Treatt targets organic ingredients market

The flavour group's agreement with Earthoil, a specialist in the manufacturing and supply of organically certified and fair traded essential and pressed seed oils, is designed to tap growing demand for organic food. "This exciting venture with Earthoil is a strategic investment for Treatt,"​ said Hugo Bovill, Treatt managing director. "It will enable us to develop innovative products, for example 100 per cent natural, organic isolates and the Treattarome range. This is the start of a long-term partnership which will bring many benefits to our customers." ​ The joint venture was announced on 26 February and is effective immediately. Organic food remains a growing sector. The global market for organic products reached a value of €25.5 billion in 2005, with the vast majority of products being consumed in North America and Europe, according to the market research experts of Organic Monitor​. For 2006, the value of global markets is estimated to be at more than €30 billion. Healthy growth rates are expected to continue in the coming years. Australia continues to account for the largest certified organic surface area, with 11.8 million hectares, followed by Argentina (3.1 million hectares), China (2.3 million hectares) and the USA (1.6 million hectares). Germany is in the seventh position worldwide. But while soaring organic food​ and drink sales are driving demand, a recent Organic Monitor report warned that an undersupply of organic ingredients could undermine the long-term stability of the sector. "Over-concentration of demand could put the global organic food industry in a fragile condition,"​ said Amarjit Sahota, director of Organic Monitor. Both Treatt and Earthoil believe that the organic ingredients market has therefore room to grow. "Earthoil is dedicated to innovation and ethical trading, so teaming up with Treatt is exciting and means we can take our commitment to another level,"​ said Campbell Walter, Earthoil sales and marketing director. "Working with Treatt strengthens our operations in all areas by drawing on its market reputation, significant industry expertise and experience as a world leader in agricultural food science analysis. ​ ​"With access to Treatt's international network, we will broaden our support to our worldwide customers and further strengthen our reputation as an industry leader in the supply of organic essential and pressed seed oils."​ The Earthoil group, which includes Earthoil Plantations Limited and Earthoil Kenya EPZ Proprietary Limited, grows, processes and supplies organic essential and pressed seed oils. Earthoil's operations, which are overseen by its UK head office, include a production base in Kenya, a co-ordinated organic mint growers' project in India and further grower projects in Eastern and Southern Africa. Earthoil supplies its certified organic products worldwide.