1. The Product --- CITRONELLA ESSENTIAL OIL

1. Description:

Appearance : Pale yellow color
Aroma : Lemony, grassy, floral scent
Apparent Density : 0.880 -- 0.892 gr./ml
Content : Citronellal = 20% - 40%
Geranoil = 60% - 85%

2. Uses and Possible Market

The essence is used in liniments, inhalants, perfumes, insect repellants and soaps. Large scale industrial and medicinal usage includes for pharmaceuticals, cosmetics, air fresheners and soap manufacturers.

2. Market Supply and Demand

The Philippines is a net importer of essential oils for both medicinal and industrial uses. In 1997, our total net importation amounted to $1.8 M and from January to September of 1998, our total net importation amounted already to $2.05 M.

Citronella essential oil is one of the significant essential oils being imported from sources such as China, Taiwan, and Hongkong.

In Cebu province alone, estimated demand for medicinal and industrial purposes of Citronella oil is estimated at 3,000 to 4,000 liters per month. However, the total supply is estimated fairly at only 300 liters per month maximum.

There are only three (3) existing citronella oil distillation facility --- all owned and operated by cooperatives. Production from these cooperatives is only at low level considering the low recovery from their distilling units coupled with high energy consumption. Citronella oil produced from these facilities are of low quality. Actual recovery is very low at only 0.5 - 0.6 per cent.

Though the price of raw citronella has been stabilized at P400 - P500 per liter, farmers were not encouraged to plant or cultivate mainly because of low returns.

3. Production

1. Agriculture

There are two (2) distinct types of citronella grass (these resemble the ordinary Cogon grass):

1.) Ceylon type - this is the type that has been propagated widely here in Cebu. Quality of essential oil extract is characterized by low citronellal and low geranoil content. Likewise, yields are relatively lower. However, it grows profusely even in the mountain areas and is suited to Cebu’s eroded sloppy areas and hillsides.

2.) Java type -- this type yields higher percentages of both citronellal and geranoil and of good quality and higher yield. We suggest that we should propagate this type even though it is not as prolific as the Ceylon type.

Bulb roots of the Citronella grass is planted and propagated. The first plantings could be harvested or deleafed after 3-4 months and could be subsequently harvested after every three (3) months thereafter. Estimated yield of leaves per cutting per hectare is at an average of 3,000 kilos of fresh green leaves. Annual yield per hectare is placed at 10,000 kilos to 12,000 kilos per hectare per year.

Agricultural inputs are minimal except for harvesting labor.

The original harvesting of the Citronella plant could last up to ten (10) years without replanting. The plant multiplies by new growth of shoots and form clusters.

2. Processing

Harvested leaves are cut and air dried in shades for 2-3 days, after which they are cut into about 4” in length prior to feeding into trays of the oil extraction steam distillation equipment.

Firing starts once the equipment is closed air tight and water levels for both distiller and condenser are topped.

As standard operating procedure, air vents to release non-condensable gases should initially be opened and closed once steam emission is observed.

Standard safety devices such as the automatic pressure relief valve , the pressure gauges, thermometers, etc. should be checked.

Firing is terminated after about 4-5 hours and after condensate being actually determined by feel or smell does not contain anymore essential oil.

4. Economic and Environmental Impact

   a. Environment --- Citronella grass being a prolific tropical plant just like the ordinary cogon plant would thrive well even on sloppy areas and hills. Hence, it could greatly help prevent the rapid erosion of Cebu’s mountainous areas and help improve water absorption to the ground water level, thereby increasing our dwindling water supply.

   b. Economics --- Additional income would accrue to marginal farmers for planting Citronella grass either in terms of selling just the leaves, and additionally in the participation and ownership in the processing plant.

   On the macro scale, it could help the national economy by way of reducing our imports for these essential oils or hopefully make the country a net exporter instead of being a net importer.

5. Future Plans

   The Cebu Industrial Builders-MPC intends to establish the essence industry, which today is very insignificant, here in Cebu and then to other provinces in Region V11 and to other areas of the entire country to make the Philippines a major source of various essences, the raw materials of which we are abundantly blessed being a tropical country.

   We plan to setup an essence refinery plant when we shall have enough or available raw essence supply from our farmers. The refinery plant would be able to fractionate the raw essence into a purified fractions which are the basic raw materials for exotic essence manufacture for the world market.

   World market demands for essence is currently estimated at $450M - $500M annually and is increasing at 10 - 15% annually due to the advent of modern aromatherapy in the highly industrialized countries.

   Major markets are the affluent markets of USA, Canada, Japan, and Europe. While the major suppliers are the less developed countries in Asia including China, Indonesia, Sri Lanka and the South American countries.