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

Global lemon production has gone down, and Argentina has fared badly. This is primarily due to the weather playing truant and impacting the overall crop. This year’s predictions estimate a decline of 11% from 1.8 MT in 2018/19 to 1.6 MMT of fruit in 2019/20. Naturally, consumption and quantities earmarked for distilling are inevitably greatly reduced. India, Vietnam and China have opened up as new export markets for Argentina, in addition to its foremost market, the European Union, which accounts for two-thirds of exports. With these, this year’s export figure is projected to touch its zenith at 300,000 MT. However, with the decline in crop and large quantities of fruit earmarked for exports, the volumes of fruit channelled into processing is anticipated to be significantly reduced at 1.15 MMT, compared with 1.41 MMT in 2018/19.

Estimated Global Lemon Production and Processing for Selected COUNTRIES (x 1,000 MT)

 

Anise Myrtle Oil Syzygium anisatum Harvest: All Year

Anise myrtle still remains in restricted production with inflated prices. Efforts are on to increase production. Severe drought resulted in a low yield in 2020. Efforts are on to expand the areas of cultivation and increase production.

Buddawood Oil Eremophila mitchellii Harvest: March - October

Supply has been negatively affected by fires over the previous three months. Timber is being collected and production is ramping up again. However, there is low supply of timber due to adverse weather conditions. The good news is that demand is increasing significantly. There is increased usage in the fragrance industry due to the magnificent earthy notes of buddawood oil.

Eucalyptus Horistes Oil Eucalyptus kochii Harvest: April - November

Most of the established players are producing this oil by following continual crop rotation. The transportation of the biomass to the distilling units poses a huge challenge. This logistical hurdle is one of the important factors impeding endeavours to increase production of E. horistes. Though production remains steady, this logistical issue pushes up input expenses. Producers are unable to increase production; the available supply is just adequate to meet existing demands. The eucalyptol content may go down and average out to 80%. There are decent volumes in stock.

Eucalyptus Oil Dives Eucalyptus dives Harvest: July - October

A rising demand for this oil has placed it in the cynosure of the producers. The crop has borne the brunt of the drought which resulted in a low yield of oil. Plantations are being added, even as production continues at a modest scale with around 180 kgs of available oil. Working towards achieving greater production volumes in 2021, the producer aims to deliver 5 MT of oil with augmented capacities in 2022.

Eucalyptus Oil Staigeriana Eucalyptus staigeriana Harvest: July - October

This is another oil that is on a demand upsurge but is being produced on a rather humble scale. The oil output this year is rather disappointing because much of the crop growth was impaired by extreme aridity. The biggest essential oil producer in Australia is working towards increasing cultivation areas by adding more plantations to boost existing production. The yield from these is anticipated to come into the market by 2021.

Kunzea Oil Kunzea ambigua Harvest: September - January

The production of kunzea is a cottage industry restricted to the remotest parts of the continent. The plant is wild harvested; and sometimes in adverse weather there are negligible quantities of oil produced. However, one of the renowned players has taken it upon itself to promote the cultivation of kunzea via sustainable plantations; and is working to standardise the product. It is hoped that 2020 will witness more of this material coming into the market.

 

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

The quantities of natural oil available at the moment are quite insignificant. This is because the dry leaf, a coveted ingredient in culinary curation, fetches premium returns. This has been the impetus for several plantations to favour culinary dry leaf production over oil production. However, most of the numerous grades of lemon myrtle available in the market have tested positive for synthetic adulterations under the C14 scan. What is alarming is that the market is flooded with substantial volumes of this synthetic oil. In the backdrop of this situation, around 60 hectares of new plantation is being set up by one of the big names in the industry to solely focus on oil production. Production continues in full swing as the plantations come into operation. Stocks of superior grade lemon myrtle, however, are limited.

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

Lemon scented tea tree oil is native to and flourishes in the northern part of NSW. The producer is trying to increase the area under tea tree cultivation which will enable them to look at larger volumes of production. Modest volumes of about 350 kgs of oil are held by the producer at source, though production remains on a limited scale.

Rosalina Oil Melaleuca ericifolia Harvest: April - November

There are two distinct types of rosalina oil produced in Australia. The wild harvested botanical from the southern geographical origin shows improved genetics with marginal linalool content and higher cineole content; while its northern, plantation-produced oil shows vice versa characteristics. The southern rosalina also reveals a variegated chemical composition. Both these varieties are produced by one of the biggest names and the world’s largest suppliers of rosalina. The producer has successfully established additional plantations which have now started producing oil, and follows strict compliances for producing the northern (linalool type) oil. The growing areas were reeling under the effects of drought which hindered the procurement of biomass. Production this year is significantly lowered by the drought with only 300 kgs available in stock with the producer.

Sandalwood Oil Lanceolatum Santalum lanceolatum Harvest: March - October

Surprisingly, this botanical is widely considered a weed across Australian pastoral regions. It yields a unique, floralsweet yet spicy, woody aroma quite different from the other grades of sandalwood oils. This species is wild harvested in a sustainable manner, though the availability of wood for processing is currently at a low. At the moment, production remains secure and is sufficient to meet existing demands. A woodharvesting agreement by the producer is expected to iron out difficulties in procuring the wood for processing and increase supplies. The new harvest of stock is scheduled to come in in early 2020.

Sandalwood Oil WA Santalum spicatum Harvest: March - November

There is a healthy demand which is adequately matched by the existing stock levels on hand and steady supply. The production of this oil is set to be increased in 2020.

