about francés & nobs

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El Salvador is located on

the Pacific coast side of

Central America and shares

borders with Guatemala

and Honduras

El Salvador is located on

the Pacific coast side of

Central America and shares

borders with Guatemala

and Honduras

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The population of

El Salvador

is around 7 million

The population of

El Salvadoris around 7 million

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And the economy isheavily dependent

upon the agriculturalsector

And the economy is

heavily dependentupon the agricultural

sector

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Its main products havebeen rice,

Its main products have

been rice,

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Corn,Corn,

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Beans,Beans,

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CoffeeCoffee

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And sugar caneAnd sugar cane

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The last twotraditionally have

been the mainexports and the base

of the nationaleconomy

The last twotraditionally have

been the mainexports and the base

of the nationaleconomy

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In more recent years,the economy has

benefited from thedevelopment of the

export oriented textileindustry

In more recent years,the economy hasbenefited from thedevelopment of the

export oriented textileindustry

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And, also, by familiesreceiving cash from

Salvadorianimmigrants in the

United States

And, also, by familiesreceiving cash from

Salvadorianimmigrants in the

United States

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El Salvador is bestknown to the

fragrance and flavour

industry as the majororigin of the so-called

!Peru Balsam"

El Salvador is bestknown to the

fragrance and flavourindustry as the major

origin of the so-called

!Peru Balsam"

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The commercialdistillation of

essential oils on asignificant scale is

comparatively recent.

The commercialdistillation of

essential oils on asignificant scale is

comparatively recent.

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The aim of thispresentation is to

provide :

The aim of this

presentation is toprovide :

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An overview of theEssential Oil

industry today in

El Salvador,

An overview of the

Essential Oilindustry today in

El Salvador,

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To MenuTo MenuTo MenuTo reflect on theexperience ofcreating a new

essential oilsproduction venture,

and to considerpossible future

developments.

To reflect on theexperience ofcreating a newessential oils

production venture,and to considerpossible future

developments.EndEnd..

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PERU BALSAMPERU BALSAM

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Historically, the name !Peru Balsam"

has caused some confusion in the

essential oil trade. It is actually a

product exclusive to Central America

and, particularly, to El Salvador.

Historically, the name !Peru Balsam"

has caused some confusion in the

essential oil trade. It is actually a

product exclusive to Central America

and, particularly, to El Salvador..

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The term originated from the early

Spanish colonial period in the New

World when this Salvadorian balsam

was shipped to Spain in the flotta

carrying the products from Peru. (In the

early years of the Spanish colonisation

of El Salvador, the country was under

the jurisdiction of the Viceroy in Peru

and all exports bore his seal.)

The term originated from the early

Spanish colonial period in the New

World when this Salvadorian balsam

was shipped to Spain in the flotta

carrying the products from Peru. (In the

early years of the Spanish colonisation

of El Salvador, the country was under

the jurisdiction of the Viceroy in Peru

and all exports bore his seal.)

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There is a taxonomic relationship

between the trees yielding Peru

Balsam and the South American

product known as Tolu Balsam.

However, these two balsams are

regarded as distinctively different in

trade and usage as fragrance and

flavor ingredients.

There is a taxonomic relationship

between the trees yielding Peru

Balsam and the South American

product known as Tolu Balsam.

However, these two balsams are

regarded as distinctively different in

trade and usage as fragrance and

flavor ingredients.

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Peru Balsam is an oleoresin

exudate of a tall forest tree,

“Myroxilum balsamum”, that is

indigenous to El Salvador and

neighbouring countries

Peru Balsam is an oleoresin

exudate of a tall forest tree,

“Myroxilum balsamum”, that is

indigenous to El Salvador and

neighbouring countries

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The quality of Peru balsam varies

according to collection area and with

the dry and wet seasons.

The quality of Peru balsam varies

according to collection area and with

the dry and wet seasons.

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In the natural state, it is a viscous

semi-solid oleoresin. Exports from

El Salvador are solely in the form

of the natural balsam. In some

importer countries, the volatiles are

isolated by vacuum distillation to

give !Peru balsam oil".

In the natural state, it is a viscous

semi-solid oleoresin. Exports from

El Salvador are solely in the form

of the natural balsam. In some

importer countries, the volatiles are

isolated by vacuum distillation to

give !Peru balsam oil".

