s total citrus export of Israeli citrus and the lion’s share, 88%, of total mandarin and tangerine exports. In 2020/21 total mandarin and tangerine production stands at 160,000 MT. Consequently, and in the context of hotels and open-air markets all being shut due to the pandemic, larger volumes of tangerines were diverted for processing this year.

Bergamot Oil Citrus bergamia Harvest: November - March

The COVID-19 pandemic has disrupted the market for this oil. Bergamot is a favourite in the fine fragrance and perfumery sector and with the lockdown the demand for this oil plummeted. However, since November the demand has surged once again and touched demand levels prior to the lockdown. It continues to enjoy a steady demand. On the production side, the harvest season from November to February in Southern Italy, has just concluded. Italy’s bergamot crop is immensely successful touching the zenith of the last four years. Quality and yield have surpassed last year’s figures by about 7%. The outlook is promising and the market is showing potential for myriad usages of bergamot in aromatherapy and other allied fields. The prices for the oil, however, remain steady at the same levels as last year.

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

Italy is Europe’s third largest producer of lemons, behind Spain and Turkey. Approximately 85% of Italian lemons are grown in Sicily on about 23,000 ha of land, with the rest grown in Calabria and Amalfi. More lemons are produced in the winter season, which runs from November until January, while the summer season is from April until July. In 2020/21 Italian lemon production is predicted to increase by 10.3% to 491,000 MT.

Orange Oil CP Citrus sinensis Harvest: March - May

Italy is the second largest European orange producer after Spain. Sicily and Calabria are the main orange-producing areas, accounting for approximately 63 and 19 percent of total production, respectively. Tarocco, Moro, Sanguinello, Naveline, and Valencia are the leading orange varieties grown in the country but Ippolito and Meli cultivars are gaining popularity. In 2020/21 orange production is forecast to increase 12% to 1.85 million MT from the previous season, mainly due to new orchards entering into production. Most oranges are consumed as fresh fruit but the late varieties (Ovale and Valencia) are destined for both the processing and fresh markets.

Key Lime Oil Citrus aurantifolia Harvest: May - October

Mexico is one of the leading lime producers globally. This signature crop abounds along the Pacific coast of Michoacán, Guerrero, and Oaxaca. Michoacán leads in total Key lime production with Colima coming in a close second. The fruit enjoys all-year production with no lull in activity. The crop from Michoacán is the first crop to be available in the market during December to February. May to September demand is fulfilled by the production from Colima. The rest of the year is adequately covered by the fruit from Oaxaca and other states.

The area under plantation has been increased to touch 96,672 hectares in 2020/21. Concerted efforts have been taken to improve irrigation systems and implement agronomic best practices. These seem to have brought results since total Mexican crop production forecast stands at 2.87 MMT, an improvement of 6% compared to the previous year. While consumption has also increased this has been fulfilled by increased supplies. Exports too look good at 852,000 MT, a 6% increase from last year’s figures.

Spread across 28 states, Mexico’s lime production is stable and gives good output, especially since the trees are younger and can give up to 12 blooms a year. Lime oil is produced primarily in Mexico and Peru. This is why lime oil movements are relatively stable in the market. This year, in addition to the citrus greening problem, there is a sharp rise in domestic fresh fruit consumption. This combined with the growth of exports has meant that the percentage of fruit earmarked for processing has plummeted by 15% to as much as 40%. Naturally, volumes of lime oil too have fallen drastically by almost 35%. Demand is high and there is not enough supply to plug the gap. Prices have firmed up but at 20% higher average cost compared to 2019. In fact, lime oil prices would have soared but were arrested by the weakening of the Mexican currency against the US dollar. Considering that lime oil distillation will commence in June and then in the following January, we advise placing orders for a shorter (3-6months) term to cover immediate requirements.

Mexico : Lemon /Lime Production and Distribution (‘000 MT)

 

Orange Oil Citrus sinensis Harvest: August - September

Earlier this year there were concerns about a drought that could severely affect the orange crops in Mexico like last year. The sharp drop in crop size was almost 40%. By March, due to the Corona scare, there was a huge hike in fresh fruit consumption due to the perceived benefits of orange juice against the Corona virus.

Mexico produces Valencia, Lane Late Navel, and Navelina varieties, November to May being the key harvesting months. The 2020/21 figures of 2.53 million MT augurs well with orange production forecast to surge by 40%. This will help partially offset the dismal crop figures of last year. Unfortunately, lack of attention towards residual soil health and low producer investments in orchard rehabilitation, zero drought recovery efforts and no steps for pest mitigation continue to be challenges not likely to smoothen out in the next few years.

Due to the closure of the hospitality trade, a higher percentage of fruit will be processed. Improved weather conditions indicate a robust 2020/21 production forecast of 4.01 million MT, a 58% increase from last year.

