selecting and developing new essential oil crops - a framework
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Selecting and developing new essential oil crops - A frameworkTRANSCRIPT
Selecting and developing new essential oil crops - A framework
Mohd. Murray HunterUniversity Malaysia PerlisKangar, Perlis, Malaysia
WORLD AGRI TRADE CONFERENCE 20095TH & 6TH OCTOBER 2009, MERDEKA HALL, PWTC, KUALA LUMPUR
© 2009 Copyright Murray Hunter© 2009 Copyright Murray Hunter
The ability to learn faster than your competitors may be the
Only sustainable competitive advantage
Arie P. de GeusRoyal Dutch Shell
A Framework for Essential Oil Development1st Australian New Crops Conference, Gratton, Queensland, 1996.
Keith Hyde, Thirty Australian Champions: Shaping the Future for Rural Australia, Canberra, RIRDC, 2000
Edward Weiss, Essential Oil Crops, New York, CABI, 1997
1. The Commitment
The Farm Family Family & Farm History, Current farm Operation, Current Family Status.
Strategic Business Analysis
Land Labour Capital
Business Goals
Family Values
The Vision “Mission Statement”
Family Goals
Self Assessment Communication Skills Decision Making Skills
Knowledge
Personal Goals
Business Plan
Production & Operations
Marketing
Personnel
Financial
Risk
Management
Retirement Plan
Timing of retirement
Life after
retirement
Retirement Income needs
Retirement
Income sources
Farm withdrawals
Succession Plan
Grooming successors
Fairness to all
children
Transfer strategies
Financing the
transfer
Tax planning
Estate Plan
Valuing the
estate
Liquidity needs
Planning you will
Establishing living powers
Tax planning
Investment Plan
Disposable
income
Time horizon
Investment options
Risk
management
Tax planning
Adapted from Manitoba Agriculture
Ava
ilab
ility
Incr
ease
s
Usefulness Increases
Media Reports
Ideas
Data
Information
Knowledge
Wisdom
The Continuum from media reports to wisdom in relation to availability and usefulness
Issue Comments
Focus Paradigm Requires focus on concept of product application where current focus is on cultivationThis requires researchThis requires an entrepreneurial approachConcepts not readily understood by conventional farmers
Basic Research Needs access to Worldwide dataRequires availability of suitable germplasmsRequires basic R&D to determine where crop technically suitableRequires R&D to determine whether potential crop is economically feasibleVery difficult to get R&D assistanceShortage of skills and expertise in many areas
Crop Management and Processing
Propagation technologiesHow to plant, cultivate and manage the cropHow to harvest, extract, store and handleHow to processHow to packageTransportation and storage
Marketing Infrastructure Require coordination of production with demand (important with new essential oil production)Require correct channels of distribution (critical)Requires a marketing strategy (change of paradigm from producing orientation)
Economics and Logistics Requires enough volume to economically transport and distribute (especially in low to medium value oils)Requires a solution to inconsistencies of quality and production
Organisation Need committed people with strong leadership and trust
Government Need to translate support into actionNeed funding allocations for research & developmentNeed infrastructure
Regulation Need to fund infrastructure to meet EPA & HACCP, etcNeed to identify and fulfil the requirements of various regulatory bodies
Finance Very difficult to obtain funding for these projects
Customers & Consumers Need to identify who are the customers in which part of the value chainNeed to work closely with selected customers
Market Requirements of an Essential Oil
Required Oil Yield, Quality for production/market Viability
Propagation and Planting Costs
Crop Management
Harvesting & Extraction Costs
Volume and Market Acceptance
Laboratory Research
Field Research
Weather
Land Suitability
Knowledge and Skills
De-stabilising Event –
competitor, regulation, new
substitute
Market Contacts &
Network
Actual Yields and Oil Quality
Other unforseen external factors – politics, disaster,
war, regulation, etc
Assumptions & Patience
Validity based on information & Judgement
Risk Environment in Essential Oil Development
Evaluation & selection of
suitable planting materials
Knowledge of specific crop management techniques
Knowledge of harvesting, handling
& extraction techniques
Economies of scale & correct business model, Market strategy
Plant physiology & propagation
protocols
All factors effect on yield & quality
An Existing Crop – Product Already TradedThis can be seen as an improvement on existing production
or setting up new production in an area already producing the crop.
Improving cultivation and harvesting methods to improve productivity
Finding new customers and channels to increase sales
An Existing Crop – Leading to a New ProductThis may involve moving along the value chain to a new
market based on an essential oil already produced or producing an essential oil for some type of value added product.