Sandalwood Vanuatu Oil Santalum austrocaledonicum Harvest: March - October

At present, the supply just fulfils the demand. The producer is working on procuring more stock so that a steady and secure supply can be established to meet the ever-growing demand for this oil. In keeping with the same strategy plantations are added and all efforts are being made to standardise the quality of oil.

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

It has been a catastrophic time for the tea tree industry. Not just tea tree but growth of almost all crops has been adversely impacted. Severe drought continues to negatively affect crop growth. Furthermore, bush fires have affected many tea tree farms in northern New South Wales. Several farms have been struggling to deal with the situation. Adding to this, floods have also affected most crops on the northern coast. The negative effects of the drought and fire mean the industry may see a reduction in crop this year. Golden Grove Naturals plantations have not been negatively affected by bush fires.

Demand for stock is starting to pick up after a six month period of low stock movements. The existing stock is limited. GGN has implemented irrigation on plantations under management. The production in the coming months is projected to increase.

White Cypress Oil Callitris intratropica Harvest: All Year

Australia has been grappling with the farreaching, disastrous effects of prolonged bushfires which has ravaged homes and plantations alike. Producers are still in the process of taking stock and trying to gauge where they stand, hoping that the wild harvested material earmarked for distilling is not too damaged. White cypress is garnering enough attention from the market; and so, demand has been on the rise. With sustained efforts to expand and augment the processing of this oil, a consistent and secure flow has been established. The oil is now ready to be offered to clients on a long term basis and negotiable pricing.

Orange Oil CP Citrus sinensis Harvest: July - December

Brazil crop estimates can be somewhat confusing because there is a one-year lag between the Brazilian Marketing Year (MY) from July-June, and the US MY, which is used by the USDA. Thus, the current Brazilian MY 2020/2021 is equivalent to U.S. MY 2019/2020. In the data below, the US MY is used.

The USDA predicts the new Brazilian orange crop in 2019/20 will be 370 million boxes (15.1 MMT), a massive 22% decrease as compared to the current crop. This estimate is somewhat below Fundecitrus’s last estimate of 385 million boxes. According to Fundecitrus’s 2019 greening survey some 19% of the commercial area in São Paulo and Minas Gerais is affected by greening, slightly higher than the previous year, although the spread of the disease has been relatively stable in recent years. The decline in ouput is due to climatic factors including warmer than usual temperatures and below-average rainfall after the first two blooms and fruit set in São Paulo State. It is predicted that production in São Paulo state and western Minas Gerais will account for 270 million boxes, while a further 100 million boxes will be from other origins. As a result, the total amount of fruits for processing will fall substantially. It is expected to be at 254 million boxes (10.4 MMT) which is 95 million boxes (3.9 MMT) less than in 2018/2019. According to initial estimates, most of the plants were scheduled to run until the end of February. However, in the wake of the reduced numbers, several of these have stopped production since most of the fruit will be mobilised for fresh consumption and exports. Meanwhile, fresh orange domestic consumption is lowered to 4.7 MMT, the lowest in 4 years. Also, the estimate of the current Brazilian orange crop (2018/2019) has been revised down from 494 to 475 million boxes (i.e. 20.15 MMT to 19.38 MMT). According to the IBGE this was mainly due to below average rainfall during late 2019 resulting in smaller fruit size and above-average fruit drop rates in São Paulo and western Minas Gerais.

Total Brazilian FCOJ 65 Brix equivalent exports for 2019/20 are forecast at 935,000 MT, a drop of 345,000 MT compared with 2018/19 due to expected lower availability of oranges for crushing in the upcoming season. Orange juice exports to the U.S. are likely to drop with the recovery of the orange crop in Florida.

With the decreased crop size and most of the volumes already accounted for, supplies are already dwindling. We expect prices to start inching up this year after historic lows last year.

USDA ORANGE Production and Processing for Selected COUNTRIES (x 1,000 MT)

Lavender Oil Lavandula angustifolia Harvest: July

Early field reports have brought to the forefront farmers’ reluctance to continue with the cultivation of lavender. If indications are anything to go by, most of the farmers will forego lavender and go ahead with other stable crops which promise better returns. The reason behind this is the extremely low prices commanded by inferior grade lavender oil that is flooding the markets now. Lavender is in excess, but there is an acute paucity of superior grade lavender oil. The new harvest is set to come in only by July. Till then it is impossible to procure good quality oil. The remaining grades of oil in the market are non-ISO and not up to the mark. Many are worried that this deficit could lead to prices shooting up after the fresh crop is available. It is advisable to book orders at the earliest if the quality is satisfactory since it is estimated that it will be a couple of years before lavender oil returns to its ideal price.

Rose Oil Rosa damascena Harvest: May - June

As with lavender, rose is an annual crop and there is not much happening on the rose oil front. The season for rose is May to June, so it is a wait-and-watch situation with not much to report. Growing conditions have been standard with fairly decent weather that is conducive to growth. Those who require rose oil have booked their orders early in summer.

Black Spruce Oil Picea mariana Harvest: May - August

The needles and twigs of the spruce tree are used for distilling oil which is again immensely popular. Though the black spruce is more cost effective in comparison to the white spruce (it requires half the distillation ratio of the black spruce), the market is rather tight and availability is constrained. Higher distillation costs coupled with a healthy global demand is bound to push up prices. Some of the major distillers are trying to promote white spruce oil, which is also an excellent product.