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

During the last quarter of 2020 sales of coriander seed oil increased. Demand was more than supply in the hands of importers. Due to COVID-19 the pace of oil production and exports from Russia to the EU and UK were also taking longer. Prevailing market conditions saw distillers break existing contracts and form new ones with higher prices.

A dry winter and spring in southern areas of Russia resulted in low volumes of coriander seeds harvested in 2020 compared to 2019. Demand for coriander seeds from the spice industry is also strong. This has led to a spurt in the price of the raw material. Oil distillers are unable to procure seeds at prevailing prices. They feel the oil produced will not be able to fetch a price in the market that makes production economically viable. This trend has been ongoing for the past year as EU inventory has gone down.

 The situation is expected to continue till the next harvest in July-August. The oil from this harvest will only be available by September-October. At present demand for the oil is high, though the supply is limited. For the price to stabilise the coming harvest needs to be good.

Spikenard Oil Nardostachys grandiflora DC. Harvest: April - May

locations of Nepal. Transportation is a major challenge, and the areas do not house production facilities. As a result, currently a majority of oil production is being processed from raw materials procured in October last year. Over 1,500-1,800 kgs of spikenard oil has been produced in the last couple of years. Most of this product has already been exported. The government of Nepal has removed the CITES ban, which was in place for two years. Oil production is now going smoothly.

Timur Berry Oil Zanthoxylum armatum

The demand for timur berry oil is lower than wintergreen. Production numbers have come down due to the pandemic. Nepal has a capacity to produce around 10 MT of oil per year. This year production has been around 4-5 MT.

Wintergreen Oil Gaultheria procumbens Harvest: July - September

Due to the COVID-19 pandemic production of the oil has reduced compared to previous years. Nepal generally produces 16-18 MT of oil every year. This year production from Nepal is in the range of 10-12 MT.

Cabreuva Oil Myrocarpus frondosus Harvest: All Year

In keeping with past trends, crop production and availability of the oil are on track.

Guaiacwood Oil Bulnesia Sarmientoi Harvest: All Year

 Paraguayan farmers and distillers are unable to ship guaiacwood oil to the European Union due to the recent Cites EU SRG restrictions. The EU has undertaken specific field work and global monitoring for Bulnesia sarmientoi. With the outbreak of the pandemic, this was indefinitely delayed in 2020 and required a fresh infusion of funds to take it to completion. Work is expected to resume in 2021. Exporters have offered to extend financial aid but this seems to be a conflict of interest since it directly affects them. The Cites EU is scheduled to meet in March and hope is riding on this.

Petitgrain Oil Citrus aurantium Harvest: All Year

The production of petitgrain continues in full swing to meet existing demand. Whatever is being produced is shipped to keep up with the market. This slight strain on availability has pushed up prices week on week since January. March, however, is expected to bring some relief with improved availability.

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

The available crop has benefitted immensely from winter showers. The crop has grown well and the market is looking forward to improved production volumes of buchu oil this year. However, supply of raw material remains constrained. This has pushed up prices marginally and raw material prices have increased marginally.

Helichrysum Oil Helichrysum angustifolium Harvest: July - October

Helichrysum has found a niche in the market and demand has slowly inched up. South African weather conditions are conducive for round-the-year harvesting of the flowers. This year the weather has been good so far and early crop yield reports are favourable. The cooler months are approaching and this augurs well for the plants. Yields are predicted to improve and this oil is expected to do well in the market.

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

The weather gods in South Africa have been happy and as a result the lemon crop is set to be a bumper crop estimated to be 670,000 MT. Supplies of raw materials are expected to improve in the light of this crop. Consumption is also set to touch record levels along with exports. However, on the distillation and processing front, a decrease is on the cards because of the rise in exports and domestic fruit consumption. Market forecasts indicate a 19% shortfall of lime and lemon that will be sent for processing. Volumes of fruit for processing is predicted to be 145,000 MT in 2020/21 compared with 178,000 MT in the previous season.

Helichrysum has found a niche in the market and demand has slowly inched up. South African weather conditions are conducive for round-the-year harvesting of the flowers. This year the weather has been good so far and early crop yield reports are favourable. The cooler months are approaching and this augurs well for the plants. Yields are predicted to improve and this oil is expected to do well in the market.

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

Spain is a world leader in lemons and this year, too, lives up to its reputation as a provider of quality product. Spain ranks second in the global arena in lemon processing. About 25% of the total harvest is directed to processing into an array of products including juices, essential oil and dehydrated peel.

The lemon crop forecast for the 2020/21 season indicates a total crop size of 1.17 million MT of fruit. This includes 859,103 MT of Fino lemons and 311,164 MT of Verna lemons. The Fino lemon season continued on track and developed well into the initial four months of 2021. There was a healthy figure of fruit available on the trees. However, the commercial crop was significantly curtailed and this created pressure on the fresh fruit market. The Verna volumes look heartening with 2021 matching the last season’s figures. The crop is healthy and promises a steady supply during the summer months. Aggressive marketing will commence from May and Spain is all set to further reinforce its position as a key supplier to Europe.