Improving cultivation and harvesting methods to improve productivity
Finding out what products potential customers want In a new product
Producing a new product according to identified consumer needs
Organising the supply chain for the new product to get to market
Making the product available to more consumers who are likely to want it
A New Crop to a New Geographic AreaThis involves producing an essential oil already in trade in a
new geographical area. Establishing the most efficient way to cultivate,
harvest and process the essential oil Matching the newly produced essential oil with
customer expectations and requirements Organising the supply chain so the essential oil
reaches the market Making the essential oil available to new
customers who are likely to require it
A New Crop and New ProductThis involves producing a product higher up the value chain,
differentiating it and producing the essential oil. Making informed decisions about new crop
choices Establishing the most efficient way to cultivate,
harvest and process the essential oil Finding out from potential customers what they
want in the new oil Making sure the oil meets the customers needs
as closely as possible Organising the supply chain so the essential oil
reaches the market
The Essential Oil Strategic Matrix
$ Cost
$ Return
Deg
ree o
f P
rocessin
g
Final Product Form
Selection of Crop
Trials
Propagation
Land Preparation
Planting, Maintenance &
Irrigation
Harvesting & Extraction
Product Development
Final Product
Crop & Project Failure
No Return
Co
mp
os
t &
Mu
lch
Bio
fue
l
An
ima
l Fe
ed
Cru
de
Es
se
ntia
l Oil
Org
an
ic A
gro
-
pro
du
ct
Co
sm
etic
&
Aro
ma
the
rap
y
Nu
trice
utic
al
Ph
arm
ac
eu
tica
l
Conceptual Value Added Processing Options with Revenue and Cost
Implications
Consumers
Wholesalers & retailers
Manufacturers
Flavour & Fragrance Houses
Traders & Brokers
Primary Producer
Essential oil as primary Product. Focus on market demand & supply
and meeting standard
Essential oil as an ingredient in
a product. Focus on uses
and applications research
Manufacture of end products. Focus on
formulation and end product
development
Technical Focus
General or Niche Customers
Vertica
l Integ
ratio
n A
lon
g th
e Su
pp
ly
Ch
ain
Application Focus
Technology Focus
IP Focus (?) Specific
Customer
Branding Theme Consumer
Marketing Reaching
Mass or selected Markets
New Product Development
Agro Industrial Consumer Orientation Orientation Orientation
Consumer Trends
Important
Technical Trends
Important
Demand & Supply, Buying
Criteria Important
Venture Focus Along Different Parts of the Supply Chain
Approximate Size of the World Organic Market 2008 (USD Billion) Fruit &
Vegetables, 12.9, 35%
Meat and Poultry, 1.5,
4%Dairy, 3.6, 10%
Bread & Grains, 4.5,
12%
Beverages, 3.6, 10%
Cosmetics, 6.5, 18%
Processed Foods, 3.9,
11%
Strategy Advantages Disadvantages
Large scale cultivation for international market
Low cost base in Indonesia, Laos, Cambodia and Vietnam
Low cost countries like Indonesia struggling to maintain competitive advantage
Most projects based on this strategy in both Australia and S. E. Asia failed to be sustainable
Competition based on price in buyers market
New Essential Oils No or little competition in early stages Novelty has a marketing story behind it –
cosmetics & aromatherapy
Registration cost of new products for F&F, cosmetic and pharmaceutical industries very high
Integrated Project as part of another business/ agro-tourism/
consumer products
Adds synergy to the business Costs distributed across whole business Production becomes part of the marketing
strategy Develop own market for production
Business complexity greatly increases
Community Empowerment project/small holder supply on buy back
Low entry financial costs Assist in providing sustainable income for
communities in poverty Becomes part of companies social
responsibility activities Marketing benefits
High organizational resources required Results of interpersonal relations great
bearing on result.
Potential Entry Strategies for Essential Oil Production
Biological Screening
Bio-prospecting Literature Review
Consider Crop Reintroduction
Consider New Crop Introduction
Identify Chemical
Constituents of Essential Oil
Screening for Development Potential
o Match chemical constituents of
essential oil with possible market uses
o Evaluate application potential of essential oil
o Evaluate theoretical yields, cost of production
o Evaluate time and cost of development
Value Determination (Use Criteria) Preliminary study due to volume of
possibilities
Screening Process
Market Development Policy
(Product & Enterprise)
o Identify Opportunities
o Develop Evaluation Criteria
o Identify Customer Industry
o Determine Required Quality and Monitor Development
o Consider Market Entry Strategies
o Determine Scope, Resources and Limitations
Scaling Up of the Project
Environmental Analysis
Evaluation of Capabilities
Resources, skills, knowledge, Technology,
Financial
Market Analysis
Field Development
o Project preparation & early work
o Land Selection o Development of
planting, cultivation and harvesting techniques
o Development of oil extraction techniques
Development Process
Regulatory Screening
(FDAs, REACH, SCCP, BPD, etc)
Market Entry
En
terp
ris
e &
Bu
sin
ess
Evalu
atio
n
2. The Screening Process
Biological Screening
Bio-prospecting Literature Review
Consider Crop Reintroduction Consider New Crop Introduction
Identify Chemical Constituents of Essential Oil
Screening for Development Potential
o Match chemical constituents of essential oil
with possible market uses o Evaluate application potential of essential oil o Evaluate theoretical yields, cost of production o Evaluate time and cost of development
Value Determination (Use Criteria) Preliminary study due to volume of possibilities
The Screening Process
Regulatory Screening
(FDAs, REACH, SCCP, BPD, etc)
Generation of Possibilities
Elimination of Possibilities
Leads to a number of potential possibilities that can be further studied
Potential New Crop Ideas screened through a process that eliminates
potential ideas.
? The industrial product ideation process aims to generate ideas from
a zero base.
Leads to one crop (idea) to be developed
Leads to many ideas to be further screened
Actual Conditions Range of Possible Growing Conditions for Potential Crop
General climate Range of micro-climates Topography that influences micro-climates Rainfall range (access to irrigation) Temperature ranges Daylight hours Soil types Soil characteristics (pH, humus profile, soil layers, etc)
Preferred climate(s) Preferred micro-climates Preferred topography Preferred rainfall levels Preferred temperature ranges Preferred daylight hours Preferred soil types Preferred soil characteristics
Comparison Factors between Potential Cultivation Site and Potential Crop
Latitudes 44° North & South
Worksheet for Rough Calculation of Financial Viability at Initial Screening Stage
1. Costs of Crop Domestication
Can they potential crop be domesticated into field production easily? If not, will biomass be wild-collected?
What method would be most suitable for propagation, from seed, cuttings, tissue culture, other?
Does nursery propagation of the potential crop require any other special care?What staffing will be required?
What would be the approximate costs of achieving the above?
2. Field Preparation and Infrastructure
What overall infrastructure will be needed?, nursery, road access, fencing, outbuildings, farming equipment, etc.
What land preparation is needed, land levelling and contouring, drainage, etc.Does the crop require large amounts of water to thrive during growth?
Is there adequate water available through rainfall to satisfy this?Will irrigation be required? If so, what method?
Will dams and catchment areas have to be constructed to ensure a plentiful water supply?
What will be the approximate costs of this?Are there any other potential costs?
3. Planting and Maintenance
Approximately how long will the crop take from field planting to harvest maturity?How will the potential crop be planted?, manually/automated?
What will be the costs involved?What would the approximate planting density be?
Will nutrients have to be applied? If so, how regularly?, How much? What method will be used to apply them?
What will be the approximate costs of this?How often are re-plantings required? After each harvest, after a number of seasons, after how many years, what are the costs involved to prepare for each re-planting?
4. Harvesting, Extraction and Post Extraction
Is harvest timing crucial?, ie, a time of day, a very short window in a particular month, etc
What are the costs involved in achieving this harvest window?What method of harvest will be utilised?
Manual, semi-mechanised, fully mechanisedWhat would be the approximate costs of building the harvest equipment?
What method of extraction will be required? Hydro-distillation, steam distillation, destructive distillation, vacuum distillation, solvent extraction, other
What power sources will be utilised? What are their costs?How will spent biomass be dealt with?
Does it have any economic value or can it be used back in the farming process?Is the technology understood for the above processes?
