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Rural Industries Research & Development Corporation
by Adjunct Professor N.F.
DERERA, AM,
FAIAST, CPAg
November, 2000
RIRDC Publication No 00/155
RIRDC Project No ASA-1A
Executive Summary
The market for high quality condiment paprika for the spice and cosmetic industry is rapidly increasing worldwide. Historically, Hungary has produced the high quality condiment paprika required, however, exports have declined significantly over the last 10 years.
This is partly the result of heavy metal contamination caused by air pollution and bad publicity because of some Hungarian companies selling adulterated paprika. At the end of 1994 the Hungarian authorities had to destroy approximately 25,000 tons of adulterated paprika. Exports decreased significantly, with the Hungarians exporting virtually no condiment paprika to their traditional customers Czechoslovakia, Japan and Germany by 1994.
The Hungarian research organisations tried to restore the reputation of their product by producing the famous paprika cultivars in overseas countries such as Israel, South Africa and now in Australia. ASAS Pty. Limited successfully negotiated with the Hungarian Vegetable Crop Research Institute Ltd. to obtain the rights to be the sole licensee of their famous condiment paprika cultivars for the South Pacific region.
With the help of the Hungarian cultivars and other genetic material we hope to establish a viable condiment paprika industry in Australia. During 1995-96 the total paprika products imported into Australia were valued at $5.3 million ( ABS. Custom Traffic Codes 0904. 20. 00. 16, - 17, - 18, - 19). If we consider the Australian, European, North American, Japanese and South East Asian consumption then we can conservatively estimate these markets at 19,000 t y -1 which is a potential market of $55 million. To exploit this opportunity it requires the development of elite adapted varieties and integrated production, harvesting and processing systems.
Capsaicin and oleoresin extracted from condiment paprika for pharmacology and the cosmetic industry must also be considered. Due to the restricted use of artificial colouring agents allowed in cosmetics and canning industries, demand for the resin is increasing rapidly. Demand for the milled paprika product has grown by 42% in the last five years. We estimate the current growth is 20% per annum.
This rapid increase in Australian imports reflects current global demand. European condiment paprika marketing experts estimated 20% growth in condiment paprika consumption in Europe and Asia.
It is interesting to study the world condiment paprika trends. Table I. shows condiment paprika production data of selected countries. These data are based on recent FAO reports and it is suspected that both in China and North America the hot chilli production is included as well. However, if we look at the traditional condiment paprika producing countries we can observe that Morocco, South Africa, Israel, Slovenia and Spain have relatively constant production. Hungary tried to adjust its production to the spice industry's requirements. Zimbabwe focused its paprika production for oleoresin extraction. All their products were exported to Spain and Germany mainly for oleoresin (pigment) extraction and as it can be seen on this table their production has increased year by year according to the market requirements. Unfortunately the recent political developments in Zimbabwe are greatly hindering and they might significantly reduce their paprika production and export.(R. Hemlyn pers. com.)
TABLE I. Paprika Production (Mt ) ãFAO
| Country | 1997 | 1998 | 1999 |
| Morocco | 12,000 | 12,000 | 12,000 |
| South Africa | 11,000 | 10,000 | 9,500 |
| Zimbabwe | 10,000 | 22,000 | 23,000 |
| China | 200,000 | 200,000 | 200,000 |
| Israel | 2,600 | 2,600 | 2,600 |
| Hungary | 45,323 | 65,000 | 48,000 |
| Slovenia | 6,100 | 6,100 | 6,100 |
| Spain | 6,000 | 6,000 | 6,000 |
| North America | 56,000 | 50,000 | 50,000 |
Late in 1994 I was privately informed by a wheat breeder colleague of some problems of condiment paprika production in Hungary due to the air pollution and adulteration as explained earlier. My immediate response was to produce the Hungarian Condiment Paprika here in Australia in cooperation with the appropriate Hungarian organisations. Dr Norbert Somogyi contacted me, a research scientist attached to the Hungarian Vegetable Crop Research Institute, Condiment Paprika Research Unit (later Paprika Unit) in Szeged, Hungary. He and his superiors liked the idea and after exchanging many faxes and letters the possibility of a close cooperation was suggested. On 28th March, 1996, The Hungarian Vegetable Crop Research Institute, Condiment Paprika Unit, authorised me to be their sole representative in Australia and in the South-Pacific region.
