~ NEWSLETTER (SUMMER EDITION 2004) ~

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.

As part of our commitment to keeping customers informed, we’ve enclosed a summary of how we see the market at the moment. If you’d like to find out more about any specific product mentioned, please call us and we will be happy to help.

On the currency markets the recent strength in the US Dollar will not have helped the companies who were anticipating that a falling dollar would boost commodity prices, which would then become cheaper when translated into other currencies.

Since our last report the situation in Haiti seems to have improved. Reports indicate that most of the essential oil production was not damaged and production is restarting. However, with production still limited we expect prices of oils from this corner of the world to remain firm for some time, especially with the usual fuel shortages that this economy suffers from. Further reports do however indicate that the fuel situation is steadily improving.

Chemical producers’ have seen spiralling oil prices pushing raw material costs up (up 0.8% in April) to their highest since last November. With oil prices at time of writing at $40 per barrel, and being talked of reaching $50, we are going to see the price of very many aroma chemicals firming extremely fast; and we recommend buyers are watchful of the possible shortages/defaults that are very likely to occur.

~ BRINGING MARKETS INTO FOCUS ~

Amyris Oil:                            Reports indicate that most of the essential oil production was not damaged during the recent upheavals, and production is restarting and looking to be normal. However, with current production still limited we expect prices of oils from this corner of the world to remain firm for some time, especially with the usual fuel shortages that this economy suffers from.

Aniseed Oil/Anethol:           Production and sales meeting current requirements. Chinese exporters have been indicating firmer prices, although these firmer indications do not seem to have filtered through in offers. Current prices do still seem to be at market bottom, and are probably still worth consumers consideration.

Bay Oil:                                   Market remains stable with sales continuing being made to traditional consumers.

Black Pepper Oil:                 This product continues to be competitively priced and worth consumers consideration.

Cassia Oil:                             Market demand slow and prices continue to ease back.

Cinnamon Leaf Oil:              Production remains small but lack of demand has helped keep prices low. Any significant buying could however move prices firmer.

Citronella Oil 85/35:              Demand was good during the past month with prices continuing their firm stance. However, with new crop oil due in a few weeks’ prices should ease back from their current levels.

Clove Leaf Oil:                      Supply looks fairly steady, despite the tightening that was in the market a short-while ago. However, things look to have returned to normality and prices could actually ease back in the next few weeks.

Coriander Seed Oil:            Consumers have been resisting high prices, which are currently in the $45 plus range. However, with little or no stock reported in Russia and the high price of seed, origin suppliers are talking new crop oil at higher price levels. This market looks to remain difficult for some time.

Coumarin:                             In our last report we mentioned that a lot of traditional Chinese business had moved to alternative sources of supply. Since then the European Commission has been persuaded to launch an investigation into two of the alternative sources, i.e. India and Thailand, with a view to see if changes in the duty status should be made. Our own opinion is that India has no case to answer at this stage. Europe, of course, does have its own production to protect and would not like to lose its share of the Coumarin market

D’Limonene:                         Continued increased offers made by Brazil continue to show lower prices. Prices for American D’limonene are shown to be more competitive than Brazil.

Eucalyptol:                             Prices firm with suppliers working off tight supply of raw material. Taiwan has the added problem of high prices of raw material they import from Mainland China.

Eucalyptus Globulus:          Market in past month has shown the sustained upward trend, as mentioned in our last report. Reports from all the Chinese exporters say that prices will remain high until at least September. It is going to be a battle to see if consumers are willing to pay high prices for forward shipments or whether they rely on the spot market, and put pressure on resellers. This has one disadvantage in that stocks on the spot market will eventually decline if nothing is brought forward. Prices will probably continue firming for a while longer.

Geranium Oil:                       Chinese geranium oil has been quiet over the last quarter. Good summer oil (min 7% geraniol) is limited with buyers holding off for new crop and expected lower prices. Low grade winter crop is still available from origin. Egyptian prices eased during April to just under $60 CNF with a steady off-take from traditional consumers.

Ginger Oil:                             Price of ginger oil from China has risen quite sharply over the past couple of months with prices at source at the $31/32 levels. With the current shortage of high priced ginger root at origin we see no real reason for any immediate change.

Ho Wood Oil:                         Availability has improved and prices have eased back accordingly. However, with reports of possible adulteration in some parcels buyers should check qualities before entering into contracts.

Menthol Crystals:                Evidence does seem to favour consumer buying to dealer/trader business, and there have been some good prices found with a lot of dealers looked heavily stocked, despite higher prices at origin. Many dealers are at a price disadvantage at the moment with both Indian and Chinese shippers holding stocks in Europe, wanting both dealer and consumer business – obviously they don’t realise you can’t have both!

Nutmeg Oil:                           Availability in Indonesia easier in recent weeks and prices eased accordingly. Demand has been more evident from consumers for spot material. Interest has been also shown for the Grenada material over the past weeks.

Patchouli Oil:                         Prices have continued their advance at origin during the last quarter, even though demand from buyers has been slow. It has been hard to see how origin has maintained the higher prices. Indonesian exporters report that stocks are limited and prices will possibly increase further.

Peppermint Oil:                    Prices have increased over recent weeks for both Indian and Chinese material and demand remains quite steady.

Petitgrain Oil:                        Prices remain low, some say too low. Demand remains fairly subdued. However, any steady buying interest should help push the market up a little higher later in the year.

Pimento Leaf Oil:                 Business remains steady for both leaf and berry oil.

Orange Oil:                            Forthcoming Brazilian crop is said to be good. Consequently market prices have eased. This could possibly remain the case for some time with oil from the USA more competitive.

Rosewood Oil:                      Prices very firm. Spot market extremely short. Whilst production continues in Brazil demand seems to exceed supply. Demand high in both Europe and the USA. With the current demand, and shipping delays at source, prices look to remain strong for some time.

Sage Oil Officinalis:             Shortages continue with most suppliers sold out. One should expect to see some oil from this year’s crop towards the end of June or early July.

Sandalwood Oil:                   With the Indian Government continuing to control export licences the flow of goods has been difficult. As with all materials that show good prices rises one must be aware of quality of oil offered. Good genuine oils are at a premium and agmarked oil has been talked at prices well over $800/kilo. If the current price trend continues then there must be a question as to the long term usage of this product by consumers. In the meanwhile prices will remain firm.

Spearmint Oil:                      Spot market of both Chinese 60% and 80% has shown good business passing during the first and second quarters. Forward on the other-hand looked to have weakened due lack of demand.

Tea Tree Oil:                         Market steady and price trend remains firm.

Vanillin/Ethyl Vanillin:          Recent prices increases in China, coupled with strong demand from Europe have seen a lot of spot activity. Prices look to remain strong with increases in the petrochemical markets.

Vetivert Oil:                           Markets firm for oil from China, Haiti and Java. Chinese oil is still the cheaper of the origins, due to quality difference from the other two sources. Java oil more a question of getting qualities that the buyers require. Buyers of Haiti oil can only hope that the high prices from this source will ease as production increases. Reports also indicate that distillation in Haiti is slow because of the spring rains with reduced yields. This will probably continue until mid June when production should be better.

Please note the factories of our producer of Egyptian Oils have now been certified Kosher by the London Beth Din.  We welcome your interests for Calendula Concrete, Carnation Concrete, Geranium Concrete, Jasmine Concrete, Marigold Concrete and Violet Leaf Concrete and other Egyptian Essential Oils, e.g. Coriander Herb, Geranium, Leek, Marjoram, Onion, Parsley Leaf and Tagete etc.

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