If not, what will be the costs of acquiring it?What will be the fabrication costs to build the above?
What regulations (ie., EPA) are relevant to the processes? And how much will development and compliance cost?
Will specialist staff be required?What would the approximate cost of energy to oil yield?
5. Estimated (guessed) Project Size and Yields
How many hectares do you anticipate to cultivate?How many years will it take to achieve this?
What (based on literature and other knowledge) would be the approximate biomass per hectare achievable? (min. and max. est.)
Does the biomass have to be wilted, stored or otherwise processed before extraction?
What would be the yield as a percentage of biomass after extraction?
6. Estimated Financial Viability
1. Research costs =2. Costs of crop domestication =
3. Field preparation and infrastructure costs =4. Propagation, planting and maintenance costs =5. Harvesting, extraction & post extraction costs =
Total Capital Costs (1+3) =Total operational costs (2+4+5) =
Total amount of oil yielded =Total oil value =
Value – total operational costs =Return/total capital costs x 100 = Return on investment
Potential essential oil
crop idea
Bio-prospecting Screening Protocols
o Anti inflammatory o Anti microbial o UV absorbing o Anti ageing
actives o Flavour &
fragrance application
o Aromatherapy o Anti cancer
Desktop study
Knowledge Required o Essential oil
applications o International market
(Flavour & fragrance, cosmetics, personal care, agro-chemical, aromatherapy, etc.)
o International regulations Need to collaborate with
industry parties
Ethno-botany
Other literature (Journals,
etc.)
Study of same
latitude Crops
What has value to industry?
o Chemical
constituents o Odour/flavour
profile o Potential
applications
Match chemical constituents with possible market
uses
Evaluate application potential of essential oil
Evaluate theoretical yields,
cost of production
Evaluate time and cost of
development
Value Determination (Preliminary study due to volume of possibilities)
Choice and Access to Market
Jurisdiction Regulatory Framework
Group Characteristics Examples Uses Flavour/ Odour Profile due to one or more constituents
Usually high volume/low to medium value products. Level of chemical constituents very important in trade. Aroma chemicals often good substitutes.
Mint Lemongrass
Some citrus oils Eucalyptus
Clove
Perfume and Flavour compounds Flavours where natural status is desired Some citrus oils used for cleaning solvents. Isolation of natural aroma chemicals, eg., eugenol from clove oil.
Flavour/ Odour Profile due to one or few major constituents that cannot be easily reconstructed
Usually medium to high volume, medium priced oils. Olfactory and flavour characteristics more important in purchase decisions. Difficult to reconstitute.
Vativert Sandalwood
Patchouli
Perfumery and flavour compounds (both functional and fine perfumery)
Character from main constituents, but richness and complexity from minor constituents
Low volume/high priced oils. Olfactory characteristics important in purchase decisions and pricing. In most cases oils can be reconstituted efficiently.
Rose oil Jasmine absolute Many herb oils
Fine perfumery (mainly reconstitutions used for functional perfumes) Limited flavour use Majority of herb oils used for flavours but beginning to be used in fragrances
None of the main constituents contribute decisively to the desired odour/ flavour profile
Low volume/hogh priced oils. Olfactory characteristics most important in purchase decisions. In most cases good reconstitutions can be produced.
Mimosa absolute Fine perfumery (usually too expensive to use for functional products)
Classes, Characteristics and Uses of Essential Oils
Adapted from Naf (1989) and Petrzilka (1991) in Hunter
(1995)
Evaluating the Characteristic Strengths and Weaknesses of Essential Oils
The novelty of a new essential oil
The major factor determining the novelty is the perceived uniqueness of the essential oil’s organoleptic profile. Thus, the degree of novelty is limited by the closeness of potential substitutes. The concept of novelty extends to essential oils that are more cost effective sources of natural aroma chemicals. New natural sources of aroma chemicals would also fit into this criteria of novelty.
The potential uses and applications of a new essential oil
Without perfumers and flavourists perceiving applications potential, a new essential oil will remain in the realm of curiosity. Time, effort and imagination on the part of perfumers and flavourists is required to discover useful applications for new essential oils. It is under this criteria that most new essential oils will struggle to find acceptance as a new aromatic material.
The closeness of any substitutes
It is difficult to find essential oils that cannot be duplicated by reconstitutions. New essential oils with close substitutes are of little value to the flavour and fragrance industry, unless they can offer a significant cost or stability advantage. The only exception is when a new essential oil is a source of a natural aroma material.
The stability of a new essential oil
One of the major problems associated with essential oils is stability in end products. Many processed food products undergo harsh cooking procedures during manufacture. Cosmetic bases often contain free fatty acids, even after neutralisation. Essential oils that contain high levels of terpenes, tend to polymerise on exposure to light and air, discolour end products or are not stable in alkaline or acidic media. Synthetic aroma chemicals and specialties are generally more stable than essential oils and used more extensively in functional perfumery.
The cost price/performance ratio
The cost price/performance ratio is important to the application potential of a new essential oil. If a new essential oil does not offer a perceptible odour/flavour at a low concentration, then its value to the flavour and fragrance industry is greatly diminished unless it is very cheap. Poor performance under this criteria will negate the potential of most new essential oils for application in functional perfumery
The Toxicity
The cost of proving a new material is safe to use in flavours and fragrances is a major obstacle to the development of new aromatic materials. The industry has an impeccable reputation for self regulation and added EU regulations increases the cost of preparing dossiers on new materials even more. In markets outside the EU, most international flavour and fragrance houses would not consider using a new essential oil unless it meets IFRA safety and toxicity recommendations and is included on the GRAS list.
The general consistency of quality and supply
Natural material will vary in quality according to geographic origin, type of soil, level of nutrients in the soil, climate and weather, rainfall, time of harvest, season, method of extraction, altitude and the incidence of pests and diseases. Likewise there are risks with continual supply of natural materials because of adverse weather conditions, changes in climate, floods and other natural disasters, wars, political upheavels and the inexperience of new producers. Launching new consumer products require large investments on the part of the end product manufacturer. Flavour and fragrance houses do not want to be placed in a position of being unable to supply a manufacturer with a flavour or fragrance compound because of the unavailability of a raw material.
The prevailing market/product trends
Market and product trends slowly evolve. Changes in market trends are the result of complex forces, including technology, which makes new trends possible, advertising, and cultural influences upon consumer tastes and preferences. A particular essential oil may become more or less important to the flavour and fragrance industry, depending upon these trends.