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1061948

1001947

100Annual av. 1940-1945

45-65Annual av. Prior. To 1940

TonsTonsYearsYears

Source: Guenther, The Essential Oils, vol. VSource: Guenther, The Essential Oils, vol. V

1930s/40s1930s/40s

Exports of Peru BalsamExports of Peru Balsam

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Source: J. Raúl Rivera, S.A. de C.V.

Peru Balsam Exporter

Source: J. Raúl Rivera, S.A. de C.V.

Peru Balsam Exporter

Recent export of Peru BalsamRecent export of Peru BalsamYear Tons/Year Tons/Average

1976 123

1977 149

1978 146

1979 145 1411980 135

1981 116

1982 121

1984 134

1985 128

1986 130

1987 203

1988 123

1989 124 1351995 78

1996 80

1997 126

1998 132

1999 79 99

2000 65 65

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There are several factors involved in the

reduction in the Peru balsam trade :

There are several factors involved in the

reduction in the Peru balsam trade :

!The availability of the wild trees has reducedalong with the expanding human populationand the progressive transformation of forest

land to farming of corn and beans.

!Concerns over skin allergenicity havereduced usage in some fragrance products.

!Periods of low market prices have madecollection less attractive.

!The availability of the wild trees has reducedalong with the expanding human populationand the progressive transformation of forest

land to farming of corn and beans.

!Concerns over skin allergenicity havereduced usage in some fragrance products.

!Periods of low market prices have madecollection less attractive.

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In El Salvador, the main areas of collection ofPeru Balsam today are located on the chain of

mountains locally known as the “Cordillera del

Balsamo”, and especially around the towns of

Teotepeque, Chiltiupan, Tamanique, Jayaque,

Tepecoyo and San Julian. The best balsam is

collected around the town of Chiltiupan..

In El Salvador, the main areas of collection ofPeru Balsam today are located on the chain of

mountains locally known as the “Cordillera del

Balsamo”, and especially around the towns of

Teotepeque, Chiltiupan, Tamanique, Jayaque,

Tepecoyo and San Julian. The best balsam is

collected around the town of Chiltiupan..

Chiltiupan


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The trees occur on both the land

owned of smallholders and on

commercial coffee plantations.

The trees occur on both the land

owned of smallholders and on

commercial coffee plantations.

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Collection and

primary processing

is carried out by

specially trained

people, called

!balsameros" who

continue to use

methods

developed over

hundreds of years :

Collection and

primary processing

is carried out by

specially trained

people, called

!balsameros" who

continue to use

methods

developed over

hundreds of years : :

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A piece of bark,

measuring about 36

by 6 inches, is

removed starting

from the lower part

of the tree trunk.

A piece of bark,

measuring about 36

by 6 inches, is

removed starting

from the lower part

of the tree trunk.

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The exposed area is then burnt with

a torch

The exposed area is then burnt with

a torch

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Then a piece of dry cloth

is placed on the

scorched area to absorb

the oleoresin produced

by the tree in response

to the treatment. This

process is repeated on

the same incision forthree times. Collecting

the cloth every fifteen

days.

Then a piece of dry cloth

is placed on the

scorched area to absorb

the oleoresin produced

by the tree in response

to the treatment. This

process is repeated on

the same incision forthree times. Collecting

the cloth every fifteen

days.

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The oleoresin is

extracted from the

cloth by boiling in

water for many hours

and then passage

through a rustic

wooden press. The

bark removed from

the tree trunk is

subjected to a similar

process.

The oleoresin is

extracted from the

cloth by boiling in

water for many hours

and then passage

through a rustic

wooden press. The

bark removed from

the tree trunk is

subjected to a similar

process..

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The crude oleoresin obtained from

both the cloth (pañal) and the bark

(cascara) processes are sold

separately by the Balsameros.

The crude oleoresin obtained from

both the cloth (pañal) and the bark

(cascara) processes are sold

separately by the Balsameros.

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The marketing chain for crude Peru

balsam probably has not changed for

over a hundred years. The owner of

the trees receives one half of the

production from the !balsamero".

Sales of the crude product are made

to a local buyer, known as a !coyote".

The latter resells to a larger buyer, a

!mayorista". The final stage is sale to

an exporter.

The marketing chain for crude Peru

balsam probably has not changed for

over a hundred years. The owner of

the trees receives one half of the

production from the !balsamero".

