MNS BULLETIN March 2011

ESSENTIAL OILS AND OLEORESINS MARKET NEWS SERVICE (MNS) QUARTERLY EDITION

Market News Service Essential Oil and Oleoresins

Disclaimer This report has been prepared without formal editing, as a service to exporters and industries in developing countries by the Market News Service (MNS), Division of Product and Market Development, International Trade Centre UNCTAD/WTO. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without prior permission in writing from the International Trade Centre. The mention of specific companies or of certain commercial products and brand names does not imply that they are endorsed or recommended by ITC in preference to others of a similar nature that are not mentioned. The designations employed and the presentation of material on the map do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any Country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

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Market News Service

Essential Oils & Oleoresins, EU and US Market Report Report prepared for ITC‘s Market News Service by: EU markets: Mr. Steve Caiger (steve.caiger@highvaluehorticulture.com) US markets: Ms. Kerry Hughes (kerry@ethnopharm.com)

Issue Number 1, March 2011 The Market News Service of the International Trade Centre UNCTAD/WTO (ITC) provides timely and detailed price and market information on selected primary and semi-processed products of particular interest to developing countries and economies in transition. Regular access to such information is vital to companies deciding when and where they should sell or buy products on international markets. MNS thus aims to serve as a market intelligence tool, to enable developing countries realize their full income potential through global trade expansion. MNS does not act as a broker and is exclusively an information service with the objective of improving market transparency and encouraging price and quality competition for the benefit of all market players. MNS‘ team of product specialists draws its information from a network of correspondents in many countries worldwide, collecting up-to-date data on wholesale prices paid for specific products, supply and demand trends, and economic, climatic and legislative information that can affect the short-term market situation of particular products. MNS' information providers include major importers, exporters, manufacturers, wholesalers, and governmental organizations. We continuously encourage and welcome new sources of information. Should you be interested in becoming an information provider and contributing to MNS' efforts to improve market transparency and facilitate trade, please contact us at mns@intracen.org. For more information about the report and the Market News Service, please contact mns@intracen.org or visit our website on http://www.intracen.org/market-news

No part of these reports may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior permission of the MNS/ITC Geneva.

Copyright © MNS/ITC 2011. All rights reserved

Market News Service Essential Oil and Oleoresins

INDEX

MARKET CONDITIONS 5 EU Markets 5 US Market 5

FUEL SUSTAINABILITY 6 Fuel costs and carbon footprint 6

SPECIAL FOCUS: 7 Flavour & Fragrance Industry Sales, with a Focus on Industry Leaders 7

Mainstream Industry Trends 11 Supplying the Top Ten 12

SUPPLIERS OF EQUIPMENT 13 Africa 13

PRICE INFORMATION 16 US Markets 16

EU Markets 19

NEWS & UPDATES 22 Cinnamon active label extends peach shelf life, maintains sensory qualities 22 Global industry looks at India as a future hub for Fragrances and Flavours 23 Study notes HPP effectiveness in reducing Listeria risk in yoghurt 24 Using wastewater to enhance mint production 25 Mentha oil remains up in futures trade 26

EVENTS CALENDAR 27

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Market Conditions Updates

EU Markets The market has not been badly disturbed by the political upheavals in North Africa, although prolonged problems in Egypt would have had a serious impact given the range of products for which it is an important origin. Provided the situation there remains basically stable – in terms of the day-to-day economy functioning – there should not be any major impact on product prices. Tunisia is a commercial producer of a narrow range of essential oils (neroli, rosemary) but it is not a dominant origin, so the continuing disruption there should not affect the market unduly. Libya and Syria do not have significant essential oil production, and Morocco, the other major producer in North Africa, has not been involved in the turmoil. Prices of almost all essential oils remain firm, driven by 2 basic factors: The flavours and fragrances market

continues to grow, and

Fuel costs, which represent a major part of the costs of the production of all products, are very high and likely to remain so.

An additional factor is the range of crop options that farmers have these days, particularly short term fresh food crops. This has resulted in farmers being able to turn away from ‗traditional‘ crops when prices are poor. They are no longer tied in to production of a particular crop but have a broad range of options to choose from. The consequence of this is that many have permanently abandoned the traditional cultivation of essential oils, while others might possibly drop the crop when returns are poor and alternatives offer better returns. These changes are driving the industry towards ‗sustainable‘ pricing as a necessary strategy to avoid the continuing uncertainty over supply and price spikes from shortages.

US Market According to a Malagasy producer, there was explosion of geranium and ravintsara demand in the first quarter of the year which continues to grow. Geranium oil is being sold at 200 euro FOB now. They have also noticed the rise in demand of the vegetable oil of calophyllum inophyllum(also called forah in Madagascar). In Guatemala the harvesting season of cardamom has finished. The total production expected from Sept-2010 till August-2011 seems to be 10-15% more in comparison with last season. Prices are at high levels, which are reported to likely stay at the same levels until next season which starts in October. During recent years the weather conditions have been the most important condition regarding production volumes in Guatemala. US importers of essential oils are reporting strong demands for American peppermint oil, resulting in firm prices, which may potentially increase in the next few months. Spearmint oil is also reported to have firm pricing. Indian suppliers continue to explain the lack of

supplies and high prices of essential oils from India due to adverse weather conditions, inflation, and the strengthening of the Indian currency against the US dollar. Likewise, in Indonesia, shippers are reporting that even though it was still rainy (in February when this was reported), the situation has improved with both prices and with available stock, possibly due to anticipation of the end of the rainy season. The recent flooding in Australia has reportedly impacted the tea tree oil distillation this year, with estimates that the 2011 production may be 30% less than last year. Increases in the currently quoted prices (approx. US$40/kg) for tea tree oil are foreseen. In Paraguay the Petitgrain distillation season which should have begun by now, but has been delayed by about two months; therefore, production is limited and producers are now busy with other products. Oil Guaiacwood has been taken off the CITES list early this year, and therefore is being exported once again.

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Fuel Sustainability

Fuel costs and carbon footprint Distillation operations using fuel – typically diesel or heavy fuel oil – have seen major price rises over the last few years, and the signs are that prices are going to remain high, and that further upheavals in the Middle East area have the potential to send them higher still. Even without any consideration of political disturbances, it is clear that global demand has risen, and is continuing to rise, and this is likely to keep prices where they are, or to push them higher still. Fuel costs are a major in distillation costs, and enterprises have to find ways to reduce usage, and/or to change to lower priced fuels. New boilers and burners can offer significant efficiency savings over old equipment, but important and cost effective benefits can be obtained by optimising insulation to minimise heat loss, putting in heat recovery systems to make use of waste heat, using simple solar collectors to pre-heat water etc. As well as trying to minimise fuel usage, enterprises need to consider their carbon footprint, and start to work on strategies to at least minimise it, and then to start off-setting it. This is starting to become an important factor in the market, and will become increasingly so. It is much better to be a leader in offering carbon neutral product, than to be driven to do it at the end and not have the time to identify and plan for the best way to achieve it. Fuel used is likely to be the major source of carbon usage, although if crops are grown under intensive systems, with irrigation and high fertilizer inputs, crop production itself may have a significant carbon footprint, which will also need to be considered. Minimising fuel used in distillation will reduce the carbon footprint of the enterprise. After that, the strategy changes to off-setting – either through the purchase of carbon credits, or the generation of credits (such as through registered tree planting schemes). The costs of this are not great, but the beneficial impact