The Hungarians provided me with seed of their most popular varieties. These varieties were included in a small-scale variety trial at The University Sydney, Plant Breeding Institute, Cobbitty. This trial, my earlier experiments and the practical experience of many market gardeners demonstrated that Capsicums of Hungarian origin could be successfully grown in this country. The Hungarian condiment paprika varieties are performing satisfactorily even at Cobbitty in spite of the fact that the site is not ideal for paprika production.
It was clear that condiment paprika could not be grown in Australia with the same crop husbandry practice as in Hungary and many other paprika producing countries where the hand labour is relatively cheap. It was decided that a research program should be initiated to find out the best crop husbandry practices and develop cultivars that are suited for mechanised production systems.
To achieve these aims an application was made to RIRDC for a grant to assist this program. The reasoning for this grant was to introduce and further develop genetic material of condiment paprika to produce cultivars with high initial pigment (> 200 ASTA) and dry matter content suitable for direct seeding and mechanical harvesting. To develop a commercially viable integrated production, harvesting and processing system for identified markets by 2002. In this Project ASAS Pty Ltd was in cooperation with industrial/commercial partners, The University of Sydney, Plant Breeding Institute- Cobbitty and the Hungarian Condiment Paprika Research-Development Ltd. A three-year research grant was approved. The plant breeding part of the program is proceeding well as will be explained further on. Nevertheless, the commercial production and mechanisation part had major setbacks.
It may be said that it was difficult to decide which is needed first. Should the production be established at first then buy the machinery or the reverse. Our industrial partner tried to grow paprika without having specialised harvester and drying facility. After two years they decided that low yield, harvesting by hand and using batch driers are uneconomical and therefore they discontinued their cooperation with us. During the 1999/2000 season on Mr. Graham Blight's property at Whitton two hectares of Szegedi 80 paprika cultivar was successfully direct sown and had a stand of approximately 220,000 plants per hectare. With the help of the NSW Department of Agriculture they identified a pre-emergence weedicide (Devanol) that can be successfully used with direct seeded paprika. Mr. Blight also found that in the case of direct seeding only furrow or drip-irrigation can be used because overhead watering on clayey loams can be detrimental on emergence.
I estimated the yield at 22 tonnes per hectare. Unfortunately due to lack of availability of specialised machinery it was hand-harvested and because of the high labour costs only approx. 10 tonnes were harvested. The drying was done by a tomato batch-drier, which also proved to be very expensive. It was established that agronomically paprika can be grown on a large scale, however, without full mechanisation including specialised driers it is uneconomical. A specialised harvester costs approx. USD130,000.00 and a mobile drier is about the same. Including the machinery, drier and improved research equipment half a million dollars initial investment is needed.
In opposition to the commercial production attempts the plant improvement program progressed according to plan. Thirteen Hungarian condiment paprika cultivars were reselected in 1997. 102 selections were grown at Cobbitty in 1997/98 and 24 outstanding progenies were sown in variety and strain trials on two sites at Merriwa and Cobbitty. The Merriwa trial averaged a converted plot yield of 23.4 t/h while the Cobbitty trial's mean yield was 26.1 t/h. The pigment test at Merriwa averaged 143.7 ASTA and at Cobbitty 204 ASTA. Both the yield and the pigment tests indicate the lower nutrient status and weed competition of the Merriwa site.
Our aim is mechanical harvesting and therefore it is extremely important to have a synchronised ripening. From practical point of view the large portion of the yield should be available at first harvest. In this regard the standard Szegedi 80's performance was acceptable while a selection of Kalocsai 801.2 was the best, 92.5% of the total yield came off with the first harvest (Table b). It was decided in agreement with the Hungarian colleagues that the four outstanding lines be sown for seed increase, to be subjected to further tests during the 2000/2001 season and the best line to be submitted for registration for Plant Variety Protection. It must be noted that a number of our selections have reasonably high pigment (ASTA) content (Table II)
Table II. Proportion
of Yield at First Harvest
| Cultivars | Origin | % |
| Papri Mild | USA | 58.1 |
| Conquistador | USA | 50.0 |
| K.801.2 | PBI | 92.5 |
| K.801.8 | PBI | 71.0 |
| Sz.80 | Hung. | 80.6 |
| K.121 | Hung. | 80.3 |
| K.57-231 | Hung. | 79.0 |
| Sz.20 | Hung. | 74.9 |
| K.50 | Hung. | 72 |
| SzNFD | Hung | 65.2 |
Table III. Pigment
(ASTA) Levels of Selected Cultivars
| Cultivars | ASTA |
| Papri Mild | 155 |
| Conquistador | 130 |
| K.801.8 | 195 |
| K.801.2 | 185 |
| K.50 | 187 |
| Sz.20 | 180 |
| K.121 | 205 |
| K.57-231 | 210 |
| Sz.80 | 238 |
| SzNFD | 320 |
One of the main aims of our plant improvement work is to develop cultivar or cultivars suitable for mechanised production particularly for mechanised harvesting. We identified the gene in a wild species, Capsicum chacoense, which allows the fruit to be detached from the calyx at full maturity, however, in this species the fruit is soft at this stage. Earlier it was believed that the same gene causes both the detachability and the fruit softening at ripening. We successfully separated the detachability from the softening gene. We have now several early generation lines in our backcrossing program where the detachability is combined with the condiment paprika characteristics.
