Update Harga Essential Oil May 2009

George

Uhe C o m p a n y Inc.

219 River Drive • Garfield, NJ 07026 • Tel: (201) 843-4000 • Fax: (201) 843-7517 • E-mail: [email protected]

MARKET NEWS LETTER May 2009 In general, market conditions during the month of May did not improve. Ongoing destocking and little interest in new purchases of many Essential Oils and Aromatic Chemicals on the part of end users continued to curtail market activities. Demand for a number of Essential Oils previously selling at high prices – has virtually disappeared. Meanwhile, with many of our industry’s feedstock being priced in U.S. dollars, the recent decline in the value of the dollar has resulted in higher prices being asked for a number of products by suppliers from countries such India and Indonesia, as well as other origins, despite the lack of interest in general. While shortages have not yet appeared, buyers have been wondering whether sufficient supplies will be available to meet demand when the market revives – and at what price.

AMERICAN ESSENTIAL OILS While CEDARWOOD OIL TEXAS and VIRGINIANA prices remain firm, pricing of CITRUS OILS and their derivatives, has weakened. WHITE and PINK GRAPEFRUIT OIL prices remain competitive. Of great concern has been the extensive use of chemicals in the groves, to combat “greening”, resulting in higher than previously accepted levels of agricultural residue in ORANGE OIL. When new crop MINT OILS will be available in August / September pricing is expected to be somewhat weaker than last year.

ARGENTINE ESSENTIAL OILS Following last season’s extremely high prices, new crop LEMON OIL prices have declined substantially. While current offers in the market are around US$20.00 kilo FOB Buenos Aires basis, traditional buyers expect prices to decline further unless demand strengthens.

BRAZILIAN ESSENTIAL OILS AND AROMATIC CHEMICALS ALPHA BISABOLOL NATURAL, depending on quantity, has been on offer around US$80.00 kilo CFR world ports. While BALSAM COPAIBA continues to be offered freely, we have been without offers for OIL BOIS DE ROSE (Rosewood Oil) in recent weeks. Depending on supplier, limited quantities of OIL EUCALYPTUS CITRIODORA have been on offer at US$10.50 – 13.50 kilo CFR world ports. LEMON OIL EUREKA (Sicilian Type) prices currently exceed those quoted for Argentine oil LIME OIL TAHITI C.P. has been on offer at US$22.00 kilo CFR world ports. Limited quantities of GREEN MANDARIN OIL are currently offered at US$42.00 kilo FOB Santos. While new crop prices for ORANGE OIL (sweet) and respective derivatives have not yet been given, it is expected that they will be lower than last season. ORGANIC BITTER ORANGE OIL, in limited quantities, has been on offer at US$43,00 kilo FOB Santos.

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BRAZIL CONT. Additionally, other organic oils, such as CITRONELLA OIL, EUCALYPTUS CITRIODORA OIL, EUCALYPTUS GLOBULUS OIL, EUCALYPTUS STAIGERIANA OIL, GREEN MANDARIN OIL, LEMON and ORANGE OIL are available in limited quantities

CHINESE ESSENTIAL OILS AND AROMATIC CHEMICALS With sufficient stocks available for prompt shipment, pricing of ALDEHYDE C14, ALDEHYDE C16, ALDEHYDE C18 remained unchanged during May. Due to heavy demand for Anis Seed, to produce Shikimic Acid, a feed stock for the production of a “Swine Flue” remedy, nominal pricing of STAR ANIS OIL increased in recent weeks. At this time we are without offers for the oil, as well as its derivative, NATURAL ANETHOLE. The current CASSIA OIL price is stable – with possible market changes for spring oil to show only during June. The current price for its derivative, NATURAL BENZALDEHYDE ranges from US$41.50 – 44.00 kilo CIF, depending upon quantity and supplier. Due to lacking demand, the CITRONELLA OIL price weakened in recent days. OIL EUCALYPTUS GLOBULUS 80-0/0 pricing has recently firmed to US$7.20 – 7.30 kilo CIF. Its derivative, EUCALYPTOL 99.5-0/0 has been on offer at around US$9.40 kilo CIF. Prime quality GERANIUM OIL is available for prompt shipment at around US$100.00 kilo CIF, depending on supplier. HO WOOD OIL, depending on quality, has been on offer at US$23.00 – 25.00 kilo CIF. OIL LITSEA CUBEBA PRICING, as well as its derivative, NATURAL CITRAL 96-0/0, pricing remained unchanged during May. PHENYL ETHYL ALCOHOL prices, due to increased feedstock prices, firmed during May. Depending on quantity and supplier latest offers have ranged from US$4.10 – 4.40 kilo CIF.

