Rural Industries Research & Development Corporation

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Program 2 - Emerging New Industries - continued
 

2.4 Essential Oils and Plant Extracts

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

Expenditure in 1999/2000: $404,688

Background

There is growing interest in essential oils in Australia. 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 eucalypt and tea tree oil segments aside, the principal regions for essential oil production are Tasmania and Victoria.

Essential oils are largely used in the food flavouring and fragrance industries but their use in aromatherapy and other health care areas is growing.

The success of the pyrethrum, poppy, and hop industries, with a combined farm gate gross value of production of some $27 million, suggests that there are significant opportunities for producing plant extracts from both native and exotic species.

There is strong market demand for locally produced medicinal herbs. At present, only about one-third of the 250 tonnes used each year is supplied from Australia. 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.

Strategies

Develop new and improved varieties and species for Australian conditions and international markets.

Provide agronomic systems for the profitable and sustainable production of high-quality oils and extracts.

Devise extraction technology to increase yields and/or secure specified product characteristics required by markets and registration authorities.

This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/essentoi.html
 

Key outputs in 1999/2000

Completion of a report on market opportunities in North America for Australian essential oils and plant extracts.

Publication of a report on improved management approaches to the production of peppermint oil with the objective of raising yields to more than 75-80kg/ha.

Reported on aspects of the production of Tasmannia lanceolata as a new source of perfumes and flavourings.

Initiated new work on boronia, parsley, chamomile and valerian.

Provided support for researchers and industry members to attend national and international conferences.

Published an industry-generated newsletter under the aegis of the Essential Oil Producers Association of Australia.

Publications in 1999/2000

99/95	Generation of high quality Australian echinacea products
99/109	Essential oils research in progress
99/122	Control of mint rust on peppermint
99/123	Determining pesticide minimum residue limits in essential oils
99/124	Tasmania lanceolata -developing a new commercial flavour product
99/125	Authenticating essential oil flavours and fragrances
99/147	Native and scotch spearmint production in Tasmania and Victoria
99/148	Reducing plant stress using Australian melaleuca
99/163	Blue mallee – establishing a permanent eucalyptus oil reserve
99/178	Boronia extracts – increasing yield and quality
00/34	Nitrogen and water relations in Boronia megastigma Nees
00/40	Adding value to essential oils and other natural ingredients
00/50	Developing essential oils of honeydew, melon, carrot and spinach for export

Research Manager: Mr Tony Byrne

Phone:	(02) 6272 5472
Fax:	(02) 6272 5877
Email:	tonyb@rirdc.gov.au

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2.5 Organic Produce

Objective: To optimise the profitability of Australian organic production in both domestic and overseas markets and to promote the utilisation of organic farming systems as a means of enhancing the sustainability of Australian agricultural systems.

Expenditure in 1999/2000: $287,028

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.

R&D Plan for the Organic Produce Program 1998–2003. Adopted by Board Resolution No. 45-1998-16

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, consumers are seeking organically grown products in response to this concern.

The Australian organic industry has around 1900 certified/registered members collectively marketing production estimated at the farm gate to be worth approximately $170 million a year. Members come from all sectors of the value chain — growers, processors and manufacturers, retailers and consumers — across all States. Seven organisations are currently registered with the Australian Quarantine and Inspection Service (AQIS) to inspect and certify organic farming and processing 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

Address major strategies and targets published in the R&D Plan 1998–2003.

Promote consistent and robust industry policy and R&D development.

Increase awareness and adoption of organic farming systems in conventional agriculture.

Undertake development activities that increase consumption of organic produce.

Evaluate and develop export market opportunities jointly with industry.

Coordinate and disseminate the results of new and existing R&D to all industry stakeholders.

This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/pub/org5yr.htm

Key outputs in 1999/2000

Conducted regional industry development seminars in all states to raise awareness of organic opportunities and make linkages to industry participants.

Supported travel by key industry personnel and University researchers to international organic events in Florence (IFOAM), and international speakers and local participants to various domestic seminars and events.

Supported industry workshops and seminars (Rutherglen, Gippsland, Melbourne, Burnie, Canberra, Sydney, Brisbane, Mackay, Mitchell) to facilitate certification training, industry planning and linkages with government and consumer agencies.

Supported the formation of a national standards committee jointly with AQIS to coordinate debate and amendments to the National Organic Standards.

Completed reports on export markets for fresh and frozen organic products, organic practices with wider significance to science and agriculture, an information package for organic farming, soil nutrient management and sustainable weed management.

Supported the further development of the Organic Federation of Australia (OFA) as the industry peak body.

Conducted joint workshops / meetings with a number of commodity R&D Corporations (DRDC, HRDC, MLA) re joint organic R&D projects and program collaboration.