The current level of technology
New technology advances influence the value of existing aromatic materials to the flavour and fragrance industry. The development of new essential oil reconstitutions are aimed at eliminating some of the potential toxicity and solubility problems of existing essential oils. Reconstitutions are generally more stable and cheaper than their more expensive natural counterparts. As better and more cost effective reconstitutions are developed in the future, the use of some essential oils will decline. Since the advent of more sophisticated analytical techniques, like GC-MS, headspace analysis, electronic noses, aroma chemical and specialty product manufacturers have been better able to isolate powerful aromatic molecules from essential oils and synthesise these compounds. The discovery of new aroma chemicals in essential oils due to increased equipment sensitivity is more likely to lead to synthesis rather than cultivation.
3. The Regulatory Environment
Risk Assessment
Hazard Identification Hazard Characterization Exposure Assessment Risk Characteristics
Risk Management
Risk Evaluation Option Assessment Option Implementation Monitoring and Review
Risk Communication Improve quality of consumer information To facilitate healthier food choice
Declaration of GMO Materials Nutritional Information Eliminate Misinformation Scientifically Substantiate
Claims
Basic Philosophy
Manufacturer/Importer of
Substances
Outside scope of REACH
< one tonne per annum Under customs
supervision Medical Product
Polymer Material for food
additive “Natural” Substance
exemption
> one tonne per annum Not on “Natural”
Exceptions (Annex V) New Substance
Substance issued with opinion about potential
hazard
No Registration
Manufacturer/Importer prepares dossier
Dossier Evaluation 1. For hazardous
properties 2. possesses
unacceptable risks
Restrictions made by the Commission
Authorisation
Risk Assessment: Industry says can adequately control risks: Authorise/not allow
authorisation or restrict Industry says cannot adequately control risks:
Socio-economic benefits and substitutes evaluated Authorised if benefits greater than risk/no authorisation if benefits too
small for risks
If there are suspicion of
risks
REACH Process Registration, Evaluation & Authorisation of Chemicals
Greater than 1 Tonne Per Annum Greater than 10 Tonne Per Annum Greater than 100 Tonne Per Annum
Melting/freezing pointBoiling pointRelative densityVapour pressureSurface tensionWater solubility (or water extractivity for polymers)n-Octanol-water partition coefficientFlash point or flammabilityExplosivityAuto-flammabilityOxidising propertiesGranulometrySkin irritation or corrosivity evaluation or in vitro testsEye irritation evaluation or in vitro testSkin sensitisation evaluation or local lymph node assayAmes testIn vitro chromosome aberration testAcute Daphnia toxicityAlgal growth testReady biodegradation
Light-stability for polymersLong-term extractivity for polymersSkin irritation (unless classified from Annex V data)Eye irritation (unless classified from Annex V data)In vitro gene mutation assayAcute oral toxicityAcute inhalation or dermal toxicity28-day (or 90-day) repeat-dose study in the rat (normally oral exposure)Developmental toxicity screening study (OECD 421)Developmental toxicity studyToxicokinetics assessment (a prediction based on the available data)Acute fish toxicityActivated sludge respiration inhibition testHydrolysis testAdsorption/desorption screening test
Stability in organic solvents and identification of degradantsDissociation constantViscosityReactivity to container materialIn vitro Mutagenicity studies28-day or 90-day repeat-dose study in the rat (if not part of the Annex VI data)Developmental toxicity studies in two species (if not part of the Annex VI data)Two-generation fertility study in the rat (if there are adverse findings from the 28-day or 90-day studies)21-day Daphnia reproduction study Chronic fish toxicity studySimulation test on the ultimate degradation in surface waterSoil simulation testSediment simulation testFish bioaccumulation study (unless there is a low predicted bioaccumulation potential, e.g. from Log PoW < 3)Further adsorption/desorption study14-day earthworm toxicityStudy of the effects on soil micro-organisms Short-term toxicity to plants
Plus requirements from left column (greater than 1 tonne)
Plus requirements from left columns (greater than one tonne plus greater than 10 tonnes)
Dossier Requirements for REACH Registration (from 1 Tonne to more than 100 tonnes per annum.)
List of Data Required for Biocidal Product Directive Registration
1. General Information
Substance identification (CAS, IUPAC, formula etc) Substance information – colour, purity, physical properties Spectra Synonyms and trade names Impurities Additives Quantity used in EU Labelling Hazard classification and labelling Usage pattern – including application, types of use, volume per application, recovery, industry types Manufacturing method Existing exposure restriction and limits Hazards Degradation products
2. Physical and Chemical Properties
MP BP VP Viscosity Density Granulometry Partition coefficient Solubility in different media Surface Tension Flash point, flammability, explosivity Oxidising properties Dissociation constant
3. Environmental
Photodegradation Stability in water and soil Monitoring data Field studies Transport between environmental compartments Actual use degradation model Biodegradation, BOD/COD Bioaccumulation
4. Eco-toxicity
Acute toxicity to:-FishAquatic invertebrates Aquatic plants (e.g. algae)Micro-organisms
Chronic toxicity to:-FishAquatic invertebrates
