Egyptian geranium essential oil: difficulty in trading/purchasing raw materials

On June 6, essential oil producer Ultra International B.V. released the summer essential oil market report, which conducted an in-depth analysis of more than 90 essential oil products from 25 countries and regions around the world. The following is a related analysis of essential oil products from Egypt.

Benzo fennel essential oil

Harvest period: May~June

Last year, there was a bumper harvest of the rest of fennel in Egypt and this year is expected to continue this momentum. Last year's output increased, and due to better weather conditions, farmers are expected to continue to increase output. This will cause the current stable market price to rise.

Market price: USD 121.00/kg

Geranium essential oil

Harvest period: June to July

About 60 to 70 tons of essential oils are still looking for buyers. However, there are obstacles in mobilizing the spot because it is a cash-dominated transaction; and because of the COVID-19 new crown epidemic, the authorities have banned cash transactions. Procurement of raw materials also faces challenges, putting pressure on the distillers' existing buffer stocks. In addition, the new season harvest is expected to begin in June, which will lead to an increase in the number of essential oil products on the market.

Market price: USD 101.00/kg

Jasmine Pure Oil

Harvest period: June to November

During the COVID-19 pandemic, Egypt decided to shorten the jasmine production season, which is usually four months. In the past, the output of jasmine has always exceeded demand, which ultimately led to excess inventory of manufacturers. Shortening the production season will ensure the consumption of existing supply and avoid oversupply.

Market price: 3080.00 USD/kg

Neroli oil

Harvest period: March to April

Farmers and producers collaborate to select high-quality raw materials and streamline their quantities, with an estimated harvest of 1.5 metric tons. This cooperation has yielded positive results and the harvest this year is expected to be better than in the past few years.

Market price: USD 3190.00/kg

Sweet Orange Essential Oil

Wind gusts and unusually high temperatures adversely affected flowering and fruit setting, and output is expected to fall by 17% to 3 million tons. Egypt is an important player in the global orange trade. Even if there is a pandemic, the decline in orange supply has been reduced by 200,000 tons, and exports still reach 1.5 million tons.

Harvest period: October to January

This year, orange leaf oil prices fell. Despite the decline in production this year, there is an oversupply, which is a key factor leading to price declines. Producers look forward to rising demand in 2021, thereby pushing up prices again.

Market price: USD 55.00/kg orange leaf oil