PARAGUAY: AN OVERVIEW OF THE ESSENTIAL OILS ... - IFEAT

Paper presented at the IFEAT 2001 International Conference – ‘The Essential Oils of South and Central America’;
Buenos Aires, Argentina; 11-15 Nov. 2001. Pages100 –107 in the Conference Proceedings.
_________________________________________________________________________________________
PARAGUAY:
AN OVERVIEW OF THE ESSENTIAL OILS INDUSTRY
Raul Amigo
Amigo & Arditi S.A.
Ruta Mariscal Estigarribia Nº 1282, Fernando de la Mora, Asunción, Paraguay
[ raul@amigo.com.py ]
Paraguay is a land-locked country, located in the heart of South America and shares borders with
Brazil, Argentina and Bolivia. It occupies an area of 406,752 km 2 and has a semi-tropical climate. The
eastern region is an extension of the Brazilian Plateau, much of which remained virgin forest up until
the latter part of the twentieth century. The larger western region is a part of the Gran Chaco and is
hotter and semi-arid.
The capital city, Asunción, sits on the River Paraguay and is the traditional port for exports. The total
population of Paraguay is estimated as around 5.5 million, of which the some 45% live in the
countryside.
Paraguay and its neighbours
The production and export of essential oils commenced in the late 19 th century. The industry remains a
significant source of cash earnings in many rural areas and of foreign exchange earnings for the
country.
100

On the international market, Paraguay is best known today as a supplier of the oils of petitgrain,
guaiacwood and cabreuva. During the 1970s, Mentha arvensis oil production developed and was soon
followed by further processing to menthol crystals and dementholized oil, but this industry has
contracted since the mid-1980s. Table 1 summarises recent production levels for these oils and Table 2
lists their particular production characteristics.
Table 1 : The recent scale of production of the four main Paraguayan oils
(tonnes/year)
Late 1990s
Cabreuva 20
Guaicwood 100 - 150 Prior peak output
Petigrain 250-350 400 - 450 (in 1960s/70s)
Crude M. arvensis 100 1,200 (in 1975/80)
Table 2 : Production systems and areas for the four oils
Source of raw material Oils Location of
production
Cultivation,
Petitgrain
traditionally as first
cash crop on newly
East and north east of
Asuncion towards
Brazilian border
colonized land Mentha arvensis Along the border with
Parana State, Brazil
Harvesting wild trees
Cabreuva
Guaiacwood
The southern region,
bordering Argentina
The Chaco; western
region bordering on
Bolivia
Producers
Paraguayan
smallholders
Predominantly
Brazilian immigrant
farmers in peak
production period.
The Mennonite
community in the
Chaco
Petitgrain Oil.
Paraguay petitgrain oil is produced by steam distillation of the leaf (with stems attached) of the bitter
orange tree (Citrus aurantium subsp. amara Linn). This is one of the several orange species
introduced during the 17 th and 18 th centuries by Spanish colonists and it rapidly established itself as a
wild plant in many areas.
Commercial production of the oil commenced around 1880 in the area to the east of Asuncion. Soon,
petitgrain cultivation became a key component in smallholder systems with the role of the first cash
crop planted on colonising and clearing virgin forest. Today, cultivation and distillation remains
dependent on subsistence smallholders, but the major production areas have progressively relocated to
the northeast, along with the borders of new land colonisation. It is estimated that today about 20,000
families are involved directly and indirectly on petitgrain oil production
Petitgrain’s significance to subsistence farmers lies in its ability to be harvested and distilled
throughout most of the year and to provide a cash return immediately by sale to the well-established
101

