U.S. MINT OIL – 2020 CROP

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U.S. MINT OIL – 2020 CROP
SPRING REPORT – MAY 2020

 

PEPPERMINT


REGION                        ACRES                    UNSOLD GROWER INVENTORY
                                                                                                   LBS
Midwest                         8,200                                            60,000
Willamette                    7,200                                             50,000
Madras                             500                                                7,000
Idaho                           15,500                                           550,000
Yakima (single cut)    7,000                                           240,000
Yakima (double cut)  4,000                                           230,000
La Grande                    3,400                                              35,000
Other Far West           1,640                                            120,000
Totals                         47,400                                         1,292,000

 

SPEARMINT


Midwest Scotch            800                                                5,000
Midwest Native         5,300                                                2,000
Far West Scotch1      9,900                                            340,523,2
Far West Native       8,800                                           1,747,5453
Totals                        24,800                                         2,095,068


1 Includes Canada.
2 Includes 60,000 lbs. in “Reserve Pool” of the Federal Marketing Order.
3 Includes 1,187,000 lbs. in “Reserve Pool” of the Federal Marketing Order.

 

CURRENT CROP CONDITION

For the fifth consecutive year, all production regions have come through winter and into the spring in good condition with little or no adverse events. In all regions the irrigation water supplies are forecast to be adequate for the mint crop. At this date we feel it is reasonable to expect average or better yields from the 2020 crop.


MARKET CONDITIONS

Probably the biggest factor in the supply/demand equation this crop year is a significant drop-off in demand attributable to a large, global oral care company which seems incapable, year after continuing year, to get their over inventoried position under control. And this seems to have led a significant buyer of US mint oil to renege on a large portion their 2019 crop purchase contracts and greatly decrease their contracting of the 2020 crop.
Except for this, on paper, supply and demand for Peppermint looks reasonably balanced. Spearmint supply and demand would also looked balanced except for the same situation, plus
continued overproduction of Far West Native Spearmint.
Keeping this significant influence in mind, the comparison for this year versus last is:
Peppermint – Acreage in production has declined 13.2%, Carry-over stock has increased 43.3% and demand has decreased 11.7%

Spearmint – Acreage in production has increased 8.3%, Carry-over stock has increased 19.3% and demand has decreased 10.7%

Market prices have been softening and, ruling out any unforeseen outside events, is not expected to rebound in the 2020 crop marketing year.