MARKET REPORT AUGUST 2017

MOLDOVA - Clary Sage is harvested in Moldova in the month of July, and this season's crop is comparable to that of last season. Demand for this product is stable and high. The present Clary Sage crop is available until the end of September, and it is advised that the product requirements be covered now until the new crop of 2018.

FRANCE - This year's Clary Sage harvest yield was average in France; however, the large sown area was approximately 1500-2000 hectares, which could potentially result in the production of a minimum of 30 tons. Although there is active demand, it is too early to have a good idea about this market.

Cedarwood is a wild crop that is available throughout the year in the Himalayas; however, sometimes in the months of December to January, when Winter is at its peak, there may be limited availability, as snow fall can make wood cutting difficult. A permit or NOC is required from the forest department, thus they control the price of wood, and this year they have increased the wood price by approximately 40%. This year's projected harvest yield is almost the same as last year. The market conditions are stable to meet the current market demand.

The Clementine crop is harvested from November to April in Sicily. In the past decade, the growing area has increased with cultivation, as the fresh fruit market has been requesting more sweet and seedless fruits. The availability of last year's crop has declined, because approximately 45.000 hectares in Sicily have been affected by the Citrus tristeza virus, the only treatment for which is the cutting of trees. Nearly all produced fruits have been sold in the fresh fruit market, which will most certainly lower the availability of the crop for a few years. Once the fields recover their fruits, there will be full crop availability. The projected harvest yield for the next crop is expected to be slightly higher than the previous yield. The demand for Clementine Essential oil has seen a slight increase over the years, but it is only possible to notice and appreciate differences every 5 years. There seems to be a growing interest in Clementine EO in China and other East Asian countries; however, this interest does not reflect any dangerous trends for market availability.

BULGARIAN - Lavender is harvested between the end of June and the first days of August. The growing conditions are not favorable, as the previous Autumn was dry and the Winter experienced extremely negative temperatures from December to February, which posed a major hindrance to the fields, especially those older than 5-6 years as well as the organic fields. 30-35% of the fields were damaged and many need to be replanted. The projected harvest yield of 2017 is 160-180 tons, whereas the previous crop yield in Bulgaria was 280-300 tons. The demand has been strong with demands for 100+ tons already. This high demand, which is higher than the production, has led to aggressive competition for the material, thus farmers have increased the prices.

FRANCE - The projected yield for the Lavender Population harvest is expected to be worse than that of last year, due to some areas being frozen. The production of Clonal Lavender will decrease by 10 to 15% this year and there will be a greater decrease for the Lavender Maillette. The decrease in the production of Lavender Bulgarian has led to high demand for Lavender production.

SPAIN - In Spain, the Lavender crop is harvested in the month of August. This year's yield has been below 1%, meaning that the distillation of 100 kg of Lavender produces 0,9/0,95 kg of Lavender Essential Oil. The increase in price for Spain's Lavender is due to the disastrous Lavender growing conditions in Bulgaria; the Bulgarian crop accounts for 40/50% of the total production and the low quantity available has negatively affected the prices for Spanish and French Lavender.

Compared to the previous yield of the Lavandin Grosso crop, this year's harvest has declined by -10 to -15%, due to the extreme drought, which has killed plants. The projected harvest yield for 2018 is not expected to be fortunate. The Lavandin Abrialis crop is experiencing the same decline as in previous years, as the plants continue to die. The Sumian crop has grown slightly and the demand for it is high.

This year's harvest yield of Helichrysum was good with a with a total production of 400-500kg of essential oil in the South East of France. There is active demand for this oil that has a high level of Neryl Acetate.

Witch Hazel is harvested throughout the Winter months between January and March in the USA. It is unclear whether growing conditions are favourable, as there are weather changes from year to year, considering rain fall and temperatures. Every year, demand for this crop has been increasing as new applications are being developed in terms of personal care and pharmaceutical purposes. With regard to the source of supply, market conditions are stable.