– both to the environment and the business - can be. As an indication, for each 10,000 litres of diesel used in a boiler, around 27 tonnes of CO2 equivalent (tCO2e) is released – so that 27 credits are required to offset it. Prices of credits vary depending on whether they come from voluntary schemes or formal CDM credit schemes, but at around US$10/credit, the total offset cost would be US$270 for each 10,000 litres used. Alternatively, tree planting schemes could be started, to generate credits. Schemes have to run for a certain time – typically 15 years, but it can be shorter – so that they may not be suitable for fuel wood schemes. In the voluntary sector RED credits (for avoided deforestation) can be generated, and boundary tree planting schemes (around landholdings) are also accepted. Once the carbon credit system is understood – and frequently there are locally based organisations that have made it their business to understand the system, in East Africa for example the Uganda Carbon Bureau is a very good first point of contact – an appraisal of the business can identify a range of ways through which carbon usage can be minimised and credits generated to move towards offsetting the carbon footprint. Enterprises that run wood fired distillation operations – either an open fire or wood fired steam boilers – also have to consider fuel usage, as the same principles apply as for enterprises using diesel. Wood is becoming scarce, prices are rising, and burning wood is generating a carbon footprint. Uganda Carbon Bureau Plot 47 Lubowa Estate PO Box 70480 Kampala. Uganda Tel/fax: +256 (414) 200988 Contact: Bill Farmer, Chairman billfarmer@ugandacarbon.org

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Special Focus

Flavour & Fragrance Industry Sales, with a Focus on Industry Leaders The flavour and fragrance Industry is dominated by a few large corporations that control the majority of the market share while the more numerous small Flavour and fragrance companies continue to lose market share. Last year was no different in this trend, as 2010 saw some of the largest year-to-year gains, with an estimated total market growth of approximately 10% in US$1. The small flavour and fragrance companies, on the other hand, were reported to lose market share on the order of about 4.5% in US$. Who are the Top 10 Industry Leaders? 1. Givaudan SA Corporate Headquarters: 5, Chemin de la Parfumerie Vernier, - 1214 Switzerland http://www.givaudan.com/ Givaudan is the top Flavour & fragrance company in the world. They claim their success has to do with their innovation, and they have a focus on building partnerships with clients. They list their mid-term objectives based on assumed market grown of 2-3% as being a 4.5-5.5% organic sales growth, the best in class EBITDA, 14-16% free cash flow of sales by 2015, and above 60% free cash flow return. The key ‗pillars‘ of their five-year strategy are reported to be developing markets, research and development, health and wellness, sustainable sourcing of raw materials, and targeted customers and segments. As reported by Leffingwell & Associates: In 2010, Givaudan Group sales totalled CHF 4,239 million, an increase of 8.9% in local currencies and 7.1% in Swiss francs compared to the previous year. Sales of the Fragrance Division were CHF 1,988 million, an increase of 10.5% in local currencies and 9.0% in Swiss francs. Sales of the Flavour Division were CHF

1 Leffingwell & Associates

2,251 million, an increase of 7.5% in local currencies and 5.4% in Swiss francs compared to the previous year. 2. Firmenich SA Corporate Headquarters: Rue de la Bergère 7 P.O. Box 148 Meyrin 2 CH-1217 Switzerland Firmenich is the largest privately owned flavour and fragrance company in the world. It was founded in 1895 and early on became known for signature fragrance chemicals, such as Dianthine® and Iralia®, which are still present on the market today. Their strongest growth markets today are geographically in emerging market, with a new affiliate in Dubai opened this year to serve the Gulf region, a new state-of-the art perfume and Flavour development center in Brazil to service Latin America, and a new Perfume ingredients plan in India to support their global business. As reported by Leffingwell & Associates: For the financial year ended June 30, 2010, Firmenich posted record sales of CHF 2873 million, an increase of 12.1% in local currencies and 8.7% in Swiss Francs, regaining its position as growth leader in the fragrance and Flavour industry. This performance was driven by double-digit growth in Perfumery and Flavour segments, with a particularly strong rebound in Fine Fragrance during the second half of the year. The perfume and Flavour ingredients business followed the trend, recording a healthy high single-digit growth performance. Leffingwell estimates that Firmenich increased market share by about 1.7% in the period. 3. IFF Corporate Headquarters: 521 West 57th Street New York, NY 10019 USA

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IFF‘s vision is to create unique scent & taste experiences people love. They say they do this through their commitment to customers, people and innovation. Since 1833 they have been in the Flavour and fragrance business, originally started by a miller and a druggist with a focus on the production of essential oils, especially sandalwood oil and clove. In 2011, IFF has announced plans to invest over $100 million in Greater Asia over the next few years to be allocated to two new state-of-the-art manufacturing facilities located in Guangzhou, China and Singapore. IFF‘s 2010 net sales were $2.6 billion and had operations in 33 countries. 4. Symrise Corporate Headquarters: Muehlenfeldstraße Holzminden, 37603 Germany In the medium term Symrise is striving to become one of the three leading manufacturer in the Flavour and fragrance industry. In order to do this they plan to grow globally with defined customers, growing in the emerging markets of Asia, South America, the Middle East and Africa. They plan to strategically strengthen themselves through acquisitions. As reported by Leffingwell & Associates: Symrise increased sales in 2010 by 15.4 % to € 1.571.9 million (+11% in local currency) and exceeded its target to achieve sales growth of at least 8 %. Scent & Care sales increased 17.9% to € 804.5 million while Flavour & Nutrition sales increased 12.9% to € 804.5 million. 5. Takasago Corporate Headquarters: Nissey Aroma Square 17F 5-37-1, Kamata Ohta-Ku, - 144-8721 Japan Founded in Japan in 1920, Takasago has developed Flavours and fragrances for over 80 years, and has a focus on the Asian region. Takasago maintains operations in 24 countries and through this network strive to deliver individual market solutions. Takasago also has pursued

pharmaceutical intermediaries, functional materials and other fine chemicals, with asymmetric synthesis being used as a key technology. As reported by Leffingwell & Associates: Sales for the half fiscal year ending September 30, 2010 were ¥ 60,547 million, up 2.9% from the prior year while net income increased 85.1% to ¥ 3,325 million. 6. Mane SA Corporate Headquarters: 620 Route de Grasse 06620 Le Bar Sur Loup, France Founded in 1871, Mane began as a company supplying and producing fragrant materials from regional flowers and plants. It grew internationally between 1916 and 1958, and then in 1959 diversified into the Flavourings for the food industry. Mane reportedly consolidates their activities with the promotion of human resources, the quality assurance of their products, and with their environmental protection management system. As reported by Leffingwell & Associates: Mane achieved a consolidated turnover of 480.1 million Euros in 2010, up 26.7% from 376.2 million Euros in 2009 (personal communication, Leffingwell & Associates). 7. Sensient Flavours Corporate Headquarters: 777 East Wisconsin Avenue Milwaukee, WI 53202-5304 USA Sensient Technologies is not only one of the largest Flavour and fragrance companies in the world, but they also supply colours that are used in a diversity of products, from food and beverages, pharmaceuticals, cosmetics, home and personal care products, specialty printing and imaging products, as well as computer imaging and industrial colours. As reported by Leffingwell & Associates: The Flavours & Fragrances Group reported full year 2010 sales of $809.1 million, an increase of 4.7% vs. 2009. Operating income for the same period declined 2.0%. For the 4th Qtr, F&F sales