Toxicity to:-Sediment dwelling organismsTerrestrial plantsSoil dwelling organismsOther non mammalian terrestrial species
Biotransformation and Kinetics
5. Toxicity
Acute oralAcute inhalationAcute dermalSkin irritationEye irritationSensitisationRepeat dose toxicityGenetic toxicity in vitroGenetic toxicity in vivoCarcinogenicity Toxicity to fertilityDevelopmental toxicity/teratogenicity Exposure experience
6. Effect Against target Organism
FunctionEffects on organisms to be controlledOrganisms to be protectedUserResistance
Summary of Tests and Protocols Required under Directive 76/768/EECData/Test Required Protocol
1. General
NomenclaturePurityPhysical properties- MP- BP- Density- Rel. Vap. Dens- VP- Log PoW- Solubility
2. Acute Toxicity
Acute OralAcute DermalAcute Inhalation
OECD 425OECD 402OECD 403
3. Irritation/Corrosivity
Skin IrritationMucous MembraneSkin Sensitisation
Irritation: OECD 404 orOECD 431 (Episkin)Draize OECD 405Murine Lymph assay
OECD 429 orGuinea Pig OECD 406
4. Dermal/Percutaneous Absorption
Dermal/Percutaneous Absorption OECD 428
5. Repeat Dose Toxicity
Repeat Dose oral/dermal/inhalation (28 day)Subchronic 90 day oral/dermal/inhalationChronic (>12 months)
OECD 410OECD 411OECD 452
6. Toxicology and Carinogenicity
Mutagenicity/GenotoxicityCarcinogenicityReproductive Toxicity-Two Generation Reproduction Toxicity-TeratogenicityToxicokineticsPhoto induced ToxicityPhototoxicityHuman Data
AmesOECD 453OECD 416OECD 4143T3 NRU
Essential Oil Botanical Name Volume (Tonnes) Under Threat from SCCP Opinion
Orange Citrus sinensis 26000 X
Cornmint Mentha Arvensis 4300
Eucalyptus Euc. globulus 3728 X
Citronella Cym winterianus 2830 X
Peppermint Mentha piperita 2367
Lemon Citrus limon 2158 X
Euc. Citriodora Eucalyptus citriodora 2092 X
Clove Leaf Syzygium aromaticum 1915 X
Cedarwood (US) Juniperus virginiana 1640
Litsea cubeba Litsea cubeba 1005 X
Sassafras (Brazil) Ocotea pretiosa 1000 X
Lime Citrus aurantifolia 973 X
Spearmint Mentha spicata 851
Cedarwood (China) Chamaecyparis funebris 800
Lavandin Lavandula intermedia 768 X
Sassafras (China) Cinnamomum micranthum 750 X
Camphor Cinnamomum camphora 725
Coriander Coriandrum sativum 710
Grapefruit Citrus paradis 694 X
Patchouli Pogostemom cablin 563 X
Essential Oils within the top Twenty Produced Worldwide with Adverse Opinions made by the Expert Committee of the SCCP
Figure 7.7. Summary of the International Regulatory Process (EU, United States, Japan, Australia, New Zealand, ASEAN)
Essential Oils For:
Flavours
Fragrances
Cosmetics
Agro-
chemicals
United States
1. Flavours: Permitted ingredients on GRAS list, (new substances safety evaluation)
2. Perfumes: Self regulation but follow FMA fragrance material database
3. Cosmetics: Voluntary notification, adhere to industry lists
4. Pesticides: Pre-registration and evaluation required
Japan 1. Flavours: Adhere to
positive list, new product notification
2. Perfumes: adherence to positive, controlled and negative lists
3. Cosmetics: adherence to positive, controlled and negative lists, registration for quasi-drugs
4. Pesticides: Pre-market, assessment, evaluation & registration
Australia and New Zealand
1. Flavours: Under a joint Authority with a positive list with use restrictions
2. Perfumes: New ingredients require registration under NICNAS 3. Cosmetics: Registration under NICNAS. Cosmetics with therapeutic claims under
TGA, New Zealand under HSNO 4. Pesticides: Evaluation for risk & registration
European Union
1. Flavours: Regulated under a positive list and full risk management during production and supply chain required.
2. Perfumes: Material must be on inventory list or require a notification and assessment by REACH
3. Cosmetics: Materials must be on REACH inventory, under control SCCP, new cosmetics require notification and adherence to positive, restricted and prohibited lists
4. Biocidal Products: All materials must be approved for use for biocidal products and on REACH inventory
ASEAN 1. Flavours: Various levels of control from
pre-registration, adherence to positive and restrictive lists, licencing of manufacturers
2. Perfumes: Degree of self regulation, GMP and licensing in some jurisdictions
3. Cosmetics: Almost total pre-registration in all jurisdictions, cosmetics with therapeutic claims treated as drugs.
4. Pesticides: Evaluation and pre-registration and licensing of manufacturers in all jurisdictions
4. The Planning Process
Competitive Rivalries Lemongrass quick yield and straightforward to cultivate and distil – expect high elasticity of supply from both existing and new producers. Producers of substitutes very aggressive
Bargaining Power of Suppliers Collecting the most suitable planting material require effort. Extraction and harvest .technology needs to be acquired or developed Analytical equipment or service maybe expensive/remote.
Substitutes Citral (main constituents) can be produced from a number of chemical feed stocks. Alternative oils (litsea cubeba) cost much less to produce. Lemon myrtle oil much smoother and acceptable to end users Many alternatives to lemongrass in product formulations.
Trends & Technology Alternative technologies to steam distillation (CO2) can make much smoother oil but will increase capital needs greatly. Natural, exotic, organic, FAIRTRADE could increase oils popularity (?) if seen as exotic.
Substitutes
Tre
nd
s &
Te
ch
no
log
y
Bargaining power of buyers
Bargaining power of suppliers
Competitive Rivalries
Re
gu
lati
on
Regulation SCCP placed lemongrass oil under scrutiny as a cosmetic ingredient in EU.
Industry Competitors
Intensity of Rivalry
Bargaining Power of Buyers Currently small item of trade in flavour industry, strong relationships with established producers.