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

Canada’s long and austere winter took its toll on the crop. Harvesting and distilling was considerably delayed, especially after the extreme cold temperatures and early snowfall that hit the region. The entire production chain has been hit hard. Another problem that has arisen is that most of this oil has tested for substantially reduced levels of thujone and is below market specifications. However, a positive aspect is that the carryover stocks from the summer 2019 harvest, which was a good one, should see the market through until the arrival of fresh stock in June this year.

Fir Needle Oil Abies balsamea Harvest: March - September

Fir needle oil is becoming a favoured oil in numerous new applications. As a result, the demand has intensified but production is unable to fulfil requirements. The season was truncated with the onset of early winter and snowfall which hampered the crop and subsequent processing. Now, though, volumes of available oil are curbed, and prices have charted their way to reach USD64/ kg; producers are trying to distil more quantities by the end of the season.

White Pine Oil Pinus strobus

There is a lull in demand for this oil. Consequently, there are sufficient stocks and capacity to produce more in the eventuality of increased demand. It is priced at USD120/kg.

 

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

All the distillers have been badly affected by the USA and China trade war and are still reeling in the aftermath. Following the shift of natural benzaldehyde production out of China to Vietnam and the USA, the demand for Chinese cassia oil has plummeted. The prices for crude cassia oil extracted by the new method have seen a drop at the close of 2019. However, with the current situation in China due to the coronavirus, prices are expected to increase.

Citronella Oil Cymbopogon winterianus Harvest: June - December

The supply of good quality oil remains tight and stocks are inadequate. 2019 was not an encouraging year, so farmers were eager to sell their inventories before the Chinese New Year break. The Indonesian variety has emerged as a stiff competitor and this compelled Chinese suppliers to offer their wares at lower rates to remain competitive in the market.

ESTIMATED PRODUCTION OF CITRONELLA OIL

Eucalyptus globulus Eucalyptus globulus

The demand during the Christmas season is traditionally low and so it was this year too. Several of the factories and collectors tried to use this to their advantage by building up their stocks for the main upcoming season. As a result, there was a drop in the price of eucalyptus.

However, with the onset of the coronavirus the situation has become serious. With the closing down of factories and complete standstill of logistics, availability of raw material will suffer. It is natural that prices have begun to rise considerably. We hope that the situation normalises soon as with the current uncertainty raw material shortage is bound to happen.

Geranium Oil Pelargonium graveolens Harvest: May - September

With the advent of winter, the geranium crop is over. The 2019 stocks have been collected and prices have been set. At this point, the purity of the available geranium oil is somewhat below standard expectations of 5%. This is a usual phenomenon during January through to April. We expect prices to firm up for this product.

Ginger Oil Zingiber officinale Harvest: January - April

Ginger oil, like some of the others, is facing a lull in the market. Farmers displayed a bit of reluctance for distilling ginger in the coming season. Forecasts predict a low output and high prices in the new season.

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

The current available stock shows an oil content of about 64% by GC. Out of a total output of 650 MT in 2019, 100 MT was channelled into flavouring uses and 200 MT was the carryover after adjusting for price adjustments and sold inventory. Input costs for farmers are on the higher side. They are unwilling to sell at a lower price and therefore looking to wait it out for a later time when the market is expected to rise.

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

The supply of star anise leaf oil is limited. The marginal quantities that are making their way into the market are primarily oil obtained from the fruit and not the leaf. The leaf oil supply remains very tight.

Wintergreen Oil Gaultheria procumbens Harvest: July - September

The wintergreen oil market has plateaued out. Farmers did not show much enthusiasm for cultivating or distilling wintergreen in the coming season. Of late, the market has been rather subdued compared to some of the other essential oils from Yunnan; so naturally this may be the causal factor behind this nonchalance. As a result and also due to the current situation in China due to the coronavirus, prices are anticipated to firm up in the coming months.

Amyris Oil Amyris balsamifera Harvest: All Year

India is one of the largest consumers of amyris oil. However, the Indian economy is passing through an economic slowdown and there are no takers for replenishing the depleted stocks. These developments have greatly influenced Indian demand which has nosedived in 2019. In fact, the demand has fallen so drastically that many distillers who were using expensive fossil fuels to distil four to five batches of wood for fifteen days, had to shut down their operations. The bulk of amyris oil comes from three major plants in the Dominican Republic (DR), out of which two distilleries use waste wood biomass as boiler fuel. Thus, they are able to maintain reasonable operating margins. Much of the amyris wood makes its way into Haiti as contraband from DR, and Haiti remains a strong player by processing this material. However, distillers are unable to continue processing oil in the wake of civil unrest and political turmoil and the blockage of roads that hinders movement of goods. Production of amyris oil continues to take place sporadically. As inventories dwindle, the market is looking forward to a positive outlook in 2020 with the recovery of the Indian economy.

Aniseed Oil Pimpinella anisum L. Harvest: July - September

Considerable volumes of aniseed oil are available from producers, obtained from good quality, clean seeds containing 85% anethole. Prices are stable.

Basil Oil Linalool Ocimum basilicum L Harvest: June - September

There are limited volumes of good quality oil in stock but the market continues to be sluggish; and prices have eased out.