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were $206.1 million, up 5.2% while operating income declined 0.5%. As these figures include dehydrated products such as dehydrated vegetables that are about 28% of sales, we estimate that the sales of conventional Flavours & fragrances in 2010 were about $582.6 million. 8. T. Hasegawa Corporate Headquarters: 4-4-14, Nihonbashi Hon-cho, Chuo-ku, Tokyo 103-8431 Since 1903, T. Hasegawa has focused on quality and service. Today they are second in the Japanese market, and eighth in the global market. Operations are focused in the US, Japan, Singapore and China. As reported by Leffingwell & Associates: For the full year ending September 30, 2010 consolidated net sales were ¥ 45,167 million, up 4.4%. For the same period, net income increased 58.5% to ¥ 2,840 million. 9. Robertet SA Corporate Headquarters: 37, Avenue Sidi Brahim BP 52100 06130 Grasse Cedex, France Robertet describes itself as being above all a natural aromatic products company. Their natural raw materials are produced in one of their four factories, located in France, Turkey, South Africa or Belgium. Robertet is a family business that is

quoted on the Paris stock exchange since 1984, and it prides itself on family traditions that live on in the company‘s rigorous management style that enable it to grow globally. As reported by Leffingwell & Associates: Robertet has reported sales for 2010 of 362.25 million Euros, an increase of 18.7% over 2009. Fragrance sales increased 15.7% to 130.6 million Euros. Flavour sales increased 17.3% to 143.5 million Euros and Ingredient sales increased 26.1% to 85.8 million Euros. 10. Frutarom Corporate Headquarters: 25 Hashaish Street P.O.B 10067 Haifa 26110 Israel Frutarom was established in 1933, and is now a rapidly growing Flavour and fine ingredients company. Beyond Flavours and fragrances, Frutarom develops, produces and markets functional food extracts, and natural pharmaceutical/nutraceutical extracts. As reported by Leffingwell & Associates: Frutarom's revenues in FY 2010 totalled US$ 451.1 million, an 8% increase in comparison to revenues of US$ 425.2 million in 2009 in local currency terms. The strengthening of the US dollar against European currencies offset 1.9% of the increase in Frutarom's sales. In terms of US dollars, the sales increased by 6.1% compared to 2009.

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Table 1. 2006-2010 Flavour & Fragrance Industry Leaders (estimated sales volume in millions (preliminary estimates as of March 26, 2011)

Note - Top 10 Total figures includes Quest International for Year 2006 and excludes sales of Frutarom for the same period, as 2007 was Frutarom's 1st year in the Top 10. *Note - As of March 26, 2011, the following sales figures are estimates based on partial year sales figures where available: Takasago (based on 6 month sales); Figures for Firmenich are the author's estimate based on historical performance. Until final figures are available for these companies, the top ten totals are only "estimated".

Company 2006 2006 Est. 2006 2007 2007 Est. 2007 2008 2008 Est. 2008 2009 2009 Est. 2009 2010 2010 Est. 2010

.. Country Currency =US $ Market

Share Country Currency =US $ Market

Share Country Currency =US $ Market

Share Country Currency =US $ Market

Share Country Currency =US $ Market

Share

Givaudan 2,909 CHF $2,387.9 13.3% 4,132 CHF $3,647.0 18.4% 4,087 CHF $3,828.7 18.9% 3,959 CHF $3824.0 19.1% 4,239 CHF $4538.4 20.6%

Firmenich 2,500 CHF $2,052.1 11.4% 2,847 CHF $2,512.8 12.7% 2,641 CHF $2474.1 12.2% 2,873 CHF $2775.0 13.9% ~3,100 CHF ~$3318.9* 15.1%

IFF $2,095.4 $2,095.4 11.6% $2,276.6 $2,276.6 11.5% $2,389 $2,389 11.8% $2326.2 $2326.2 11.6% $2622.9 $2622.9 11.9%

Symrise 1,230.0 € $1,623.0 9.0% 1,274.5 € $1,860.8 9.3% 1,319.9 € $1837.4 9.1% 1362.0 € $1952.5 9.8% 1571.9 € ~$2106.6* 9.6%

Takasago ¥113,876 $955.7 5.3% ¥124,231 $1,112.0 5.6% ¥123,973 $1365.6 6.7% ¥114,347 $1228.5 6.1% ~¥117,777 ~$1452.1* ~6.6%

Mane SA 288 € $380.0 2.1% 307.31 € $448.7 2.3% 332.5 € $462.9 2.3% 376.2 € $539.3 2.7% 480.1 € $643.4 2.9% Sensient Flavours $535.4** $535.4** 3.0% ~$572** ~$572** 2.9% ~$591** ~$591** 2.9% ~$548.7** ~$548.7** 2.7% ~$82.6** ~$582.6** ~2.6%

T. Hasegawa ¥47,000 $394.4 2.2% ¥50,066 $448.1 2.3% ¥45,421 $500.3 2.5% ¥43,244 $464.6 2.3% ¥45,167 $556.9 2.5%

Robertet SA 221.13 € $291.8 1.6% 241.14 € $352.1 1.8% 303.17 € $422.0 2.1% 305.1 € $437.4 2.2% 362.25 € $484.5 2.2%

Frutarom $287.2 $287.2 1.6% $368.3 $368.3 1.9% $473.3 $473.3 2.3% $425.2 $425.2 2.1% $451.1 $451.1 2.1% Top Ten Totals .. $11,867.6 65.9% .. $13,598.4 68.7% ... $14344.2 70.7% ~$14521.4 72.6% ~$16758.4 76.2%

All Others .. $6,132.4 34.1% .. $6201.6 31.3% ... $5955.8 29.3% ~$5478.6 27.4% ~$5241.6 23.8%

Total Market .. $18,000 .. .. $19,800 .. ... $20,300 .. $20,000 ~$22,000

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Mainstream Industry Trends According to John Leffingwell, a Flavour chemist who started Leffingwell & Associates to act as an information source to the Flavour and fragrance industries, as well as to supply the industry with software, mainstream industry trends don‘t change too much—the top ten Flavour houses mainly sell the same materials, and the top essential oils remain the same. John Leffingwell said, ―Although the top Flavours are mainly the same, there has been a large trend toward natural Flavours in all markets. For example, when I first started in this industry in the 1970‘s, about 70% of the favors were from synthetic supplies. Today, over 70% of the Flavours come from natural sources, such as essential oils, and this trend continues to increase.‖ There have also have been fairly recent changes in processes that are significant in the Flavour and fragrance industry. The ‗high throughput screening‘ that has been popular within the pharmaceutical industry is now found in the Flavour and fragrance industry. High Throughput Screening is a method for discovering new compounds and substances with desired activities and characteristics. In reference to the more well known pharmaceutical high throughput screening, for example, if a company was interested in a compound for lowering blood sugar, they would first find an in vitro assay that selected for blood sugar lowering compounds. Then the company would take entire libraries of known compounds and pass them through this screen. Those compounds that showed a positive result in the assay would then be taken to the next phase of research and selection. This method allows for the screening and potential unexpected results of compounds that researchers may not normally think of to bring into the research and development process. The way this process is applied in Flavour research, on the other hand, is that

desired taste receptors are cloned by researchers, and then libraries of compounds are screened. Leffingwell gave the example that in Givaudan‘s strategy report, they reported a program for screening for new cooling compounds that they completed using high throughput methods. They ended up screening 28,000 materials against receptors which they were able to effectively reduce to 350 materials that were tasted. 25 compounds, were then selected for in-depth application tests. Two final cooling agents stood out and have been commercialized. Another area identified by Leffingwell & Associates as being a top trend in the industry is bitter blockers. Recently, for example, in the US GRAS (Generally Recognized as Safe) notification list there have been several bitter blockers showing up on the list, showing company interest in development of these type of compounds for food use. Bitter blockers are mostly used for masking the bitter off-notes of certain sweeteners (both artificial and natural). Cooling agents also remain a top trend among the mainstream Flavour industry. For example, as menthol in large quantities becomes bitter in Flavour, when mixed with other cooling compounds, the menthol mixture becomes cooler without forming the bitter off-Flavours. For this reason there has been an effort by major Flavour houses to find other cool Flavours. Symrise and Takasago currently have the largest synthetic menthol manufacturing plants, and BASF has just announced it has developed a new process for producing synthetic menthol. On the other hand, whereas Brazil used to be one of the largest natural menthol producers in the world, currently India and China are the largest sources. Brazil now buys mint oils from these sources and processes them to crystallize and purify the menthol, which they offer at a value-added price.