There have been recent reports of Spanish lemon growers being unable to sell their production, citing several factors including reduced demand because of COVID, particularly from the food service sector, competition from imported fresh lemons, an excess of lemons available for processing and market prices being below production costs. Prices at origin for Fino lemons were quoted at 0.15 to 0.18 €/kg, with production costs of 0.20 €/kg. There are calls for the Spanish government and the EU to restrict fresh citrus imports to protect the Spanish citrus industry. However, AILIMPO (Lemon and Grapefruit Inter professional Association) argues that lemon production costs are between 0.12 to 0.18 €/kg and that overall income for the lemon grower will be positive. It points out that fresh lemon sales to the retail sector, which requires first quality fruits, have increased during the pandemic. However, in the food service sector, where second-quality fruit is often sold, demand for fresh lemons has been almost zero due to the restrictions on bars, restaurants and sales related to tourism in general. As a result, there is no market for second-quality fresh fruit, so the alternative is to send it for processing. Moreover, Spain’s lemon crop is 10 to 15% larger than last season and overall quality issues due to various negative climatic events including cold weather and wind have resulted in more fruit eligible for processing. In September when the season started, processing plants were paying higher prices due to the lack of fruit from the previous season. From December onwards, prices went down as a result of the large volumes to be processed. Moreover, processing plants still face serious problems to compete in the global market, where it is forced to lower prices in order to do business. Once the food service sector returns to normal and consumption in the retail sector consolidates then fresh lemon could reach record levels.

Cinnamon Bark Oil Cinnamomum zeylanicum Harvest: May - December

Raw material availability is expected to decline, since this is the off-season. This can lead to a spurt in the oil price till the next harvest. It is thus advised to plan in terms of requirements, and enter into supply agreements. At present there is a healthy global demand for the oil. Raw material availability is also not an issue, and the exchange rate is profitable for buyers.

Cinnamon Leaf Oil Cinnamomum zeylanicum Harvest: March - August

With cinnamon in off-season the price is expected to stay firm till April when the new season commences. Large volume orders should be planned in advance. Unlike previous years the cinnamon leaf oil price hasn’t fluctuated.

Citronella Oil Cymbopogon nardus Harvest: May - December

Competition from Indonesian citronella oil is adversely impacting the local industry producing the oil. Prevailing weather conditions with heavy rain are beneficial for the growth of the crop. This will enable good raw material availability, though with low demand in the market and weak prices, production has gone down.

Clove Bud Oil Syzygium aromaticum Harvest: January - February

Raw material availability is an issue. Also, Indonesian clove bud oil is posing price challenges for the Sri Lankan variety. The harvest in December was not significant, but this was on expected lines, as a good harvest happens alternate years.

Clove Stem Oil Eugenia caryophyllata Harvest: January - February

The local clove stem oil industry has been suffering due to the Indonesian variety. In the international market Indonesian prices are far more competitive. The crop harvest between November and January was not up to the mark either. Thus, the local price of the oil cannot be adjusted.

Nutmeg Oil Myristica fragrans Harvest: February - May

Given the competition from Indonesia, and abundant supply of raw materials, the price in the local market is expected to remain low. The year-end harvest is also complete and raw materials for procuring immature oil are readily available.

Grapefruit Oil Pink Citrus paradisi Harvest: December - April

Grapefruit production is expected to increase 7% to 290,000 MT. Due to the high production costs of grapefruit, farmers are not happy with the wholesale market price. With the high Vitamin C content in grapefruit, domestic consumption has increased due to COVID-19. This season grapefruit exports are expected to touch 200,000 MT, an increase of 8%.

Laurel Leaf Oil Laurus nobilis Harvest: January - April

Cosmetics and perfumery industries are major consumers of laurel leaf oil. The leather industry is also a significant buyer, considering its ability to remove the odour of leather.

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

Diseases, pests, input costs like fertilizer and labour, and marketing are the biggest issues plaguing lemon producers in Turkey. Cold storage is essential for export varieties. But high storage costs are also an issue. In 2020-21 lemon production is expected to increase to 1 million MT. A significant increase in the supply of Meyer lemons saw a sharp decline in its price. Many producers are now converting lemon orchards to cotton and banana plantations. There is high demand for lemon in foreign markets. Export volume is expected to increase 15% to 439,300 MT. Turkish lemons are mostly exported to Russia, Iraq, and Ukraine. Product residue is a big concern for exporters. Several shipments to the EU and Russia have been rejected due to high residue levels.