Publications in 1999/2000

99/106	Organic produce research in progress
SR76	Impact of tillage practices on soil microbiota

Research Manager
Denise Millar
Ph: (03) 9882 5910, fax: (02) 9882 5917
Mobile: 0419 599 294, Email: denise.millar@bigpond.com
Address: PO Box 4776, KINGSTON ACT 2604

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2.6 Rare Natural Animal Fibres

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

Expenditure in 1999/2000: $177,789

Some Key Performance Indicators

Ways of improving fibre marketing.

Publication of new processing opportunities for cashmere.

Improved reproduction techniques in alpaca.

New mohair products.

R&D Plan for the Rare Natural Animal Fibres Program 1998–2003. Adopted by Board Resolution No. 43-1998-5

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 1999 world prices for mohair and cashmere increased appreciably and for mohair there were continued greater clearances both internationally and in Australia for much of the coarser lines. Australian cashmere production remains less than 1 per cent of world production and the corresponding figure for mohair is 2 per cent. Only by raising the efficiency of production and by producing what is required by processors will productivity and net returns increase further.

Strategies

Address major strategies and targets published in the R&D plan for 1998–2003.

Increase productivity on-farm, particularly from goats producing high levels of commercial fibre.

Identify and research fibre properties required by processors to produce yarn, fabric and garments demanded further along the value-adding chain.

Continue support for blending R&D between rare fibres, traditional fibres such as wool and cotton and synthetic fibres.

Communicate to stakeholders and other interests via research reports progress and conclusions of program projects.

This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/rna/index.htm

Key outputs in 1999/2000

Reported on the worsted processing performance of mohair and mohair blends based on objective measurements of both raw and processed materials. Several promising mohair fabrics were produced.

Reported to industry the various production performances and fibre characteristics of alpaca raised over four years on a number of commercial farms.

Funded visits of industry personnel to South Africa to examine production, processing and marketing related to mohair. Improved marketing by selling Australian mohair to South Africa does not present an efficient alternative. Generally the use of objective measurement and decreasing the fineness of the fibre are goals which the Australian producer should be addressing.

Reported on the production of a 100% mohair worsted spun yarn from relatively course (33 micron) mohair. This research has implication in stimulating usage of mohair. An upholstery fabric has been produced and is being evaluated commercially to judge market attractiveness.

Commenced a long-term project to determine the extent of genetically-based resistance to the major gastro-intestinal helminth parasites in goats. The project is being undertaken on two farms – one raising cashmere and the other mohair producing goats.

Concluded investment into developing a performance recording scheme for breeders of cashmere producing goats due to lack of sufficient industry interest. Also concluded RIRDC investment into a project based on crossbreeding with boer goats as there was not sufficient additional data being generated on fibre characteristics and performance.

Publication of four final reports and one article incorporated in a general RIRDC publication.

GOAT FIBRE SUB-ACCOUNT
ACTUAL	1998/1999 ($)	1999/2000 ($)
Opening Balance	(9,694)	(12,444)
Total Revenues	29,032	72,462
Total Expenditure	31,782	29,937
Surplus/(Deficit)	(2,750)	42,525
Closing Balance	(12,444)	30,081

Publications in 1999/2000

99/30	Impact of research reports on the economics of commercial goat fibre enterprises
99/104	RNF research in progress
99/139	Australian mohair - Processing performance and fabric properties
99/140	Australian alpaca fibre – improving productivity and marketing
99/179	Improved marketing of mohair fibre

Research Manager: Dr Peter McInnes

Phone:	(08) 8556  7331
Fax:	(08) 8556  7289
Email:	mcinnes2@intertech.net.au

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2.7 Tea Tree Oil

Objective: To support the continued development of a profitable Australian tea tree oil industry in Australia.

Expenditure in 1999/2000: $313,761

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.

R&D Plan for the Tea Tree Oil Program 1998–2003. Adopted by Board Resolution No. 47-1998-6

Background

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

The current annual production of tea tree oil in Australia is about 400 tonnes. 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.

A rapid increase in plantings in recent years caused an oversupply of the oil market in 2000, with a corresponding decline in prices. However, the industry remains optimistic about its future. The challenge is to build on recent achievements, particularly relating to safety and efficacy, and to pursue a more cohesive marketing effort. The R&D program can contribute to this by improving the understanding of markets to enable greater product differentiation and better product descriptions. Acceptance of tea tree oil by the US Food and Drug Authority for first aid and health care remains a key priority.

On the production side, research on plant nutrition is seen as a high priority because of concerns that this may become a major limiting factor in future production of tea tree oil. Continued work on breeding superior genetic material also remains a priority. Optimum crop nutrition and high yielding varieties are key components of highly productive plantations. Productivity is a key element of international competitiveness.

Strategies

Improve the understanding of markets for tea tree oil.

Improve existing products and develop new ones.

Enhance the ability of the industry to meet appropriate safety and efficacy standards.

