market intelligence - treatt · 2017-05-18 · citrus oils 4 • market intelligence - november...

plus all the regular market news

inside this issue

November [email protected] www.treatt.com

plus all the regular market news

garlicStock from the last major campaignin 2008 is close to being depleted…


Treatt at FiE 2013World-leading flavour and fragranceingredient solutions provider will beshowcasing its innovative products,to include its new TreattZest™ range

Treatt at FiE 2013World-leading flavour and fragranceingredient solutions provider will beshowcasing its innovative products,to include its new TreattZest™ range

distilled limeThe series of events – late crop, high fresh fruitprices, severe greening problems, high demand,low worldwide inventories…


market intelligenceTreatt at FiE 2013World-leading flavour and fragranceingredient solutions provider will beshowcasing its innovative products,to include its new TreattZest™ range



Food ingredients

EuropeFi2013

SPECIAL ISSUE

contents

welcome 3citrus oils 4essential oils 6organic vegetable oils 7organic essential oils 7treattarome® 8aroma chemicals 9specialty chemicals 10ylang ylang 11argan oil project 11

2 • market intelligence - November 2013 [email protected]

…Treatt’s Food ingredients Europe Special issue. We hope

you can make it to our stand 8J78 where we will be

demonstrating our innovative products in a range of drinks,

from ready-to-drink teas to Oriental Lemon flavoured beer.

Treatt will also be showcasing its new TreattZest™ FTNF

(From The Named Food) citrus oils plus the recently

launched Cascade Hop Treattarome® natural distillate.

Further additions to the TreattSweet™ portfolio of all natural

essences will be on show too.

market intelligence - November 2013 • 3www.treatt.com

welcome to...

citrus oils


sweet orange The orange market remains elusive, and with very littlebeing bought or sold at the moment, it is also quiet.While prices for oil from Brazil remain high, buyers arebeing extremely cautious as the memories of howquickly the market came down just two years agolinger. It is indeed the case that Brazil processed lessfruit this year than the last two years, but they had torun more than originally planned due to poor juiceyields.

In order to stock the amount of juice planned forinventories, the Brazilian processors had to buy andrun additional volumes of oranges, which of coursehas led to an increase in orange oil and d-limoneneavailability. The Florida processors will begin runningin just a few weeks, with some already processingsmall volumes of fruit. The industry has now received,a month later than usual, the official crop forecast fromthe United States Department of Agriculture. TheFlorida crop is projected to be 125 million boxes, areduction of 6% from last year’s crop. Most of thedecline is again attributed to lower volumes of earlyand mid-season varieties, whereas Valencia oranges

are predicted to be only 1% down from the 2012/13season. Fruit drop, at least thus far, does not appearto be high, but as we discovered last year that canchange quite quickly, so we will be watching closely.Prices of d-limonene and orange terpenes remain verysluggish and the gap between oil and terpenescontinues to be extremely wide. Will that market turnin the months to come? Our advice is to stay closeto your Treatt sales representative who will have thelatest news on this challenging market.

distilled limeThe series of events – late crop, high fresh fruit prices,severe greening problems, high demand, lowworldwide inventories - that caused distilled lime tobegin to climb a few months ago has unfortunatelyonly grown worse. The lime area in Mexico has beenaffected by horrendous weather over the past fewmonths and the crop destined for processing inNovember/December is much smaller than we all hadoriginally hoped. The Peru crop is good this year, butprices for this oil are now very high, and customersare battling for the oil that has not yet been produced.This oil is going to be difficult for at least the next 8-9months but we hope for a good 2014 summer cropin Mexico.


mandarin Production of green mandarin oil in Italy has begun,and as the crop is down this year prices are expectedto increase by some 15+%. It would be wise to letTreatt know your needs for 2014 early so we canensure availability.

lemonWe have seen the market continue to climb due to aseries of events, including the absence of oil producedin Spain last year and of course the freeze inArgentina. There seems to be very little carryoverinventory available whilst demand currently is veryhigh. We will soon see European oil come onto themarket as Spain has a good crop.