Chamomile Blue Oil Matricaria chamomilla Harvest: March - May

Industry analysts predict a small new crop since the demand for this oil has not been very encouraging in the last few months. There is enough carryover stock which is expected to tide over demand. However, most of this is over two years old and has deteriorated in quality and thus offered at very low rates. Good grade oil supply is limited.

Coriander Herb Oil Coriandrum sativum L. Harvest: January - February, June - July

The cultivated area for coriander has reduced from previous years. Availability became very limited and at high prices. Also, we know that cultivated areas are very limited this year. A further price rise is anticipated.

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

Cultivation of cumin is limited and as such there are very small quantities of oil available. Prices have started moving up.

Geranium Oil Pelargonium graveolens Harvest: June - July

A greatly decreased demand for geranium oil has led to a reasonably low pricing for this oil.

Jasmine Absolute Jasminum grandiflorum L. Harvest: June - November

Production has ceased since the crop season is over but the quality is nothing to write home about. The new crop season is scheduled to start in June and it is hoped quality will improve. Demand has fallen short of the anticipated levels, so there are certain quantities of carryover stock available.

Marjoram Oil Origanum majorana Harvest: August - September

Like some of the other oils, the demand for marjoram too has dwindled over the last few months. Consequently, prices have been more or less steady with a marginal increase.

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

At the moment production has stopped and will resume in March. Market forecasts predict a short demand despite an increased production. The availability of carryover stocks is welcome news but quality is inferior. Prices are anticipated to be lower than last season. However, there will be more clarity closer to the production season.

 

Onion Oil Allium cepa Harvest: April - June

Production of onion oil has almost stopped. The export of fresh onions has increased substantially, and consequently the price of raw materials has sky-rocketed. Industry watchers are unable to put a number to the price of onion oil, but one point is clear. A price reduction does not look likely. The market will wait and watch but indications point to on-demand prices that will factor in both input costs and availability.

Violet Absolute Oil Viola odorata Harvest: December - May

There is a healthy demand for this oil but producers are unable to fulfil requirements. Some new plantations have been added but the numbers are very limited and additional production is small. As a result, prices have escalated.

Clary Sage Oil Salvia sclarea Harvest: June - July

The market is stable. This is mainly due to the decrease in production because farmers were afraid that there will be less consumption because of the production of synthetic sclareol.

Lavandin Abrialis Lavandula hybrida var. abrialis Harvest: July - August

There is an excess of lavandin available as ready stock. However, farmers do not want to sell at the current low prices. Demand is diminishing because of fragrance reformulations from major players. Reformulations are happening due to major fluctuations in prices.

Cardamom Oil Elettaria cardamomum Harvest: September - December

Guatemalan cardamom is a seed-dominated market. November witnessed a sudden spurt in demand, but with a largely decreased harvest, the crop fell short of projected expectations. As a result, prices of cardamom pods spiralled by a massive 40%. It was hoped that January would bring a reprieve and prices would ease. However, the extreme cold weather played havoc with the crop, leading to delay in maturing and diminishing quantities of pods reaching the markets. In the already volatile market environment, prices rocketed sky-high, with a 20% increase, rather than firming out as hoped. In this unprecedented state of affairs cardamom prices are now riding a shocking, exorbitant peak of 30% above the historical maximum with no hope for softening in sight. It is challenging to predict the prices given the volatility of the market. It is advisable to take stock of requirements since it does not seem likely that prices will ease anytime soon.

Vetiver Oil Vetiveria zizanioides Harvest: February - May

The vetiver market witnessed a sudden sky-rocketing of prices in 2018. This price hike was fuelled by sudden interest from certain established companies. These bigwigs commercialised the vetiver growing region by mobilising farmers into associations of root producers and workers syndicates, undertaking intensive work for community development, and finally implementing ecological and ethical standards for distillation. Naturally, in a ripple effect this led to an increase in operating costs and a subsequent increase in prices. Now as the prices were moving up, dealers and stockists started building their inventories. 2019 saw prices plummet following a significant drop in demand. Dealer inventories at the moment are very limited; the market is hoping for a price resurgence in 2020 when the season starts in spring.

Basil Oil Ocimum basilicum Harvest: November - February

Though basil prices are stable at the moment, a slight increase may be on the cards. Adequate stocks are available with the producers.

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

The market has not yet responded to the paucity of raw material for black pepper oil. The supply of raw black pepper is under a bit of strain. Though the prices are still holding out, it will not be long before prices escalate if the situation does not improve.

Cardamom Oil Elettaria cardamomum Harvest: September - December

At present, the cardamom market is witnessing a slump in the availability of raw material. Prices are holding up, but this will not be for long. Rates are dependent on the quality of the oil; and clients are advised to put a hold on to their purchasing plans.

Citronella Oil Cymbopogon winterianus Harvest: October - February

Like some of the other oils the citronella market has been static for some time now. Recent reports indicate that prices will remain unchanged for a while.

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

This is one oil that is enjoying good availability. The quality of the oil is crucial since it affects the pricing. Surprisingly, prices are touching rock-bottom and so will only go higher from there. It is a good time to invest.

Ginger Oil Zingiber officinale Harvest: January - April

At present, there is a breather in the ginger oil market after a period of exorbitant pricing. Although some stocks are available, there is no pressure to buy. It will be smart to place orders only according to requirement and after prices ease out slightly.

Lemongrass Oil Cymbopogon citratus Harvest: July - November

Lemongrass oil availability is limited and therefore prices are inching upwards. Currently the market seems stable. Naturally, the better the quality the higher the price of oil.