Orange Oil Citrus sinensis Harvest: November - February

Farmers are struggling with dual issues as far as the orange harvest is concerned. To prevent exposure to Mediterranean fruit fly, a lot of farmers are preparing to harvest and sell the product sooner than normal. The cost of fertiliser, fuel, and pesticide is also too high. This is making the process too expensive and unsustainable, as it doesn’t cover production costs. Unfavourable weather conditions like hot weather and northern winds will likely affect orange production. Yield is expected to drop 20% to 1.36 million MT. Consumption patterns too have seen a decline in the last three years, due to high price and low supply. Consumption this year is also predicted to fall to 1 million MT. In 2019-20 orange prices increased 50% due to a surge in demand following the COVID-19 pandemic. This 2020-21 season is also expected to see orange prices go up anywhere between 10-60%. As opposed to 2019-20, orange exports are expected to decline 10% to 263,000 MT.

Rose Oil Rosa damascena Harvest: April - June

The major consumer for rose oil is the luxury fragrance industry. Considering these products have seen a drop in demand during the pandemic, the price of rose oil has gone down too.

Tangerine Oil Citrus reticulata Harvest: April - June

tangerine varieties like Satsuma and Okitsu were affected by hot weather, though producers are not expecting a long term impact on overall yield. With an eye on exports, producers’ interest is shifting towards new tangerine varieties like Nova, Murkott, and Fremont. These varieties are considered more profitable. Due to the high production, domestic consumption of tangerine is expected to increase this year. Exporters are also exploring new markets with a special focus on European countries. They are expecting high demand from the EU, since Spain suffered production shortages due to COVID-19. Exports could increase up to 20% to 991,000 MT.

Thyme Oil Thymus vulgaris Harvest: June - August

Due to its antibacterial properties, the demand for thyme oil increased significantly. Last year, the oil price increased in the range of 50-70%. Thyme oil is an important product for industries like food, medicine, aromatherapy, poultry, and beekeeping.

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

Dill weed has been a consistent performer both in the North American as well the global markets. Dill weed as an agricultural product is strong and commands steady rates in the markets. The USA crop has been a robust one, though the Eastern European crop fell short of expectations. Stocks are depleted, and clients are requested to put in their immediate requirement so that seeds can be procured and grown.

Grapefruit Oil Citrus paradisi Harvest: December - April

The grapefruit sector is in disarray. Most of the crop has been damaged due to the sub-zero temperatures brought about by the winter storm Uri. March forecast for the total grapefruit production for the current season was projected at 13,800 million boxes but this number is expected to decrease because of the freeze in Texas which destroyed most of the crop. Florida’s grapefruit estimates put a figure of 4.6 million boxes, a 5% decline from last year’s figure. White grapefruit figures stand at 7,000 boxes, unchanged from the last forecast in January. Red grapefruit figures are poised at 3.9 million boxes. There continues to be a limited supply, especially of white grapefruit oil. White grapefruit trees are declining 10% per year as pink/red varieties are preferred by consumers. Prices continued to be based on nootkatone content and the typical 0.2% nootkatone material is difficult to find. Also, prices are based on the level of agricultural residues and there are new regulations in place for citrus oils.

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

US lemon production in 2020/21 is forecast at 25.9 million boxes, of which California accounts for 24 million boxes. This is down 1.6 million boxes on previous crop, which could be positive news since demand for fresh lemons has decreased because of COVID. Approximately a quarter of US production goes for processing.

Orange Oil Citrus sinensis Harvest: February - May

The US total orange crop for 2019/2020 crop fell 5% to 120 million boxes for a variety of reasons. COVID impacted both processing and harvesting reductions during Valencia processing. Weather conditions increased the “greening” impact, while Hurricane Hanna in July 2020 impacted the Texas citrus crop with up to 30% losses. Orange processing fell down 10% to 297,000 MT.

Production in 2020/21 is predicted to fall further to 109,000 million boxes. The total Florida orange crop is forecast at 55 million boxes, representing a 17% fall from last year’s crop size. Non-Valencia oranges are anticipated to be 22.5 million boxes which include the early, mid-season, and Navel varieties. At the time of announcing this it was found that 97% of the early and mid-season non-Valencia rows, excluding Navels, were harvested. The figure for the non-Valencia oranges also includes 600,000 boxes of Navel oranges. Valencia oranges, still in the initial phase of being harvested, are predicted to touch 33.0 million boxes though it is 1 million boxes fewer than earlier estimates. This time the fruit size is small and droppage is high. Californian orange production forecast for 2020/21 of 52 million boxes remains relatively stable. Texas comes in at 1.5 million boxes but future estimates may be lower because of the freeze.

Estimated USA ORANGE Production (‘000 boxes )

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

USA’s tangerines and tangelos forecasts remain unchanged from previous estimates. The crop size, including all certified varieties of tangerines and tangelos are expected to be at 1.05 million boxes. There is slight improvement from last season with a 3% rise in crop size.