Aroma Trading Limited

Market Report December 2001

Cocoa
In the last six months over 400 Tonnes of low/poor quality Nigerian Cocoa beans were rejected by the F.P.I.S. due to impurities, and high mould content. Meanwhile in Ivory Coast, stocks should be plentiful at this time of year, but lower than average rainfall means there is a shortage of beans in Abidjan and prices have increased slightly. Local traders say the situation will ease in the coming weeks, which contradicts one of the main European traders who say the opposite and that the lower production year over 12 months will cause a shortage in the foreseeable future.

Nutmeg
Prices continue to climb as production further hampered by rains.

Orange
Some buyers have decided not to wait until after the holidays before covering their short-term needs and as a result prices continue to increase. January should be very interesting.

Sandalwood
After recent Wood auctions prices have advanced by 5-8 per cent. Some buyers have reported detecting Phthalates in their oil, and others have also found Fractionated Coconut and Almond Oil.

Tea Tree
Although export prices remain stable in Australia, the spot European market has jumped 15 per cent is the last couple of weeks. Our broker informs us that a large enquiry has come on the market, which will greatly reduce spot stocks.

Rain Forest
The European Investment Bank has agreed in principle to loan US$30M towards a Eucalyptus plantation in Bahia, North East Brazil. It will initially cover up to 26,000 Hectares, and it is hoped to greatly contribute to maintaining the existing bio-diversity of the natural rain forest and reducing the use for commercial logging. The loan application claims to also improve the security, infrastructure, and protection of an existing 6,000 hectare area of preserved forest at the Vera Cruz reserve station.

All change for the Euro
From January 1st 2002, a new currency called the Euro will commence in 12 of the countries within the European Union. This will replace the following currencies in their respective countries:

Austria Schillings

Belgium Francs

Finland Markka

France Francs

Germany Marks

Greece Drachma

Holland Guilders

Ireland Punts

Italy Lire

Luxembourg Francs

Portugal Escudos

Spain Pesetas

The British Sterling Pound remains for the foreseeable future, and will not be changing.

If you have currency from any of these countries, it is important to be aware that it will be increasingly difficult to exchange as the months progress, so change over as soon as possible. Dual Currency cut-off dates vary in each country. For more info, see www.euro.gov.uk which gives detailed info on the UK perspective. Other countries can also access via this opening page, and click the fifth icon on the leftside of the opening page for details on how it affects your currency and country.

We have been offering prices in Euros for many months now, and will no longer be quoting in the twelve listed currencies after January 1st 2002.