Mentha Arvensis Oil Mentha Arvensis Harvest: July - December

The demand for Mentha arvensis products in the global market has declined but it is business as usual on the domestic front. Despite the lull in international demand, sentiments are positive led by strong price expectations. As a result, farmers are holding on to their stocks and releasing them into the market in smaller quantities in hopes of an imminent price rise. This year the stocking of mentha oil is up to 60% to 65% compared to 50% last year. Stockists are also expecting better price returns and are willing to hoard their goods for longer if it brings better returns.

Mentha Piperita Oil Mentha piperita

The international demand for Mentha piperita oil remains constant. However, there is a dearth of raw materials and prices are set to go up.

Moringa Oil Moringa oleifera Harvest: July - October

Moringa oil stocks are available since the crop season in ongoing. The market seems to be stable and prices workable

Palmarosa Oil Cymbopogon martini Harvest: January - June

Supplies of oil are available and prices of palmarosa have plummeted. This trend is continuing for some time. There are no indications that the situation will change any time soon.

Spearmint Oil Mentha spicata Harvest: July - August

Spearmint oil is following the same trajectory as M. piperita. The prices are on an upward swing while demand remains static. Current price is dependent upon the quality of the oil and the presence of carvone. Stocks are available.

Citronella Oil Cymbopogon winterianus Harvest: October - February

There is an unprecedented surge in citronella production despite it fetching lower prices in the market. This is because farmers are favouring citronella because it is simple to cultivate and easy to incorporate into the locally produced biofuel, that is ex-palm oil. Consequently, current supplies are much higher than the demand, and therefore prices have plunged. This is definitely not an encouraging scenario since it is not sustainable in the long term. However, it is predicted that the proactive work in developing infrastructure for better irrigation and improved distillation processes will enable farmers to explore production of other essential oil crops like patchouli, lemongrass and ginger, and practise crop rotation. This will even out the graph and enable producers to cater for the demand as required.

Clove Oil Eugenia caryophyllata Harvest: May - September

The much-awaited rains came at a time when many hectares of clove plantations were adversely desiccated and bereft of water. Prices of clove oil and its derivatives had hit the roof and were not sustainable. However, with the rains now in full swing in Java and Sumatra, there is a gradual fall in supplies of clove leaves and stems for distillation. Consequently, distillation has reduced. A firming up of prices is hoped for in the coming weeks, with some relief from its earlier rates. Van Aroma has augmented its capacity by doubling its production and is in a good position to offer eugenol in bulk volumes along with its derivatives.

Ginger Oil Zingiber officinale Harvest: January - May

Ginger consumption has increased by leaps and bounds. The Indonesian herbal beverage sector especially has witnessed a considerable rise in the usage of ginger. Corresponding to this sudden spurt in demand, the availability of biomass for distillation has taken a drastic plunge as stocks are exhausted and ginger can be harvested only two to three times in a year. Though the overall demand for the oil remains largely unchanged, prices of the Indonesian variety of ginger oil has escalated sharply and may firm up.

Nutmeg Oil Myristica fragrans Harvest: All Year

The nutmeg oil sector continues to be unwavering with almost no upheavals, both on the production as well as the demand fronts. The coming months are not likely to witness any change either.

Patchouli Oil Pogostemon cablin Harvest: All Year

Patchouli oil has become a coveted ingredient in the F&F industry. The Indonesian essential oil market is sluggish yet patchouli speaks of a different story altogether. It continues its dream run with steady demand and climbing prices; a stark contrast to other essentials in the Indonesian repertoire. Recently, there is a marked shift of crop cultivation from South East Sulawesi to Central and North Sulawesi. This has thrown the established supply chain out of gear and resulted in a highly volatile and irregular supply. Consequently, source pricing is in a state of constant flux. The next harvest season is around the corner in April. At the moment, most of the global buyers have already procured their stocks through long term contracts; this is predicted to have a positive stabilising effect on the patchouli essential oil market. Prominent suppliers continue to work towards establishing a more sustainable supply network that will benefit the sector in the coming decades.

Vetiver Oil Vetiveria zizanioides Harvest: January - July

The introduction of technology-backed distillation processes has led to a significant improvement in the quality of oil at source. As a result, end-users are being wooed back to the Indonesian variety of vetiver, and this augurs well for the industry. Currently, production and demand remain at an equilibrium. However, the signs are positive. The market is looking at a healthy increase in demand in the coming months, which will shake up the hitherto stable vetiver market.

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

In keeping with the pattern across most other origins, there is a radical fall in the price of black pepper oil. The current levels have touched a nadir in the last twelve years.

Clove Leaf Oil Eugenia caryophyllata Harvest: August - October

Clove is a good one this year with 10,000 MT of crop coming in. The repercussions of the trade war between China and USA are still being felt with the high taxation of vanillin and eugenol. Chinese manufacturers are reluctant to buy eugenol, and the current situation in China with the outbreak of coronavirus is alarming. All these have considerably impacted the overall demand. The clove crop is keeping farmers busy. All these factors put together, mean there is no distillation of clove leaves happening. Clove leaf oil is coming in from the fields in small quantities, a drum at a time. These limited stocks of clove leaf oil are commanding exorbitant prices. In comparison, Indonesia has had good rainfall leading to a healthy crop and large quantities of available stock. However, considering the disturbing situation in China, it is a tad difficult to make accurate predictions.

