Aroma Trading Limited

Market Report May 2001

Aroma Trading has moved
Please note our new address and phone numbers from May 1. We're now located at New Rookery Farm, Silverstone, Northants, NN12 8UP, United Kingdom. Our telephone number has changed to 01327 858758 and our fax is now 01327 857333.

Clove
The market is very tight for Bud/Stem and Leaf derivitives. In an earlier report we mentioned that new crop comes online in September but our suppliers warn it will be well into next year before we can expect an improvement in availability and prices.

Eucalyptus
The price of Chinese material has fallen slightly but there are still concerns regarding the tax levy of 10% imposed by the Government. Eucalyptus will be classified as an agricultural product instead of industrial.

Patchouli
The current crop is well under way but we do not have any reliable details as yet with regard to volumes and future availability as some of the areas of production are quite remote. Watch this space...

Peppermint Dementholised
Prices have softened and re-sellers are well stocked, so now may be a good time to buy.

Citrus Wars!
US Company Sunkist, reportedly the world's largest citrus marketing co-operative, is appealing to the International Trade Commission to investigate European Union Trade policies and possible unfair government subsidy practices, that have allowed Spanish Orange and Lemon to 'flood' the US market over recent years. A spokesman for Sunkist claims that these increased imports equate to losses in the region of US$ 12-15 Million annually for Sunkist alone. Allegedly, the spanish government offers some kind of subsidy to citrus producers, which Sunkist claims is giving them an unfair advantage. Spanish material going into the US attracts minimal duty whereas, claims Sunkist, there is a 20% duty on US material going the other way.

As is usual in these cases, numbers can be exaggerated to emphasise a point. Duty on US Citrus into the UK is no more than 8% so the 20% figure seems inflated. There is usually more than one opinion to take into consideration in these cases. Sunkist has had its two cents' worth but there will surely be more on this in months to come...

Web watch
There was a meeting this week between representatives from the Ivory Coast, Ghana, and the UK Cocoa and Chocolate Industries on the issue of forced child labour. A task-force is to be set up to look into what amounts to no more than slavery, even in this modern day and age. The slavery issue is not confined to Cocoa alone. It can only be hoped that this task-force will be successful but some of the organisations involved may have their own agenda. The Confectionary/Chocolate Industries should already be doing more but they have their profit margins and shareholders to look after and there is always the next takeover to be financed. They can always look the other way and let the brokers and middlemen take the flak.

So this month we are highlighting www.antislavery.org and ask you to form your own opinion. You may find some of the content upsetting.