High Market Growth Low Strong Weak Relative Competitive Position
Crude Essential Oil Steam Distilled
Essential Oil under
CO2 extraction
Cosmetic production for international
market
Organic Cosmetic
production for international
market
Essential Oil Based Agro-
chemical
Where the business is
currently performing
The base potential for development
The process of product/market development
The Outcomes
(potential targets)
Siz
e an
d d
epth
of
chan
ge
Tim
e
Key internal influences on the development process
Key external influences on the development process
Competencies Required During the Essential Oil Development Process
Screening & Bio-prospecting
Propagation & domestication or
introduction
Planting, cultivation & maintenance
Harvesting, Extraction and
wastage handling
New product development &
creation of value added products &
activities
Strategic, operations, finance and technical
management
Product & venture management
Marketing & commercialisation
Sustaining and growing the enterprise
(adapting & survival)
Output: Result/Performance, Sustainable and healthy enterprise or
a struggling and failing enterprise
Opportunity and technical competencies require:
Botany, ethno-botany, research ability, chemistry, bio-chemistry, analytical
chemistry. Market and specific technical product knowledge
Technical Competencies require: Plant physiology, micro-propagation, nursery
management, agronomics
Technical competencies require:
Bio-system engineering, Soil management,
entomology, plant nutrition, Agronomics, field
management, irrigation engineering
Technical competencies require:
Thermodynamics and plant physiology, heat transfer, distillation engineering,
chemistry, chemical engineering, agricultural
engineering, environmental engineering (waste
management)
Strategic, opportunity and technical
competencies require: Project management,
marketing management, chemistry, cosmetic
chemistry, perfumery/ flavour knowledge,
Packaging & design, manufacturing
engineering
Strategic, organizational, relationship opportunity competencies require:
Business strategic, industry knowledge, industry
networks, ability to raise finance, ability to plan,
implement & adjust, leadership, entrepreneurial
Strategic and organizational
competencies require: Administrative, financial management, technical management, strategic
management, personnel management, resources
management, entreprenuerial
A Simple Competency Audit
Competency Present Not Present Comments
Technical 1. Botany2. Plant Physiology3. Chemistry/Analytical4. Micro-propagation5. Nursery Management6. Environmental Engineering7. Chemical engineering/thermodynamics/etc8. Soil Management9. Agronomy/plant nutrition/field management10. Entomology11. Irrigation engineering12. Agricultural Engineering13. Regulation knowledge14. Cosmetic chemistry/food etc15. Perfume/flavours16. Packaging & design17. Consumer product manufacturing
Basic
BasicExperienceExperienceExperience
BasicBasicBasic
LowLowLowLowLowLowLowLowLow
Need guidanceNeed assistanceNeed guidance Assistance AvailableCan design Need appraisalUse contractorUse instituteReplicated experimentsWith EnvironmentUse contractorCan developNeed assistanceLearn from experienceUse contractor
Opportunity/Entrepreneurial/Commitment1. Able to screen environment for opportunities2. Able to evaluate opportunities3. Commitment level
YesYes
Passionate
Need to see realistically
Relationship1. Have relationships in target industries2. Have relationships in research area3. Have relationships in finance industry
A fewA fewSome
Organising/Management1. Able to project manage2. Able to administrate3. Able to financially manage operation4. Able to undertake research5. Able to keep key people motivated
YesYesYesYesYes
Strategic1. Understand dynamics of market and industry environment2. Able to plan for a business within this environment3. Able to implement, evaluate and adjust plans in this
environment
YesYesYes
Believe so but not tested
Strengths Weaknesses
Personal and enterprise competencies, knowledge & experience that can be utilised for the benefit of the enterprise
Facilities, infrastructure, financial backing & liquidity, long timeframe view
Ability to learn through research and experimentationAny network connections with industry and access to the supply
chain for both information and marketingAmbition and vision (but not delusional), focus & commitmentAbility to innovate technically, market and organisational wise
Any factor or group of factors that can assist the enterprise gain competitive advantage over its competitors.
Competency gapShort term timeframe, no fall back position if positive results
delayed or there are technical or market failuresPoor infrastructure that hinders production or marketing
Shortage of funds to undertake project to completionQualified or lack of commitment by any key people within
organisationLack of network, knowledge and access to supply chain
Any factor or group of factors that can hinder the enterprise gain competitive advantage over its competitors.
Opportunities Threats
An identified market where enterprise resources and competencies will be able to exploit
The potential opportunity will have a large enough market size to sustain the enterprise
The enterprise will be able to take advantage of this opportunity better than any other competitors
Outside elements in the supply chain will support the enterpriseAny factor or group of factors that will allow the enterprise
to grow in a sustainable manner from the market environment.
Competitors identifying the same opportunities and enacting upon them
The regulatory environment and potential changes within itInability to penetrate the existing supply chain and make
alternative strategiesDependence on survival from a single or very few customers
Depending on a single product for total revenueAdverse acts of God, bad weather, drought, etc.
Any factor or group of factors that may potentially hinder enterprise growth in a sustainable manner without any
contingencies.
Pri
ce
Pri
ce
Quantity Quantity
Demand Demand
Current Supply
Current Supply
Forecast Supply (FS)
Actual Future Supply (AFS)
Forecast Supply (FS)
Actual Future Supply (AFS)
P1
P3
P2
Aggregate Decrease in Production
P1
P2
P3
b) Upward Trend in Pricing Leading to Greater Supply
a) Downward Trend in Pricing Leading to Decreased Supply
A forecast is accepted that supply will decrease in the coming year and traders buy up stocks leading to higher prices (P2). Producers see good returns and increase production leading to a glut of
supply, thus decreasing prices (P3). This fluctuation is on a time lag depending
upon the time frame from extra planting to harvests.
Aggregate Increase in Production
A forecast is accepted that supply will increase in the coming year and traders
don’t buy up stocks leading to lower prices (P2). Producers see poor returns and
switch to alternative crops, leading to a shortage of supply, thus increasing prices
(P3). This fluctuation is on a time lag depending upon the time frame from extra
planting to harvests.
Price
Time
New producers entering the market
Price by determination of value to end users
Price by determination of production costs (Most efficient production)
Totally New Essential oils
Market analysis
Is the essential oil in under or over supply?What is the current supply situation?
Do prices fluctuate greatly?What are the maximum and minimum prices over the last 10 years?
Are there any current use trends?What are the potential markets for the essential oil?
What is the potential market size for the essential oil?Who are the current producers of the essential oil?
What strategies do their enterprises pursue?Is the oil a source of potentially valuable aroma chemicals?
Are there any substitutes for this oil?Are there any other products that can be produced from the crop as a bi-product?
Trader
Manufacturers
Wholesalers
Retailers
Consumers
Usually bulk oils to traders who do all distribution. Lowest price and little
control over market, but wide distribution
With differentiated product some flexibility
to sell to manufacturers, costs higher but increased
margin maybe compensate.
This part of supply chain for smaller packs and end products. Can be local, national or international. Value added method like
branding in use.
Usually branded item small packs, end product. Either selective (region or retailer
type), or general distribution. High value, low
volume with added distribution costs.
Usually direct to consumers through
internet and/or direct marketing organisation. Usually specialised end products with high profit
Need high volume due to
low margin unless
specialised product
Need differentiated product. Above average returns, higher marketing
costs
Need branded specialised
product, high margins volume
depends on coverage
Business focus
towards consumer marketing away from agricultural
production
Supply Chain/Product Focus
Bi-products to Other
Supply Chains
Essential Oil Producer
Depend on Location
Potential with Right Products and Correct
Distribution and Branding
Potential with Right Products and Correct
Distribution and Branding
Limited Unless a Specific Market Exists
Potential Large Market Dispersed Worldwide
Very Limited Unless Large Domestic Market
Local Market International Market
Essential Oil
Differentiated Product
Specialty/End Product
Much Larger Market with Competition
Diversification
Local or International Market Opportunities
Screening of Plants in
Small Plots
Stage One:
Evaluation of Trial
Rows
Stage Two:
Small Scale
Experimental Acreage
Stage Three:
Mini
Commercialisation
Stage Four:
Commercialisation
Stage Five:
Lawrence’s Essential Oil Planning Scheme
Exploratory: propagate various genetic materials,
culture plants, study growth rates, harvest & steam
distil, record yields, identify constituents, develop
economic dossier.