Geranium Oil Pelargonium graveolens Harvest: June - July

This year the geraniol content in the recent crop is quite low, a mere 6% compared to the usual 12%. Inclement weather with torrential downpours has adversely impacted the geranium crop. This has taken a toll on both the quality and quantity of the geranium. As a result, prices are not moving for Madagascar geranium, unlike some of the oils from other sources.

Ylang Ylang Oil Cananga odorata Harvest: February - October

Ylang ylang III constitutes a large portion that is almost 2/3 of the entire volume of the oil produced. There is nil demand for this oil and as a result prices of all the fractions including ylang III have plummeted. The market is in a stagnant phase. There are substantial volumes of stocks lying with the producers with no takers, especially for the low fraction oil. This implies that clients prefer to book the higher fractions since the prices are attractive. However, this turns out to be detrimental for the reduction of ylang III stocks. The challenge that arises from this situation is that distillers, stuck with ylang III stocks, stop production of ylang ylang altogether.

Lime Oil Citrus aurantifolia Harvest: May - August

The MY 2019/20 forecasts lime production to touch 2.4 MMT. About 52% of lime production in Mexico is Persian and 48% is the key variety. Veracruz state is the dominant producer of Persian lime, while for key lime, the state of Michoacán leads with Colima following a close second. The Michoacán grade of lime is harvested during winter, that is, December through February. Consequently, this lime hits the markets before its Colima counterpart which meets the demand from May through September. Oaxaca and other states cover the remaining year. The consumption figure is pegged at 1.2 MMT, marginally higher compared to the previous market year.

Mexico has been faced with severe drought conditions that will have an impact on the main producing areas of lime. Even though the forecast for the crop is slightly higher than last year, fruit allocated to processing will be less due to an increase in domestic consumption for fresh fruit. Current estimates suggest that approximately 395,000 MT of lime will be processed in 2019/20, a similar level to 2018/19.

Prices for lime oil continue to be firm. The increased use of fertilisers has been expensive for growers due to the depreciation of the Mexican peso against the US dollar.

 

Orange Oil Citrus sinensis Harvest: August - September

Oranges enjoy the lion’s share of cultivated area among all the citrus crops, around 344,420 hectares in 2019/20. Among the key orange belts, Veracruz is the prominent player with 50% of planted area and a record-breaking 55% in the last year. Other significant producing states include Tamaulipas, San Luis Potosi, and Puebla. Naturally rainfall and temperature play crucial roles in determining the quality and quantity of crop, and of course yield. Valencia oranges, Lane Late Navel and Navelina are the main varieties grown in Mexico, with Valencia being the most common variety. Harvested in May, these are juicy-sweet and the most prevalently produced variety in Mexico. It is used primarily for juice. The Lane Late Navel with its high acidic content, does not lend itself well for juicing. It is harvested in February and consumed fresh.

The Navelina, harvested in December, is versatile. It is great for consuming fresh and also used for juices; it is harvested starting in December. The MY 2019/20 predictions estimate the total orange production to be at 4.4 MMT. The Nuevo Leon, Tamaulipas and San Luis Potosi States are expected to produce better volumes compared to last year’s weather-affected crop.

Exports are pegged at 62,000 MT, a 3% leap from the figure of last year and fuelled by a strong international demand. Oranges for processing is estimated to be at a similar level to the previous year, with FCOJ production for MY 2019/20 forecast at 195,500 MT. Orange consumption in Mexico is quite unwavering since it forms an indispensable part of the Mexican diet. Exports too are on the rise, though oranges available for processing are more than sufficient.

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

Similar to dillweed, the clary sage crop was impacted by weather disturbances. The harvest and oil were largely reduced.

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

The coriander oil market has continued to run on a positive note. Prices have come down marginally towards the end of the year and demand and supply followed a healthy ratio. However, production of oil has stopped from January. The availability of good quality coriander seeds is limited; the volumes available for distillation are woefully inadequate and prices of seed are on the rise. This is putting strain on distillers as the cost of production is exceeding the current market selling price. There is no production at the moment; producers are waiting for the new 2020 crop to come in before production resumes in August. If demand continues to be encouraging, and there is sufficient availability of raw material for distillation, it is expected that market prices will escalate and meet the requirements of the producers at source.

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

Inclement weather affected this year’s dillweed crop. This coupled with a decrease in the area of cultivation across Eastern Europe has resulted in a considerably reduced crop size. Consequently, oil output was also not encouraging.

Blue Tansy Oil Tanacetum annuum Harvest: August - October

Organic blue tansy is almost impossible to procure. With the growing demand from aromatherapy players, the producers under pressure focused on an increase in production. As a consequence of these developments, there are sizeable volumes of adulterated stocks of oil that have made their way into the market, thereby effectively leading to a market crash in this segment.

Neroli Oil Citrus aurantium Harvest: April - May

The three important plantations are able to offer good quality neroli oil, and fulfil demand, which so far continues to trace a steady path. However, organic quality oil is scarce, so clients are advised to be careful about the numerous other qualities available in the market now.

Cabreuva Oil Myrocarpus frondosus Harvest: All Year

Despite restricted availability of this oil, the market scenario is healthy. With a decent crop and production industry watchers do not anticipate any scarcity in the coming months.

