Prices of Geranium essential oil from Madagascar have gone up and down over the last ten years.
Adopting a position on this product may be a headache for the buyer!
The essential oil of Geranium Madagascar has a typical and subtle olfactory identity, close to the bourbon type.
It is characterised by floral notes, close to rose, with a sugarly facet.
For further information: https://jacarandas-international.com/en/geranium-essential-oil-from-madagascar/
The good news is that prices are currently attractive, volumes are high and our production is of high quality, both conventional and organic!
Retrospective on the market:
A production that has increased significantly in a few years:
The annual production was 6 tons in 2014. The historical production area, located around Antsirabé, in the highlands, is subject to frost. During severe cold spells, the entire production was at risk.
To promote the cultivation of essential geranium oil in Madagascar, NGOs and donors contributed to the recovery of this sector by:
Pour promouvoir la culture de l’huile essentielle de géranium, à Madagascar, les ONG et bailleurs ont participé à la relance de cette filière :
- The development of this culture in the Ambositra area, further south than Antsirabe, with a more favourable climate.
- The funding of the stills,
- The technical training support.
A better price for this product has encouraged farmers to produce more, through the expansion of their production plots.
Some farms have integrated modern agricultural production methods, thus increasing yields. Production reached 20 tons per year, in 2017.
- Production reached 20 tons per year, in 2017.
- At that time, an aromatherapist purchaser of high volume took position on the market. This has maintained volume and prices high until 2019.
- Then, around 2020, demand dropped and so did prices:
- With 30 tons of annual production, supply now exceeds demand.
- Geranium is mainly used by the perfume industry. It was extremely impacted by the COVID crisis.
- Its consumption decreased drastically.
Today, prices are at their lowest, the volume remains at a high level.
This product, is a great deal! With a very attractive price and a Madagascar type quality, close to the so-called bourbon quality.
This also has a risk: if the price goes down too much because of a weak demand, producers will no longer make a living from this production. Thus, they will abandon this crop in favor of other, more lucrative…
How to guarantee and stabilise Geranium prices on the Madagascar origin?
By applying a stable, fair and sustainable price would keep the whole supply chain.We are working on this with the https://gehemgie.com/.
Each actor has a role to play: users, by forecasting their purchase needs, will lead to stable output and prices.
Stability helps to ensure quality!