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Supplying the Top Ten When it comes to supplying the larger Flavour and fragrance houses, Leffingwell & Associates emphasize that producers should meet certain GMP and quality specification standards, which can be found from the major essential industry associations. Also important is to see which substances are allowed in each market that is being targeted. For example, in the Flavour-Base 2010, the regulatory status of Flavour materials is given per market area. Although, the differences between countries & markets regarding what is allowed are growing smaller, there are still some significant differences in what is allowed and not allowed. The other very important aspect that was identified for supplying today‘s market is ensuring a sustainable supply. As this was not an emphasis for many years as the Flavour and fragrance industry developed, we now are experiencing shortage problems from overharvesting and demand that outpaces the sustainability of supply. This is evident with Indian

Sandalwood oil, Santalum album, which is now listed as a vulnerable species by the International Union for Conservation of Nature, as it is one of the world‘s most illegally logged plants. In 2007, Givaudan partnered with Mount Romance (now part of TFS Corporation), a producer of pure Australian sandalwood oil from Santalum spicatum. This partnership creates a sustainable supply of a specific grade of sandalwood oil that is harvested by people from the Aboriginal communities in the southern part of Western Australia. In addition, TFS has also planted over 3,700 hectares of Indian Sandalwood in Western Australia and, when the trees reach maturity, they have plans to produce a sustainable supply sandalwood products for the market. They claim it will be the largest sustainable supply of Indian Sandalwood in the world. Currently, as it is one of the world‘s most valuable hardwoods, it is selling for over A$100,000 per ton of heartwood (Tamil Nadu Forestry Department).

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Suppliers of Equipment Africa

The distillation and extraction industry in Africa is relatively small and localised outside of the North African centers of Egypt and Morocco, and Southern Africa (South Africa, Swaziland). New entrants to the industry can find it hard to identify suppliers of equipment (stills, condensers, extractor vessels etc) in stainless steel, steam boilers, and other necessary materials (drums, jugs, filter papers etc). The development of the industry in Africa would benefit greatly if there was greater sharing of information on the location of suppliers. New entrants would find it easier to identify necessary suppliers, and the concentration of orders on particular suppliers would encourage the development of skills

and expertise – this is particularly necessary in the areas of fabrication of stainless steel vessels and condensers. Some contacts of companies involved in the manufacture of distillation/extraction equipment or the capability to do so (primarily the capability to work with stainless steel) or supply of materials based in East Africa are given below. The Newsletter would welcome information from Readers on other suppliers of relevant equipment and materials from all regions of Africa, so that the listing can be expanded. Please send any information to mns@intracen.org.

The contacts are provided as a service only. NO RECOMMENDATION IS IMPLIED. 1. MANUFACTURE OF STAINLESS STEEL DISTILLATION EQUIPMENT: KENYA ASL – Heavy Fabrication Division Ramco Industrial Park Mombassa Road PO Box 18639-00500 Nairobi. Kenya Tel: +254 20 821567/820296/820394 Fax: +254 20 820169/651893 murali@asl.ramco-group.com Attn: Mr Ve Balamurali, General Manager Warren Enterprises Ltd PO Box 8251 Nairobi. Kenya Tel: +254 20 8561 932/3/4 Fax: +254 20 8561 013 Attn: Mr S Ramaswamy, Managing Director Morris Steel & Company Mogadishu Road PO Box 18310 Nairobi. Kenya Tel: +254 20 533 627 Attn: General Manager

UGANDA Specialised Welding Services (previously Kasise Kleinsmedie Uganda Ltd) Jinja Road, Plot 96 PO Box 40115 Nakawa Vocational Training Center Kampala Uganda Tel: +256 (776) 405060/405070/405080 +256 (772) 227 003 (Samantha Moray) sam.moray@sws.co.ug Attn: Samantha Moray, General Manager www.sws.co.ug MADAGASCAR Societe Aris Trading Lot VB 81X Ambatoroka 101-Antananarivo. Madagascar Tel: +261 20 24 264 96 Fax: +261 20 22 290 24 aristrading@freenet.mg Attn: Mr James Davidson ATICOM Lot IT 91A Itaosy 102 Antananarivo – Atsimondrano. Madagascar

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Tel: +261 32 07 744 34 morasatajosoa@yahoo.fr Attn: Josoa Andriamorasata SOUTH AFRICA EDESA PO Box 123 Riebeek Kasteel 7306 Western Cape. South Africa Tel: +27 (82) 334 3324 info@edesa.co.za Attn: Werner Bester Manufacture of distillation equipment and sales of used equipment. BENCO PLANT & ENGINEERING (PTY) Ltd 159 Van Eeden Crescent, Rosslyn, Karin Park P O Box 59. Pretoria, Gauteng. South Africa Tel: +27 (12) 541-0398 Fax: +27 (12) 541-0399 Attn: Sloam Durbach Manufacturer of distillation equipment and steam boilers POWERSAVE PO Box 699 Hilton 3245. South Africa Tel (cell): +27 82 493 8670 Fax: +27 33 34 33 755 Attn: Greg Rowe gregrowe@telcomsa.net Manufacture of steam distillation plants Henry S Komar & Associates CC 2 Hebel Road, Roodepoort, Gauteng, South Africa Postal address: PO Box 994, Honeydew 2040, South Africa Tel: +27 11 760 2718 Fax: +27 11 760 1079 Attn: Stan Kumar, CEO info@komar.co.za; sales@komar.co.za www.komar.co.za Manufacture of stainless steel distillation and processing equipment. Also sales of secondhand equipment. 2. SUPPLIERS OF STEAM BOILERS MADAGASCAR ARTICOM Lot IT 91A Itaosy 102 Antananarivo – Atsimondrano. Madagascar Tel: +261 32 07 744 34 morasatajosoa@yahoo.fr

Attn: Josoa Andriamorasata ARTICOM make a simple, low pressure, wood fired steam boiler. KENYA Boiler Consortium Africa (BCA) Ltd PO Box 60780. Nairobi. Kenya Tel: +254 20 557837/ 536793/ 4349310 Tel: +254 722 750131/ 703511/ Fax: +254 20 735 331177 Barry Corlines info@boilersafrica.com www.boilersafrica.com BCA design, manufacture and commission boilers, included wood fired steam boilers, and are agents for Riello in East Africa. SOUTH AFRICA Combustion Technology South Africa PO Box 30047. Tokai, 7966 Cape Town, South Africa Tel: +27 21 715 3171 Fax: +27 21 715 6297 www.combustiontechnology.co.za Combustion Technology are the exclusive Southern African distributors of Riello burners and Garioni Naval Boilers. BENCO PLANT & ENGINEERING (PTY) Ltd 159 Van Eeden Crescent, Rosslyn, Karin Park P O Box 59. Pretoria, Gauteng. South Africa Tel: +27 (12) 541-0398 Fax: +27 (12) 541-0399 Attn: Sloam Durbach Manufacturer of distillation equipment and steam boilers CAPE BOILER 16 Natal Street, Parden Island, Cape Town, South Africa Tel: +27 21 511 6652 Fax: +27 511 4415 Attn: Mr Nic Kellerman INDIA Firetech Boilers Pvt Ltd FIRETECH HOUSE, No.211, 2nd Cross, 38th Main, B.T.M Layout, 2nd Stage, Bangalore 560 068. India Tel: +91-80-6683686; Fax: +91-80-6683921 Email: firetech@vsnl.net