Guaiacwood Oil Bulnesia Sarmientoi Harvest: All Year

Paraguay farmers continue to receive their CITES permits from the 2019 quota even now. However, their Spanish importers have not yet received any authorisation for 2019 imports from the CITES office in this regard. The guaiacwood oil market seems to be in a good situation with excellent availability keeping pace with a robust production.

Petitgrain Oil Citrus aurantium Harvest: All Year

Carryover volumes of petitgrain oil are almost nil and exporters are scrambling to build their inventories. This year’s production is heartening, and the situation continued till around February. Despite the robust crop and oil production, prices remained steady.

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

Siberia witnessed massive bushfires last year. However, these did not affect the fir needle market. Since there was no disruption in availability, prices remain unwavering.

Pine Oil Pinus sylvestris Harvest: May - August

There is not much activity on this front since production is according to demand and requirement, so prices at the moment are quite stable.

Thuja Oil Thuja occidentalis Harvest: July - September

This is another oil which is produced only in accordance with demand, so prices and the market remains steadfast.

Eucalyptus Oil Radiata Eucalyptus Radiata Harvest: August - October

Conventional eucalyptus still commands a healthy demand the world over. The new plantation areas are operating at a good pace and producing ample quantities of oil. As a result, there are surplus volumes of E. radiata coming into the market. However, there is no equilibrium between the demand for organic E. radiata and stock availability; producers are unable to meet the unwavering demand for conventional, organic material, while demand for conventional material remains steady. Prices are in keeping with the levels of previous years.

Eucalyptus Smithii Oil Eucalyptus smithii Harvest: July - October

This variant of eucalyptus is fast emerging as an ideal substitute for Eucalyptus globulus, apart from its own wide-ranging applications. Thus, it continues to chart a gradual increase in terms of demand. New plantations have been added, and the supplemented production is able to adequately supply rising demand. The price of E globulus has fallen; so E. smithii is also under a downward pressure.

Grapefruit Oil Citrus paradisi Harvest: December - April

This year’s crop projection is set to better last year’s record with a healthy 8% increase. This year’s production puts the figure at an all-time high of 420,000 MT. The favourable weather conditions and additional cultivating areas have contributed significantly; and with bumper production and consumption then exports are predicted to touch new highs. Processing is predicted to increase from 115,000 MT in 2018/19 to 124,000 MT in 2019/20.

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

Many new plantations have come up in the last few years. These plantings are now bearing fruit and have come into full production. Along with good weather and the supplemented supply of oil from increased areas of cultivation, production is estimated to better last year’s figures. Production is projected to grow by 6% to touch 530,000 MT compared to the previous crop of 498,000 MT. With improved supplies and consumption, then fruit for distilling and exports is expected to reach record figures. An estimated 139,000 MT will be processed in 2019/20 compared with 135,000 MT the previous year.

Orange Oil CP Citrus sinensis Harvest: June - September

The weather showed signs of returning to its usual pattern. This, buoyed by the increase in the area of cultivation, augured well for the orange crop in South Africa. Farmers are anticipating a better crop than last year with the predictions pegging a jump of 4% at 1.56 MMT of oranges. Additional factors accounting for the growth in production include an expansion in hectarage planted with high yielding and late maturing varieties.The country accounts for one quarter of the world’s orange trade; and this year the export figures are pegged at a strong 1.3 MMT. The European Union is the primary market for South African oranges, seconded only by China. In 2019/20 it is estimated that 238,000 MT of oranges will be processed, compared with 299, 000 MT in the previous year.

Tagette Oil Tagetes erecta Harvest: June - August

The outlook for tagette seems very positive considering that the demand for the South African variety is quite heartening. The crop projections for the upcoming season from March to June anticipate a good crop and enough oil to fulfil this year’s demand. Prices are unremitting and are in keeping with last year’s graph.

 

Tea Tree Oil Melaleuca alternifolia Harvest: October - January

South African tea tree oil is slowly nudging its way into a favoured status for a plethora of applications that use tea tree oil. The demand for conventional tea tree is seeing a strong, surging demand, while demand for the organic variant remains steady. In fact, much of the 2020 crop of conventional tea tree oil has already been pre-booked.

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

The latest AILIMPO forecast in January 2020, following Storm Gloria, reduced its original crop estimate by 90,000 MT. The forecast for total production in 2020 is now 1,020,000 MT. This represents a 22% reduction on the previous season’s total crop which reached a record 1,300,000 MT. With this Spain leaves behind the record high of 2019 and returns to the normal average.

The revised estimate relates entirely to the Fino variety, which was reduced 20% from 820,000 MT to 730,000 MT, compared to 918,000 MT in 2018-19. The demand for the Fino variety is expected to be active from February onwards, while the Verna harvest is expected around April to June. The 2020 estimate for the late season Verna variety remained unchanged at 290,000 MT but was down 24% compared with 2018-19.

Some 20%-25% of the current lemon crop is expected to go to processing.

Cinnamon Bark Oil Cinnamomum zeylanicum Harvest: May - December

January witnessed a weakening of the supply of cinnamon bark as the season came to a close. This was a period of mounting prices, and the market is now looking forward to the arrival of the new harvest scheduled to come in by end of April. This is quite contrary to the last quarter when raw material was in abundant supply barring the few weeks of seasonal leafing. Seasonal leafing occurs when cinnamon peeling stops because it is difficult to separate the bark from the wood. There was no remarkable price hike considering the export rate was favourable for overseas buyers. Demand was also lower than usual. However, as the season closes and the availability of raw material wanes, a price rise is anticipated.

