Blue Cypress Oil Callitris intratropica Harvest: All Year

This fascinating, vividly-coloured, cobalt blue oil has captured the imagination. After numerous initiatives to increase production and processing, there is now a steady supply of blue cypress oil. With many new growers, there is now an established and reliable flow of stock of oil. Availability is tight over next two months; and clients are advised to book their orders at the earliest.

Buddawood Oil Eremophila mitchellii Harvest: March - October

The processing and production of buddhawood continues at a healthy pace. Several players are focusing their attention and effort towards ensuring a reliable supply of wood with a view to augment oil production. The coming six months look encouraging with oil production set to go up. One of the bigger producers has been working on maintaining continuous steady supply. It is heartening to note that in the wake of some new formulations introduced by some key players, the market has witnessed a rise in the enquiries for buddhawood oil. The segment has seen the rekindling of interest and is gaining traction in the market.

Eucalyptus Horistes Oil Eucalyptus kochii Harvest: April - November

Australia’s eucalyptus production continues to remain secure with sound production facilities and logistics in place. The established plantations continue to operate through implementation of crop rotation. However, this might affect the eucalyptol content, which may go down to an approximate average of 80%. What continues to pose as a challenge is the transportation of biomass to the distilling plants. This interferes with the seamless supply of raw materials, input costs and timelines. And consequently it affects the ability to increase production. In the current situation the supply is able to meet the demand.

Kunzea Oil Kunzea ambigua Harvest: September - January

The production of kunzea has not yet taken off in a big way. Wild harvesting takes place only in certain remote regions; and distillation is still on a humble scale. Naturally, volumes produced are low, especially this year, considering the extreme weather conditions. There is almost no oil available. One of the renowned producers is working towards establishing more plantations to increase cultivating areas and also standardise the product. At the moment, there are zero stocks, but 2020 promises a better picture with, hopefully, voluminous availability.

Lavandin Grosso Lavandula hybrida Harvest: July - August

The cultivation and processing of lavandin grosso in Australia is still in a nascent stage; and in its current avatar, resembles that of a cottage industry. As such there are no oil reserves available. However, it is heartening to note that some key players are taking the initiative to develop this segment, and have already started onground collaborations with growers. Similarly, lavender angustifolia growers are also being encouraged to come on board for essential oil production. Though of the two, lavandin grosso is expected to be more suited to Australian conditions.

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

This oil has been in a bit of trouble with large quantities of synthetic material infiltrating the markets. In fact, C14 tests have identified several samples with synthetic adulterations. The natural material is in low supply; therefore, quantities of oil are nothing to write home about. GGN has made significant effort and investment towards establishing a 60-hectare plantation to improve oil production and increase volumes. Compared to oil, the dry leaves offer better returns. This has shifted the focus of growers and most of the major plantations are moving towards dry leaf production to address the growing needs of the culinary industry.

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

The plant is indigenous to Northern New South Wales where production is rather limited at present. The distiller of note is GGN, the biggest supplier, but a company also involved in establishing plantation production at the place of origin. The previous stock is depleted and currently there is 300 Kg of oil on offer, though efforts are on to increase quantities.

Manuka Oil Leptospermum scoparium Harvest: All Year

The manuka industry has seen some upheaval. Currently, some stocks of the +25% b-triketone (MBk) material are available in limited quantities. After this stock is consumed, this material will not be replenished or produced. Instead, with the implementation of some changed product specifications, +20% MBk variant will be distilled. Stocks will now be augmented and available in the next season. As of now, prices remain stable.

Market price AUD 1045.00 /kilo (25% BTK)
Market price AUD 945.00 /kilo (20% BTK)

Rosalina Oil Melaleuca ericifolia Harvest: April - November

There are two specific varieties of Rosalina, Northern and Southern. The northern variants show an increased linalool and lower cineole content. As we travel southwards, the southern geographical sourced genetics display a contrasting rise in cineole with considerably decreased linalool component. Southern Rosalina is a wild harvest, and has proved to have a very mixed and varying chemical composition.

Rosalina production is small at present. Not only does GGN hold the major supply, but also the foremost position as the largest global supplier of Rosalina. Some more plantations are under way. 2020 is earmarked as a landmark year, when most of the areas of production will come online. Most of the plantation processing is located in northern regions with the wild harvested material available in the southern part. GGN implements strict standards for the Northern Rosalina. This year, the drought has adversely affected the biomass production resulting in damage. There is around 300 Kg of oil in stock but efforts are on to enlarge volumes.

Sandalwood Oil Lanceolatum Santalum lanceolatum Harvest: March - October

This sandalwood is quite unique from the other variants in the market. What makes it stand out is its distinctively sweeter floral aroma with spicy, wood notes. The species is considered a weed in the pastural regions. The wood is wild harvested and yields a good quality oil. Steady production has enabled distillers to meet the current demand. However, there is a scarcity of wood supply, and to mitigate this, GGN has entered into a collaborative wood harvesting agreement. There is zero stock of oil, but with enhanced processing the new batch from the season’s harvest is expected to hit the shelves in early 2020.

Sandalwood Oil WA Santalum spicatum Harvest: March - November

Not much is happening for this oil. With just about 100 Kg of oil as available stock, Australian plantations are gearing up to increase production and enhance stock levels in 2020.

Sandalwood Vanuatu Oil Santalum austrocaledonicum Harvest: March - October

A comparatively new entrant into the sandalwood market, work is still on to make this a viable product. Most of the plantations are engaged in improving their operations put in place to process an uninterrupted supply. This will enable them to secure ongoing stock and cater for the escalating demand for the oil. GGN in particular is working to establish new plantations and more intensively, on the product quality over the next year.

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

It has been a catastrophic year for the tea tree industry. The worst recorded drought hit the plantations and is still hindering growth. Not just tea tree but growth of almost all crops have been adversely impacted. Compounding the problem is the challenge of bushfires with many farms reporting complete burning down of plants. Though it is early to confirm, several farms have been struggling. Some, which have not been negatively affected by bush fires, have implemented irrigation under management to offset the effects of the drought in an effort to continue with their production cycles. At present, there is no stock available. Demand has been considerably low for some months, and consequently, stock movement has been low.

