Research Manager:
Mr Tony Byrne
Phone: 02 6272 5472
Fax: 02 6272 5877
Email: tony.byrne@rirdc.gov.au

Objective: To support the growth of a profitable and sustainable essential oils and natural plant extracts industry in Australia.

Research Budget: $400,000

Some Key Performance Indicators

• Average industry oil yield per hectare.
• Availability of information for grower use.
• Availability of information on world production levels and trends.
• Extraction efficiencies.
• Levels of local production/import substitution.

Background

Between 1993 and 1998, world demand for essential oils grew at an average rate of 6.1 per cent, botanical extracts at 15.9 per cent, plant derived chemicals at 9.8 per cent, and gums, gels and polymers at 7.4 per cent

Essential oils are largely used in the food flavouring, cosmetics and fragrance industries but their use in aromatherapy and other health care areas is growing. Changing consumer preferences in favour of natural over synthetic substances has had a strong impact on pharmaceutical and cosmetic industries, which has translated into growing demand for essential oils and plant extracts.

There is increasing interest in essential oils in Australia and there are good opportunities for producing plant extracts from both native and exotic species. The current value of production (excluding tea tree oil but including the refining of imported eucalyptus oils) is $6–7 million at the farm gate and $20–25 million wholesale/retail a year.

The Australian essential oils industry is made up of around 150 commercial producers, with production dominated by a few larger firms. Most essential oil production takes place in Tasmania, Victoria and New South Wales (NSW). Tasmania produces commercial quantities of lavender, parsley, peppermint, dill, boronia, blackcurrant bud, and fennel. The main essential oils produced in NSW are tea tree and eucalyptus, while peppermint is the main crop produced in Victoria. For most of the essential oils that Australia produces, its share in world production is relatively small.

The medicinal herb market has been identified as a huge potential market for Australian production of plant extracts, with both local and export opportunities. At present, only about one-third of the 250 tonnes used each year is supplied from Australia. The main medicinal herbs produced in Australia are echinacea species, licorice root, skullcap, dandelion root, golden seal root and valerian root. Several native plants are used for the production of substances such as scopolamine, esculin, castanospermine and methyl cinnamate within the fine chemicals sector.

Australia has a comparative advantage as a reliable supplier of clean, good quality, unique oils and extracts based on the use of high technology in both production and extraction. However they must meet well-defined quality parameters.

The program now has a new five year plan developed in consultation with Australian producers, marketers and researchers.

Key sub-program strategies

 
• Improve understanding by potential researchers and producers of markets for essential oils and plant extracts.
• Improve existing products and encourage the development of new crops and new products (including uses for existing products).
• Support the development of sustainable and profitable production systems.
• Facilitate regulatory approvals for essential oils and plant extracts.
• Promote cost effective post harvest and extraction technology to improve yield and quality.
• Encourage the development of essential oils and plant extract industries by promoting industry networks and the flow of information.

Expected key outputs in 2002–2003

 
• Report on kesom oil, a new essential oil for flavours.
• Production of reports on generation of high quality Australian skullcap and valarian products.
• Report on chamomile varieties for essential oil and dry flower production.
• Preliminary report on the use of natural products such as essential oils to control chalkbrood disease, an infectious disease of honeybee larvae.
• The production of further issues of the newsletter of the Essential Oil Producers’ Association of Australia.

Expected key outcomes in 2002–2003

This sub-program has its own Five Year Plan which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/essentoi.html

Sub-Program 2.4: Essential Oils and Plant Extracts — new projects being funded in 2002–2003 included
 

Project No.		Title	Researcher	Phone
EOI02-05	*	Growing milkweed, a plant with prospective anti-cancer properties	Dr. Craig Davis	(07) 3406 8611
EOI02-06		Bioactivity of Lavandula essential oils, hydrsols and plant extracts	Dr. Heather Cavanagh	(02) 6933 2501
MUL02-15	*	Improvement of lavender varieties by manipulation of chromosome number	Dr. Nigel Urwin	(02) 6933 2450

Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project in terms of, for example, a lower budget or project design.

Achievements in 2001–2002

Sub-Program 2.5: Organic Produce

Research Manager:
Ms Denise Millar
Ph: (03) 9859 7249
Fax: (03) 9859 6249
Mobile: 0419 599 294
Email: denise.millar@bigpond.com

Objective: To facilitate the development of a viable organic industry through increasing adoption of sustainable organic farming systems.

