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Essential Oil and Oleoresins Essential Oil and Oleoresins Issue 3 March 2008 Disclaimer This report has been prepared without formal editing, as a service to exporters and industries in developing countries by the Market News Service (MNS), Division of Product and Market Development, International Trade Centre UNCTAD/WTO. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without prior permission in writing from the International Trade Centre. The mention of specific companies or of certain commercial products and brand names does not imply that they are endorsed or recommended by ITC in preference to others of a similar nature that are not mentioned. The designations employed and the presentation of material on the map do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any Country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Market News Service Essential Oils & Oleoresins, EU and US Market Report Report prepared for ITC’s Market News Service by: EU markets: Mr. Steve Caiger ([email protected]) US markets: Ms. Kerry Hughes([email protected]) The Market News Service of the International Trade Centre UNCTAD/WTO (ITC) provides timely and detailed price and market information on selected primary and semi-processed products of particular interest to developing countries and economies in transition. Regular access to such information is vital to companies deciding when and where they should sell or buy products on international markets. MNS thus aims to serve as a market intelligence tool, to enable developing countries realize their full income potential through global trade expansion. MNS does not act as a broker and is exclusively an information service with the objective of improving market transparency and encouraging price and quality competition for the benefit of all market players. MNS’ team of product specialists draws its information from a network of correspondents in many countries worldwide, collecting up-to-date data on wholesale prices paid for specific products, supply and demand trends, and economic, climatic and legislative information that can affect the short-term market situation of particular products. MNS' information providers include major importers, exporters, manufacturers, wholesalers, and governmental organizations. We continuously encourage and welcome new sources of information. Should you be interested in becoming an information provider and contributing to MNS' efforts to improve market transparency and facilitate trade, please contact us at [email protected]. For more information about the report and the Market News Service, please contact [email protected] or visit our website on http://www.p-maps.org/mns No part of these reports may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior permission of the MNS/ITC Geneva. Copyright © MNS/ITC 2008. All rights reserved Index MARKET TRENDS........................................................................................... 5 EU Market ........................................................................................................ 5 MARKET TRENDS........................................................................................... 7 US Market ........................................................................................................ 7 COUNTRY AND PRODUCT FOCUS............................................................... 9 SUPPLIERS OF EQUIPMENT....................................................................... 17 PRICE INFORMATION .................................................................................. 19 EU Markets .................................................................................................... 19 PRICE INFORMATION .................................................................................. 21 US Markets .................................................................................................... 21 NEWS & UPDATES ....................................................................................... 23 EVENTS CALENDAR ................................................................................... 35 Market Trends EU Market The following comments were collected from the trade on the supply of oils to the markets: Lemon, and Mandarin European supply of these oils is reduced, production will be reduced. There is little due to small crops in the main European inventory left in South America and the new origins, and prices are firming. For lemons, crop will not arrive until April/May. For the Turkish crop was down by around 40% mandarin, European fruit production was form typical levels, and Italian and Spainish seriously affected, with the mandarin crop crops were also reduced. Demand for the in southern Italy down by around 70%. fresh fruit remained firm, so supplies to Supplies will be restricted, and prices can be processors were restricted and oil expected to rise. Lime Oil (distilled) Prices are still firm, reflecting a general Mexican crop is expected to start in April excess of demand over supply. The new and is volumes are looking normal. Coriander Oil Supplies from Eastern Europe and Russia are other origins is of larger-seeded types with a very sharply reduced, and prices are rising much lower oil content that are used for sharply as a result. There are minimal seasoning. Current oil prices have risen to stocks of oil at origin, and oil prices are now US$85/kg (€55/kg) and there is talk of prices being projected based on current coriander rising to US$100/kg (€65/kg). The decline of seed prices. Oil supplies are highly the dollar is likely to add to the upward dependent on seed production from E momentum of prices. Europe and Russia, as production in the Nutmeg Oil Supplies from the producing areas in Indonesia are reduced, and prices have risen in consequence. Tea Tree Oil Supplies from Australia are down due to bad current spot price is sharply increased, up to weather during the last winter season. The $36/kg from US$29/kg (€23.40 from €18.80). Citronella Oil (Java and Ceylon types) Prices for both types are increasing. will also be implicated. Spot prices for Disruption in the major producing origins of Ceylon citronella have moved up to Indonesia and Sri Lanka due to the impact of US$23.50/kg from US$19/kg at the start of the tsumani depressing agricultural the year (€15.25 from €12.33). Prices for production as people have concentrated on Indonesian (Java type) have increased from rebuilding housing and damaged US$9.50/kg to US$11/kg (€6.15 to €7.15). infrastructure is partly blamed but the Prices for Chinese citronella (Java type) are recent sharp declines in the value of the US$ around US$10/kg (€6.50). Market News Service 5 Essential Oil and Oleoresins Vetiver Oil Bad weather in the Chinese and Indonesian steadily. Current prices are now around producing areas has reduced supplies and is US$70/kg cif (€45.45/kg) for Chinese and pushing up prices. The oil has moved well Indonesian product, and spot prices have off its lows of US$63/kg (€41/kg) in 2006 risen to US$85/kg (€55/kg). and early 2007, and is continuing to rise Patchouli oil Prices are starting to come of the highs of declined substantially, and a continuing 2007 as new production starts to come into gradual decline can be expected. production in Indonesia. Prices have Menthol Crystals & Mint Oil The Indian Government Budget of March exempt States will no longer have a duty 2008 has exempted menthol powder and advantage over the other States, and may crystals from excise duty (previously at 16% now find themselves uncompetitive and will except in certain exempt States such as reduce or stop production. Kashmir). It is not yet clear what effect this will have on export prices – producers in the 6 Market News Service Essential Oil and Oleoresins Market Trends US Market General Comment US importers are still seeing patchouli oil at essential oil has fallen back down to normal exceedingly high prices, as well as now ranges (around $18/kg), the organically vetiver increasing in price. Bergamont still produced oil is still at about $150/kg. The remains about 40% above last year’s prices Ylang essential oils are remaining difficult to due to a high demand and bad crop source and are expensive (as they have been production. The same is expected for red the past four years), but the new crop starts and green mandarins. Whereas the price of soon. Ravintsara oil also seems to keep conventionally produced red/pink grapefruit increasing in price. Karl Poehlmann a US Importer with the George UHE Company reports on the market for specific essential oils from the Indian Market: Davana Oil This is the end of the season and new crop overall reduction of the cultivating area due distillations will start in small quantities at to industrialization has affected the new the end of the month (March). Overseas crop adversely and prices are not expected buyers have been holding on purchases since to reach back to the original prices of USD December, waiting for affordable prices 225/kg which were common at the start of from the new crop distillation, however, last year. weather variations, un seasonal rains and an Lemongrass Oil: There is a shortage of oil in the market, and low citral. Demand has been higher than distillation is almost at a standstill due to
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