The fresh fruit market there appears slow at themoment, though that may be attributed to the lackof lower temperatures which is keeping the fruit verygreenish in colour. We will see European oil comeon to the market soon as Spain has a good crop.Italy’s crop is mediocre and the fresh fruit market isfirm, so it is unsure how much oil will be seen out ofItaly this year.

Our recommendation is to make sure you are coveredin the interim as history shows this market can spikeupwards rather quickly. Treatt welcome yourenquiries.

tangerine The growing area San Luis Potosi, located in lowercentral Mexico, has been affected by heavy rain andwinds from the excessive storms that hit Mexico thissummer. Particularly hard hit in this region have beenDancy tangerines, which normally would contribute atleast 30% of Mexico’s total tangerine crop. It is likelythat we will not see any tangerines processed fromthis region during the normal December and Januaryproduction. The other major tangerine growing area,Vera Cruz, luckily fared much better. However, due tothe overall total reduction of fruit we expect thismarket, which has been firm, to remain so for at leastanother year.

essential oils


cardamom The harvesting of cardamom is now at its peak inGuatemala. Treatt suggests that now is the time toconsider covering your forward requirements.

ginger Varying weather patterns have caused problems withthe supply of ginger root. During July, heavy rain fellin the production area followed by an extremely dryAugust coupled with unusually high temperatures (45days of temperatures in excess of 35 degrees Celsius)which has resulted in the yield dropping by 20-30%.

Ginger oil prices have increased accordingly since theend of September and are expected to continueupwards until the next crop.

garlic In the wake of our September issue, the supplyposition is now becoming an issue with stock from thelast major campaign in 2008 close to being depleted.We expect the price of garlic oil to continue to rise.

corianderPrices have increased by 50% in the last 6 to 8 weeks.With the crop now complete, availability will remain lowand prices firm until the next crop.

market intelligence - November 2013 • 7www.earthoil.com

P L A N T A T I O N Sorganic updatevegetable and organic essential oilsorganic roseFollowing our report in September of a reducedharvest due to the lack of rain and extremetemperatures causing fewer drier petals, the markethas firmed considerably for this season’s oil.

lavandin/lavender This year’s harvest of organic lavandin was very latedue to the cold weather up until early June in theProvence region of France. Treatt can confirm that theyield is around 20% lower this year.

The Bulgarian organic lavender crop this year wasaverage and, coupled with high carryover of oil fromlast season, prices remain competitive.

organic lime expressedThe market remains firm due to this season’s reducedharvest, with no carryover quantity and strongdemand. We advise customers to stay close to theirTreatt/Earthoil representative for the latest marketinformation.

macadamia oilGoing into the low macadamia season in Kenya wehave stock in Africa and in Europe and will be happyto reply to any enquiries.

organic avocado oilA poor avocado harvest has led to reduced quantitiesof oil coming out of South Africa this year. However,thanks to the organic and fair trade project in Kenyawe have access to a limited supply of material.

organic borage oilThe new season’s oil is now available in the UK;pricing is fairly stable and availability improved on lastseason.

treattarome®


coffeeA recent shift in consumer’s coffee choices inemerging markets has been driven by lower coffeeprices. Brazil, the world’s largest producer, is also oneof the world’s largest consumers, and is set toincrease its consumption of Arabica coffee beans asthe price currently remains low.

There is also strong demand in Asian markets, inwhich the majority of Robusta beans are grown, forboth Arabica and Robusta coffee beans. It is likelythat prices will remain stable as Brazil is forecast tohave another large crop in the 2013/14 season whichis just beginning.

teaThe global market for tea has remained firm this yearwith rising demand from emerging markets. Large teaproducing countries such as India and Kenya havesignificantly increased their production of black tea inorder to keep up, but have struggled as globaldemand has increased at a higher rate than supply.Even though India is a very large producer, imports arestill required to offset the already high and now risingconsumer demand internally.