Research Budget: $275,000

Some Key Performance Indicators

• Increase in both new and total certified growers.
• Broader range of product.
• Increased industry adoption of new/modified organic systems.
• Demonstrated evidence of improved soil health and structure.
• Increased product quality.
• Increased yields.
• Satisfying customer demand.

Background

Consumers are increasingly aware of the quality and safety of the food and fabrics they consume. At the heart of this worldwide trend is a desire to consume products, especially foods, that are safe, produced from environmentally sustainable farming systems, and ethically and socially acceptable. In growing numbers, export and domestic consumers are seeking certified organically grown products in response to this concern.

The Australian organic (incorporating biodynamic) industry has around 1800 certified/registered members collectively marketing product estimated at the farm gate to be worth approximately $ 250 million in 2001. On current trends the industry is estimated to grow by 40% over the period of the current 5 year plan (2500 members, $260 million). Members come from all sectors of the value chain — growers, processors and manufacturers, retailers and consumers — across all States. They operate in diverse rural industries, including grains and pulses, horticulture, viticulture, beef and pork, dairy, sugarcane and honey. Seafood is a new opportunity driven by the increasing contribution of the aquaculture sector. Seven organisations are currently registered with the Australian Quarantine and Inspection Service (AQIS) to inspect and certify organic farming, processing and marketing systems.

Rising domestic and overseas demand for Australian organic products is prompting a greater number of conventional farmers and processors to consider and adopt organic farming and processing systems. Typically the attraction is either improved market access and/or higher prices from niche markets, together with recognition by the marketplace of better and more sustainable farming practices.

Key sub-program strategies

Strategies for 2002–2003

Expected key outcomes in 2002–2003
 

This sub-program has its own Five Year Plan which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/org5yr.htm

Achievements in 2001—2002

 
• New 5 year plan developed in partnership with the organic industry and launched in August 2001.
• Successful inaugural national organic conference to assist the Australian industry to rise to the challenges it faces held in September 2001.
• Facilitation of the bid process for an Organic Industry Cooperative Research Centre.
• Australian industry representation at world conferences; Europe (IFOAM) and a biodynamic workshop in southern India.
• Support to the OFA and other industry organisations to represent to Australian industry at the Biofach Trade show in Germany in February 2002.
• OFA supported to develop an Organic Harvest Festival concept.
• HACCP and audit-based training program for organic inspectors developed and courses held.

Research Manager:
Dr Peter McInnes
Phone: 08 8556 7331
Fax: 08 8556 7289
Email: mcinnes2@comstech.com

Objective: To facilitate the development of new and established industries based on rare natural fibres.

Research Budget: $215,000

Some Key Performance Indicators

• Ways of improving fibre marketing.
• Publication of new processing opportunities for cashmere.
• Improved reproduction techniques in alpaca.
• New mohair products.

Background

The program can incorporate cashmere, mohair, alpaca fibre, camel hair and other rare fibre projects. The R&D projects currently cover the first three of these fibres.

In 2001 world prices for mohair were initially maintained, had a downturn by the middle of the year and then showed a slight recovery in December. The general downturn in the economic growth in many of the developed nations and the devaluation of the South African currency contributed to the reduction. Cashmere and alpaca fibres prices were also affected but dehaired cashmere is still well sought internationally. Reducing fibre diameter is still a high priority for all these industries. Raising the efficiency of production and by growing what is required by the processors/markets will increase productivity and net returns.

Key sub-program strategies

 
• Address, within budgetary limitations, published strategies and targets in the 1998-2003 R&D Plan.
• Identify and research appropriately with industry fibre properties required for commercialisation by processors to produce yarn, fabric and garments demanded further along the value-added chain.
• Maintain R&D in blending rare fibres with traditional fibres such as wool, cotton and synthetic fibres.
• Increase productivity on-farm by investment in health and breeding research.
• Communicate to stakeholders progress and conclusions of projects.

 

 
• Monitor and, where necessary, re-assess the targets in the 1998-2003 R&D Plan. Fund as relevant, projects addressing targets and continue to seek ways whereby fibre marketing can return more to producers.
• Maintain processing research with industry.
• Increase reproduction performance in alpaca by further developing AI technologies.
• Appraise the need and opportunity for the marketing of alpaca fibre and value added products by obtaining information on world best processing practices and market intelligence.
• Develop processing and product benchmarketing for the cashmere industry.
• Publish final reports as hard copy and via internet.

