Page 5 - Layout 1
P. 5
supply and prices. Multiple blooms orange terpenes
are problematic as it means much
smaller quantities of fruit available at and d-limonene
any one time and processing will last Following orange oil, the orange
for a longer period of time as fruit terpene and d-limonene market has
maturity is stretched out. Besides a also firmed. There seems to be a
crop such as this being more costly to general lack of supply worldwide,
the processors in terms of efficiencies whilst demand remains high, causing
and logistics, the unwelcome result is the price to jump at least 30% in just
lower quantities of oil available than under three months. However, this
usual in any given month. market can be very fickle as many
Florida is processing but yields for buyers and end users have
substitutions they will quickly
both d-limonene recovery and orange reformulate to when orange simply
oil are down. Although it is relatively becomes too expensive, which can
sweet orange normal for this time of year, with the then cause a quick drop in both
Orange oil has firmed significantly in market so unsteady this is just demand and subsequently price. We
another factor that is adding to an
the last couple of months and supply already trying situation. The United urge you stay close to your Treatt
has become quite constricted. The States’ consumption of orange juice sales representative for the latest on
ongoing drought has now been per capita has fallen almost 30% in these quickly moving markets.
deemed by Brazil’s Environment
Secretary as the “worst water crisis
in Brazil’s history”, and certainly there lemon
are numerous other officials who Lemon oil continues to drift
concur. The combination of drought, downwards off the highs of last year,
poor juice and oil yields, the lowest but slowly. Prices of fresh lemons in
aldehyde levels recorded consistently Europe remain high which makes it
from any one Brazilian crop and a expensive for both Italian and Spanish
further reduced crop in Florida have processors to buy fruit for production.
made for extraordinarily difficult
circumstances. Recent news
reaching mainstream buyers that the
2015 Brazilian crop is also expected
to be poor has now pushed orange just a decade, and the number of
prices higher than they’ve been since trees in Florida is down almost 40%
the autumn of 2011, the year orange over the past 15 years. Of course,
chaos really first began. The 2015 greening (the Huanglongbing disease
Brazilian crop, in terms of box we have so frequently referred to in
numbers, is unknown at this time, our market reports), continues to
but we do know that it will be a late plague the industry, forcing growers
crop with multiple blooms which is to now spend almost three times per
likely to continue to put pressure on acre on grove care than they did
before the disease spread across the New crop California lemon oil prices
state. It feels somewhat gloomy at remain extremely high with limited
the moment, but we are hoping that availability as demand is strong with
the Valencia crop will produce some only a moderate crop. Argentinian
better fruit, oil yields and aldehyde production is still some four months
levels whilst keeping in mind that we away so, although we still believe the
still have at least another month of cost of lemon will come back to more
possible freeze weather to stave off. normal levels, it appears those levels
We will see processing of Valencias are still many months out. Globally,
begin in the next six to eight weeks. there are now improved supplies of
other lemon products including
www.treatt.com
are problematic as it means much
smaller quantities of fruit available at and d-limonene
any one time and processing will last Following orange oil, the orange
for a longer period of time as fruit terpene and d-limonene market has
maturity is stretched out. Besides a also firmed. There seems to be a
crop such as this being more costly to general lack of supply worldwide,
the processors in terms of efficiencies whilst demand remains high, causing
and logistics, the unwelcome result is the price to jump at least 30% in just
lower quantities of oil available than under three months. However, this
usual in any given month. market can be very fickle as many
Florida is processing but yields for buyers and end users have
substitutions they will quickly
both d-limonene recovery and orange reformulate to when orange simply
oil are down. Although it is relatively becomes too expensive, which can
sweet orange normal for this time of year, with the then cause a quick drop in both
Orange oil has firmed significantly in market so unsteady this is just demand and subsequently price. We
another factor that is adding to an
the last couple of months and supply already trying situation. The United urge you stay close to your Treatt
has become quite constricted. The States’ consumption of orange juice sales representative for the latest on
ongoing drought has now been per capita has fallen almost 30% in these quickly moving markets.
deemed by Brazil’s Environment
Secretary as the “worst water crisis
in Brazil’s history”, and certainly there lemon
are numerous other officials who Lemon oil continues to drift
concur. The combination of drought, downwards off the highs of last year,
poor juice and oil yields, the lowest but slowly. Prices of fresh lemons in
aldehyde levels recorded consistently Europe remain high which makes it
from any one Brazilian crop and a expensive for both Italian and Spanish
further reduced crop in Florida have processors to buy fruit for production.
made for extraordinarily difficult
circumstances. Recent news
reaching mainstream buyers that the
2015 Brazilian crop is also expected
to be poor has now pushed orange just a decade, and the number of
prices higher than they’ve been since trees in Florida is down almost 40%
the autumn of 2011, the year orange over the past 15 years. Of course,
chaos really first began. The 2015 greening (the Huanglongbing disease
Brazilian crop, in terms of box we have so frequently referred to in
numbers, is unknown at this time, our market reports), continues to
but we do know that it will be a late plague the industry, forcing growers
crop with multiple blooms which is to now spend almost three times per
likely to continue to put pressure on acre on grove care than they did
before the disease spread across the New crop California lemon oil prices
state. It feels somewhat gloomy at remain extremely high with limited
the moment, but we are hoping that availability as demand is strong with
the Valencia crop will produce some only a moderate crop. Argentinian
better fruit, oil yields and aldehyde production is still some four months
levels whilst keeping in mind that we away so, although we still believe the
still have at least another month of cost of lemon will come back to more
possible freeze weather to stave off. normal levels, it appears those levels
We will see processing of Valencias are still many months out. Globally,
begin in the next six to eight weeks. there are now improved supplies of
other lemon products including
www.treatt.com