White Cypress Oil Callitris intratropica Harvest: All Year

Many of the plantations have been ravaged by bush fires. However, the exact extent of the damage to wild harvested raw material earmarked for processing is yet to be assessed; though it is hoped that the loss is at a minimum. The demand for this oil has been inching up gradually; and has provided an impetus for adding production facilities. Annual production too has been stepped up. With this, more reliable channels for supplies have been established and available for distillers. The producers are now in a position to fulfil long term contracts and are offering around 100 to 500 Kg of oil.

 

Orange Oil CP Citrus sinensis Harvest: July - December

A significant world player in the orange segment, Brazil’s citrus belt recorded abundant rainfall during the early months of 2019. This helped retain soil moisture and the trees to flourish. However, just at the beginning of the harvest, May turned drier and rainfall became scanty. Data from Somar Meteorologia reveal 111 ml of precipitation from May to August i n the citrus belt, a drastic 32% drop below its historical average.

The September 2019 Fundecitrus report forecast for 2019-20 season for São Paulo and West-Southwest Minas Gerais citrus belt puts the total orange crop at 388.42 million boxes of 40.8 kg each. Of this, around 27.14 million boxes are attributed to the Triângulo Mineiro region. The Hamlin, Westin, and Rubi variety of orange is pegged at 76.27 million boxes. Other early season fruit are expected to go up 1.16% to touch 19.98 million boxes. The figures for the Pera Rio stand at 116.2 million boxes; Valencia, and Valencia Murcha at 128.3 million, and Natal oranges are expected to notch up a crop size of 47.67 million boxes.

The harvest season is in full swing, though progressing slowly for the mid-season and late oranges. This is anticipated owing to the higher harvest volumes of the early fruit. The demand for orange oil has been declining in the global arena. The price of orange oil witnessed a historical low during IFEAT 2019. Even then there was rather slow movement in the market as clients were expecting prices to slide even lower. However, there seems to be an end to this situation as such low prices are not sustainable. Prices have been moving upwards and now is a good time to cover long term requirements of orange oil.

 

Lavender Oil Lavandula angustifolia Harvest: July

The average normal production of lavender oil in Bulgaria is around 300 MT. This year has seen a significant increase in both acreage as well as the volumes of oil extracted. Lavender has fared well with a robust crop production this year. Consequently, prices have taken a sharp fall by almost 40% of last year. At present, Bulgaria boasts more than adequate stocks of lavender oil at the farm level. On the market front, there are varied oils of differing qualities and prices are being quoted depending on the quality of the oil. With lavandin oil commanding much higher prices, the market hopes to mobilise the surplus stock, since it is being offered at more attractive prices. However, a large portion of the surplus lavender too, is of inferior quality.

Rose Oil Rosa damascena Harvest: May - June

This year the yields of rose oil have been lower but the costs of production higher. Though there are sufficient quantities of oil available in the market, this has ensured that there is no price correction on the cards. Prices for good quality rose oil remain at prohibitive levels.

Balsam Fir Oil Abies balsamea Harvest: April - November

Collected through wild harvesting, balsam fir oil is not available in large quantities. Canada produces just enough in limited quantities for a niche clientele.

Black Spruce Oil Picea mariana Harvest: May - August

Supplies of this rare oil is rather limited and prices are high.

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

Canada holds adequate supplies of this oil. The stock and quality are reasonably good; however, prices have hit a record low in the last decade. It is difficult to ascertain whether the current material will last till next season in June.

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

This year has not been a good one for cassia wood. Prices have fallen drastically and several producers still have not been able to sell their stocks from the first half of 2019. The harvest season is ongoing, but there are few takers for organising collection of cassia wood, twigs, and leaves from the mountainside. The factories too are reluctant considering many distillers engaged in processing the material from autumn will stand to lose money on their initial investments.

A glimmer of hope lies in the fact that the lower-priced stock from Vietnam has already been consumed. Consequently, attention has shifted back to the Chinese variant to fulfil global requirements. The outlook is positive since prices have inched up in the last couple of weeks.

There is an overall slowdown in the demand for other cassia oil isolated products like natural benzaldehyde, cinnamaldehyde. The flavour market for these has been sluggish. However, other derivatives like natural cinnamyl acetate, coumarin, and omethoxy cinnamaldehyde are witnessing healthy demand. There is limited supply of these, which has significantly pushed up the prices in a short time.

Citronella Oil Cymbopogon winterianus Harvest: June - December

There has been a sharp drop in price this year. This has been discouraging for farmers. They are reluctant to sell at such low prices. The price is not expected to fluctuate in future.

Eucalyptus Oil Eucalyptus globulus Harvest: July - October

China’s Yunnan province is famed for the eucalyptus tree and has quite a few plantations for oil extraction. Usually, the harvest is between July and September and between November and February. The year’s main crop season begins in November. Industry watchers are hoping for a healthy supply of raw material, accompanied by a slight easing of prices. Last year, there was an acute deficiency of raw material and prices had skyrocketed to touch the zenith. However, now the situation has eased out with steady raw material supply and a reduction in price. Though many of the farmers are not happy with these price points, citing that this is the bottom line for their production costs. However, the coming months will show how the dynamics pan out and what the situation is. In the eventuality that some farmers refuse to distil the leaves, there is a strong chance of a break in the raw material supply chain.

 

Garlic Oil Allium sativum L. Harvest: April - May

Pollution has been a major deterrent this year. The impact on the garlic crop has led to many distillers stopping production. Those who are going ahead with their plans of extracting garlic oil are doing so at their own risk. This oil, not as popular as ginger, does not command a robust demand. The industry is fervently hoping for an arrest in the ascent of garlic oil prices since production costs have already soared. With slack in global demand, prices remain steadfast albeit on the higher side.

Geranium Oil Pelargonium graveolens Harvest: May - September

Geranium oil has witnessed a stagnation in demand for some months now. This year the crop size is encouraging and the harvest will be completed by November. Some of the local buyers have placed orders for geranium oil as investments. With the coming of the end of the season in a couple of weeks, the crude oil price has started to climb.