Sales of the crude product are made

to a local buyer, known as a !coyote".

The latter resells to a larger buyer, a

!mayorista". The final stage is sale to

an exporter.

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To MenuTo MenuTo MenuThe exporters sometimes purchase

directly from the local tree owners

and the !balsameros" in order to get

a better margin. Before export, the

crude oleoresin is reprocessed

again to remove any foreign

matter. The cleaned, water-free

balsam is crystal clear in

appearance. The exporters

generally mix the balsam from the

cloth (pañal) and from the bark

(cascara) to produce different

qualities.

The exporters sometimes purchase

directly from the local tree owners

and the !balsameros" in order to get

a better margin. Before export, the

crude oleoresin is reprocessed

again to remove any foreign

matter. The cleaned, water-free

balsam is crystal clear in

appearance. The exporters

generally mix the balsam from the

cloth (pañal) and from the bark

(cascara) to produce different

qualities.

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Producction of Essential

Oils In El Salvador

Producction of Essential

Oils In El Salvador


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The first serious attempts at essential oil

production in El Salvador occurred

during the Second World War with

citronella and lemongrass. However, this

venture lagged behind the developments

in Guatemala, which captured the

market, and the El Salvador distillers

closed down operations.

The first serious attempts at essential oil

production in El Salvador occurred

during the Second World War with

citronella and lemongrass. However, this

venture lagged behind the developments

in Guatemala, which captured the

market, and the El Salvador distillers

closed down operations.

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Re-stimulation of interest in essentialoils was attempted the 1960s/70s by alocal scientist named Santiago Carrillo

Zimmerman. During those years, hewrote many articles on the subject andtried to convince the local authorities

and private investors of thedevelopmental potential for El

Salvador. However, his words fell ondeaf ears since attitudes to agriculture

and industry systems were verytraditional at that time. Undeterred, Mr.

Carrillo continued his efforts during the1980s and was responsible for

advisory visits by experts from UNIDOand other international organisations.

Re-stimulation of interest in essentialoils was attempted the 1960s/70s by alocal scientist named Santiago Carrillo

Zimmerman. During those years, hewrote many articles on the subject andtried to convince the local authorities

and private investors of thedevelopmental potential for El

Salvador. However, his words fell ondeaf ears since attitudes to agriculture

and industry systems were verytraditional at that time. Undeterred, Mr.

Carrillo continued his efforts during the1980s and was responsible for

advisory visits by experts from UNIDOand other international organisations.

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It is at this stage that my presentation

moves over to a personal Odyssey.

I met Mr. Carrillo and this developed into

a friendship that lasted until his death in

1995.

It is at this stage that my presentation

moves over to a personal Odyssey.

I met Mr. Carrillo and this developed into

a friendship that lasted until his death in

1995.

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In 1985, we made a trip to Haiti to see

the essential oil industry. On return

home, I commenced cultivation trials with

vetiver, patchouli, lemongrass, citronella

and palmarosa.

In 1985, we made a trip to Haiti to see

the essential oil industry. On return

home, I commenced cultivation trials with

vetiver, patchouli, lemongrass, citronella

and palmarosa.

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In the following year, 1986, Mr. Juan

Nobs, a Swiss entrepreneur - whose son

had worked at Schmidt in Switzerland -

imported a 1,500 litre Schmidt

Hidrodifusion still and founded Nobs

Hidrodifusion. He started distilling of a

range of oils on a small scale with the

help of a Belgian, Etienne Legasse, who

had designed the still

In the following year, 1986, Mr. Juan

Nobs, a Swiss entrepreneur - whose son

had worked at Schmidt in Switzerland -

imported a 1,500 litre Schmidt

Hidrodifusion still and founded Nobs

Hidrodifusion. He started distilling of a

range of oils on a small scale with the

help of a Belgian, Etienne Legasse, who

had designed the still

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In 1988, experience from myagricultural trials with

essential oil plants prompted

me to move to commercialproduction. Since Mr Nobshad already developed theextraction technology and I

had the plantations, webecame partners. Since then

we have developed andexported many different

essential oils to theinternational market.

In 1988, experience from myagricultural trials with

essential oil plants prompted

me to move to commercialproduction. Since Mr Nobshad already developed theextraction technology and I

had the plantations, webecame partners. Since then

we have developed andexported many different

essential oils to theinternational market.

