Essential Oil Business Opportunity

Essential oil is still one of the leading commodities. The market opportunity was still fragrant. Therefore, industries that require essential oil are very broad, ranging from flavor and fragnance industries, aromatic chemical industry and toiletries, insect or pest control industry and food and beverage industry.

In fact, according to agribusiness observers, rocket fuel also uses essential oil. “Although the needs are small, there is still this essential oil content,” he said.

Because of this widespread use, it’s no wonder the essential oil requirement is enormous. In fact, demand continues to increase from year to year. Of a number of essential oils, the most demand is clove oil, reaching 5,000 to 6,000 tons per year.

Not only that, the trend of the use of organic products also raised the prestige of essential oil. Manufacturers of these organic products, especially products for body care, add this type of oil to give fragrance to their products.

In addition to the local market, Agro Atsiri’s marketing is more coming from abroad. We have reached several countries in Europe, such as Switzerland and Germany. From the Blue Continent, We receive the essential oil demand to reach five tons per month. Demand also comes from manufacturers of drugs and cosmetics in North America, South America, and Asia.

Prices in international markets are pegged to the US dollar. As a result, in conditions of high dollar value as now, you can enjoy more profit. Indeed, not many manufacturers that can produce various derivative products from various essential oils. The most visible are the entrepreneurs who build oil refineries like Us. In the development of its products, essential oils can be made various derivative products.
Origin of good management, essential oil refining business can generate profits up to 30%. Correct management means that entrepreneurs can also maintain the supply of raw materials. Therefore, raw materials are still a constraint of this business.

Stock of raw materials

The message of importance, before deciding to go into this business, you must ensure the supply of raw materials first. The stock of raw materials must be available in a stable manner so that essential oil production continues.

Because, which many occur, new entrepreneurs are forced to close the refinery business because it can not supply raw materials. Therefore, before deciding to build a refinery plant, you should research areas that have the potential to produce essential oils.

Just so you know, clove oil is produced from distillation of dried cloves leaves. Therefore, the distillation of clove oil is usually done during the dry season. “Because, dry clove leaves also can not be stored for long. The leaves are old and fall out should be processed immediately, “. Just like cloves, the processing of patchouli leaves is also done in dry conditions. Meanwhile, lemongrass leaf distillation can be done in wet conditions.

The need for leaves for this distillation is enormous. Take for example, to produce 1 kg of clove oil required 50 kg of dried clove leaves. Meanwhile, 100 kg of new patchouli leaves 1.5 kg of patchouli oil.

Because of the great need and supply must be stable that, essential oil entrepreneurs should have their own plantation garden. Alternatively, you can invite farmers to cooperate in planting raw materials.

This is the way we have been working since last year to ensure the supply of raw materials for the factory. Currently, with our farmers, we process 135 hectares of land for planting patchouli.

Ricard also said, stable supply becomes the key to the success of this business. “However, many prefer to distill rather than plant, because it is more profitable,”. Therefore, he suggested new entrepreneurs as well as plant their own patchouli, lemongrass or other raw materials.
Because of the need for large raw materials, you should build a refinery factory near the source of raw materials. This step is done to save transportation cost. “When it becomes a finished product, easy to transport it,”.

The distillation process is relatively simple. However, We whisper, there are special recipes that determine the quality of essential oils. “That’s our secret,” she whispered.

The quality of essential oil itself is determined by a variety of things, ranging from purity or absence of certain mineral or water content, clarity, and also the resulting aroma. However, because the market is very broad, each industry also requires certain specifications. “For the food industry requires a low level of acidity, while the perfume industry more highlight the aroma,”.

The device to produce this essential oil can be made on its own, as it is done. The distillation process is carried out by distillation machine. Machine prices vary widely, depending on the desired production capacity.

However, We are advised, should new players pioneered from a small machine, which starts from the machine with a capacity of 50 kg or 100 kg every month. “The price of this distillation machine is affordable,” we are now also offering the manufacture and assembly of distillation machines.

If you want to produce some essential oils, it’s good to distinguish machines based on raw materials. “To avoid complaints from consumers when there is a scent or residual oil refining process before,”. However, Ricard, if the production is still small, employers can use one machine alone to save investment costs. “The machine can be washed if you want to produce different types of oil,” he said.

In the marketing process, you can market your own essential oil or offer it to entrepreneurs who already have a large network. if you do not have a network, it’s good to cooperate with other manufacturers, while combing other markets in accordance with your essential oil products. Exhibition can be an alternative marketing because it is the largest market of this product is export.