Aroma Trading Limited

Market Report September 2004

Citronella Oil
Market is very depressed and all origins are competitively priced at present. Both Chinese and Argentine Citronella are very cheap.

Grapefruit / Orange Oils
Even after we left Florida last month, Hurricane Frances hammered the state and caused further damage to the Citrus crops. Although figures will not be available for a few weeks, the prices of Orange Oil and derivatives are not expected to increase by much, if at all. Not so for Grapefruit Oil, which is now sold out in other countries like Argentina.

Lavender Oil
Our supplier in France has indicated a good crop for 2004. Total hectares of planting has increased from 3100 Hectares in 1997 to 3450 Hectares in 2004. This will continue to increase in the coming years to cater for demand. The estimated 2004 crop will be 56 Tonnes combined, an increase of 15 Tonnes. Yields were quite good in the established plantations while the new clonal plantations produced less than expected. Production in Tonnes over the last eight years reads:

1997 1998 1999 2000 2001 2002 2003 2004
35T 45T 50T 61T 65T 62T 41T 56T

Lavandin Oils
Traditionally France has been producing more Lavandin than it can sell, but gradually the carry-over has reduced from 900+ Tonnes to reportedly just over 500 Tonnes. Also the total hectares under Lavandin has decreased from 16,280 last year to about 15,000 this year. Production of Lavandin Super has increased by 20 Tonnes over 2003. Lavandins Grosso and Abrialis have also increased over last year. Some details follow (production in Tonnes)...

1997 1998 1999 2000 2001 2002 2003 2004

Grosso 800T 820T 920T 1120T 860T 820T 700T 830T

Abrialis 70T 75T 70T 90T 70T 70T 50T 55T

Super 70T 35T 30T 70T 80T 65T 30T 50T

Sumian 60T 60T 55T 60T 50T 45T 35T 40T

Sandalwood Oil
Indonesian Oil is being offered again at around US$ 150/kilo less than Indian Sandalwood Oil. Once existing export licences for Indian Sandalwood Oil expire, there will be no more until 2005 at least. Expect prices to remain firm.

Vetivert Oil
Recent Hurricane damage is affecting distillation and supply of Vetivert Oil from Haiti. Other products impacted are Pimento Berry Oil, Nutmeg Oil, and Amyris Oil.