Ginger Oil Zingiber officinale Harvest: January - April

The government continues to be strict in enforcing the environment policy. As a result, several factories in China’s main oil producing regions have decreased their production and have been bound to increase input costs to meet the new compliance standards. However, the next three months augur well. Going by past trend, the Chinese New Year, which is now imminent, witnesses the strongest demand for ginger root. Despite reasonably good demand, the prices of ginger root are a tad subdued compared with past weeks. As per the initial reports, the new crop does not meet the predicted output levels.

Jasmine Oil Jasminum sambac Harvest: March - October

Quite delicate and among the most beautifully fragrant flowers, jasmine requires meticulous planning in its cultivation. China’s Hengxian Country in Guangxi is home to about 108,000 acres of jasmine plantations. They produce about 90,000 tons of flowers and around 70,000 jasmine tea. Abundant sunshine, sufficient rainfall and selenium-rich soil makes a perfect team for jasmine. It is strictly monitored by the government. Compared to last year, prices have reduced.

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

The natural citral market, like many other commodities, has been impacted by the trade tensions between USA and China. Last year the berries were severely damaged by more than usual rainfall. This year too there was more than abundant rainfall; but fortunately it did not destroy the crop. However, the copious rainfall did have the effect of lowering citral content in the litsea berries. Initial reports indicate a good crop on the lines of last year. Last year’s limited amount of carryover oil will be a tad cheaper than the fresh stock of this year due to an increase in labour costs. Demand remains constant and strong and therefore prices are expected to firm up. It is advised that requirements are booked at the earliest.

Magnolia Flower Oil Magnolia alba Harvest: February - June

The Chinese tea industry is soaring. It generates considerable demand for fresh flowers like jasmine and magnolia, favoured ingredients used to enhance the flavours of tea. Usually harvested over two crop seasons, the spring harvest takes place from mid-May to end of June; followed by the autumn harvest. The autumn season has commenced and is on track to be completed by the middle of next month. This year, with the mounting labour cost for picking the flowers, prices of the fresh flowers too have escalated by at least 10%. Considering the higher input costs this year, current prices for magnolia flower oil is comparatively on the lower side. It is hoped that the coming of the fresh batch from the new production will buoy the prices to a suitable level.

Neroli Flower Oil Citrus aurantium Harvest: April - May

Neroli is harvested in May and though we are at the end of the year, supply at the moment is rather restricted. However, pure natural neroli oil can still be found. The prices of 100% pure Chinese neroli oil have jumped up considerably by around 15 to 20%.

Osmanthus Oil Concrete Osmanthus fragrans Harvest: September - November

Rising temperatures and aridity in the flowering regions have decreased the osmanthus crop considerably. Production also has not met expectations. The harvest season for fresh flowers is ongoing. Last year’s stock of absolute and concentrate is almost depleted. This year’s fresh osmanthus flowers will have to be stored over time for the fragrance to improve. Thus, the oil will be available only around March. The Chinese tea industry is on an upswing, and is making a beeline to procure fresh flowers to make the most of an opportunity to buy at lower prices. In the present situation, prices are at par with last year’s rates. However, in view of the soaring demand from the tea and F&F industry, the possibility of a price hike for the new material is not ruled out. Clients with ready requirements should book orders at the earliest.

Roman Chamomile Oil Chamaemelum nobile Harvest: November - January

China’s total production of Roman chamomile was significantly small this year. Demand from the domestic aromatherapy and cosmetic industry continues to rise. In addition, China fulfilled some international orders of note from clients seeking this oil at competitive pricing, which has depleted most of the available stock. The much awaited new crop of the next season has rallied prices. Hopes are riding high on further climbing of prices.

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

The weather in spring was not at all conducive to the growth of the star anise. The crop was seriously affected and so was the harvest. This year, the price of the anise fruit peaked to reach its highest in the spice market with minimal quantity earmarked for distilling into oil. Traditionally, the autumn crop brings in new volumes of oil, but this year the autumn harvest was scooped up by the spice market. Star anise leaf yields much less oil so there is no incentive for farmers to cut leaves and twigs in order to distill the oil. For some time now, there is a paucity of supply of star anise, available oil and natural anethol reserves are very few. As a result, prices have been on an ascent from the beginning of the year.

Tea Tree Oil Melaleuca alternifolia Harvest: May - August

This year Australian tea tree plantations have been ravaged by inclement weather. The prices have been constantly increasing. Correspondingly global demand for tea tree oil too has been on the upswing. Chinese tea tree oil has filled the void left by the shortage of its Australian counterpart. The prices of Chinese tea tree oil are stable, however there can be quality issues as compared with Australian origin.

Valerian Root Oil Valeriana wallichii Harvest: September - October

For some time now this oil has not fetched good returns, and this has caused several farmers to abstain from cultivating it. The crop production was much lower than last year. In terms of demand, global demand fell but demand in the domestic medicine segment rose remarkably. This eased out the equation and now supply is able to match the demand. Market prices are stable, and superior grade valerian root oil is available.

Wintergreen Oil Gaultheria procumbens Harvest: July - September

This is a difficult plant to collect, and that has increased input costs. When prevailing selling prices did not meet expectations, several farmers started hoarding stocks in the hopes of a higher selling price. It has become difficult to zero in on reliable sources for the crude oil, especially in the light of adulterated and blended variants making their way into the markets. The demand for 100% natural wintergreen has fallen; but it is hoped that with the surge of the market, prices will move up. There are some limited stocks of oil available; and those who require should consider booking orders now.

Helichrysum Oil Helichrysum angustifolium Harvest: July - October

This plant, though sold by Bulgaria, has not really made much of an impact among the farming community. It is wild harvested in limited amounts. This has led to growers favouring other conventional crops in an effort to garner a stable price and margins on their investments. The situation remains a little sensitive since the distillers are reluctant to commit to this kind of a payment structure since the market is extremely volatile and speculative.

Basil Oil Linalool Ocimum basilicum L Harvest: June - September

Basil linalool is also among the key products that have put Egypt on the world map of aromatic essential oils. Last year saw a huge spurt in demand and a consequent boom in the quantities of oil produced. However, it is the quality of the oil that plays a vital role in influencing the dynamics of the basil linalool market. The main area of production is Beni Suef. This season has opened well, albeit with a lower demand than last year. There were some issues with the quality last year. Though challenges persist, the quality has improved remarkably. Oil production has touched 25 MT this year. The true basil grand vert 50% linalool is scarce and remains rather expensive. However, large volumes of the mutated type with 42% to 45% linalool are easily available. Last year, the prices fetched by basil were not up to expectations. This is the nudging factor for the reduced basil plantings this year. The market is hopeful about the carryover, which is expected to prevent prices from soaring.