Selective: examine promising plants through
wider field trials, determine efficient propagation
methods, various planting times, various harvest
times, distil to see effect of season on oil constituents.
Extensive trials: treat crop as small farm crop using
mechanisation, undertake fertiliser, irrigation,
herbicide/organic trials, distil using field equipment
rather than laboratory equipment, more accurate
production costing.
First commercial establishment: extend
field to 2 to 5 Ha. Look at fixed/variable costs to
develop accurate picture of economic viability of crop.
Transition: move to full production based on size needed to reach profitable size economies, according
to supply market can accept. Continue research
on crop maintenance, genetic materials & harvesting methods.
Adapted from Lawrence (1993) A Planning Scheme to Evaluate New Aromatic Plants
o Location Topography Slope & drainage
o Climate – Sunshine hours Season
Rainfall Humidity Temperature UV Radiation (Micro-climate variation) o Soil
Soil Type pH Water holding qualities Humus Compactness Prior use Mineral residuals
o Genetic Material Plant physiology
Propagation characteristics o Agronomic
Practices Fertiliser/nutrients Irrigation Weed & pest control (also time intervals) Plant density
o Harvest & Extraction Practices Time & method of harvest Pre-harvest handling & preparation Method of Extraction Time of Extraction Length of Extraction
Factors Effecting Essential Oil Yield & Composition
Yield and Chemical
Constituents of the
Essential Oil
Location
Topography
Slope & drainage
Climate
Sunshine hours
Seasons
Rainfall
Humidity
Temperature
UV radiation
Genetic Material
Collection
Purchase
Plant physiology
Propagation characteristics
Soil
Nutrients
pH
Drainage & water holding qualities
Humus
Compactness
Mineral residuals
Agronomic Practices
Soil type
Irrigation
Pest & weed control
Plant densities
Harvest & Extraction Practices
Time & method of harvest
Pre-harvest handling & preparation
Method of extraction Extraction time
Green/Biological/Natural Minimum interventionalist
Linear/Industrial/Chemical Wild Harvest
Biodynamic Farming
Organic Farming
Chemical Free
Reduced Pesticide
Low Input
Sustainable Minimum Till
Conventional
High Input Chemical Intensive
Natural Farming
Traditional Farming
Biological Farming
The Continuum of Farming Techniques
THE OPERATION OF ORGANIC PHILOSOPHY (Fundamental Principals and Practices)
Objectives Soil Health & Fertility
Pest & Disease Management
Weed Management
Eco-system Biodiversity
Sustainability
Crop Rotation
Green Manure
Animal Manure
Cover Crops
Intercropping
Farmscape
Composting
Mulching
Buffers
Crop Rotation
Green Manure
Animal Manure
Cover Crops
Intercropping
Bio-control
Farmscape
Buffers
Crop Rotation
Green Manure
Animal Manure
Cover Crops
Mineral
supplements
Natural Fertilizers
Mulching
Composting
Tillage
Intercropping
Bio-control
Farmscape
Buffers
Crop Rotation
Green Manure
Cover Crops
Composting
Intercropping
Crop Diversity
Bio-control
Natural Pesticides
Sanitation
Tillage
Farmscape
Fire
Buffers
Crop Rotation
Cover Crops
Intercropping
Mulching
Flame Control
Natural Herbicide
Integrity
Buffers
Records
Certification
Improvement
Practices
Foundations
Site Selection
Conversion
Habitat Creation
Planning
Understand factors and issues
Identify research opportunities.
Understand the phenomena and
prioritize them. Find methods and techniques to solve problems and
exploit research opportunities.
Utilise knowledge and technology through
specific trials under field conditions to make
improvements in yields and obtain specified oil
constituents.
Evaluate results, develop practices for field and processing
tasks.
Experiment on relevant
Issues & Factors
Identification and
Evaluation of Research Opportunities
Survey Priorities
Procedure in Selecting Critical Research Issues (Develop a body of knowledge and specific technologies climate, soil and
site specific)
Develop potential
practices
Principal operational methods Growth, propagation, planting, maintenance, harvesting & processing
Already have existing high-value crops with established
(growing) markets
Existing highly productive established land use. There is little potential benefit from utilizing research &
development to change the land use.
Already have existing crops.
Maybe high valued with declining market (or
increasingly competitive) or low value crop.
Highly productive lands that can be
improved through research and development, eg. Tobacco crops.
Lands with low productivity,
but with high potential benefit from research &
development.
Rainfed and irrigated land with communities requiring new agricultural
activities.
Lands with low productivity in current use (or non-use). There are constraints that
limit potential benefits from research & development
This would include land remote from services where costs too high to
develop, lack of infrastructure, or semi arid land, etc.
High
Value of
Present Use
Low
Zero Potential Benefits High From research & development
Potential Benefits to Land from Research and Development Matrix.
