Spearmint oil demand set for record increase
average for an entire marketing year, as US agriculture authorities
move to keep the market stable.
The USDA has revised the quantity of spearmint oil that handlers can buy from producers in an attempt to prevent fluctuations in supplies and prices, as well as help maintain stability in the Far West spearmint oil market.
A deficit of spearmint oil would have had worrying consequences for the growing number of confectionery producers that require the ingredient for their products.
Total demand for the 2005 to 2006 marketing year, which runs from 1 June to 31 May, is estimated at 917,745 to 937,745 pounds. Thus the industry may not be able to meet market demand, after initially expecting a surplus amount of spearmint oil to be available.
There will now be an increase in the level of available Scotch (class 1) and Native (class 3) spearmint oil produced by the Spearmint Oil Administrative Committee, which is made up from companies based in the North West of the US.
The quantity of Scotch available for purchase will increase to just over one million pounds, which amounts to an allotment percentage rise of 35 per cent to 55 per cent. Native oil will see an allotment percentage rise of 40 per cent to 47 per cent, also taking its quantity over the million pound mark, under the new estimations.
The Spearmint Committee has eight members serving for two years with producer members being allocated by district, which along with handlers are nominated.
Its main aim is to regulate and control the spearmint oil produced to retain a stable price for what makes up nearly 50 per cent of the worlds total supply.