Chamomile Blue Oil Matricaria chamomilla Harvest: March - May

Over the last few years, Egypt has matched blue chamomile oil from Hungary with lower chamazulene content and attractive prices. Most plantations are concentrated in and around the Fayoum region. Despite being a popular ingredient in dried herbs and spice and used extensively in essential oils production, demand has fallen considerably. In addition, the crop has been a loss-making venture with appalling performance in the last two consecutive seasons. Farmers have had to bear the brunt of severe losses almost 30% less than their cost prices. Needless to say, this year, distillers have produced very little oil; the entire country’s production stands at 2.5 MT compared to last year. The number of new chamomile plantations in the new season will be nothing to write home about. The carryover stock from last year is expected to have a steadying effect on prices, which are predicted to maintain their current levels.

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

Another vital ingredient in Egypt’s essential oil portfolio, cumin production remains steady and stable. This year production is 20 MT of oil.

Geranium Oil Pelargonium graveolens Harvest: June - July

The country’s star performer in terms of essential oils, geranium is also Egypt’s largest selling oil. The Beni Suef region accounts for most of the production and is the main growing area with one of the larger companies recording a turnover of 80 MT oil in 2019. Egyptian geranium has been steady in performance and has made quite a niche for itself. This year started on a very positive note with indications of a healthy crop estimated to touch 180 MT. With optimum weather conditions throughout the year and a robust crop, yields were good with 260 to 280 MT of essential oil. The month of May witnessed large quantities of geranium being produced, leading to a downslide in prices. October is the planting season. Work has commenced in full swing, and over the last few weeks demand has inched up. This has pushed up prices somewhat, albeit lower than what was hoped for. If prices are maintained at these new levels, it could influence the farmers to plant more geranium.

Jasmine Absolute Jasminum grandiflorum L. Harvest: June - November

Active plantation drives have contributed largely to the increased volumes of flowers produced over the last few years. Egyptian quality jasmine is much appreciated by perfume connoisseurs for its floral notes, and is a preferred ingredient among perfumers. Out of Egypt’s current production of 6 to 7 MT of jasmine concrete, one of the leading names contributes the lion’s share of almost 4 MT. Currently, the jasmine season has just concluded and production is pegged at 7 MT. Demand has already escalated; and there were apprehensions of a price rise. However, carryover stocks will help arrest any price hikes and keep prices at par with the previous year. On the flipside, the increased prices of both jasmine concrete and absolute have prompted some producers to accept inferior quality of flowers in order to keep production costs at a minimum and offer oil at lower prices. This could have a negative effect on the market.

Marjoram Oil Origanum majorana Harvest: August - September

Marjoram plays a significant role in Egypt’s aromatic raw material industry. Used mainly in the dried herbs and spices industry and essential oils production, marjoram plantations are located in Fayoum and Menia. This year’s production of marjoram stands at 15 MT.

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

Over the years, neroli has grown to attain stability and garnered sustained attention for planting and marketing. With more weather stability, concerted efforts and better pricing strategy, Egypt has gained an edge over other neroli-producing nations. Egypt has been encouraging planting of trees for several years now. These are flowering early and as they grow so neroli production is also reasonably good. This year Egypt delivered around 1.7 MT out of which around 1.3 MT was contributed by one of the renowned players in the business. However, though the quantity of oil produced went up, the quality was somewhat compromised. Once brought to the notice of some renowned distillers, systems were put into place for better control over the quality of blossoms accepted for oil extraction. There was also an influx of some inferior quality carryover oil, which was suspected to be adulterated. This was being marketed at significantly lower prices; so here is a word of caution not be tempted by cheaper rates. In 2019, the market witnessed a rise in demand for neroli and estimated production of 2 MT of oil. However, weather played spoilsport and the resultant yield of oil from flowers was very low. Even with this low yield we still produced more oil than the previous year. The estimated production is around 1.6 MT. There is a boom expected in production in the upcoming 2020 season and the years ahead, while prices will be on the low side for the coming years.

Petitgrain Mandarin Oil Citrus reticulata Harvest: October - January

Widely used in the flavours industry, Egypt holds the leading position in petitgrain mandarin production. The Egyptian mandarin variety is available in large quantities due to the plethora of trees. Oil extraction is largely dependent on demand predictions. The average production hovers around 40 MT, although larger quantities could be produced if the demand can be estimated 2 to 3 months before the season commences. In fact, the production swelled to 55 MT in 2019. Currently, petitgrain mandarin commands stable pricing.

Cardamom Oil Elettaria cardamomum Harvest: September - December

Cardamom supplies continue to be strained especially in the festive season. Crop production has also been much lower; and any excess supply of seeds was consumed by the surge in demand during the holy month of Ramadan. As a result, cardamom oil too is available in limited quantities.

Lemongrass Oil Cymbopogon citratus Harvest: July - November

Prices of lemongrass oil have plunged due to a robust crop; and the easy availability of synthetic citral. The market for conventional lemongrass oil is rather subdued.

Mentha Arvensis Oil Mentha Arvensis Harvest: July - December

The export data analysis for the first quarter of this financial year shows high volumes of menthol, an impressive 7,000 MT of menthol exported from India. Considering this, the market estimates a pro-rated figure of 21,000 MT in a year. India generally clocks around 17,000 MT menthol exports on average, so there are implications of a slump in demand. There is also an influx of synthetic menthol from some well-known Malaysian and American players. Some more material from a second cut production from Madhya Pradesh and the East Uttar Pradesh area has hit the market in November. This will definitely go a long way in easing the supplies. Though the market was quite stable in terms of mentha oil prices, slack demand has led to declining prices of menthol powder and menthol crystals.

The government’s income tax exemption on cash transactions has come as a welcome relief, leading to a buoyant market and confidence running high. With the current scenario, it is hoped that menthol prices will soften over the coming three months. DMO prices are gaining momentum and will support the weakening menthol market. Though there is no reason for a drastic upheaval at the moment, it is expected that 2020 will witness considerable turmoil. The industry is predicting a healthy crop size and a sizeable carryover stock. Clients are advised to book their requirements.