ural network of village intermediaries (often the general stores) or directly to the local agents of
exporters.
Cultivation and distillation
The petitgrain is grown in rows and by regular coppicing the plants are kept as low bushes to
maximise leaf production.
Distillation of the harvested leaf is carried out in traditional wooden-barrel still pots, served with steam
generated in a simple satellite boiler and a variety of types of rustic condensers are used.
In the mid-twentieth century, some of exporter companies experimented on improving distillation with
modern metal equipment, but the quality of the oil obtained proved unacceptable to users.
During the early 1970s, a systematic examination of means of improving the petitgrain industry in
Paraguay was carried out by the Tropical Products Institute (later known as the Natural Resources
Institute) under a British aid project. Field trials with the TPI’s modern transportable still achieved an
oil yield improvement of up to 25% over the traditional stills but the product was again different (and
unacceptable) in aroma quality to the traditional oil. Analyses revealed that distillation with a modern
efficient still provided an oil very similar in composition to that occurring naturally in the leaf whereas
the inefficient traditional stills transformed the oil – and its aroma character - by partial hydrolysis of
the linalyl acetate component. Perfumers had come to accept the traditional oil, containing distillation
artefacts, as the norm. The project was forced to re-focus attention on simple means of improving the
general efficiency of traditional equipment, while maintaining the product characteristics (1) . Those
interested in the details of this work may refer to the paper presented at IFEAT’s first international
conference in Bangalore, India in 1979 (2) .
Production and exports
The 1960s to the mid-1970s saw exports of Paraguay petitgrain oil increase to their peak level of 400 -
450 tonnes annually. However, fluctuations in supply and price then occurred for some years for
several reasons, including a switch to more remunerative tobacco and cotton in the petitgrain growing
areas immediately to the east of Asuncion. By the 1980s, this brought about a progressive reduction in
demand from some Paraguay petitgrain oil users, who turned to alternative fragrance ingredients.
Production and demand eventually stabilised at a lower level than formerly. Exports during the second
half of the 1990s ranged between 250 – 300 tonnes annually (see Chart 1). No reliable statistics are
kept on production but the actual levels are believed to correspond reasonably closely with the exports
over the same period.
The reduction shown in exports over the last few years is a result of adverse weather on the crop and,
since supply failed to match demand, prices were higher than normal. Growers have responded
recently to the increased oil price by expanding their cultivation area and this will lead in the coming
years to a return to normal supply and export prices.
Between 1995 and 2000, Europe purchased almost 80% of all exports of Paraguay petitgrain.
102

Chart 1:
PETITGRAIN OIL
Exports in tons
263
290
252
225
242 238
1995 1996 1997 1998 1999 2000
Chart 2:
PETITGRAIN OIL - Exports by zones
79.53%
13.22%
5.96%
1.29%
Europe USA South America Asia
Mentha Arvensis and Menthol
Cultivation
Like petitgrain, the development of crude Mentha arvensis oil in Paraguay was intertwined with its
utility as the first cash crop on the colonization of virgin forest land. However, it differed in that
production was initiated, not by Paraguayans, but by Brazilian immigrant communities who received
financial support from entrepreneurs based in Brazil.
103

Introduction of the crop into Paraguay was the logical outcome of the pattern of production that had
emerged in Brazil since the 1940s, combined with the Paraguayan government’s favourable attitude to
immigration as means of opening up the under-populated and under-developed southeastern border
area with Brazil.
Mint in Brazil had been used as the first cash crop on opening up new forest land in Parana state.
Cultivation, usually without fertilization, continued on a site for between 3-8 years until yields fell. At
this stage, the land was ploughed and put under mechanised production of soya and maize. This
practise led to a constant move westwards (and of the mint production areas) from Sao Paulo towards
the border with Paraguay. Shortages of suitable land in Brazil, combined with increasing land prices
turned the attention of Brazilian processors and colonists to Paraguay in the 1960s, where land was
cheaper and the topography was more favourable for eventual transformation to mechanised
agriculture.
Production of crude Mentha arvensis oil in Paraguay rose to its peak during 1975 – 1980, around
1,200 tonnes annually. Approximately 90% of this output arose from the Brazilian immigrant
community, while Paraguayan farmers accounted for the remainder.
Most of the early crude oil production was sold to the Brazilian menthol processing industry. The
development of local processing to menthol and dementholized oil did not occur until the mid-1970s.
The promise of a progressive growth in the Paraguayan industry was dashed with China’s aggressive
entry onto the world market in the late 1970s. Lower world market prices reduced production
profitability in Paraguay and during the 1980s crude oil output fell to under 100 tonnes annually.
There has been steady growth in production of crude Mentha arvensis oil in Paraguay over the past
five years and the current annual output is about 90 - 100 tonnes.
Chart 3:
CRUDE MENTHA ARVENSIS OIL
Production in tons
90
45 45
55
65
70
1995 1996 1997 1998 1999 2000
104