Cinnamon Leaf Oil Cinnamomum zeylanicum Harvest: March - August

The cinnamon leaf sector is in the midst of a price upheaval. The fall in oil prices led many farmers to withdraw from leaf distillation. The resultant lower oil supply has put upward pressure on prices, which combined with reduced availability of raw material supplies over the coming months is likely to push prices up. It is advisable to book your orders and fulfil requirements at the earliest.

Citronella Oil Cymbopogon nardus Harvest: May - December

Driven by weak demand, prices of Sri Lankan citronella were steady but remain unaffected. This is despite the fact that there was a surfeit of rainfall, more than adequate availability of raw material and healthy production. Javanese citronella continues to pose stiff competition for Sri Lankan farmers, which could be a probable factor behind the extremely low demand.

Clove Bud Oil Syzygium aromaticum Harvest: January - February

The reasonable prices offered by Indonesian farmers created quite a dent in the demand for Sri Lankan clove bud oil. In this context, there is quite an apprehension regarding demand in the coming year. Clove harvesting is ongoing but it is too early for prices to be fixed since increased demand from the spice export industry for fresh cloves is yet to be factored in. However, a price adjustment was imminent by February 2020.

Clove Stem Oil Eugenia caryophyllata Harvest: January - February

Clove stem oil prices have plummeted with the advent of abundant raw material into the supply chain. As a result of this and the new crop coming in, the sector predicts lower prices in the coming few weeks.

Nutmeg Oil Myristica fragrans Harvest: February - May

Indonesian nutmeg oil is available at lower prices and Sri Lankan producers are bearing the brunt of it. However, in the eventuality that Indonesian prices escalate, and the rains are favourable then the Sri Lankan market would benefit. The year-end harvest is now coming in though some inferior qualities of oil are making their way into the markets.

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

Turkey falls short in lemon production by a 9% decline to a crop production figure of 970,000 MT. Correspondingly, with the restricted supplies consumption and exports are forecast to go down.

Cedarwood Oil Texas Juniperus mexicana Harvest: All Year

In a recent incident six months ago, the oldest of Texas’ three important distilleries was ravaged by a massive fire. The plant suffered considerable damage and production was adversely affected. Consequently, available supplies are in deficit, which may push up prices. Ever since 2008, cedarwood oil Texas has been very stable on the price front. Prices increased marginally in 2009 following the economic recession but have maintained their position until the recent event.

Cedarwood oil Virginiana juniperus virginiana Harvest: All Year

Quite widely preferred by perfumers, there is enough demand for cedarwood Virginiana and it remains stable. The price at source is quite constant though the transacted volumes are much less than cedarwood oil Texas and China. Several widely-used chemical derivatives are also obtained from these oils.

Grapefruit Oil Citrus paradisi Harvest: December - April

The Florida grapefruit industry had been teetering but has gradually found its feet once again thanks to increased demand for a healthy option. The revival augurs well for the hitherto struggling grapefruit sector. The USDA report predicts a healthy crop figure of 5.90 million boxes of all Florida grapefruit. This is a marked climb of 0.5 million boxes from the December forecast, and if realised will be an impressive 20% increase from last season’s crop. What is encouraging is that the fruit size of both red and white grapefruit is above average at harvest, but projected damage due to droppage is also above average. Of this total crop figure, red grapefruit is projected to reach 4.50 million boxes, while the white variety escalates to touch 0.9 million boxes. California is projected to contribute 4.1 million boxes with Texas bringing in 6.2 million boxes. The states together bring up the total USA grapefruit crop to 15.7 million boxes. Supplies are adequate, and so there will be a cascading positive effect on consumption and demand. Exports are set to be higher with volumes of fruit apportioned for processing also increased. Grapefruit processing in 2019/20 is estimated at 6.85 million boxes, an 11% increase on the previous year, but substantially below levels of five years ago.

Orange Oil Citrus sinensis Harvest: February - May

Florida’s citrus farmers have been grappling with the severe effects of citrus greening for several years. This deadly disease has decimated many of the trees; operating and maintenance costs have soared significantly. 2018 saw Hurricane Irma wreaking havoc on the citrus plantations. However, following this long spell of difficulty, things have now improved with two consecutive years of bumper production. This has brought some relief for the citrus farmers. Exports and fruit for processing are predicted to rise with the production increase.

Considering initial indications in the growing areas, the recent 2019/20 USDA forecast estimates Florida’s total orange production at 74.0 million boxes with California contributing 49 million boxes. If the actual crop size achieves this milestone, it will overtake the previous year’s production by 3%. Florida’s Valencia oranges are predicted to be at 42.0 million boxes; while the non-Valencia varieties (early, midseason, and Navel) are projected to touch 32.0 million boxes. Out of these, Navel oranges comprise a figure of 800,000 boxes, making up 3% of the non-Valencia total crop. Despite a good crop projection, California beat Florida to bring up a production figure of 40 million boxes; but falls short in the Valencia category with 9 million boxes. These figures include calculations for average fruit per tree for both regular and first late blooms. The fruit size this year is considerably diminished for both varieties; non-Valencia oranges require 316 pieces to fill a 90-pound box. Fruit droppage is marginally higher than average and is projected to remain so during harvest as well. There has been a lot of damage through fruit droppage; 28% for non-Valencia oranges is quite significantly above average.

USDA ESTIMATED USA ORANGE PRODUCTION