It is important both from hand or machine harvesting point of view that the pedicel should easily snap off the stem. We identified a trait, which allows the very easy separation of the pedicel. We have several F4 condiment paprika lines having the 'snap off' trait.
To be able to produce hybrid seed in a reasonable price bracket we designed a system where the identification of genetic male-sterility in seedling stage is needed and the male-sterile plants are to be propagated with the help of micropropagation. Male sterile plants together with the pollen source are planted out in the field where the fertilisation will take place with the help of bees. It must be pointed out, that besides import replacement and export possibilities of paprika products we see a number of new avenues that may outweigh the previously mentioned commercial prospects.
These are:
Most of the Australian
investors look at condiment paprika only as a source of spice. The Zimbabwe
farmers realised that the spice is only a side product of the condiment
paprika industry the main application is coming from pigment extraction
to be used in the cosmetic and food industries. Some of our companies looking
at the potential of the paprika industry examined only the milled spice
side of the trade and found it too small considering it solely as an import
replacement. Some other representatives of the local spice business stated
that India rules the oleoresin industry and we do not have a chance to
compete with them. I am quoting from AIC Market Briefs regarding paprika
oleoresins dated 3rd August 2000 when they state: "However, the Indian
product (paprika oleoresin) is generally regarded as too hot for optimal
use as a colorant" If I go further and quote from the Kancor Crop Updates
dated 21 st July 2000: "Oleoresin Paprika. Indian sources of raw material
have almost dried up except for limited availability of cold storage stock.
Zimbabwe situation continues to be uncertain. The world supply situation
continues to be firm and more buyers are chasing the limited supplies.
Oleoresin availability is extremely limited and prices are moving up in
response to the raw material situation - this situation is expected to
continue"
Further on I may quote a few $s and cents figures: Under our environment and with reasonable crop husbandry we can produce 25 t/ha of raw paprika. Minimum 1/6 th of the produce will be milled product and that equals 4166 kg. The store value of this is after milling: AUD24,996.00 (@ $6/kg). In general it is estimated that 10 - 14 kg of dried paprika is needed to produce 1 kg of paprika oleoresin depending on the pigment content of the raw material. If we take the average that is 12kg than from the 25 t/ha produce we obtain 347.00 kg oleoresin which has a value of AUD34,022.66 (@ $98/kg) Using the petrochemical (Hexane) extraction method the cost of processing is fairly low cc. $1.50/ kg of the extract. Mr. Graham Blight did some test marketing as fresh produce on the Melbourne and Sydney markets.
He found, particularly in Melbourne, that the public was glad to buy these new 'sweet chillies'. We found out with every introduced crop eg. wheat, cotton etc. that the introduced cultivars in their original forms do nor perform as well as the locally improved cultivars at a later stage. This syndrome is quite obvious in the case of condiment paprika. For this reason a further plant improvement program is a must. Up-to-date we are extremely grateful to RIRDC for providing us with a research grant during the past three years. We reapplied for further support and further two years has been approved. Unfortunately we received approx half of the monies we applied for.
This reduction of research monies means that we have to cut back drastically our research program. The paprika story is very similar to the cotton. The local farmers except one were afraid at the beginning of the cotton growing in NSW. The cotton industry really started when on my encouragement two American cotton farmers moved to the Namoi Valley. Maybe our solution is to encourage a few Zimbabwe paprika farmers to come here.(Derera, 2000)
 
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