Mentha Piperita Oil Mentha piperita

100% unadulterated Indian peppermint commands a high price. This is equivalent or close to what American farmers charge for their produce. Consequently, there is a perceivable decline in demand for Mentha piperita; and the market has not witnessed much change. The somewhat soft demand is not enough to influence upward price movement; and neither any downward pressure.

Palmarosa Oil Cymbopogon martini Harvest: January - June

The supply of organic palmarosa oil is adequate to satisfy existing demand. Consequently, there are no price fluctuations and the market remains more or less steady. The market for conventional palmarosa is rather low.

Spearmint Oil Mentha spicata Harvest: July - August

The Indian spearmint crop is slightly lower than last season. A fall in demand has led to a lowering of prices somewhat. Additionally, a corresponding reduction in prices of      d-limonene has cut down the price for synthetic L-carvone even. However, the decline in the spearmint crop is not by a significant margin; and is not expected to have a drastic effect on prices.

Citronella Oil Cymbopogon winterianus Harvest: October - February

Indonesia has increased planting areas with several new cultivations in the Kalimantan region. Naturally, this will boost the volumes of domestic essential oil production. Over the last few months, prices have plummeted to touch rockbottom across Sumatra as well as Java. Stakeholders hope these rates will hold; there seems to be no chance of a further drop. If prices were to fall further, citronella would cross the economic break-even point, and would no longer be a viable business option.

Clove Oil Eugenia caryophyllata Harvest: May - September

Clove is extremely sensitive to the vagaries of weather. That is why climatic conditions during the growing period are major influencers in dictating the market trends for clove oil prices. This year most of the harvest for clove buds has come in. Though some regions of Sulawesi are continuing their bud harvest, in many areas the farmers have closed the bud harvest and are focusing on stem and leaf distillation. Prices are bottomed out for all clove oils, eugenol, and eugenol derivatives. Clove stems and leaves have been in steady supply and this has enabled prices to bottom out. The situation is expected to continue over another couple of months before holding up again.

Massoia Bark Oil Cryptocaria massoia Harvest: September - May

The massoia market is facing a severe crunch in terms of raw material availability. Over-harvesting in some areas and political turmoil in the West Papua region has led to challenges in raw material procurement. Consequently, there is a drastic drop in the supply of massoia bark. Van Aroma is actively involved and leads the industry’s collective endeavours in exploring sustainable options to establish a fully traceable supply chain for this product. However, this oil has been at the centre of controversy and this has affected output volumes. Initial market reports indicate an imminent acute scarcity of massoia bark oil and therefore the lactones. Most essential oil prices have fallen to their nadir, except for a few ingredients. The shortage of these is constantly pushing up the prices.

Nutmeg Oil Myristica fragrans Harvest: All Year

One of the biggest hurdles of nutmeg oil extraction is the purity of the raw material. Of late there have been increased percentages of methyl eugenol and safrole compared to earlier years. Van Aroma is among the few who offer low methyl eugenol, and safrole free variant of nutmeg oil. Prices for the oil remain comparatively stable at source.

Patchouli Oil Pogostemon cablin Harvest: All Year

Indonesia has not witnessed any new patchouli plantations of late, thus the total production volume has diminished. Now most of the patchouli fields are located in the region spanning from central Sulawesi to the south-east part. The weather is swinging from one extreme to another – the heavy rains have given way to extreme aridity with drought-like conditions. There is still some time for the next harvest which is about 4 to 5 months away. The market is anticipating a shortfall in supply in the coming weeks. Prices are on an ascent but are expected to firm up over the next few months.

Vanilla Vanilla spp. Harvest: August - September

Indonesia’s natural vanilla production continues to expand as the market moves from a seller’s market to a buyer’s market. Assuming no climatic disasters, production in 2020 is estimated to be at least 200 MT, mainly of lower grade extraction quality product. However, the situation is complicated by imports of better quality, partially cured vanilla from neighbouring Papua New Guinea, which is then further processed and re-exported. Despite Indonesia’s rising output, it is likely to be replaced by PNG as the world’s second largest vanilla producer, where production is forecast to rise to 250 MT. Meanwhile, Madagascar continues to dominate global production with 2019 production estimated to range between 1,100 – 1,200 MT. In some origins, including Indonesia, prices over the past year have fallen by 40% – 50% from the record highs of USD 600/kg. Indonesian exporters are continuing to aggressively discount prices in order to maintain sales. Nevertheless, a collapse in vanilla prices to levels below USD 40/kg, seen between 2004 and 2011, is not anticipated. However, because of the anticipated further decline in prices many major buyers are thought not yet to have covered their 2020 requirements.

Vetiver Oil Vetiveria zizanioides Harvest: January - July

Rainfall in most of the vetiver growing regions is imminent. This will definitely be a boon for the plants and eventually better quality of yield. In fact, with gradual improvement in quality, the Indonesian essential oil is now at par with the Haiti variant. The conversion into oil is rather time-consuming; but with the recent efforts of distillers there is a marked improvement in the odour profile. Indonesian vetiver is now being recognised and is the preferred oil of many end users. Price predictions anticipate firmer rates in the coming months.

Bergamot Oil Citrus bergamia Harvest: November - March

The outlook for bergamot is discouraging; and the crop considerably smaller than last year. The advent of summer also brought bad weather, which resulted in damage to almost 40% of the flowers in the area of Reggio Calabria. Furthermore, considering the fresh fruit market which absorbs 10 to 20% of the total crop, consumption is still not over. For oil extraction, the green fruit is conventionally processed, followed by the yellow bergamots end- November onwards. This year, around 10,000 to 13,000 MT of fruit is expected to be processed. In view of the high demand for essential oil, especially the organic variety, prices are predicted to remain high.

