2001 ANNUAL REPORT - Contents Page

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Program 2 - 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 2000/2001: $374,954
Compared with 1999/2000: $404,688

R&D Plan for the Essential Oils & Plant Extracts Program 2002-2006.

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

  • Investigate the market opportunities for Australian produced essential oils and plant extracts.
  • 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 2000/2001

    Publications in 2000/2001
    00/148 Communicating best practices in peppermint production
    00/83 Essential Oils & Plant Extracts Research in Progress 2000
    00/20 Peppermint oil production – a model of best practice
    00/51 Natural Plant Extracts – Marketing Opportunities in the USA

    Research Manager: Mr Tony Byrne
    Phone:  (02) 6272 5472
    Fax: (02) 6272 5877
    Email: tonyb@rirdc.gov.au

    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 2000/2001: $226,166
    Compared with 1999/2000: $287,028

    Some Key Performance Indicators

    R&D Plan for the Organic Produce Program 2001-2006.

    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 $180 million a year. On current trends the industry is estimated to grow by 40% (2500 members, $260 million) in the next 5 years. 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.

    Strategies

    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/organic.html

    Key outputs in 2000/2001

    Publications in 2000/2001
    01/034 Polyculture production – principles, benefits and risks of multiple cropping land management systems for Australia
    00/189 Organic Production Systems Guidelines
    01/05 Standard for Organic and Biodynamic Produce
    00/76 The Export Market Potential for Clean and Organic Agricultural Products separate pubs
    00/97 Organic Farming in Australia
    00/84 Organic Produce Research in Progress 2000
    00/65 Sustainable Intensive Cropping System – A Feasibility Study

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

    Organic Industry Certification Arrangements


    2.6 Rare Natural Animal Fibres

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

    Expenditure in 2000/2001: $182,277
    Compared with 1999/2000: $177,789

    Some Key Performance Indicators


    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 animal fibre projects. The R&D projects currently cover the first three of these fibres.

    In 2000 world prices for mohair and cashmere were maintained at 1999 levels. This buoyancy has renewed confidence for producers in these industries and the dehairing of cashmere fleeces in Australia before sale is adding value to the price of the raw product. Increasing attention is being paid by alpaca producers in reducing fibre fineness and responding to processors needs. Australian cashmere and alpaca 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 within budgetary limitations published strategies and targets in the 1998-2003 R&D Plan.
    Identify and research appropriately with industry, fibre properties required 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.     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 2000/2001

  • Concluded research and development in the utilisation of short fibre length cashmere by blending with other fibres in yarn and fabric manufacture. Extensive technical and commercial testing of products have been made.
  • Released a new reference book on the palatability and potential toxicity of weeds
  • to goats. Palatability is graded and poisonous compounds named. Strategies for the use of acceptable weeds are described.
  • Completed the evaluation of an upholstery fabric made from strong mohair fibre. Although the fabric tested well technically when assessed by USA interest, the judgement was that there would be currently insufficient demand for further commercial manufacture. Part of the fabric has been retained in Australia where it can be again evaluated in light of fashion changes.
  • Published a revision of Cashmere Goat Notes as Goat Notes owing to the inclusion of more information on Angora and Boer Goats.
  • Commenced a long-term project to improve the quality of alpaca products via assessing and improving the fibre processing performance, the softness, and properties of yarns and fabrics.
  • Published articles incorporated in general RIRDC publications and media releases.
    •
    GOAT FIBRE SUB-ACCOUNT
    ACTUAL
    1999/2000 ($)
    2000/2001 ($)
    Opening Balance
    (12,444)
    30,081
    Total Revenues
    72,462
    86,895
    Total Expenditure
    29,937
    56,636
    Surplus/(Deficit)
    42,525
    30,259
    Closing Balance
    30,081
    60,340

    Publications in 2000/2001
    00/85 Rare Natural Animal Fibres Research in Progress 2000
    00/139 The Palatability and Potential Toxicity of Australian Weeds to Goats

    Research Manager: Dr Peter McInnes
    Phone:  (08) 8556  7331 
    Fax: (08) 8556  7289
    Email: mcinnes2@intertech.net.au

    2.7 Tea Tree Oil

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

    Expenditure in 2000/2001: $610,717
    Compared with 1999/2000: $313,761

    Some Key Performance Indicators


    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 gained widespread therapeutic use for fungal and microbial infections but is not yet registered for use by the medical profession.

