Our Operations - back to menu 2.4 Essential Oils and Plant ExtractsObjective: To support the growth of a profitable and sustainable essential oils and natural plant extracts industry in Australia.
Expenditure in 200203: $396,740
Compared with 200102: $360,997Background
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 have 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 of essential oils (excluding tea tree oil but including the refining of imported eucalyptus oils) is $67 million at the farm gate and $2025 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).
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.
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.
Key long term strategies
improve understanding by potential researchers and producers of markets for essential oils and plant extracts Key outputs in 200203
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 released a report reviewing the Australian lavender industry. The report concludes that present market indications are that the therapeutic market sector will continue to grow and the traditional perfumery market will remain relatively static Publications in 200203
published a report on the impact of double harvesting on Victorian peppermint crop productivity. The report concludes that no Victorian peppermint crops should be double harvested unless a premium price can be assured for the resultant oil and it can be ascertained that the crop can survive the negative effect on plant vigour over the long term
published a report on integrated pest management in peppermint growing in South-East Australia
published a report on chamomile for oil and dried flowers. The results of the project were favourable and it is expected that there will be a basis for commercial exploitation of these findings in Tasmania
partially supported the attendance of two Australian experts at the plenary meeting of the International Standards Organisation ISO/TC 54, Berlin in October 2002
published further issues of an industry newsletter produced by the Essential Oil Producers Association of Australia
02/156 Chamomile for oil and dried flowers 02/148 Mountain pepper (Tasmannia lanceolata) 02/127 Potential for IPM in peppermint growing in SE Australia 02/131 The impact of double harvesting on Victorian peppermint crop productivity 02/065 Essential oils and plant extracts research in progress and completed projects for 2001/2002 Research Manager: Mr Tony Byrne
Phone: 02 6272 5472
Fax: 02 6272 5877
Email: tony.byrne@rirdc.gov.auSome key performance indicators
increased average industry oil yield per hectare 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
availability of information for grower use
availability of information on world production levels and trends
extraction efficiencies
levels of local production/import substitution
2.5 Organic ProduceObjective: 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 200203: $261,577
Compared with 200102: $265,634Background
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 organic products in response to this concern.The Australian organic (incorporating biodynamic) industry had over 2000 certified/registered members collectively marketing product estimated to be worth, at the retail level, approximately $250-300 million in 2002. Industry growth has been estimated at around 20% per annum. On current trends the industry is projected to grow to more than 3000 members and over $400 million over the period of the current 5 year plan (by 2006). Members come from all sectors of the value chaingrowers, processors and manufacturers, retailers and consumersacross all States. They operate in diverse rural industries, including grains and pulses, horticulture, viticulture, beef and pork, dairy, sugarcane and honey. Seven organisations are currently registered with the Australian Quarantine and Inspection Service (AQIS) to inspect and certify organic farming, processing and marketing systems for export markets.
Rising domestic and overseas demand for Australian organic products is prompting a greater number of conventional farmers and processors to consider and adopt organic 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. Concern by both consumers and producers in the need for more sustainable farming practices is growing strongly and there is the potential for organic farming systems to play a role in this across agriculture as a whole.
Key long term strategies
address strategies and targets published in the Organic Produce R&D Plan 2001-2006 Key outputs in 200203
document, develop and facilitate adoption of new organic system designs appropriate to Australia
increase awareness and uptake of new and existing successful plant and animal nutrition methodologies for organic systems
develop new integrated soil management techniques leading to improved soil management practices in organic and conventional farming
identify and overcome structural, technological, economic and social impediments to conversion
promote policy and standards-setting processes that deliver market access based on verifiable objective equivalence of certified products while recognising the uniqueness of Australian production systems
establish successful organic product supply chain models
foster industry development represented the Australian industry at world conferences IFOAM (Canada) and CODEX (Europe) Ppublications in 200203
supported the OFA and other industry organisations to represent the Australian industry at the Biofach Trade Show in Germany in February 2002 and Japan in December 2002
completed a study on organic sugar including end-user support and grower perceptions
identified pest and disease management strategies suitable for organic agriculture
produced training material and manuals for new and potential entrants to organic farming
supported two inaugural organic industry conferences for information exchange and network building
03/002 Organic agriculture in Australia levies and expenditure 02/066 Organic produce research in progress and completed projects for 2001/2002 Research Manager: Ms Denise Millar
Phone: 03 9882 5910
Fax: 03 9882 5917
Mobile: 0419 599 294
Email: denise.millar@bigpond.comSome key performance indicators
increase in both new and total certified growers 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
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
2.6 Rare Natural Animal FibresObjective: To facilitate the development of new and established industries based on rare natural fibres.
Expenditure in 200203: $214,893
Compared with 200102: $214,695Background
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 2002 world prices for mohair were buoyant. Cashmere and alpaca fibres prices were also steady. 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. A concern in the mohair and cashmere industries is limited investment in production while more alpaca enterprises are being established, although many of them have numbers of less than 10.
