Tea Tree Market Update - Oct 02, 2011

It appears that the impact of last January's floods and cyclones are only now starting to affect supply into the market. After a late harvest and confirmation of a 35-45% drop in average yields across most farms, supply is becoming increasingly more difficult.

Although abp have two close partnerships spreading across different growing areas to protect our own supply, there is only limited oil available until a second harvest in November, a resource many suppliers don't have.

AATIA's September Reports quotes:

As the 2011 harvest progresses, it is becoming increasingly clearer that even the 30% downturn may have been conservative which could make stock available for sale even tighter. While some growers are reporting normal or near normal yields, others are reporting yield reductions of up to 50% while others have still not managed to harvest yet - some have not harvested for nearly 2 years now.

The tightening of supply is expected to hit the market in the New Year once the major buyers have taken their requirements and the full affects of the reduced crops reduce availability, therefore no doubt, impacting on the market price.

Thankfully, due to diligent care and attention our growing partners take with their crops abp will continue to have Pharmaceutical grade oil available throughout the season, which is some of the best and most consistent qualities of oil in the marketplace today.

News tags : Tea_Tree Market

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