Provide production systems that are both ecologically sustainable and profitable.

Enhance the human capital of the industry.

This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at
www.rirdc.gov.au/pub/tto5yr.htm
 

Key outputs in 1999/2000

Significantly increased oil yield and quality by selecting tea tree lines of different provenance, and wide sales of improved seed.

Made a submission on skin sensitivity of tea tree oil to the US Food and Drug Authority regarding registration of tea tree oil as a first aid antiseptic.

Continued the publication of an industry newsletter as a means of improving communication with the industry on the R&D program.

Reports on:

• skin sensitivity testing for tea tree oil
• the anti-inflammatory activity of tea tree oil
• plant nutritional survey of the Australian tea tree industry.

TEA TREE OIL SUB-ACCOUNT
ACTUAL	1998/1999($)	1999/2000 ($)
Opening Balance	77,772	60,060
Total Revenues	357,687	299,523
Total Expenditure	375,399	346,393
Surplus/(Deficit)	(17,712)	(46,870)
Closing Balance	60,060	13,190

Publications in 1999/2000

99/76	Skin sensitivity testing for tea tree oil
99/102	Tea tree oil Research in Progress
SR 73	Using clones to establish tea tree plantations

Research Manager: Dr Roslyn Prinsley

Phone:	(02) 6272 4033
Fax:	(02) 6272 5877
Email:	roslynp@rirdc.gov.au

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2.8 Wildflowers and Native Plants

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

Expenditure in 1999/2000: $539,794

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.

Proposed R&D Plan for Wildflower & Native Plant Program 2000–2005.

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 $45 million at the farm gate. The relative importance of bush-picked flowers is declining, even in Western Australia.

In 1998/1999 the value of exports of wildflowers and native plants amounted to about $28 million. The key commercial wildflowers are Geraldton wax, kangaroo paw, Thryptomene, Stirlingia and species of Banksia, Leucadendron and Protea. The major markets are Japan, the United States, Germany and the Netherlands, with Europe increasing in importance.

Strategies

Understand, strengthen and develop markets.

Improve existing products and develop new ones.

Provide profitable and sustainable production systems.

Enhance the human capital of the industry.

This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at www.rirdc.gov.au/pub/wildflow.html

Key outputs in 1999/2000

With the aim of accelerating the introduction of new cutflowers, started new projects on Boronia and Scholtzia in collaboration with a commercial rather than publicly-funded breeder.

Started new work on grafting Eriostemon australasius; the propagation of Gymea lily; potential new cutflowers and foliages from Queensland rainforests; the breeding and selection of Eucalyptus species for flowers in bud and for foliage; and a novel approach to extending vase-life in cutflowers.

Extended support for further work on Ixodea daisy in SA and on golden cascade in WA.

Completed a study on disinfestation techniques that provided a basis for registering the new fumigant mixture ECO₂FUMEÒ

Published a report on an improved uptake technique for preserving foliage and flowers and supported grower workshops on the new method.

Completed a project on the epidemiology and control of Elsinoe scab, an increasingly important disease of plantation-grown South African Proteaceae, and provided revised recommendations for its control.

Supported the commercialisation of an immersion technique for dying and preserving flowers and foliages.

Initiated the commercialisation of promising lines of Baeckea behrii and held an industry workshop on how to improve that position.

Completed a pilot project on Do Our Own Research (DOOR) in WA and Queensland, which showed that growers can undertake certain types of research themselves.

Published and distributed to industry associations several user-friendly short reports on completed projects and a revised version of the RIRDC Wildflower Newsletter.

Provided financial support for Flowers 2000, an industry conference aimed at bringing together traditional and wildflower growers to discuss matters of common interest.

Appointed a new industry advisory committee for the sub-program.

Developed and sought industry endorsement of an R&D plan for the period 2000–2005

Publications in 1999/2000

99/8	Enhancing the commercial potential of rice flower
99/105	Wildflowers research in progress
99/155	Native cut flowers – extending postharvest shelf life using 1-MCP treatment
99/161	Broombrush Baeckea – prospects for cutflower commercialisation
00/36	Micropropogation of the Gymea Lily
00/41	Improved fumigation for export wildflowers
00/42	Domestic market analysis of wildflowers
00/57	Acacia cut flower and foliage production manual
SR45	Developing native acacia species as an export cutflower crop
SR 53	Scarlet bloodroot – Australia’s next export cutflower?
SR 55	Enhancing the commercial potential of rice flower
SR 71	Broombrush baeckea wildflowers – commercial prospects
SR 72	Native cut flowers – extending postharvest shelf life
SR78	Fumigation techniques for export wildflowers

Research Manager: Dr David Evans

Phone:	(02) 4454 3039
Fax:	(02) 4454 5131
Email:	davide@shoalhaven.net.au

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