Key long term strategies
address, within budgetary limitations, published strategies and targets in the 1998-2003 R&D plan Key outputs in 200203
identify and research with industry, appropriate fibre properties required for commercialisation by processors to produce yarn, fabric and garments demanded further along the value-added chain
increase productivity on-farm by investment in health and breeding research
communicate more effectively to stakeholders progress and conclusions of projects
identify ways of increasing investment in mohair and cashmere production and adoption of results published information on improving the utilisation of short fibre length cashmere, the effect of wool/cashmere blends in yarns and fabrics and preferred nutritional management practices in cashmere and mohair goats to optimise the textile properties of raw fibre, yarn and fabric which: provided clearer processing options for Australian cashmere reported on new information on ovarian follicular wave characteristics in non-pregnant female alpacas and the development of a practical protocol based on progesterone to control ovarian follicular growth which:
assisted processors of Australian cashmere to become more commercialwill assist the Australian alpaca industry to more efficiently use genetically superior males and females published information on the extent and impact of short and cotted mohair
will allow faster dissemination of improved genotypes throughout the national herd
GOAT FIBRE SUB-ACCOUNT ACTUAL 200102 ($) 200203 ($) Opening Balance Total Revenues Total Expenditure Surplus/(Deficit) Closing Balance Publications in 200203
03/016 Goat nutrition during drought 02/108 Extent and source of short and cotted mohair 02/112 Australian cashmere attributes and processing 02/097 Improving the efficiency of reproduction and breeding in alpacas 02/067 Rare natural animal fibres research in progress and completed projects for 2001/2002 Research Manager: Dr Peter McInnes
Phone: 08 8556 7331
Fax: 08 8556 7289
Email: mcinnes2@comstech.comSome key performance indicators
increase of technology in genetics and reproduction
use of industry partnerships and communication resources
development of more international linkages and research capacity
2.7 Tea Tree OilObjective: To support the continued development of a profitable Australian tea tree oil industry .
Expenditure in 200203: $349,751
Compared with 200102: $262,971Background
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 250280 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. A significant feature this year has been increasing co-investment in the R&D program by the pharmaceutical industry.
Kkey long term strategies
improve the understanding of markets for tea tree oil Key outputs in 200203
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 significantly increased oil yield and quality by selecting and breeding tea tree lines and sales of improved seed
published reports on: regulation of immune response in human skin by tea tree oil continued publishing an industry newsletter as a means of improving communication
the antifungal activity of tea tree oil in vitro
anti-microbial activity of tea tree oil against oral micro-organisms
evaluation of tea tree oil as an insecticide in vegetables
TEA TREE OIL SUB-ACCOUNT ACTUAL Opening Balance Total Revenues Total Expenditure Surplus/(Deficit) Closing Balance Publications in 200203
03/019 Antimicrobial activity of tea tree oil against oral microorganisms 03/020 Antifungal activity of tea tree oil - activity against yeasts, dermatophytes and other filamentous fungi 02/068 Tea tree oil research in progress and completed projects for 2001/2002 August Tea tree industry newsletter Research Manager: Dr Roslyn Prinsley and Dr Russell Haines
Phone: 02 6272 4033
Fax: 02 6272 5877
Email: roslyn.prinsley@rirdc.gov.au
russell.haines@rirdc.gov.auSome key performance indicators
new value-added products This sub-program has its own five-year R&D plan, which is accessible in hardcopy and on the Internet at
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
www.rirdc.gov.au/pub/tto5yr.htm
2.8 Wildflowers and Native PlantsObjective: To improve the profitability, productivity and sustainability of the Australian wildflower and native plant industry.
Expenditure in 200203: $355,967
Compared with 200102: $403,674Background
Wildflowers (native to Australia) and Proteas constitute a substantial small agricultural industry with recent estimates putting the value of production at about $65 million p.a.. Several hundred small growers and a few larger growers are involved. Some even larger scale producers are probably required if Australia is to compete with the major producers of Australian wildflowers in other countries. We have the germplasm and now we need the entrepreneurial strength to grow the industry.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. Eucalyptus buds and foliage are also important. Opportunities exist for both the cut flower and foliage sectors plus the nursery industries in native plants. Fashion changes will demand continuing new cultivars and species.
Key long term strategies
implement the R&D Plan as comprehensively as possible Key outputs in 200203
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 and consequent research knowledge and adoption assisted and published Postharvest protocols to increase numbers of exportable Australian wildflower species to provide: Publications in 200203 useful grower information developed and published, in association with DPI (formerly DNRE) Victoria, the Best Bets program of desired species which are undersupplied to markets
new knowledge of the processes involved in causing and mitigating the wounding response in cut flowers
supported a workshop to test, then publish the Manual on Cultivation of Eucalyptus for buds and foliage
identified the commercial potential for new foliage and cut flower species from North Queensland
reviewed projects in breeding new species of Grevillea, Leptospermum, Scholzia and Boronia
SR /115 Inhibiting the postharvest wounding response in wildflowers 03/051 Delaying postharvest senescence of cut flowers using nitric oxide 03/043 New foliage and cut flower species from north Queensland commercial potential 02/140 Grafting Eriostemon australasius 03/055 Australian cut flower best bets program 02/130 Export flower industry: A review of recorded statistics 02/114 Inhibiting the postharvest wounding response in wildflowers 02/069 Wildflowers and native plants research in progress and completed projects for 2001/2002 Research Manager: Mr Max Bourke
Phone: 02 6247 4630Fax: 02 6247 4051Email: mbourke@ruralfunds.com.auSome key performance indicators
availability of market information 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
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
 
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Last updated: October 2003
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