Yunnan, in south West China, is one of the major world suppliers of geranium oil, which is an essential ingredient for many perfumes. In 2010, exports from Yunnan’s fragrance manufacturers amounted to 80 million euros worth – a 20% increase from the previous year. Most of these exports war to the USA, Europe, India and the Middle East. However, experts are concerned that the long-term prospects are not that attractive, as the industry in Yunnan lacks deep processing skills which would allow it to add value.