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Manufacture of wood fired steam boilers. Indian manufacturer, but has supplied boilers to Africa. 3. SUPPLIERS OF MATERIALS AND EQUIPMENT (a) Forklift trucks/pallet trucks Forktruck Solutions 16 Kiewiet Close, Okavango Park, Brackenfel 7560, Cape Town. South Africa Postal address: PO Box 3221, Durbanville 7551. South Africa Tel: +27 21 982 1142 and +27 21 981 2649; Cell: +27 83 2848 557 Fax: +27 21 982 1141 Attn: Dirk van der Westhuizen dirk@forktrucksolutions.co.za www.forktrucksolutions.co.za Sales and rental of new and used forklift trucks. Also pallet jacks/stackers and range of other warehouse equipment. (b) Hoists and lifting equipment Blue Cranes, Crane House, 10 Mansell Road, Killarney Gardens, Minerton, Cape Town, South Africa Postal address: PO Box 702, Melkbosstrand 7437. South Africa Tel: +27 21 556 0498/9 Fax: +27 21 556 0486 Attn: Mr Kobus Steyn joseph@bluecranes.co.za www.bluecranes.co.za Manufactures full range of hoists, beam girder cranes and lifting equipment. Sole supplier of Liftket electric chain hoists and wire rope hoist units. Repairs and spare parts supply service. Supply of associated slings, chains, blocks etc. (c) Essential oil drums: Greif supply a range of steel and coated drums, and are present in 45 countries around the world. Greif Kenya Ltd Box9036 - Unga Street Shimanzi – Mombasa. Kenya Tel: +254 41 2495591 Fax: +254 41 2494038 pascal.wanyonyi@greif.co.ke Attn: Pascal Wanyonyi

Greif Nigeria Ltd Apapa, Nigeria Phone +234 (01) 587 0866 Fax +234 (01) 587 3084 vanleer@linkserve.com.ng Attn: Olukunle Obadina, Greif South Africa Ltd Vanderbijlpark, South Africa Phone +27 (0) 16 930 1100 Fax +27 (0) 16 930 1106 carl.williams@grief.com Attn: Carl Williams Website: www.greif.co.za Greif Mozambique Maputo. Mozambique Phone +258 21 720153 Fax +258 21 720724 vanleer@vironn.com Greif Egypt Cairo, Egypt Phone +20 2588 1110 Fax +20 2593 3889 E-mail: koracons@link.com.eg Attn: Ayman Korra Greif Algeria Arzew, Algeria Phone + 213 41473723 / + 213 41473724 Fax + 213 41473730 Mohamed.Gherbi@Greif.com Attn: Mohamed Gherbi

Market News Service Essential Oil and Oleoresins

Price Information US Markets

Price indications collected from the markets within the US are given for a range of essential oils, below. Prices are FOB from country of origin, and quoted in US Dollars, unless otherwise indicated, and if there are volume indications they are quoted in

parentheses. These price quotes were taken mostly from medium-small sized importers, or small producers. As this news service develops, a broader sampling for pricing will be conducted, as well as for a larger number of products.

Essential oils

Spice oils

Spice Variety Prices /kg Black Pepper India $ 126 CFR (400 kg) Cardamom Guatemala $ 425 CFR AIR (50 Kg) Cardamom Guatemala $ 525 Cinnamon Bark Madagascar $ 175 (10-19 kg) Cinnamon Bark Madagascar $ 165 (20-29 kg) Cinnamon Bark Madagascar $ 155 (30-39 kg) Cinnamon Bark Madagascar $ 150 (40-49 kg) Cinnamon Bark Madagascar $ 140 (50 kg and more) Cinnamon Bark Madagascar $ 280 (25 liter min) Cinnamon Bark 75% Sri Lanka $ 275 (200 Kg) Cinnamon Leaf Sri Lanka $ 21 (10 Drums) Clove bud Madagascar $ 71 (25 liter min) Clove bud Indonesia $ 33 CIF (5 Tons) Garlic China $ 68 (CIF; 1 Ton) Ginger China $ 66 CIF (1 Ton) Ginger, fresh Madagascar $ 286 (25 liter min.) Nutmeg (10% myristicin) Indonesia $ 76 CFR (1 Ton) Star Anise China $ 23 CIF (1 FCL)

Herb oils Spice Variety Prices per kg

Wild Chamomile Morocco $ 750 CFR (100 Kg) Basil Egypt $ 70 CFR AIR (200 Kg) Citronella China $ 20 CIF (1 FCL) Cumin Egypt $ 150 CIF (1 Ton) Cumin seed India $ 70 (200 Kg) Marjoram Egypt $ 110 CIF (1 Ton) Peppermint 50% China $ 18 CIF (40 Drums) Wintergreen, natural China $ 23 CFR (600 Kg)

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Citrus Oils

Spice Variety Prices per kg Grapefruit, white (white .37% nootkatone)

America $ 28 (6 Tons; EX STORE CA)

Lemon America $ 32 (1 FCL; EX STORE PA)

Petitgrain Paraguay $ 34 CFR (1-2 Tons)

Lime, Tahiti C.P. Brazil $ 38 (12 Drums)

Perfumery Oils Spice Variety Prices /kg

Ajowan India $ 26 CFR (1 Ton) Cypress Morocco $ 43 CFR (500 kg) Davana 45% Davanone India $ 302 CFR AIR (200 kg) Eucalyptus 80% China $ 14 CIF (1 FCL) Eucalyptus 99.5% China $ 19 CIF (1 FCL) Geranium Egypt $ 409-445 CFR Geranium China $ 275 CIF (500 kg) Geranium Madagascar $ 188 (25 liter min) Geranium Madagascar $ 160 (10-19 kg) Geranium Madagascar $ 156 (20-29 kg) Geranium Madagascar $ 150 (30-39 kg) Geranium Madagascar $ 145 (40-49 kg) Geranium Madagascar $ 142 (50 kg and more) Helichryse (Helichrysum gymnocephalum)

Madagascar $ 82 (10-19 kg)

Helichryse (Helichrysum gymnocephalum)

Madagascar $ 77 (20-29 kg)

Helichryse (Helichrysum gymnocephalum)

Madagascar $ 72 (30-39 kg)

Iary (Psiadia altissima) Madagascar $ 72 (10-19 kg) Iary (Psiadia altissima) Madagascar $ 67 (20-29 kg) Iary (Psiadia altissima) Madagascar $ 62 (30-39 kg) Litsea cubeba (67.5%) China $ 22 CIF (1 FCL) Lemongrass India $ 18-19 CFT (3-4 tons) Mastic Morocco $ 450 CFR (100 kg) Neroli Tunisia $ 800 CFR (10 kg) Niaouli Madagascar $ 36 (less than 10 kg) Niaouli Madagascar $ 30 (10-19 kg) Niaouli Madagascar $ 26 (20-29 kg) Niaouli Madagascar $ 26 (30-39 kg) Niaouli Madagascar $ 26 (40-49 kg) Niaouli Madagascar $ 21 (50-99 kg) Niaouli Madagascar $ 18 (100kg and more) Nagarmotha India $ 191 CFR AIR (50 kg) Palmarosa India $ 68 CFR (2 Drums) Ravensara aromatica Madagascar $ 85 (10-19 kg) Ravensara aromatica Madagascar $ 77 (20-29 kg) Ravensara aromatica Madagascar $ 73 (30-39 kg) Ravensara aromatica Madagascar $ 70 (40-49 kg) Ravensara aromatica Madagascar $ 65 (50-99 kg) Ravensara aromatica Madagascar $ 60 (100kg and more) Ravintsara (Cinnamomum camphora)

Madagascar $ 145 (10-19 kg)

Ravintsara (Cinnamomum Madagascar $ 140 (20-29 kg)

Market News Service Essential Oil and Oleoresins

camphora) Ravintsara (Cinnamomum camphora)

Madagascar $ 136 (30-39 kg)

Ravintsara (Cinnamomum camphora)

Madagascar $ 133 (40-49 kg)

Ravintsara (Cinnamomum camphora)

Madagascar $ 130 (50 kg and more)

