- 09 November 2020
Our market report reviews the exceptional events of the 2020 campaign for French products. To receive our preview analyzes, subscribe to our newsletter.
The ideal climatic conditions of winter 2019 and spring 2020 created particularly favorable conditions for cultivation. Overall, conventional and organic yields were excellent. The significant needs at the beginning of the harvest precipitated the distillation schedules.
2020 reminds us that market prices remain highly volatile.
Thus, after a quiet winter on the lavender essential oil market, the 2020 harvest stopped the price surge, showing that this product has reached its cycle inversion point. We now have all the evidence of a trend reversal in commodity prices.
Planted acreages increases
With 3,000 new hectares planted in lavender and lavandin in 2020, the frenetic planting continues. We have seen a particularly fast development in lavandin grosso.
In five years, under the influence of the price of lavender and lavandin oil, cultivated areas have jumped by almost 50%. The historical producers have developed, and new lavender producers from the grain and tree sectors have appeared. Historical production areas have grown substantially, while new areas have also begun to cultivate lavender.
Production potential is therefore particularly important, with more than 6,000 additional hectares coming into production in less than 3 years.
The 2020 harvest is exceptional. Under the combined effect of increased surfaces and a favorable climate, the harvest forecast made by the CIHEF (interprofessional committee for French essential oils) exceeds 2,000 t. As a reminder, the 2019 harvest was a little less than 1,500 t.
- 50% value for conventional lavandin
In the meantime, demand remains stable. The decrease observed in the aromatherapy market has particularly slowed growth in recent years. The market, which did not suffer much this winter, has just undergone a major disruption. In just a few weeks, the price of lavandin oil was cut by almost half.
Is loyalty the key to stabilization?
In this crisis, it is difficult to predict what will happen next, but we hope that the loyalty of customers and producers and long-term commitments will help avoid speculation and help the market stabilize.
More consistency between organic and conventional
Fortunately, the situation on the organic market is different for both lavender and lavandin. On lavandin, a downward, but measured trend is offsetting the spillover effect of the increase in conventional qualities seen in previous years. This creates a more significant difference between conventional and organic prices.
Focus on lavanders
Data on the lavender market is still imprecise. As far as crops are concerned, the development of the DIVA variety is a major point in the clonal lavender market. The "Diva" now represents about 15% of the surface but almost 50% of the quantities produced in clonal lavender.
The harvest should be good and prices are decreasing. This is also the case for imported lavender. Stocks, especially in Bulgaria, are very high, and prices are falling. There are still blended qualities.
Quality and reliable partnership
Harvests in our Dauphiné-Provence sector also went well, thanks to very good yields. Regarding Elixens, we held our annual price negotiations with SICA Bioplantes. Following a frank and direct discussion driven by equity and long-term collaboration, the 2020-2021 pricing has been established.