    The industry comprises about 300 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.

    Strategies

    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 2000/2001

  • A microsatellite DNA library and DNA markers for tea tree.
  • Significantly increased oil yield and quality by selecting tea tree lines of different provenance, and wide sales of improved seed.
  • Continued the publication of an industry newsletter as a means of improving communication with the R&D program.
    •  Reports on:
  • The antiviral activity of tea tree oil in vitro.
  • The antifungal activity of tea tree oil in vitro.
  • The second stage of skin sensitivity testing of tea tree oil and its components.
  • The tea tree breeding program.
    •
    TEA TREE OIL SUB-ACCOUNT
    ACTUAL
    1999/2000($)
    2000/2001 ($)
    Opening Balance
    60,060
    13,190
    Total Revenues
    299,523
    657,456
    Total Expenditure
    346,393
    643,075
    Surplus/(Deficit)
    (46,870)
    14,381
    Closing Balance
    13,190
    27,571

    Publications in 2000/2001
    01/11 Antifungal activity of tea tree oil in vitro
    01/10 Anti-inflammatory activity of tea tree oil
    00/86 Tea Tree Oil Research in Progress 2000
    00/107 Australian Tea Tree Industry – Plant Nutritional Survey

    Research Manager: Dr Roslyn Prinsley
    Phone:  (02) 6272 4033
    Fax: (02) 6272 5877 
    Email: roslynp@rirdc.gov.au


    2.8 Wildflowers and Native Plants

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

    Expenditure in 2000/2001: $416,532
    Compared with 1999/2000: $539,794

    Some Key Performance Indicators

    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 1999/2000 the value of exports of wildflowers and foliage plants exceeded $30 million, the value and, particularly, tonnage of fresh material exported having increased significantly over the previous year. By contrast, exports of dried flowers fell markedly. 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.

    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 2000/2001

  • Developed and published an R&D plan for the period 2000-2005.
  • Started new projects on intellectual property rights; practical ethylene monitoring and management; export statistics; a growers' handbook of post-harvest treatments; the second phase of Leptospermum as a export crop; and terminal-flowering Grevillea species as a focal-flower crop.
  • Published analyses of the domestic and North American cutflower markets and supported industry workshops on these matters.
  • With the aim of widening the range of flowers available to growers, published reports on waxflowers for floriculture; flannel flower; Ixodea daisy; the first phase of Leptospermum as a potential cutflower; hybridisation as a source of new waxflowers and related species; and the first phase of inter-specific hybridisation to produce new lines of Leucadendron.
  • Published reports on improved export fumigation methods and the management of Elsinoe scab.
  • Supported the publication of QDPI books entitled Should I grow wildflowers? and Rice flower - production guidelines for growers.
  • Published and distributed several user-friendly short reports on completed projects, and the RIRDC Wildflower Newsletter.
  • Provided the major sponsorship for Flowers 2000, Australia's first gathering of both wildflower and traditional flower growers and researchers.
  • Provided financial support for researchers and industry members to attend conferences and workshops.

    •       Research Manager: Dr David Evans
    Phone:  (02) 4454 3039
    Fax: (02) 4454 5131
    Email: davide@shoalhaven.net.au

    Publications in 2000/2001
    01/056 Leptospermum as an Export Cut Flower Crop
    00/181 Study of the USA and Canadian Flower Markets for Native Australian Plants and Plantation Grown Proteacea
    00/175 R&D Plan for the Wildflowers and Native Plants Program 2000-2005
    00/186 Varietal development and disease management of Ixodia achillaeoides for cut flower production
    00/125 Wildflower Marketing Workshop
    00/106 Flannel Flower – Development of a production system
    00/67 Yellow Bells – A New Cutflower for Australia
    00/87 Wildflowers & Native Plants Research in Progress
    00/103
    SR82    		 Door: In the Australian Wildflower and Native Plants Industry
    00/66 Uptake Preservation of Cutflowers and Foliage
    00/64 Managing Elsinoe Scab in Proteacea 
    S00/081 Uptake Preservation of Cutflowers and Foliage
    S00/082 Wildflower Industry Adopts a Do-it-Yourself Concept
    S00/084 Flannel Flower Production is Promising in Four States
    S00/88 Wildflower Marketing Strategy Being Developed
    S00/91 Disease Management and New Varieties may Boost Export of Wildflowers

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    Last updated: 5 October 2001
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