Rose Bulgarian $ 4,800 CIF (10 kg) Rue Morocco $ 140 CFR (200 Kg) Sandalwood India $ 2,125 FOB NJ (50 kg) Saro (Cinnamosma fragrans) Madagascar $ 98 (10-19 kg) Saro (Cinnamosma fragrans) Madagascar $ 91 (20-29 kg) Saro (Cinnamosma fragrans) Madagascar $ 88 (30-39 kg) Saro (Cinnamosma fragrans) Madagascar $ 85 (40-49 kg) Saro (Cinnamosma fragrans) Madagascar $ 81 (50-99 kg) Saro (Cinnamosma fragrans) Madagascar $ 81 (100kg and more) Ylang grade 1 Madagascar $ 150 (10-19 kg) Ylang grade 1 Madagascar $ 142 (20-29 kg) Ylang grade 1 Madagascar $ 138 (30-39 kg) Ylang grade 1 Madagascar $ 134 (40-49 kg) Ylang grade 1 Madagascar $ 127 (50 kg and more) Ylang grade 2 Madagascar $ 106 (10-19 kg) Ylang grade 2 Madagascar $ 124 (20-29 kg) Ylang grade 2 Madagascar $ 117 (30-39 kg) Ylang grade 2 Madagascar $ 113 (40-49 kg) Ylang grade 2 Madagascar $ 107 (50-99 kg) Ylang grade 2 Madagascar $ 101 (100kg and more) Ylang grade 3 Madagascar $ 103 (10-19 kg) Ylang grade 3 Madagascar $ 96 (20-29 kg) Ylang grade 3 Madagascar $ 91 (30-39 kg) Ylang grade 3 Madagascar $ 87 (40-49 kg) Ylang grade 3 Madagascar $ 85 (50-99 kg) Ylang grade 3 Madagascar $ 83 (100kg and more) Ylang complete Madagascar $ 133 (10-19 kg) Ylang complete Madagascar $ 117 (20-29 kg) Ylang complete Madagascar $ 117 (30-39 kg) Ylang complete Madagascar $ 113 (40-49 kg) Ylang complete Madagascar $ 110 (50-99 kg) Ylang complete Madagascar $ 105 (100kg and more)

Market News Service Essential Oil and Oleoresins

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Price Information EU Markets

PLEASE REMEMBER THAT THESE ARE ONLY PRICE INDICATIONS.Price indications collected from the markets within the EU are given for a range of essential oils, below. The oils are grouped for convenience only into

Spice Oils, Seed Oils, Citrus Oils, Herb Oils and Perfumery Oils. Prices are wholesale for quantities of 25kg or more unless otherwise stated. Prices were collected over weeks 48 to 52.

Spice Oils Product Origin/Grade Prices per KG

Clove bud Indonesian €20-25/kg, 1-5 ton lots Indian €35-44/kg Madagascan €60-65/kg 1kg lots Clove stem Indonesian €8-10/kg, 2-5 ton lots India €25-30/kg Clove leaf Indonesian €17/kg, 2-5 ton lots Indonesian n/a container cif Madagascar €17/kg spot India €15-20/kg 1 kg lots Cinnamon bark Sri Lankan 60/65% €155-230/kg Cinnamon leaf Sri Lankan €45-50/kg 1kg lots India €18-20/kg; €30-40/kg 1 kg

lots Cassia bark China €20-25/kg Black pepper Sri Lankan €150-200/kg 1 kg lots Indian €130-135/kg Nutmeg Indonesian €60-65/kg spot Indonesian €100-140/kg 1 kg lots Sri Lanka €100/kg Ginger Chinese €40-50/kg ton lots Indian €100-150/kg Sri Lankan €130-150/kg Pimento leaf Jamaican €70-90/kg ton lots Pimento berry Jamaican €150-160/kg 1 kg lots Cardamom Guatemala €300-310/kg spot

Spice Seed Oils Product Origin/Grade Prices per KG

Aniseed China €17-20/kg; €60/kg 1 kg lots Egypt €90/kg 1 kg lots Star Anise India €36/kg Coriander seed Russian €55-65/kg; €120 1 kg lots Cumin seed Iran & Egypt €70-100/kg Egypt €110/kg, 1kg lots

Market News Service Essential Oil and Oleoresins

Citrus Oils Product Origin/Grade Prices per KG

Orange (sweet) Brazilian pera €6-7/kg Brazil/Portugal/Spain €15-17/kg, 1 kg lots Italy €9/kg 1 kg lots Orange (bitter) Italian €50-60/kg Bergamot oil Ivory Coast/Italy €70-100/kg Lemon Argentine, Spain €22-25/kg Italian €40-50/kg, 1 kg lots Lime (distilled) Mexican €20-25/kg Mexico/Peru €40-50/kg 1 kg lots Mandarin (red) Italy €60-70/kg 1 kg lots Grapefruit Israel €40-50/kg

Herb Oils Product Origin/Grade Prices per KG

Basil India €60-70/kg 1kg lots France €120-130/kg 1 kg lots Italy €40-50/kg 1 kg lots Lavender Bulgaria/France €50-70/kg French (high altitude) €80-140/kg, 1 kg lots Lavendin French Grosso €35-45/kg 1kg lots Spike Lavender Spain €40-50/kg 1 kg lots Mints Indian piperita €20/kg China piperita €22/kg 1 kg lots China piperita €13-14/kg container Indian dementholised

peppermint oil €7/kg

USA Peppermint €35-55/kg 1kg lots Chinese Spearmint 60% €18-22/kg Chinese Spearmint 80% €24-25/kg Indian Spearmint, 58-60% L-

carvone €18-22/kg

Menthol Chinese €15-18/kg Indian, bold crystals €16-17/kg Chamomile (German) Egypt €450-600/kg Morocco (wild) €350-360/kg 1kg lots Chamomile (Roman) Hungary €900-1,100/kg 1kg lots Somalia/France €450-500/kg Sage Spain €80-100/kg 1 kg lots Rosemary Portugal/Spain/Tunisia €45-50 1 kg lots Marjoram Egypt €150-160/kg 1 kg lots Thyme Spain €60-70/kg 1 kg lots

Perfumery Oils

Product Origin/Grade Prices per KG Eucalyptus globulus & other high cineole types

China €12/kg container lots

Australian €15/kg China €20-30/kg 1kg lots Eucalyptus citriadora Brazilian €7-9/kg China €20-26/kg 1kg lots

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Litsea cubeba China €14-18/kg China €40-48/kg 1kg lots Ylang ylang Comores: Extra S €250-280/kg Comores: Troisième €100-120/kg Ylang (cananga) Indonesia €60-65/kg Patchouli Indonesia €50-60/kg; €140-170 1 kg

lots Geranium China €210/kg China, Egypt €300-350/kg 1 kg lots Egypt €230/kg drum Rose Geranium Madagascar €250-350/kg 1kg lots Sandalwood Fiji/E. Indies €1,100-1,500/kg Australian €750-900/kg Sandalwood african €650-700/kg Cedarwood USA €35-40/kg 1kg lots; €8/kg

container Frankincense Somalia/France €230-250/kg, 1kg lots Citronella Chinese €14/kg; €22/kg 1 kg lots Indonesian €14/kg Sri Lanka (Ceylon type) €25-30/kg 1 kg lots; €18-

22/kg spot Lemongrass Indian €12-14/kg; €30-40/kg 1kg

lots Guatemala €20-25/kg; 5 kg lots China/India/Guatemala €25-40/kg 1 kg lots Palmarosa Indian €50-60/kg 1 kg lots Vetiver Indonesian €110-120/kg China €60-70/kg Indonesia/China €140-150/kg 1 kg lots Tea Tree Australia €35/kg; €55-70/kg 1kg lots Fennel Italy/Hungary €55-65/kg 1 kg lots Juniperberry Croatia €140-150/kg 1 kg lots Myrrh Somalia/Ethiopia €300/kg 1 kg lots

