~ NEWSLETTER (WINTER EDITION 2007) ~

Helping  give the Children a good start in life…

Venus Enterprises Limited are the official agents for the Dominica Essential Oils & Spices Co-Operative Society Limited, for Dominica Bay Oil. Your continued orders not only help farmers manage their farms more efficiently, but also aid giving the children a good start in life and helps pay for their education.

By anyone’s standards, it has been a tumultuous year. In the market place we saw commodities jumping with feverish price movements across a wide range of products. These movements have led to some nasty moments, but also a few pleasant surprises for stockists who had taken earlier risks. However, we fear these movements will continue into 2008, especially for raw materials that emanate from Mainland China and Indonesia, with Chinese export rebates gradually phased out, transport costs rise, the chemical industries clean-up costs before the Beijing Olympics, and the weak U.S. Dollars all playing their part.

Currency will also be an additional problem for both China Exporters and Western Consumers with China’s central bank having signalled that it would allow the Yuan to appreciate faster in a move that would ease pressure from the USA and Europe. Recently we have seen the Yuan record its biggest gain against the dollar since the Chinese currency was re-valued in July 2005.

With many raw materials increasingly becoming shorter and shorter in availability, buyers should remember that some raw materials are now either very short or just not worth producing in today’s world without a return for producers. Products from Indonesia have been noticeable in this respect – and many buyers are still reeling from the exorbitant prices they have had to pay for patchouli, cananga and nutmeg oils over the past months.

With generally strong demand for oil and other raw materials in China we feel many Western buyers will continue having to get used to high prices that will not be helped with the current

Credit crunch created by the situation that arose in the USA housing market. Sustained expansion in China also has far reaching implications for the trade. A fast-growing China creates a strong demand for global commodities. This will impact on us all.

REACH OVERVIEW: The European Commission has published a second revision of the proposed fees to be charges by the new European Chemicals Agency (ECA) for the registration of chemicals submitted under Articles 6, 7 and 11 of the REACH regulation 1907/2006. This is the second time that the proposed fees have escalated, and to many they are completely unacceptable and will mean a heavier burden – which will translate into costs spreading through the supply chain and will disadvantage many in Europe. Reports also indicate that the ECA in Helsinki, who currently staff some 80 people, is likely to expand to around 450 by 2010, making it one of the EU’s largest independent agencies. No wonder the EC needs to increase the fees!

MCX EXCHANGE Recent reports earlier this month show that Mentha Oil futures traded on the MCX surged on the back of improved buying interest at lower levels and on reduced supplies to the spot markets. Traders were finding it more feasible to buy mentha oil in the futures counters than in the spot market, as there showed a gap of around Rs 50.

~ BRINGING MARKETS INTO FOCUS ~

Aniseed Oil/Anethol:           Aniseed Oil market has moved up with good demand from the market place.

Bay Oil:                                  Pricing remains stable, and supplies steady, although there is pressure from origin to raise price levels due to ever increasing costs.

Camphor Oil White:             Demand in Europe has been strong. With this product now only being shipped by FCL (hazardous cargo) spot re-sellers have to pass on higher prices to customers.

Cardamom Oil:                     Demand has been very weak and prices have followed accordingly.

Cassia Oil:                             With supplies having tightened spot parcels are fairly limited.

Citronella Oil 85/35:              Demand in the world markets remains high.

Coriander Seed Oil:            This year’s oil production was devastated as the weather during the year decimated the seed crop in Russia and the Ukraine. Nothing really expected now until Aug/Sept 2008 – weather permitting.

Eucalyptus Globulus:         Prices have firmed in recent weeks as interests appeared and exporters reported increased crude oils prices and lower interest from farmers to collect the leaves. Despite Exporters claiming to be sold out there always seems to be material available if buyers pay above the market price.

Garlic Oil:                               Prices from China easier with easier availability of offers.

Geranium Oil:                       The market for both Chinese and Egyptian has been good over the last few weeks.

 Heliotropin:                          Spot market in Europe remains fairly active with buyers entering the markets for 300-500 kilo lots on a regular basis.

Litsea Cubeba Oil:               Good demand is pushing prices up and citral prices look to follow accordingly.

Menthol Crystals:               Markets have softened a little of the past weeks and prices are at more realistic levels.  There does seem to plenty of material on offer from India and China, but it’s all a question who will buy whilst prices are unpredictable.

Nutmeg Oil:                           Prices firming and supplies are in apparently short in Indonesia. Increase in interest for Grenada produced oil.

Patchouli Oil:                        Markets showing a slight decrease from the unprecedented upward price surge we have seen over the past few months leaving many buyers still reeling from the exorbitant prices they have had to pay for material.

Phenyl Ethyl Alcohol:          Increase in offers has appeared in the market, although prices remain firm.

Pimento Leaf Oil:              Demand remains fairly strong for both the Berry Oil and the Leaf Oil. High prices however are making final purchasing decisions difficult. Both products are generally short.

Rosewood Oil:                      Supplies continue to be short with very limited offers being made. Prices remain high.

Spearmint Oil:                      There is no sign of weakening yet and the supply of both 60 and 80% oil remains tight. Prices are likely to remain firm until the 2008 summer crop.

Vanillin/Ethyl Vanillin:         Off-take of both the Chinese vanillins has been very heavy this year. Prices remain firm as many people now rely on the spot market to cover their needs.

The factories of our producer in Egypt are certified kosher by the London Beth Din.  For your requirements of Absolutes and Concretes, such as Calendula Concrete, Carnation Concrete, Geranium Concrete, Jasmine Concrete, Marigold Concrete and Violet Leaf Concrete or Essential Oil of Basil (Chavicol and Linalol types), Blue Chamomile  (of the certified organic, pesticide free & FCC varieties) Coriander Herb, Geranium, Leek, Marjoram FCC, Parsley Leaf FCC, Petitgrain Citronier and Mandarinier, Tagette, and Onion Natural, etc or DMA Natural ex petitgrain mandarin and Natural Rhodinol ex geranium oil.

Spices:                                   Please contact our London office on +44 (0) 207 620 2252 for the latest news on Spices.

Finally, may we thank our many friends for remaining our valued customers. We never take your custom for granted and will continue to provide the best quality products, customer services and prices that are possible.