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The young leaves of bay trees (Laurus noblis) become distorted and curled up, often turning yellow.
Adult bay suckers curl the leaf margins before laying their eggs. The larvae feeds underneath the curled up leaf and often can be see if you unfurl the curl. The fully grown larvae excrete a white fluffy substance which is more obvious.
Most infestations are not too severe and only look unsightly. Bad infestations may weaken the plant.
Chemical - spray with Bug Clear Concentrate and cut out infected leaves. Be careful not to use newly sprayed leaves in cooking.