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

Italy’s total lemon production is estimated to be around 380,000 to 400,000 MT, lower than last season’s crop. The fall in crop size is due to severe aridity which led to major spoilage of the flowers. As always, the amount of crop available for processing will be determined in part by the volume of fruit sold to the fresh fruit market, which is growing and dominates lemon use. Other factors influencing the quantity of lemons processed include the buying price offered to the cooperative growers by the processors, along with the currently depressed prices of lemon oil and other lemon products in other producing countries, especially Argentina and Spain. In addition, carryover supplies of juice as well as oil are likely to delay processing. Currently, it is estimated that approximately 120,000 MT of fruit will be processed, with a probable 120,000 MT – 140,000 MT likely to be available for processing.

Last season, Italy earned the distinction of commanding the highest price in the world for lemons for processing averaging €280/MT. Not only was this the highest, but it was thrice the average price of Spanish lemons which fetched between €80-€100/MT. However, Italy does have the advantage of being able to process lemons for 9 to 10 months of the year.

Fortunately for Italy, Sicily holds the dominant position for organic lemons. This relatively small sector is rather resilient in terms of recessionary impact although less is likely to be processed due to some carryover. Overall yields of juice and oil are anticipated to be normal and with the smaller crop, quality will be excellent. Prices are expected to be more or less stable. Globally lemon product prices are depressed and are predicted to remain relatively stable at these levels.

Mandarin Oil Citrus reticulata Harvest: February - May

The season for mandarin in Italy has begun; and the first of the lot will be the green mandarins which will be processed. The other mellower and ripened mandarins will be processed a bit later, around January onwards. Italy is witnessing its second consecutive poor mandarin crop. This is because there is a marked apathy towards renewing the old plantations by way of new investments. Less green mandarin means less ripe mandarin and, as a consequence, the result could be a reduction of availability of red mandarin for the industry. In addition, if the fresh fruit market is booming, then it poses another challenge since it implies less fruit for the processing industry. The total crop is estimated to be around 22,000 to 25,000 MT. Total production is expected to touch 25,000 MT, a 20 to 30% reduction from last year’s production figures. Usually 10,000 to 15,000 MT are earmarked for processing into oil. There is anticipation of a price hike due to the smaller crop, as well as poor carryover for both juice and oil.

Market price Euro 77.00 /kilo (Red) 
Market price Euro 82.00 /kilo (Yellow)
Market price Euro 83.00 /kilo (Green)

 

Orange Oil CP Citrus sinensis Harvest: March - May

An exceptionally dry summer followed by unprecedented rainfall in the last few weeks has affected the entire citrus crop this year. Blood oranges in particular, are an extremely sensitive and delicate cultivar and easily affected by weather fluctuations. As a result, the total orange crop is pegged at 650,000 MT, and a reduced figure of 350,000 MT for blood oranges, and 300,000 MT for blond oranges. Initially the forecasts were encouraging for the first crop. The atypical weather that followed impacted the trees causing irreparable loss of blossoms during the summer. Consequently, for the third consecutive crop, the total volume of oranges produced is equivalent to the previous crop and almost 20 to 30% less than normal. In addition, the fresh fruit market consumption – an eternal tug-of-war between the fresh market and processors – will finally affect the ultimate crop size. Industry pundits predict around 100,000 MT of blond oranges and 160,000 MT of blood oranges will make their way to being processed. Once again, the prices of orange will soar and the ‘battle’ for procuring raw material has begun. The distinctive NFC blood orange that Sicily is famed for and leads world production with an 80% share, has been insulated from these developments. Robust production is balanced out by hearty demand. In the eventuality that production is affected or decreased, the price is sure to shoot up. Less value for orange essential oil implies a less than optimum recovery; and will have a ripple effect on the prices of NFC and concentrated blood orange juice.

Yuzu Oil Citrus junos Harvest: November - January

Traditionally yuzu peel is used in special condiments such as yuzu kosho. Usually around half of the total yuzu peel produced was channelised towards this purpose, with the remaining 50% used for extracting essential oil. However, of late, Japan has witnessed a spate of enquiries, and thereby a spurt in demand for yuzu peel. It is featuring in several new applications, as indicated by the general boom in demand. Recently, France announced the availability of frozen yuzu peel for sale. This is indicative of the growing trend of yuzu peel usage in a plethora of products though there are still takers for yuzu oil.

Vanilla Vanilla planifolia Harvest: August - September

Madagascar continues to dominate world natural vanilla production, usually accounting for at least threequarters of global annual production. In 2019, Madagascar’s production is estimated at between 1,100 to 1,200 MT, down 20% to 30% on 2018 levels, but higher than originally forecast, in part because of the optimum weather conditions. The very high prices of recent years have led to concerns regarding quality, in part because of early picking alongside inadequate curing, including the development of quick curing vanilla practices. The latter not only reduces quality and prices but also substantially limits employment opportunities.

The very high prices of recent years – peaking around USD 600/kg – has not only reduced demand for natural vanilla but also encouraged sizeable production growth elsewhere, including Comoros, Indonesia, Papua New Guinea, and Uganda. This expansion in output will almost certainly lead to a continued fall in prices and a fragile market. Madagascan vanilla prices have already fallen by approximately one-third from their peak levels. In fact, this price fall is smaller than other origins, partly because of the preference of some buyers for Madagascan vanilla. The high vanilla prices have led to reduced demand, changed formulations, as well as the bending of rules regarding product content declarations, leading to false vanilla lawsuits.

In efforts to try to support the industry, which is a vital source of employment in the north-east and foreign exchange earnings, the new Madagascan government has been trying to take a more proactive role in supporting the industry. This has included stringent harvesting dates in some regions, cut-off dates for exports, measures to control pre-financing and speculation, as well as efforts to discourage quick curing and theft with long prison spells for stealing vanilla beans, invariably green immature beans. Some believe that the government should also reduce the 200 or so licensed exporters as well as impose a minimum export quantity in an effort to improve quality and have a better control over production.

There is little doubt that 2020 will see a major re-structuring of the global vanilla industry as the downward pressure on vanilla prices continues – but with current conditions continuing it remains unlikely that prices will collapse in the near future. Buyers have limited their purchases, anticipating further prices falls, and it is hoped that their return to the market will limit the price decline – and most importantly, there will not be a return to the price collapse of 2004 and its dramatic consequences.