Tea production in India is expected to increaseslightly this year because of good weather in keygrowing areas, but growing consumption of coffee inChina has led many farmers to switch from tea tocoffee plantations. In addition, recent drought hascaused many farmers to seek other crops that aremore profitable.


aroma chemicalsiso amyl alcohol & iso amyl acetateAs mentioned in our September report, the availabilityof a major starting material (Fusel oil) continues to beshort. The supply of Iso Amyl Acetate has remainedlargely unaffected, as manufacturers continue toproduce this added value chemical.

coumarin &dihydrocoumarinCoumarin prices are increasing due to the main factoryin China ceasing production because of pollutionissues. Dihydrocoumarin has also been affected withreduced production.

As part of the continual development at ourmanufacturing partner EndeavourSpeciality Chemicals UK, we are pleased to

announce the completed scale-updevelopment of the following products:

specialty chemicals


Methyl Mercaptandilutions

A high-impact, alliaceous material with eggy cabbage notes, excellent for a wide range of flavours.

2,4-Dimethyl-1,3-dioxolane

A fruity green and grassy material, ideal for introducing acetaldehyde safely into formulations.

2-(4-Methoxyphenoxy)propionic acid

A sweetness inhibitor that allows for flavours to be enhanced in products typically high in sugar.

Dimethyl Sulphide A Grade, a powerful material with a raspberry top-note fading to sweetcorn and vegetable notes.

2-Octen-4-One Which has apricot and jammy notes perfect for fruity flavours. Methyl Thiobutyrate, a classic material with a cheesy, fruity profile.

12-Methyltridecanal 10% in miglyol

A fatty note reminiscent of beef tallow, perfect for meat and chocolate uses.

2-Methoxy-4-vinylphenol A sweet smoky bacon-like material suitable for a wide range of flavours.

Cananga odorata, better known as ylang ylang, iscurrently a popular consumer choice, withdemand remaining high for this essential oil. Witha subtle signature scent, ylang ylang oil has manyuses, including perfumes, cosmetic products andaromatherapy.

However, as with the rest of the essential oilindustry, concerns are growing over the purity ofylang ylang oil. Adulteration is becomingincreasingly commonplace in its production andsuppliers are now looking to address theseproblems by implementing new, sustainablemeasures to ensure its continued purity. Earthoilis a leading supplier of ylang ylang oil and takesa close look at ylang ylang, focussing on its

ylang ylang growth in Madagascar and examining theproduction methods used in this region and howthis approach can help overcome currentadulteration issues. To read the full article pleasevisit www.earthoil.com

argan oil project, MoroccoEarthoil is committed to purchasing its oils directlyfrom source at a fair and sustainable price, andworks closely with growers. One of Earthoil’sprojects is based in the Essaouira region, Morocco,where a co-operative of women produce Argan oil.

This inhospitable region offers very little employmentopportunities for women due to illiteracy andundesirable weather conditions for agriculture, butis the only place in the world where Argan treesgrow. Using their traditional skills, this Argan oilcooperative was initiated in 2007 with 22 women.The cooperative has been extremely successful,becoming Fairtrade certified in 2011 and winningseveral national and international awards, and hasnow grown to employ 60 women producing up to

2 tons of oil each month. The cooperative offerspartnerships to each of its members, withadministration roles for those who wish to gainexperience in such positions and also flexibility towomen with young children enabling them to workfrom home should they need to. The women arepaid for every step of the process and at the end ofthe year any profit made by the cooperative is givenas a bonus to the women. This project has been themain, if not the only, source of income for the localsand has helped reduce illiteracy and provide localwomen with employment and stability. Earthoil isdedicated to projects which benefit the lives of otherpeople. You too can be involved in our projects. Ifyou would like more information, please [email protected]

market intelligence - November 2013 • 11www.earthoil.com

P L A N T A T I O N S

so good they named it twice!

November [email protected] www.treatt.com

www.treatt.comFor more information on all our products and services please visit our website.

market intelligence - treatt · 2017-05-18 · citrus oils 4 • market intelligence - november...

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