MARKET REPORT JULY 2017
The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils and Raw Materials sourced from around the globe.
Thyme is harvested twice a year between May and June and again in December. The herb that is planted in spring is harvested in December, and the herb that is planted in winter is harvested in May/June. Compared to last year's harvest yield, which was 1.25%, this year's is slightly less at 1.10%. The cause is most probably due to less rain this year. Remarkably, this Spring has seen a 30% increase in cultivation compared to last year. Production is expected to increase by 20-30% in December and, fortunately, there is also an increase in demand. It is difficult to forecast future prices; however, a slight decrease in prices is most likely.
Bergamot is harvested from November to March. The usual 5-year life cycle of Bergamot trees has a peak period of crops, though unfavorable weather conditions during the winter or summer can have a strong impact on them. The typical yield is 0,005 grs of oil from 1 kg of fruit; however, this can be affected by the fruit's grade of ripeness and by the impact of weather on the development of the fruit.
This year's harvest yield has been an improvement from last year. Demand for Bergamot Oil has started to rise again, and each year the market conditions for Organic Bergamot have been steadily improving, especially due to the increased needs of those using the oil for aromatherapy purposes. The trend of using Bergamot Oil in fragrances remains steady, and the flavor market is dominated by Bergamot Oil for the purpose of flavoring Earl Grey Tea.
Grapefruit is grown, processed, and its oils are obtained in several regions including Mexico, Italy, and Florida. Crop seasons are counterbalanced, as Grapefruit growing and processing regions are in both the southern and northern hemisphere; however, around the world, the Grapefruit crop along with demand for the juice is in decline, leaving Grapefruit in a critical state and making the oil less available on the market.
Florida, previously the largest growing area for Grapefruit, has experienced hurricanes, land cost pressure, disease, decreased acreage, and lack of demand for juice, which can lead to high prices for an extended period of time. Florida and other countries of origin have also seen greening issues. There has been renewed demand from the beverage, spirits, and essential oils sectors, and firm prices – especially for White Grapefruit Oil – add to the stress on market availability.
As worldwide Grapefruit Oil growth and production continue to decline at an alarming rate, prices could further increase. There are no new growing regions for Grapefruit anywhere in the world, and with the reduced market availability, Grapefruit may eventually cease to exist in 20 years.
The season of harvest for Almond Carrier Oil in Spain is Summer, from late July to the end of September. Almonds grow in regions where the Mediterranean climate is ideal, such as Tarragona and Mallorca Island, among other places. The Spanish almond harvest yield is between 30-40%. The demand for Almond Oil is growing every year; however, the drought in California has led to an increase in price for almonds, and thus for Almond Oil. Supply is still unbalanced.
In Chile, the rosehip harvest season is in the autumn and the process takes place 4 or 5 times a year, once there is enough raw material to profit from the process. After the harvest, rosehips are processed and dehydrated for tea production. Later, the seeds are obtained then the oil is produced. The rosehip is a wild fruit that grows in Chile's south-central pre-mountain range, thus it is not cultivated. Because it does not receive non-natural support such as irrigation, its growth is dependent on environmental conditions. As yet, it is too early to predict this year's projected harvest yield.
The stable global demand for Rosehip Oil is estimated to be approximately 300 tons per year. Unfortunately, the production of a large supply of adulterated oils has negatively impacted prices and the demand for pure products. The regenerative properties of Rosehip Oil are lost when adulterated with other oils, which diminishes its prestigious standing as a beneficial product, also affecting the choices of the end user. There are ongoing campaigns to contest the practice of adulteration and to denounce companies that adulterate oils.
In India, Sesame seeds are cultivated year-round with major crops becoming available between April and December. Due to this year's unfavorable monsoon season, the growing conditions have not been favorable either. The projected harvest yield is predicted to be around 75% of last year's yield. Despite the current low demand for Sesame seeds, there is an expected turnaround in demand. Demand for Sesame Oil remains steady.
In Central Europe, Spring fieldwork and sowing begins around March, while in Finland the Spring sowing begins in May. The season of harvest is generally from August to September, with significant cereal production concentrated in Southern and Western Finland. In the South, the growing season can last up to 185 days while it lasts only 105 days in the Northern regions. Due to Finland's northerly location, its growing conditions, and its shorter growing season, the yield level (tn/ha) is lower than in the rest of Europe. The only spring-sown varieties that are cultivated on a larger scale are those that have been bred or tested to suit growing conditions. At about 13% of EU production, the harvest yield in Finland has remained steady over the past few years.
The demand for Finnish oats has remained high, especially for advanced colloidal oatmeal. Product formulators are using this ingredient in many cosmetics, because of the oats' high quality as well as their lightly colored hulls, low hull content, and low moisture content. The market conditions for Colloidal Oatmeal remain favorable, and cosmetic oat ingredients continue to see worldwide growth.
The Piceance Creek Basin is a world class resource where Sodium Bicarbonate Raw Material is processed. It contains North America's only known significant deposit of nahcolite that is pure, natural, and reliable. It is obtained by injecting hot water into the nahcolite beds, dissolving the nahcolite, returning the saturated saltwater to the operation, and recrystallizing pure sodium bicarbonate crystals as the hot saltwater is cooled.
A completed new secondary processing line has increased manufacturing capability to 250,000 tons per year. This new facility was built with the intention of producing the highest quality grades of sodium bicarbonate to high quality GFSI (Global Food Safety Initiative) standards. The expansion allows the natural resource to be harnessed by a world class operation that meets the increased demand of customers around the world.