Because of the comparatively high price of Paraguayan menthol crystals and dementholized
peppermint oil, these products are used today by only a limited number of consumers, mainly in USA
and Europe.
Provided that international market prices do not undergo a significant decrease, it is expected that
production of crude oil, menthol and dementholized oil in Paraguay will remain close to their current
levels.
Guaiacwood.
The guaiacwood tree (Bulnesia sarmientoi) is a Paraguayan native species, which occurs in the semiarid,
western Chaco region. The production of guaiacwood oil was initiated in 1950 by the Mennonite
community; an immigrant religious sect that had colonized the central Paraguayan Chaco since 1927.
In the early years, oil was produced by water-steam distillation of chipped wood. Over the following
years, the technology has transformed to steam distillation of sawdust, chips and wood shavings.
Today, production of guaiacwood oil is limited to only four producers and, in recent years, one of
them has accounted for between 63% and 80% of the total exports.
Although producers are confident of the continued availability of guaiac trees for many more decades,
the Paraguayan government has introduced conservation regulations that control the permissible level
of harvesting.
Exports during the second half of the 1990s ranged between 100 – 180 tonnes annually. No shortage
problems are expected in the foreseeable future. However, it is not possible to predict whether the
trend to lower usage will continue in the major markets of the USA and Western Europe.
155
Chart 4:
GUAIACWOOD OIL
Exports in tons
183
98
125 123
113
1995 1996 1997 1998 1999 2000
105

Chart 5:
GUAIACWOOD OIL - Exports by zones
46.43%
41.69%
6.73%
5.15%
USA Europe South America Asia
Cabreuva
This oil is produced by steam distillation of the sawdust, chips and wood shavings of the indigenous
Myrocarpus tree. Its main component is nerolidol, 75% to 85% of the total.
Cabreuva oil production began in in the southwest region of Paraguay around 1980, and there are only
two producers today.
Recent annual output is around 20 tons a year and consumption is restricted to a small number of
companies, predominantly in Western Europe.
As in the case of guaiacwood the permissible scale of harvesting wild trees is controlled by
Government conservation regulations.
Chart 6:
CABREUVA OIL
Exports in tons
17
18
22
23
12
26
1995 1996 1997 1998 1999 2000
106

Chart 7:
CABREUVA OIL - Exports by zones
84.64%
9.15%
6.21%
Europe USA South America
Production of Other Oils.
Since 1978, there has been production of citronella, lemongrass, palmarosa and three eucalyptus oils
on a plantation venture in the northeast of Paraguay, close to the border with Brazil (see Table 3
overleaf for volumes).
These oils are mainly sold on the local market and to Brazil.
Expansion of the scale of production has been constrained by problems of competitiveness on the
international market, mainly on the basis of price but the aroma character of a few products differs
somewhat from those of other origins
Table 3: Recent production scale of other oils
(tonnes/year)
Citronella 10
Lemongrass 2
Palmarosa 5
Eucalyptus globulus 10
Eucalyptus citriodora 25
Eucalyptus staigeriana 1
Raul Amigo has been involved since 1982 in the family-owned, essential oils firm of Amigo & Arditi
S.A. and has been the Export Manager since 1995. He is the current President of the Paraguayan
Petitgrain Exporters Chamber.
107

References cited
1. Alvarez, A.A., Molinas, J., Montiel, J.A., Aguilera, X., Vargas, J.M., Urbieta, J.C., Seqouia, M.T.,
Green, C.L., Baker, D., and Barrett, R. (1979). La Essencia de Petitgrain. (Como obtener mas
Produccion de Mejor calidad). Asuncion, Paraguay: Paraguay Ministry of Agriculture Extension
Department Booklet # 9.
2. Baker, D. (1979) Paraguay Petitgrain Oil. Paper presented at the IFEAT International Conference
in Bangalore, India, 1979.
108