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The early 1990s also saw a separate

essential oil venture which was

initiated by the German Aid Agency,

GTZ, with Mr. Albrecht von

Keyserlingk and Mr. Klaus Durbeck

as the advisors

The early 1990s also saw a separate

essential oil venture which was

initiated by the German Aid Agency,

GTZ, with Mr. Albrecht von

Keyserlingk and Mr. Klaus Durbeck

as the advisors

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The aim of the programme was the

creation of a smallholder-based industry

in poor rural areas. Implementation was

via local NGOs (Non-Government

Organisations), to which small, simple

steam stills were donated by GTZ. This

program lasted for about three years but,

since there was very little follow up on

the NGOs, there is hardly any oil

production today

The aim of the programme was the

creation of a smallholder-based industry

in poor rural areas. Implementation was

via local NGOs (Non-Government

Organisations), to which small, simple

steam stills were donated by GTZ. This

program lasted for about three years but,

since there was very little follow up on

the NGOs, there is hardly any oil

production today

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The only current commercial essential oil

producer in El Salvador is The Nobs

Hidrodifusion Company.

The only current commercial essential oil

producer in El Salvador is The Nobs

Hidrodifusion Company.

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To MenuTo MenuTo MenuFor those of you unfamiliar with the

hydrodifusion process, the following slide

provides a description:

For those of you unfamiliar with the

hydrodifusion process, the following slide

provides a description:

"#$ %#&'"(#)

*+,-',.+"

/)+"',&(,'

/)#.0.

Vapor Line

Boiler

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Water Oil

DESTILLATE

Cool

Water

Hot Water

Boiler

CoolingToner

To Treatment Plant

This process differs from conventional steamdistillation in that steam is introduced at thetop of the distillation pot and the oil vapour /

steam mixture exits at the base.

This process differs from conventional steamdistillation in that steam is introduced at thetop of the distillation pot and the oil vapour /

steam mixture exits at the base.

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!Confers advantages with some oils byproviding a product that is closer in aromacharacter to the fresh raw material, and

!The oil composition can differ qualitativelyand quantitatively from those obtained byconventional steam distillation. Both thesefacets are of interest to some sectors of themarket

!Confers advantages with some oils byproviding a product that is closer in aromacharacter to the fresh raw material, and

!The oil composition can differ qualitativelyand quantitatively from those obtained byconventional steam distillation. Both thesefacets are of interest to some sectors of themarket

This technique:This technique:

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The current range of oils produced

routinely are:

The current range of oils produced

routinely are:

Vetiver: 600 kgVetiver: 600 kg

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Cascarilla (Croton Reflexifolius):

100 kg

Cascarilla (Croton Reflexifolius):

100 kg

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Lemongrass (Cymbopogon Flexuosus):

100 kg

Lemongrass (Cymbopogon Flexuosus):

100 kg

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Citronella: 100 kgCitronella: 100 kg

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Palmarosa: 20 kgPalmarosa: 20 kg

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Oregano (Lippia Graveolens): 20 kgOregano (Lippia Graveolens): 20 kg

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Ginger: 20 kgGinger: 20 kg

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Tagetes

(Tagetes Microglosa):

20 kg

Tagetes

(Tagetes Microglosa):

20 kg

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Patchouli: 20 kgPatchouli: 20 kg

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Cinnamon leaf: 20 kgCinnamon leaf: 20 kg

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Petigrain: 20 kgPetigrain: 20 kg

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Cedrella Odoratta: 20

kg

Cedrella Odoratta: 20

kg

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Eucalyptus Citriodora: 20 kgEucalyptus Citriodora: 20 kg

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Around 70% of the raw material feedstock

is grown by the Nobs HidrodifusionCompany. The balance of the requirement

is bought on the open local market from

people dedicated to the trade.

Around 70% of the raw material feedstock

is grown by the Nobs HidrodifusionCompany. The balance of the requirement

is bought on the open local market from

people dedicated to the trade.


