MARKET REPORT AUGUST 2020

In Brazil, coffee crops have a biennial production cycle, with an 'on' year of higher production followed by an 'off' year of comparatively lower production. The coffee harvest begins in May and ends in the month of August. This year, considered to be an 'on' year for production, harvesting has proceeded slowly due to coronavirus restrictions impacting the movement of Brazilian workers. The harvest so far has, however, met expectations; the grains are of excellent quality, and producers are hopeful that a production record could be met.

Demand for coffee beverages and related coffee products have been on a decline due to the pandemic, and the same trajectory has been witnessed for the cosmetics market. Despite adequate supply of seeds, coffee prices have been increasing due to the elevated costs of cultivation. Prices are expected to continue increasing towards the end of this year as preparation for the 2021 harvest commences.

Cardamom Essential Oil

The harvesting of Cardamom capsules is now underway in South India, where the harvest season will proceed steadily in intervals of 15-30 days until January/February 2021. This year, distillers estimate that the yield will exceed 13,000 MT, although this will be contingent on the monsoon season and availability of labor.

Cardamom prices had hit an all-time low in India following the lifting of lockdown restrictions. Exports to Saudi Arabia, India's biggest purchaser, had resumed in May but ceased once again in July due to evolving legislation; these continued issues in exporting will affect both farmers and market pricing. From the supply side, however, it is predicted that the harvesting from August to November will lead to better yields. With the recent reinstatement of the Saudi ban, if a better harvest is witnessed in the coming months (given an ideal monsoon), supply is likely to outpace the demand, leading to possible price reductions.

Cardamom Organic Essential Oil

In Sri Lanka, Cardamom plantations are situated in the central hilly regions of the island at high elevations of about 600 meters above sea level. New plantings of this cherished spice crop, however, is stringently regulated by the government due to potential adverse effects on local vegetation. This year, weather conditions have been unfavorable for the most part, resulting in very poor yield projections. Surging demand is putting pressure on existing supplies. Due to the current significant shortage of raw materials, prices for Cardamom Organic Essential Oil are currently on the incline.

Pine Scotch Essential Oil

In Hungary, the twigs and needles of the evergreen Pinus Sylvestris are gathered during the months of May through to September. This year's harvest yield is reported to be lower due to less than favorable growing conditions. Demand levels are on the rise for this invigorating essential oil, being employed extensively for perfumery, aromatherapy, and household cleaning applications. Market conditions, however, are reported to be stable at present.

Pine Organic Essential Oil

In Bulgaria, Organic Pine is wild harvested in March and April, or in the month of October. Weather conditions at present are reported to be average, although the collection of Pine, and therefore the availability of raw material for distillation, is contingent on governmental approval. The harvest yield is indeed lower this year as harvesting has barely occurred within the past year. Producers note that with demand heavily surpassing current supply, available stocks could be rapidly sold out. Customers will therefore benefit by placing their orders sooner rather than later.

In central and southern China, the harvesting of the fragrant Camphor wood takes place throughout the year. Currently, there are no reported issues in cultivation or harvesting, and this year's harvest yield is predicted to be between 6000-8000 MT. There is robust and increasing demand for this oil. The white fraction is widely used in aromatherapy and fragrancing, while yellow and brown fractions are utilized as a raw material to isolate aromatic constituents for perfumery.

In Indonesia, Cajeput trees are cultivated predominantly in Ambon, a region to the east of the island of Sulawesi. Distillation proceeds year-round, and the country itself is also the biggest end-consumer of this popular oil, where it is locally known as 'Minyak Kayu putih'. Annual production of Cajeput Essential Oil lies within the range of 500 - 600 MT. This year, both availability and demand levels are reported to be stable.

Due to the pandemic, the harvesting of wild-grown Rosemary in the mountains of Tunisia has unfortunately been delayed. A typical harvest season commences in mid-March and proceeds until the end of June; this year, a late harvest began in the month of June. With production efforts hampered, and a combined marginal increase in demand, price elevations for Rosemary Oil (Tunisia) are expected.

In Spain, aromatic Sage leaves are freshly harvested in the months of June and July. There are no reported issues with this year's crop growth or harvest, and producers note that both production and demand trends for Sage Essential Oil generally tend to be stable. At present, demand is neither inclining or declining, and from the supply side, farmers remain uninterested in growing more Sage because of its low yield and prices. Demand for this warming and invigorating oil is driven by its increased use in the perfumery and aromatherapy sectors.

In Morocco, the harvesting of sweet almonds begins in September. This year, growing conditions are reported to be normal, with a typical harvest yield expected. Currently, compared to the availability of conventional sweet almonds, the quantities of organic almonds are on the lower side. The demand for Almond Sweet Organic remains firm, driven in part due to its high emollient properties and uses in aromatherapy.

In China, Evening Primrose seeds are harvested in the month of October. The crop at present is progressing well, although it has not reached maturation yet. The cultivated area this year is marginally smaller compared to that of last year; a good harvest yield is however expected. Prices for the Evening Primrose seeds have spiked, and market demand for the oil is steady.

Argan trees are cultivated in the wild predominantly in the south-west of Morocco. Harvesting of the fruits occurs between the months of June and August, after which the kernels are isolated and cold-pressed to produce a nourishing cosmetic oil. The Argan market at present is tight due to the pandemic lockdown in Morocco, which has restricted the movement of workers and impeded on harvesting speed. Coupled with the severely dry weather experienced in the past months, the harvest yield is expected to be quite lackluster. Prices for this oil are currently on the rise.

In India, there are no reported issues in cultivation or the availability of Chili seeds for oil production at present. The availability of seeds peaks in the month of May as the harvesting and processing of Chilis in India commences in February and culminates in May.