Treatt: The only way is up for tangerine, aniseed and black pepper oil

By Elaine Watson

- Last updated on GMT

Related tags Black pepper Essential oil

Aniseed oil production has plummeted
Aniseed oil production has plummeted
The price of tangerine, aniseed and black pepper oil is only going in one direction this year, according to essential oils giant Treatt. And that’s up.

“Supply continues to be tight for 2011 as the crop of the star anise fruit still hasn’t recovered from last year’s drought,"​ noted Treatt in its April market report."The high price of fruit means it is not commercially viable to produce the oil leading to a shortage of up to a third of the annual output of aniseed oil.”

Although more farmers were cutting the leaves due to the current high prices, there were fears that an excessive harvest now would only lead to further loss of output next year, it added.

As for black pepper: “All signs point to increasing prices for this oil. Indian, Sri Lankan, Vietnamese, Brazilian and Indonesian origins are anticipating smaller crops than in 2010 with some also estimating a late harvest.”

Tangerine oil: Chinese supply dries up

Tangerine oil supplies would remain tight throughout 2011, predicted the firm: “Although Mexico and Florida had relatively good crops, demand is extremely high and we have completely lost the supply of tangerine oil from China.

“In the main tangerine processing area of China there is usually quite a bit of export activity at this time of year. But the crop… was dismal in 2010 yielding less than 100,000t of fruit.

“With very strong fresh fruit demand and fruit prices going up more than 10-fold compared to the previous year, there was no tangerine oil processed this year…To have a low crop AND high fruit prices AND strong demand for fresh fruit really ensures disaster for our side of the business as making oil is just not cost-effective for the processors so we continue trying to find alternatives for Chinese tangerine oil.”

Aroma chemicals: ‘vastly increased’ prices

Meanwhile, high orange oil prices were also pushing up the price of aroma chemicals used to impact taste and aroma to processed foods and beverages such as L-carvone, said Treatt. “L-carvone‟s cost is almost double that of a year ago. And due to the current situation in the orange oil market, prices are not expected to fall in the near future."

Treatt USA had had "an exceptional start to the financial year, benefiting from the price of orange oil reaching new highs",​ said the firm in March.

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