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Digging Vetiver RootsDigging Vetiver Roots

VetiverVetiver

Actually the most important

Raw materials

for Nobs Hidrodifusion are:

Actually the most important

Raw materials

for Nobs Hidrodifusion are:

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Vetiver RootsVetiver Roots

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Chopping Vetiver RootsChopping Vetiver Roots

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Removing Cascarilla

Bark From The Tree

Removing Cascarilla

Bark From The Tree

CascarillaCascarilla

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Cascarilla BarkCascarilla Bark

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Cascarilla Bark ProcessedCascarilla Bark Processed

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To MenuTo MenuTo MenuAlong the way, we conducted trials

also on the following products that

have not yet been commercialised:

Along the way, we conducted trials

also on the following products that

have not yet been commercialised:

!Basil

!Cardamom

!Tagetes Pusila

!Tagetes Lucida

!Turmeric.

!Ambrette Seed

!Vanilla

!Basil

!Cardamom

!Tagetes Pusila

!Tagetes Lucida

!Turmeric.

!Ambrette Seed

!Vanilla

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Laurel

(Laurus Nobilis)

Laurel

(Laurus Nobilis)

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Black PepperBlack Pepper

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Eucalyptus GlobulusEucalyptus Globulus

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CloveClove

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JazminJazmin

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Ylang YlangYlang Ylang

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In the early years, we could not

comprehend why praise was

received for the more !true-to-nature"

aroma character of our products but

there was no interest in purchasing

the material. Why were our superior

products being rejected? Our basic

difficulty was a lack of understanding

of the structure of the essential oils

market.

In the early years, we could not

comprehend why praise was

received for the more !true-to-nature"

aroma character of our products but

there was no interest in purchasing

the material. Why were our superior

products being rejected? Our basic

difficulty was a lack of understanding

of the structure of the essential oils

market.

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All SpiceAll Spice

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Our processing technique provides oils

that are different in both aroma and

chemical composition to conventional

steam distilled oils. This poses a problem

in incorporating our oils in established

product formulations for which a

consistency of overall character is

expected.

Our processing technique provides oils

that are different in both aroma and

chemical composition to conventional

steam distilled oils. This poses a problem

in incorporating our oils in established

product formulations for which a

consistency of overall character is

expected.

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Eventually, we came to realize that

we were offering new oils and that

usage was dependent upon others

downstream in the industry creating

a market for new product

formulations.

Eventually, we came to realize that

we were offering new oils and that

usage was dependent upon others

downstream in the industry creating

a market for new product

formulations.

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Future of the Essential Oil

Industry In El Salvador

Future of the Essential Oil

Industry In El Salvador


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Recently, the German Government GTZ

Agency has started a project that will

evaluate the market of the Peru Balsam

derivatives or compounds that are already in

the market.If the evaluation is positive they

are planning to collaborate with Nobs

Hidrodifusion Company on exploring the

possibility of the local distillation /

fractionation of Peru Balsam.

Recently, the German Government GTZ

Agency has started a project that will

evaluate the market of the Peru Balsam

derivatives or compounds that are already in

the market.If the evaluation is positive they

are planning to collaborate with Nobs

Hidrodifusion Company on exploring the

possibility of the local distillation /

fractionation of Peru Balsam.

Peru Balsam:Peru Balsam:

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The basis for the GTZ aid is that the

added value gained will be divided

among the participants of the chain of

production.

The basis for the GTZ aid is that the

added value gained will be divided

among the participants of the chain of

production.

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If this project is successful there will be

great hope for the Peru Balsam"s

future, otherwise, it seems like the

market of the Peru Balsam will continue

on the decline.

If this project is successful there will be

great hope for the Peru Balsam"s

future, otherwise, it seems like the

market of the Peru Balsam will continue

on the decline.

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Other essential oils:Other essential oils:

El Salvador possesses many favourable

conditions (climate, costs, market proximity,

etc.) for the production of a range of essential

oils. Experience has been gained the hard

way over the years on the difficulty of

entrance for new suppliers and we are

confident that there is a future for us to

develop. The key to success lies with careful

product selection, particularly assessment ofwhat comparative advantage exist as a

supplier.

El Salvador possesses many favourable

conditions (climate, costs, market proximity,

etc.) for the production of a range of essential

oils. Experience has been gained the hard

way over the years on the difficulty of

entrance for new suppliers and we are

confident that there is a future for us to

develop. The key to success lies with careful

product selection, particularly assessment ofwhat comparative advantage exist as a

supplier.

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We trust that the buyers and consumers

in the audience will give us guidance.

We trust that the buyers and consumers

in the audience will give us guidance.

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