Market News Service Essential Oil and Oleoresins

News & Updates

Cinnamon active label extends peach shelf life, maintains sensory qualities A new active packaging system containing essential oils has been found to significantly extend the shelf life and preserve the quality of one variety of peach, according to research. The system, consisting of a label infused with cinnamon essential oils, was attached to plastic packaging and used to lengthen the shelf life of late maturing ‗Calanda‘ peaches, said Spanish scientists. The tag was placed inside a macro-perforated PET tray, which included 20 macro-perforations. Shelf life and quality The study by Christina Nerin concluded that use of the cinnamon active packaging slashed the amount of fruit spoiled after being stored for almost two weeks. ―After 12 days of storage at room temperature, the percentage of infected fruit in the active label packaging was 13 per cent versus 86 per cent in the non-active packaging‖, said the group from the University of Zaragoza. The fruit normally has a shelf life of 3-5 days at room temperature. The paper, published in the journal Postharvest Biology and Technology said use of the packaging cut weight loss in the fruit and helped it maintain firmness. The technology also reduced the production of enzymes leading to oxidation in the fruit over the course of the storage period. The scientists said they reached this conclusion after examining the influence of the active packaging on the in vivo activity of lipoxygenase (LOX), polyphenol oxidase (PPO), peroxidase (POD), superoxide dismutase (SOD), catalase (CAT), and of malondialdehyde (MDA) content as an indicator of lipid oxidation.

It added that in carrying out sensory analysis, ―most positive descriptors were not significantly different from the optimum quality level (day 0) for peaches stored in the active package after 12 days at room temperature‖. The researchers said it has been more usual to incorporate the active packaging agent directly into the plastic polymers - while use of active labels is less common. ―Labels are very versatile and also easily adapted to an industrial scale and can be added just before packaging the food, thereby maximizing their functionality,‖ said Nerin. Conclusions She concluded that the self-adhesive active label developed by the team placed inside the packaging offered an ―efficient option‖ for extending shelf life of the fruit at room temperature. Nerin added: ―This type of active packaging is more efficient than the use of an active macro-perforated tray of PET, probably due to the higher concentration of active compounds released by the packaging.‖ The system also demonstrated an improvement in physico-chemical properties such as weight loss and firmness. The cinnamon essential oil also inhibited the activity of lipoxygenase. The use of the active packaging ―somehow influences the activity of some selected enzymes‖, said the research. The global sensory qualities of the fruit were also enhanced so that after 12 days of storage at room temperature they were ―similar to that at the optimum quality level‖. The panel of 11 assessors detected no cinnamon or off-flavours.

Source: Active label-based packaging to extend the shelf-life of “Calanda” peach fruit: Changes in fruit quality and enzymatic activity by Pablo Montero-Pradoa, Angel Rodriguez-Lafuente and Cristina Nerin; published in Postharcest Biology and Technology ; doi:10.1016/j.postharvbio.2011.01.008

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Global industry looks at India as a future hub for Fragrances and Flavours Fragrances and Flavours Association of India (FAFAI) is the national apex body of the players in the Fragrances & Flavours segment. The body was formed in 1949 by a few traders from the segment, with the key objective to promote the sector. Today, with 800 members, the body, apart from manufacturers and dealers from the Fragrances & Flavours industry, includes those that are from Aroma Chemicals, Natural Essential Oils as well as allied fields. The association regularly conducts biennial seminars across India, on various topics that are relevant to the Fragrances & Flavours and allied industries. The 20th FAFAI seminar was held in Bangalore between January 28 and 30, 2011. The theme of the event was India – The Future of F&F Industry. According to Frost & Sullivan India, globally, the Fragrances & Flavours segment is estimated to be $17.8 billion industry of which the top five players account for 40 per cent of the market. The five largest companies in the industry are Givaudan, International Flavours & Fragrances (IFF), Firmenich, Symrise and Quest International. Japanese firm, Takasago, the sixth largest player, has revenues close to that of Quest International. The Indian Fragrances and Flavours industry has been growing rapidly following liberalisation. The global economic slowdown did not have any impact on the industry; instead, it clocked a growth rate of 12 -15 per cent. With globalisation, there have been improvements in technology, competition and brand images. The global industry is looking at India as a future hub for fragrances and flavours, stated Rohit Seth, Joint Secretary, FAFAI, in an interaction over email. Excerpts: How would you describe the current food fragrances and flavours industry scene in India? The market for the food fragrances and flavours related products is showing strong growth. The Indian strength lies in the fact that the products are available at competitive prices.

What are India’s capabilities in this space? Which are the important flavours and fragrances that are distinct to India? India's capability in this space pertains to sandal, jasmine and herbal-related fragrances. For flavours, it is about spice-based products since India dominates in production of spices. What is the total size of this sector and its growth rate? The total size of the industry including menthol, sandalwood oil and other essential oils is around Rs. 9,000 crore and the estimated growth rate is approximately 12 per cent. The key applications of flavours in the food processing sector include confectionaries, dairy, bakery and snacks among others. Globally what is India’s stand in the food fragrances and flavours space? India is a market, which the world is eyeing, so we expect that India is going to place itself at a very commanding position in near future. Would the country become a hub for contract manufacture of food fragrances and flavours? India has a good potential to become a hub for manufacturing, especially, for raw materials used by the industry. What according to you are the visible trends in this industry? Strong growth is visible for the industry in coming years, going by India‘s inherent strength in the space of spices and development of fragrances. Conventionally, flavours and fragrances are mainly customised in raw materials, which lead to higher pricing of end-products. The industry is also extremely fragmented and is expected to consolidate in the coming years.

Market News Service Essential Oil and Oleoresins

What are the key challenges faced by the companies in the space? Global competition is the major challenge. Most of the MNCs (multi-national companies) have advanced R&D facilities, which India is now upgrading. The issue of high pricing is affecting the growth of the sector. The rise in oil prices also impacts the costing of these fragrances and flavours. With stringent safety norms issued by the Flavour and Extract Manufacturers‘ Association (FEMA) and International Fragrance Association (IFRA), the use of several chemicals in the production and creation of flavours and fragrances is constricted. What are the efforts of the association in controlling spurious products? How do you, as the president of the association, view the growth prospects of the sector?

Our association is a platform to facilitate business for members and we will make all efforts to ensure good production practices. For the future, we expect strong growth of about 12 per cent annually. Why did you decide to organise the event in Bangalore and how successful was it? Where is the next event going to be held? articipation by more than 950 delegates indicates the interest shown by the members in the event. We selected Bangalore as it was a hub for aggarbatti- and dhoop-manufacturing and the intent was to highlight this industry. We are yet to confirm the venue and date for the next event.

