Laurel ( Bay ) Leaves – Follia Lauri Nobili

September 15, 2005

Currently the harvesting of the New Crop Laurel Leaves has started since a couple of weeks and will last untill Mid October.However, the supply of raw material to exporters is at very low levels and in some main Laurel Leaf growing areas there is a restriction of cutting the branches or villagers just don`t collect the raw material and have focused on other business.

The average total crop quantity should be around 4.500 up to 5.000 M/t ( See our weblink http://www.mondialint.com/export.htm ). At this stage we hear figures which are much lower then this. As a result this has reflected the export prices for the lowest grade FAQ pressed to pass the US$ 2.000 FOB level already. We do not forsee this situation will be better in the months to come as harvesting will become more difficult as chance for rain during drying is increasing. Already the weather forcast is prediting heavy rains in the Aegean area for the coming two days which will for sure reflect both the quantity and quality of the dried leaves.

We advise buyers to cover themselves during this periode if they are in need of larger quantity for the rest of the season. New crop 2006 far away with 12 month to go so it is most likely that price-levels will stay firm with tendency to increase during the months to come.

We would also like to attend our buyers to the fact to be carefull with much lower offers in the market. The product is either old crop `04 or might be adulturated with other leaves like so-called `Mersin Leaves`. This is mostly used then in the Cut & Sifted grades or FAQ / Broken grades. An experienced eye can see the difference easely.

General Outlook

September 13, 2005

Current Exchange Rates ( 13.09.2005 – Central Bank of Turkey, www.tcmb.gov.tr ) :

1 USD = 1.33 YTL
1 EUR = 1.64 YTL
1 GBP = 2.43 YTL

Cumin Seeds
Firm and slightly increase due to weak US$ against TL. Syrian origin at lower levels. Turkey is missing the business to Syria. We expect prices to remain steady.

Anise Seeds
High domestic demand and short in Turkish crop made prices to increase to very high levels. Syria origin far below the Turkish prices and also for this product Turkey can not compete. It is not unlikely that this situation will continue in the month to come and even untill new crop next year.

Blue Poppy
Remains steady from Turkey. Only White Poppy extreemly high prices due to demand and White Poppy lower in yield comparing to Blue Poppy. India is a large importer of White Poppy seeds from Turkey.

Fennel Seeds
New crop available and prices remain stable. If demand is increasing in the months to come we can expect slightly higher levels as Fennel Seed Crop is not large in Turkey with approx. 3.000 M/t total.

Laurel Leaves
We should keep this product in the picture as due to restriction of cutting in certain areas the supply of raw material is not plenty and this has pushed the prices for pressed material up to levels above the US$ 2.000,- per M/t. We do not expect the situation to change in the days to come. For sure this season will be firm on Laurel and it is advised for importers to cover large quantity if needed with a contract.

Oregano
Harvesting is finishing and prices are quiet steady for the moment. It has all settled down. Exporters keen on making long term contracts. Some suppliers might try to move up the market in order to sell their stocks at a higher price-level. However, we expect market to be steady and less changes for the coming 2 months. Shortages will mostly be clear later on in the season after December. It is always very difficult to indicate how much wild oregano is exactly collected by the villagers.

Sage
Steady but at firm price levels like last season. Crop in Turkey is limited and indications are 350 up to 450 M/t per season of the Salvia Triloba type.

Sun Dried Tomatoes
The drying periode has finished and now exporters are cleaning, grading and shipping their contracted stocks. Additional quantity available. Please contact us for your special requirement and we will be pleased to assist you in finding the right grade for your company.

Capers
A firm market with a tendency to increase for especially the sizes Nonpareille and Surfines. It is the right time to cover yourselves for the rest of the season. New crop starting in July 2006.

Please contact us should you have any questions or additional info regarding our products..

Mondial Int'l Agency Ltd.