Expected key outputs in 2002–2003

Expected key outcomes in 2002–2003

This sub-program has its own Five Year Plan which is accessible in hardcopy and on the Internet at http://www.rirdc.gov.au/pub/rna/index.htm

Sub-Program 2.6: Rare Natural Fibres — new projects being funded in 2002–2003 include

Project No.		Title	Researcher	Phone
MUL02-32		Developing processing and production benchmarks for cashmere	Mr Bruce McGregor	((03) 9217 4364

Achievements in 2001–2002

 
• Published a business plan for the Australian Mohair industry. A SWOT analysis was made of seven industry sectors. One of the recommendations was to set a production objective of about 1 million kg to restore critical mass and provide efficiencies and marketing positioning. This level of production is approximately double that in 2000- 2001.
• Some factors have been reported related to high phenotype cashmere down production. Attempts have been made to separate genetic and environmental effects.
• Greater knowledge of the female reproduction in alpaca has been reported from research that manipulated hormonal control via various progestogen treatments association with ovarian follicular wave synchronisation.
• Commenced research into progeny testing mohair sires and optimising harvesting strategies in angoras.
• Published three final reports.

Research Manager:
Dr Roslyn Prinsley
Phone: 02 6271 4033
Fax: 02 6272 5877
Email: roslyn.prinsley@rirdc.gov.au

Objective: To support the continued development of an environmentally sustainable and profitable Australian tea tree oil industry that has established international leadership in marketing, in value-adding, and in product reliability and production.

Research Budget: $300,000

Some Key Performance Indicators
 

• New value-added products.
• Level of new information available in peer reviewed journals on safety, efficacy and mode of action that originates from research
• funded by the program.
• Level of yield improvement.
• Level of uptake of new technology and ideas.

Tea tree (Melaleuca alternifolia) is native to the north coast of New South Wales. Its oil has gained widespread therapeutic use for fungal and microbial infections but is not yet registered for use by the medical profession.

The industry comprises some 250–280 growers and is located principally in northern New South Wales and on the Atherton Tableland in Queensland. More than 90 per cent of Australian tea tree oil is exported, principally to North America and Europe. The major end uses of the oil are in antimicrobials and cosmetics, with much of the oil being sold as a pure oil.

As plantings increase, there is currently an imbalance between supply and demand. However, the industry remains optimistic about its future. The challenge is to build on recent R&D achievements, particularly relating to safety and efficacy and to explore options for new applications of tea tree oil. On the production side, continued work on breeding superior genetic material also remains a priority.

Key sub-program strategies

Strategies for 2002–2003

Expected key outputs in 2002–2003

Expected key outcomes in 2002–2003

This sub-program has its own Five Year Plan which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/tto5yr.htm

Achievements in 2001–2002

Research Manager:
Mr Max Bourke
Phone: 02 6247 4630
Fax: 02 6247 4051
Email: mbourke@ruralfunds.com.au

Objective: To improve the profitability, productivity and sustainability of the Australian wildflower and native plant industry.

Research Budget: $361,250

Some Key Performance Indicators

• Availability of market information.
• Proportion of production accounted for by cultivated flowers.
• Return per kilogram of product.
• Industry involvement in product development.
• Availability of user-friendly production information, including return on investment data.
• Support for industry-driven training, workshops and networking.

Background

Wildflowers are now cultivated in all States, but Western Australia still accounts for more than half of Australia’s annual wildflower production valued at around $50 million at the farm gate. The relative importance of bush-picked flowers is declining, even in Western Australia.

In 2000-2001 the value of exports of wildflowers and foliage’s plants exceeded $30 million. The key commercial wildflowers are Geraldton wax, kangaroo paw, Thryptomene, Stirlingia and species of Banksia, Leucadendron and Protea, with species other than waxflower increasing in relative importance. The major markets are Japan, the United States, the Netherlands, Canada, and Germany.

Key sub-program strategies

Strategies for 2002–2003

Expected key outputs in 2002–2003

Expected key outcomes in 2002–2003

Sub-Program 2.8: Wildflowers and Native Plants — new projects being funded in 2002–2003 include

Project No.		Title	Researcher	Phone
WNP02-02	*	Development of north Queensland flower and foliage species and industry	Ms Kaylene Bransgrove	(07) 4048 4645
WNP02-04	*	Development of synthetic seeds for clonal propagation of Australian plants	Dr Kingsley Dixon	(08) 9480 3637
WNP02-06	*	Improving profit in the Western Australian native flower industry through benchmarking	Mr Gerry Parlevliet	(08) 9368 3219

Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project in terms of, for example, a lower budget or project design.

Achievements in 2001–2002