EGYPTIAN ESSENTIAL OILS Noticeable price differences from one supplier to the next have been observed in recent weeks. Depending on quantity and supplier - BLUE CHAMOMILE OIL has been on offer at US$785.00 – 840.00 kilo CFR, CUMIN SEED OIL at US$96.00 – 118.00 kilo CFR, GARLIC OIL at US$200.00 – 206.00 kilo CFR, GERANIUM OIL at US$90.00 – 97.00 kilo CFR, MARJORAM OIL at US$95.00 – 103.00 kilo CFR, NEROLI OIL at US$2,265.00 kilo CFR, ONION OIL at US$750.00 – 800.00 kilo CFR, ROCKET OIL at US$22.00 kilo CFR and TAGETTE OIL at US$147.00 kilo CFR.

INDIAN ESSENTIAL OILS AND AROMATIC CHEMICALS Citing the strengthening of the Indian Rupee in recent weeks, some of our traditional suppliers raised their prices in recent weeks. With others absorbing exchange rate differences – some substantial price differences are currently seen. While the MENTHA ARVENSIS OIL and its derivatives, such as MENTHOL BP / USP, picture remains unclear, traditional buyers continue doing business on a “hand to mouth” basis. During May the number of MENTHA PIPERITA OIL offers increased substantially, based on a doubling of production in 2009 compared with last year’s. Depending on Menthofuran content, quantity, and supplier, current pricing ranges from US$14.00 – 20.00 kilo CIF world ports – but traditional buyers have found few sampled lots to represent pure oil. Limited interest in OIL DAVANA has resulted in lower prices. Oil testing minimum 50-0/0 Davanone has been on offer at US$565.00 kilo CIF via air. COCHIN GINGER OIL is currently priced at US$95.00 kilo CFR, LEMONGRASS OIL in the US$12.00 kilo CFR range, depending on supplier. Great price differences have been found with OIL PALMAROSA, quoted at US$16.50 – 21.00 kilo CFR, depending on supplier. BLACK PEPPER OIL is quoted as low as US$67.00 kilo CFR at present.

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INDONESIAN ESSENTIAL OILS AND AROMATIC CHEMICALS As in the case of India, a number of Indonesian shippers name as one of the reasons for their higher prices in May the appreciation of the Indonesian currency, the Rupiah. Small quantities of BALSAM GURJUN have been on offer at US$8.75 kilo CFR. OIL CANANGA is priced at US$65.00 - 85.00 kilo CFR, OIL CITRONELLA at US$11.00 kilo CFR, OIL CLOVE BUD (Madagascan type) at US$22.50 kilo CFR, REDISTILLED CLOVE LEAF OIL 85-0/0 at US$8.25 kilo CFR, OIL CLOVE STEM at US$9.50 kilo CFR, OIL CUBEB at US$75.00 kilo CFR via air. EUGENOL USP has been quoted at US$9.70 - 10.10 kilo CFR, ISO EUGENOL at US$11.30 kilo CFR. Prime quality NUTMEG OIL prices advanced to US$57.50 – 60.00 kilo CFR, with traditional suppliers stating that high quality oil is in short supply. OIL PATCHOULI, depending on Patchoulol content and supplier has been on offer at US$32.00 – 38.00 kilo CFR world ports. Some traditional suppliers advise that this year’s production will be less than last year’s and foretell that unless prices firm further, to around US$50.00 kilo CFR, next year’s production will be even less. SANDALWOOD OIL (co2 extraction) has been quoted at US$1,300.00 – 1,500.00 kilo FOB. Depending on quality, VETIVER OIL has been on offer at US$85.00 – 105.00 kilo CFR world ports.

SALVADORIAN ESSENTIAL OILS With the off-season approaching, traditional exporters have quoted different prices in recent days, ranging from US$6.25 – 7.10 lb. CFR NY / EMP. At this time, existing stocks are said to cover market requirements.

VIETNAMESE ESSENTIAL OILS No market changes were observed during May

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