October Market Update - Oct 15, 2011

Lavender

Once again Europe produced a disappointing season with lower than expected oil production. This was caused by a long cold spring producing a small flower mass. Whilst the oil yield was OK, the flower mass not, which ultimately meant the yield per hectare was lower than expected. Inevitably this has caused prices at origin to rise with many farmers trying their best to recover the oil loss with higher prices per kilo of what oil was produced.

As a key product for the Australian market and using our long established relationships with growers around the World, abp have secured what's estimated to be 8-10% of the World's total (genuine) lavandula angustifolia produced to accommodate our customers needs. It is recommended you book early to secure the stock and to be more prudent than usual when comparing against adulterated alternatives.

Sandalwood

Australian Sandalwood remains in high demand across the Globe as it remains the only recognised, sustainable source. Quality woods stocks continue to challenge supply and with it prices have increased over the past four months.

Continue to visit the new abp website to learn more of how we're combating this challenge and providing innovative and sustainable solutions for the market. More to come soon.

Indian Arvensis

The Indian Mint Market has been extremely volatile throughout the year and continue to pose fresh challenges. Although it was expected for crops to be good, bad rains have affected the transportations and distillation of the oil. Demand has exceeded supply by some distance and prices are expected to continue to rise in this 4th quarter.

Clove

Clove and its derivatives from Indonesia appear to have peaked and prices are slowly starting to ease, although having said that, they have a fair way to go yet before we see prices like this time last year. Demand has weakened and with the rainy season ahead it is felt producers will start to offload some stocks in the next month or two.

Patchouli

The Indonesian markets for Patchouli are a little confused. Whilst demand has been soft, good quality material from the Sumatra areas are in short supply. Despite this, prices are falling to try and stimulate fresh demand.

Orange

Orange prices have again started to rise despite prices falling in the past couple of months. It was somewhat expected than any reprieve in price would be short lived due to an expected poor season in Florida.

Geranium

Some good news! Chinese and Egyptian material continues to hit the market in good volumes and prices have fallen in recent weeks. Having said this it isn't expected to continue to slide but should settle at a fair rate for producers and consumers alike.

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