Key Lime Oil Citrus aurantifolia Harvest: May - October

The Colima region of Mexico is famed for its key limes. This year the rains, though crucial for the health of the lime trees and subsequent oil production, were rather late. The peak season is expected to begin soon now that the rains have arrived. This year, the total size of crop diverted for processing is around 200,000 MT across Mexico. This is a clear decline of about 20% compared to earlier years. One of the key factors behind this development is the growing fresh fruit market. Following a shortage of Persian limes on the east coast of Mexico, more key limes out of the normal 1.8 million MT crop have been diverted to fulfil the fresh fruit shortfall. This has resulted in a scarcity of key lime raw material for processing, especially in summer when the demand is at a peak and industry processes higher volumes. The demand for distilled lime oil is firming up since the middle of this year. For the first time, after an acute slump for two years, the market is looking up with an additional requirement of products. Mexico and Peru are holding very limited stocks and a healthy demand is exerting upward pressure on prices for several weeks now. It is heartening to observe that the market for key lime oil CP has also firmed up since the stocks have been depleted and availability of raw material has been low. Key limes have always commanded rather high prices, whether it is industrial fruit or high-quality fruit. Prices for lime are dependent on a host of factors like the cost of industrial fruit, demand for oil, the number of operating processors, and, to a large extent, the value of the currency and the US dollar. The rate of currency conversion buoys the lime oil prices of both distilled as well as cold pressed variants and keeps them stable. Among all the other products in the citrus family, key lime oil is perhaps the only one where production is punctiliously calculated to cater for the existing demand with no room for speculation. It is advised that requirements are booked at the earliest.

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

Weather conditions affected the clary sage crop and output was considerably down this year.

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

This year Russia’s coriander seed essential oil yield is estimated to be lower than usual. The output varies from region to region; and this year too is no different. The crop has been harvested across all geographies; and Crimea and Krasnodar notching up significantly improved figures compared to last year. However, other regions like the Rostov, Volgograd, and Voronezh recorded perceivable decline. Though initial reports suggested raised prices by some distillers, there are some who are offering good rates for the product. Despite this, prices are showing signs of weakening compared to the figures of last year. The point to ponder is whether these low prices will sustain, and for how long? In addition, importers in the EU are giving domestic distillers a run for their money. With the competition heating up, once the current inventories are sold at source, prices will definitely escalate. In anticipation of a price hike, there is a beeline to book orders at the current cheaper rates.

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

Dillweed has not fared well this year. The planted area was lower than last year, and inclement weather has also affected the crop size.

Cabreuva Oil Myrocarpus frondosus Harvest: All Year

The market is flush with the availability of 60% quality cabreuva oil. However, on the contrary, at present it is a challenge to obtain its other variant, the 89% grade quality.

Guaiacwood Oil Bulnesia Sarmientoi Harvest: All Year

Adequate availability of guaiac wood oil is able to fulfil all current demands.

Petitgrain Oil Citrus aurantium Harvest: All Year

This small country has risen to make its mark on the global essential oils map. Petitgrain Cordillera is a distinctive yet difficult-to-obtain oil from Paraguay that has caught the imagination of the aromatic industry. This year the weather has been a big impediment for the processing of petitgrain cordillera oil. Due to its difficulty in availability, the oil commands a transit lead time of six months, and as such requires meticulous advance planning.

Vetiver Oil Vetiveria zizanioides Harvest: February - May

Vetiver oil too is easily available in large quantities. This is enough to cater for the demand for this oil.

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

Siberia has been under the onslaught of severe wildfires. However, it is heartening to receive news that the fires have not adversely impacted the demand for fir needle oil. Prices, therefore, are hovering at steady levels.

Pine Oil Pinus sylvestris Harvest: May - August

Distillers have taken to producing pine oil in accordance with client requirements. Naturally, the production is in keeping with the demand and so prices are stable.

Thuja Oil Thuja occidentalis Harvest: July - September

Like pine oil, the production of this oil too is following the demand graph and thereby prices have firmed up and the market is sound.

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

Spanish lemon has been facing stiff competition from fruit coming in from Turkey and Egypt. But strict quality checking for pesticides is conducted at borders. The extra tariff levied by the USA is a stumbling block for the sheer volume of Spanish exports to the USA. Lemon exports represent about 1% of the total export volume worldwide; this will be severely stifled and future volumes affected. Initial forecasts for 2019/20 estimate a crop size of 1.1 million MT, a decrease of 14% from the previous year. With this Spain leaves behind the record high of 2019 and returns to the normal average. Of course, much is dependent on the availability of sufficient water in summer and the autumn rains. With an estimated 1,104, 000 MT of fresh lemon, Spain reinforces its position as the world’s leading exporter of fresh lemon, and the second largest processor of lemon juice, essential oil, and dehydrated peel. The Fino lemon variety is pegged at 845,000 MT, while Verna volumes will come down to 260,000 MT. The decrease in the Verna crop is due to the rest period of the trees after a bumper production. Despite the shortfall in crop production, the quality of Spanish lemon continues to be a benchmark of excellence.

Market price Euro 18.00 /kilo (Low AR) 
Market price Euro 10.00 /kilo (Conventional)

Cinnamon Bark Oil Cinnamomum zeylanicum Harvest: May - December

Globally, the demand for cinnamon bark oil is rather weak. In keeping with past predictions, demand for Ceylon cinnamon has also plummeted. As a result, prices too have taken a steep fall across all grades of Alba, Special, C, M, and H grades of cinnamon bark oil. At places the prices are now at par with cost of production leaving distillers with almost zero margin. This does not augur well for farmers, and other industry players are likely to abandon cinnamon farming for other, more lucrative crops. Additionally, the weak Sri Lankan rupee and low cinnamon prices across international markets have prompted a fall in even the oil grade material. Given the challenges of availability of raw material, it is advisable to plan and book requirements at the earliest.

Cinnamon Leaf Oil Cinnamomum zeylanicum Harvest: March - August

The industry is in dire straits since cinnamon leaf is among the worst affected ingredients in Sri Lanka’s export market. The statistics indicate a whopping 30% drop in exports this year. Abysmally low prices coupled with a dismal demand has prompted most of the cinnamon leaf distilleries to shut up shop. Given this scenario, there are apprehensions of a critical shortage of raw materials. The material that is being traded at present is old stock from earlier distillations.