Source: Food & Beverage News

Study notes HPP effectiveness in reducing Listeria risk in yoghurt High pressure-processing combined with mint essential oil could be a promising technique for reducing Listeria risk in yoghurt-based drinks with no significant impacts to their quality attributes, claims new research. The researchers, based at Ohio State University in the US and Abant Izzet Baysal University in Turkey published their findings in the journal Food Control. The authors concluded that the addition of plant essential oil reduces HPP process severity and lowers costs while remaining effective in terms of inactivating L. monocytogenes and L. innocua in aryan – a product popular in Turkey consisting of yoghurt, water and salt (added at a maximum level of 1g 100 g-1 to impart flavour). Multiple listeriosis outbreaks have been linked to contaminated cheese and other dairy products, note the authors, and they stress that there is no reported research in the literature investigating the survival of L. monocytogenes in yogurt-based drinks using pressure treatments. Non-thermal food preservation technologies, high pressure processing (HPP) in particular, have drawn

considerable attention among scientists and the food industry due to the fact that they allow minimal food processing and fewer preservatives. Despite the high costs involved, HPP is being used commercially in the both the EU and the US, and has been increasingly and successfully applied to various foods such as dairy, meat, seafood, poultry products, vegetables and vegetable products, fruit products as well as acidified products. Method The authors said they aimed to evaluate efficacy of pressure treatment both alone and in combination with mint essential oil on inactivation of L. monocytogenes and L. innocua inoculated in ayran samples, using a control for reference purposes. Colour, pH, water activity, and serum protein separation were also measured, said the scientists, adding that both Weibull distribution and log-logistic models informed the methodology. Ayran samples were inoculated with either L. monocytogenes or L. innocua cultures at the level of ca. 105-106 CFU mL-1. The inoculated samples (100 mL) were aseptically

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packaged into sterile pouches. After the removal of air bubbles, the pouches were heat sealed. The sample pouches were then placed in a high barrier film bag and heat-sealed. The sample pouches, said the team, were subsequently placed inside a larger high barrier film bag and vacuum packed at -97 kPa. An additional set of experiments was also carried out to evaluate efficacy of combining mint essential oils and pressure treatment. The mint essential oil was added at the concentrations of 0.05 and 0.1 mL 100 mL-1 to the inoculated ayran samples. These samples were also vacuum packaged and subsequently pressure treated, added the team. Results HPP of ayran samples at 600 MPa for treatment time of 300 s reduced L. monocytogenes and L. innocua by more than 5-log units at ambient temperature, found the researchers.

The scientists reported that the addition of mint essential oil further enhanced inactivation of both bacteria by more than 1 log cfu 34 mL-1. Combination of mint essential oil with HPP provided a reduction in pressure treatment severity by 100-300 MPa or by 210 s to achieve the same amount of inactivation relative to HPP alone. And pressure treatment alone or HPP combined with mint essential oil, they noted, did not cause significant changes in pH, water activity, colour and serum protein separation, they added. The authors urge further research to determine the impacts of HPP combined with different plant essential oils on the inactivation of spoilage as well as pathogenic microorganisms inoculated into different foods taking into account the impact on physicochemical and sensory properties.

Source: Food Control Published online ahead of print: 10.1016/j.foodcont.2011.03.005 Title: Inactivation of Listeria monocytogenes and Listeria innocua in Yogurt Drink Applying Combination of High Pressure Processing and Mint Essential Oils Authors: G Evrendilek, V. M. Balasubramaniamb

Using wastewater to enhance mint production When essential oils are extracted from plants through the process of steam distillation, wastewater is produced and subsequently released into rivers and streams. Finding new uses for these unused by-products could benefit essential oil crop growers and processors as well as the environment. A team of researchers has found that the residual distillation water of some aromatic plant species has a beneficial effect on yields and can increase essential oil content of peppermint and spearmint crops. Peppermint and spearmint are commercially produced for their essential oils, dry leaves used in herbal teas, and as fresh culinary herbs. Essential oils from both mints are widely used in the production of chewing gum, toothpaste, mouthwashes, confectionaries, pharmaceuticals, and aromatherapy products. New methods of improving yield and essential oil content in peppermint and spearmint crops could produce

economic benefits for large-scale production operations and create more environmentally sustainable systems. One previous study of plant distillation wastewater found that wastewater from sage, thyme, and rosemary contained antioxidants and could be used as an ingredient in marinades for turkey meat. 'We hypothesised that residual distillation water could have an effect on peppermint and spearmint plants when used as a foliar spray,' said Mississippi State University professor Valtcho D. Zheljazkov, corresponding author of a study that tested plant hormones and distillation wastewater on peppermint and spearmint plants. Zheljazkov and colleagues reported on their collaborative research in HortScience. The team evaluated the effects of three plant hormones (methyl jasmonate, gibberellic acid, and salicylic acid) at three concentrations and the

Market News Service Essential Oil and Oleoresins

residual distillation water from 15 plant species applied as foliar sprays on biomass yields, essential oil content, and essential oil yield of peppermint (Mentha x piperita 'Black Mitcham') and spearmint (Mentha spicata 'Native'). The application of salicylic acid at 1000 mg/L increased biomass yields of both species. Methyl jasmonate at 100 and 1000 mg/L, gibberellic acid at 10 mg/L, salicylic acid at 10 or 100 mg/L, and distillation water of seven plant species all increased the essential oil content of peppermint, whereas the oil content of

spearmint was increased only by distillation water of one plant species. 'The study demonstrated that the residual distillation water of some aromatic plant species may have an effect on crop species and may be used as a tool for increasing essential oil content or essential oil yields of peppermint and spearmint crops. Further research is needed to elucidate the effect of these treatments on essential oil composition and to verify the effects under field conditions,' said Zheljazkov.

Source: http://www.sciencecentric.com/news/11030443-using-wastewater-enhance-mint-production.html

Mentha oil remains up in futures trade The prices of mentha oil for the Feburary contract rose by Rs 13.90, or 1.27 per cent, to Rs 1,105.50 per kg, with a business volume of a single lot at the Multi Commodity Exchange (MCX) since fresh holdings were created by the traders tracking the rise in the demand in the spot market. The oil for the March contract also moved up by Rs 12.80, or 1.16 per cent, to Rs 1,112 per kg, with a business turnover of five lots at the MCX. Moreover, the pick-up in the demand from the pharmaceutical units at the spot market against the reduced supply from the growing belts also supported the prices.

Mentha oil is one of the important essential oils. It is extracted from herb Mentha arvensis through distillation process. It is widely used in food and flavourings Indias mint belt lies in the countrys "breadbasket," spanning the states of Uttar Pradesh, Punjab, Himachal Pradesh, Haryana and Bihar. About 80% of the crop in India comes from Uttar Pradesh (Rampur, Moradabad, Bareilly, Barabanki and Badaun) and the balance 20% from Punjab, Himachal Pradesh and Haryana. India will always play an important role in world mentha oil market, with a never ending demand from the cosmetics and food industry and production restricted to few countries.

Market News Service Essential Oil and Oleoresins

27

Events Calendar

2011

Month Date Event Location Website

February 16-19 BioFach and Vivaness Nuremberg, Germany www.biofach.de

April 3-4 Natural and Organic Products Europe

London, United Kingdom

www.naturalproducts.co.uk/07/public/enter.aspx

May

3-4 Supplyside East Secaucus, NJ USA http://www.supplysideshow.com/2011/east/

12-14 Sustainable Cosmetics Summit New York, NY USA http://www.sustainablecosmetic

ssummit.com/

17 Legal & Regulatory Conference

San Francisco, CA USA www.personalcarecouncil.org

24-26 FCE Cosmetique Sao Paulo, Brazil www.fcecosmetique.com.br/en/

25-27 CITE Japan 2011 Yokohama, Japan www.citejapan.info/en/index.html

30-1 June 10th ISCD International Congress Shenyang, China www.iscd2011.org

June

2-3 SCC Annual Scientific Seminar Las Vegas, NV USA www.scconline.org

9-10 Sustainable Fragrances Arlington, VA USA http://www.sustainablefragrances.com/home.aspx

21-23

Food Ingredients, Health Ingredients, Natural Ingredients China

Shanghai, China

www.ingredientsnetwork.com

28-30 HBA Global Expo New York, NY USA www.hbaexpo.com

September 20-21 Natural Cosmetics Conference 2011 Nuremberg, Germany

http://www.naturkosmetik-branchenkongress.de/de/default.ashx

October

8-12 ANUGA Cologne, Germany

www.anuga.com

10-14 Supplyside West Las Vegas, Nevada USA

http://www.supplysideshow.com/2011/west/

22-24 Natural Products Expo East Baltimore, MD USA http://www.expoeast.com

25-26 Society of Cosmetic Chemists California Suppliers Day 2011 Long Beach, CA USA www.caliscc.org

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