Monday, July 11, 2011

Export and Import Trend of Essential Oil Indonesia

The essential oil is the exports commodity of Indonesia and Indonesia is one of the major manufacturers, especially patchouli, nutmeg, vetiver, clove leaf and citronella oil. Export destinations include Europe, America, Australia, Africa, China, India, and ASEAN. However, their export to the international market is still largely in the form of semi-finished products. To meet the needs of the food industry, cosmetics and pharmaceuticals, Indonesia is still importing derived products or essential oils that have been "purified".
Indonesia trade statistics show volatile oil exports in 2007 reached U.S.$ 101.14 million, with 20 kinds. In the same year, Indonesia import of essential oils, its derivatives, and perfume products worth 381.9 million U.S.$.
What about essential oil prices?
Its price greatly influenced by the development of downstream industries are essential oils made from raw industrial perfumes, cosmetics, pharmaceutical, food and beverage industry. Therefore the need for importing countries is highly dependent on the magnitude of the needs of these industries, both industries in Indonesia and abroad. The dynamics of the downstream sector will give effect to the formation of volatile oil value.
The essential oils use in the downstream products require a high degree of purity, because the doses used in certain specific purpose with strict requirements. For example its use in aromatherapy products that can be encountered in salons and spas. In large industries, the use of products such as food, perfume, cosmetics, toiletries, raw materials used come from the its derivatives such as eugenol (from clove oil), methyl ketone cedryl (from cedarwood oil), vetiveryl acetate (from vetiver oil ), etc..
In some commodities, trade in essential oils are not only based on the workings of the fundamental aspects of global supply, but there are also non-fundamental aspects, such as market sentiment. Market sentiment and attitude is a product of all market participants ranging from farmers, middlemen, exporters, importers, speculators (fund managers) and the end users (end users) themselves. Therefore, the risk factors remain to be faced by exporters in deciding on policy sales.
Behavior of essential oil prices on world markets each year shows the pattern of change is divided into three categories, that is likely to decrease, relatively stable, tend to rise or fluctuate. It tend to rise developments indicate there is still a bright market prospect. At the level of refiners in the domestic market, from early 2009 until May 2009, Indonesia volatile oil value trend is still fairly stable.
Some of the Indonesia essential commodities prices tend to be stable each year, meaning not too sharp fluctuations in commodities such as oil of clove leaf and vetiver oil. Clove leaf oil has experienced the lowest, which is about 3.2 U.S. $ in 1998, slowly began to rise until in 2001 the level of U.S. $ 6. The next year has decreased to the level of U.S. $ 3.5 and started to climb back up in 2007 again reached 6 - 6.5 U.S. $.
Commodities essential oils that have a very great fluctuations are patchouli oil. In 1997, patchouli oil was valued settled down to reach 150 U.S. $, but the following year (1998) declined rapidly to the level below 20 U.S. $. Economic crisis in Indonesia at that time was one reason. In the year 1998 - 2006, patchouli oil prices can be said to be stable in range of 20-60 U.S. $.
In 2007, a combination of unfavorable weather & patchouli oil prices are not attractive in 2006 than any other agricultural commodities as well as the emergence of various plant diseases caused a sharp decline in production is estimated that nearly half of the normal situation. This situation causes the value shot up to reach 150 USD $. In the year 1997 - 2002, vetiver oil prices fairly stable price level 25 0-55 U.S. $, subsequently increased to reach 85 U.S. $ in 2007.

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