Citronella Oil Cymbopogon nardus Harvest: May - December

Sri Lankan citronella continues to face stiff competition from the Javanese variety. Recent export information shows a healthy growth for citronella compared to other commodities. This indicates a spike in demand. However, harvesting is severely disrupted despite a steady supply of raw material. Production remains stable and prices promise to hold up. Market sentiments are favourable; and if market signals are anything to go by, no further price drop is expected.

Clove Bud Oil Syzygium aromaticum Harvest: January - February

The weather has been favourable and conducive for clove to flourish. Growers are hoping for a healthy crop this year. Prices have not moved much since the last quarter. This is set to continue till the time the fresh harvests come in at the end of the year. Only then will there be some sharp movement on the prices of clove. However, it will be difficult to match the price points of the Indonesian offers.

Clove Stem Oil Eugenia caryophyllata Harvest: January - February

Clove stem also follows the trajectory of clove bud. The raw material for clove stem oil is expected to come in only by December 2019. Naturally, price corrections will not happen until December. At the moment, prices have touched a peak point but are steadfast in their position.

Nutmeg Oil Myristica fragrans Harvest: February - May

Nutmeg prices have plunged and the situation continues to remain status quo. These low rates exert pressure on producers to keep their costs low, especially in order to compete with their Indonesian counterparts.

Bay Leaf Oil Laurus nobilis Harvest: May - September

Turkish bay leaves, known for their unique aroma and taste, are a favourite in culinary applications. Harvested from September through to December, the slender, ovalshaped leaves vary from 1 to 4 inches in length but do not yield much oil. The fresh leaves yield around 5 to 8% essential oil, while the dried leaves produce a little more, up to 15 to 18% oil. Turkey’s total production ranges from 14,000 to 15,000 MT per annum but significantly small quantity is distilled for oil.

Cumin Oil Nigella sativa Harvest: May - June

Cumin, mostly used domestically as a spice or exported for the same purpose, is now being distilled for oil. Central Anatolia accounts for the main cumin production with an annual production of almost 20,000 MT. The harvest is completed by August; and the crop yields about 15 to 16% essential oil. Considering the demand for cumin oil is rather weak, the distillers produce limited quantities. However, cumin oil is gaining momentum, albeit slowly.

Oregano Oil Origanum vulgare Harvest: July - September

There are about over 20 varieties of indigenous oregano that is found in Turkey. The most common, the origanum onites L. type, is a perennial plant which grows up to about 100 centimetres in height followed by vulgare, minutiflorum, dubium types. These are handpicked and wild harvested; and produce the distinctive spice that is also widely used in Mediterranean cuisine. Turkish oregano gets its distinguishing features with the inflorescence (spikes arranged in false corymbs) and the one-lipped calyces. Harvesting over the months of June to September, and average carvacrol content of about 75 to 80%, the leaves yield around 4 to 4.5% of essential oil. Turkey is among the global oregano producing nations with crop production figures touching 18,000 MT per annum. The Aegean region of Turkey where both farming and cultivation takes place, boasts the lion’s share in contributing the national average with around 15,000 to 16,000 MT.

Rose Oil Rosa damascena Harvest: April - June

Turkey runs neck to neck with Bulgaria in the production of rose oil, a most favoured ingredient in cosmetic and perfumery. However, despite being obtained from the same Rosa Damascena flower, local climatic conditions and certain distinctive factors distinguish the two varieties. Turkey produces around 1,200 to 1,500 kg of rose oil and production of rose concentrate goes up to 10,000 to 12,000 kg.

Grapefruit Oil Citrus paradisi Harvest: December - April

USA’s grapefruit crop once again records a healthy 4.60 million boxes, an escalation of 19% from last year’s figures. Out of these, red grapefruit comprises 3.90 million boxes, while white grapefruit makes up the balance with 0.7 million boxes. A point to be noted is that this year’s average fruit per tree of 40 pieces is the highest recorded since 2015-2016. While red grapefruit is following its usual pattern of an average fruit size, white grapefruit broke the mould with larger than average fruit size.

Market price USD 59.00 /kilo (White)
Market price USD 34.00 /kilo (Pink)

 

Orange Oil Citrus sinensis Harvest: February - May

According to the USDA’s November forecast for the 2019-20 orange crop, production of 123.7 million boxes is almost identical to the previous year and well above 2017-18 production levels. Florida is forecast to contribute 74.0 million boxes, California and Texas pitch in with 47.0 million boxes and 2.7 million boxes respectively. The forecast was arrived at after considering 50.1 million bearing trees for all oranges, and both regular and the first late blooms. In Florida the forecast is for 32.0 million boxes of non-Valencia oranges comprising the early, midseason, and Navel varieties; and 42.0 million boxes of Valencia oranges, the latter is 2% higher than last season’s production. The estimated number of bearing trees is 29.6 million. This year with the strong gusts of Hurricane Dorian, fruit droppage was above average at 28%. Fruit size too is smaller than what has been observed in previous years. The predictions for non-Valencia oranges stand at 32.0 million boxes. With 19.5 million bearing trees, not considering the Navel orange, this year records a 5% increase. Improvement in the Navel orange forecast is about 7% on last year’s figures. The total is pegged at 800 thousand boxes. With good weather prevailing throughout and minimum damage by the hurricane, the projected fruit size of all these varieties is somewhat below normal, with droppage also going up marginally above the average.

Peppermint Oil Mentha piperita Harvest: July - September

As the US market really has continued to be relatively flat regarding production and supply, information remains unchanged since our last report. As we move toward winter, it is necessary to keep a close eye on soil moisture, temperatures, and eventually snow fall, which all have a major impact on the health of the roots for next season. As far as acreage changes, further information is available after winter when most of the growers will plant new acreage and we can advise on the market accordingly.

Basil Oil Ocimum basilicum L. Harvest: November - February

Severe storms last year posed a challenge for the basil crop. The good news is that weather conditions this year are quite good for the growing of basil. Price is expected to be stable.

Cassia Oil Cinnamomum cassia Harvest: July - December

The price of cassia oil is at a historic low. Farmers are less enthusiastic for cassia business and some have even stopped harvesting cassia leaves. We foresee prices to go up in the following year and therefore now is a good time to keep stock.