Research into genetic material and propagation
methods
Ongoing genetic material improvement
research
Leads onto
Acceptable genetic material for commercial
production and a set of propagation
practices
Leads onto
Research into planting, spacings densities, best environmental conditions, nutrient and moisture levels
Acceptable field practices for the
crop
Leads onto
Research into harvesting methods, harvest
timeframes, pre-extraction handling methods
Acceptable harvest and pre-extraction practices for the
crop
Ongoing agronomic research aimed
towards better yields and chemical composition
Leads onto
Research into various extraction methods and
techniques
Acceptable extraction practices
Research into post extraction handling
methods
Acceptable post extraction handling
practices
Ongoing research into post extraction
handling
Leads onto
Leads onto
Leads onto Leads onto
The set of optimum enterprise site specific agronomic and extraction
practices
An Operational Farm Research and
Management Plan
Essential Oil Development Research Project Gantt & Milestone ChartActivity/Research Objectives Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Genetic Material/Propagation1. Selection Initial selections2. Propagation trials Seed/vegetative3. Index selection Continuing ProgLand Preparation1. Clearing & Initial Preparation 10 Ha. Plot2. Level & slope3. Irrigation infrastructure Sprinkler systemPlanting/Maintenance Trials1. Trial row planting/spacings/plots Var. densities2. Nutrient trials NPK x 3levels3. Weeding trials Manual vs. chem.Harvesting Trials1. Harvest trials Manual2. Post harvest handling variations Packing density3. Mechanisation trials Mod. HarvesterExtraction Trials1. Distillation trial (part maturity) Stage sampling2. Distillation trial (full maturity) Ea. Rep. plots3. Large scale field distillation compare lab samp4. Variances of distillation times Yield/constituents5. Charge packing variance trials Yield varianceEconomic Appraisal Full castings
M1: Propagation Methodolgy
M2: Optimum spacing/density
M3: Optimum Nutrient levels
M4: Optimum weed control techniques
M5: Knowledge Yields & Biomass
M6: Knowledge composition/
Var. conditions
M7: Optimum Distil parameters
M8: Full economic study
Budget Items for an Essential Oil Research Project
Budget Items for an Essential Oil Research Project
1. Capital Equipment and Infrastructure Developmenta) Land Preparation
Field preparation Fencing Buildings (equipment storage, office, processing equipment, etc) Access roads and internal roads Dams and irrigation equipment
b) Farming Equipment Tractors and accessories Ploughs, etc Basic farming implementsa) Harvesting Equipment• Harvester and foliage bins• Cart and/or field traysa) Processing Equipment Field and/or commercial distillery Source for steam generationa) Laboratory Equipment Laboratory distillation equipment Glassware Scales GC (optional)a) Regulatory Compliance Any licenses relevant to rural operations
1.Project Costsa)Seed and/or other genetic materials
Cost from seed supplier/merchantTravel and costs of field procurement
b)NurserySeed germination housing (pest, sun and weather proof)Potting transfer facility (weather protected)Tissue culture facility (if required)Nursery materialsa)Farm Chemicals and SuppliesFertilisersPesticides/HerbicidesOther agricultural materialsa)General Overhead CostsElectricity, rates and other expensesInsurance & sundriesRepairs and maintenance
1.Project Operational CostsWages & salaries (general workers)Administration costsConsultation, researcher costs and allowancesTravel and accommodationOther operating expenses
4. Development Process
Screening and Selection Process
(Chaps. 6,7,8)
Project Preparation and Early
Work
Land Selection
Development of Propagation
Material
Development of Planting,
Cultivation and Harvesting Techniques
Development of Oil Extraction
Techniques
Market Strategies
What to Produce?
Where to Produce?
How to Produce?
How to Market?
Marketing, Perfumer/flavourist,
botany, ethnobotany, Agronomy, Food Tech.
& Cosmetic Chem.
Disciplines Required
Basic Questions
Agronomy Botany
Plant Physiology Chemistry
Flavour/Fragrance Cosmetic Science
Agricultural science Economic geography
Botany Plant physiology
Agronomy Biology
Agronomy Entomology
Analytical chemistry Engineering
Chemical engineering Bio-chemistry
Agronomy Analytical chemistry
Agricultural engineering
The Field Development of a New Essential Oil
Production Processes
Farm size & layout
Organisation & methods
Propagation
Cultivation
Processing
Marketing
Climate
Weather Rainfall Wind
Sunshine UV radiation Temperature
Humidity
Conducive weather Or
Floods, droughts, etc
Physical Environment
Soil Topography Atmosphere
Natural flora & fauna habitat Urbanisation
Suitability of conditions Pollution (air, land & water)
Labour sources Water resources
(create hinterland where farm part of)
Human Habitisation
Knowledge Suppliers & contractors
Pollution Attitudes and concerns
Resource inputs, fertilizers, herbicides, insecticides, machinery, research capabilities
Positive Inputs Water
Sunshine Nitrogen
Agricultural inputs Fertilizers etc Knowledge
Labour
Negative Inputs
Adverse physical conditions
Pests & diseases Pollution
Heavy metals
Business Environment
Markets Finance
Trade environment
Customers Financing &
various kinds of capital
Competition Low prices
Changing demand patterns
Government Infrastructure Regulation Taxes & subsidies
Trade environment
Research
Negative Outputs
Runoffs, wastes, carbon
Some recycling back to system
Positive Outputs
Products
Revenue flow back to system
An Agricultural Enterprise as a System
Salinity Heat Stress Elevated CO2 Drought
Primary Metabolites Slight relationship
Varying relationships
Unknown Strong relationship
Secondary Metabolites Positive relationship
Positive relationship
Unknown Strong relationship
Growth Strong relationship
Strong relationship
Unknown Strong relationship
Summary of Plant Responses to Environmental Change
Carbon dioxide Glycolysis Glucose 2 Acetyl CoA Fatty acid Acetoacetyl-CoA thiolase Acetocetyl CoA HMGS-CoA syntesis 3-hydroxy-3-methyl-glutaryl-CoA (HMG-CoA) HMGL-CoA lyase HMGR-CoA reductase Mevalonate Mevalonate pyrophosphate IPP isomerase Isopentenyl pyrophosphate (IPP) DMAPP (C5) Monoterpene synthases and cyclase Geranyl pyrophosphate (C10) prenyltransferase Farnesyl pyrophosphate (FPP) (C15) Sesquiterpene Synthesis & Cyclase Diterpene synthase & Cyclase Squalene syntase Geranyl geranylpyrophosphate (C20) Squalene (C30)
Cytokinins Isopentyl adenine
rubber
Monoterpeness
Sesquiterpenes Polyprenols
Farnesylated proteins
Sterols Saponins Hormones
Lipoproteins
Diterpenes Carotenoids Abscisic acid Chlorophyll Vitamin K
Essential Oil Technical Development
• Land Selection
- Suitable (Soil, Rainfall, drainage, access)
- Climate
- Location
- Tenure
- Future Expansion
Land Preparation
Leveling and contouring
Drainage
Wind drift
Farm/Plantation
Soil Floor
Sub-Soil
Fertilisers, herbicides, insecticides
Leaf & organic decompositions
Sub-terrainium water
Sun
Climate & Weather
Cultivation
Propagation
Processing
EconomicProducts
Runoffs Surface water
Wastes Chemical residuals
Some wastes
recycled
Watershed runoffs onto farm/plantation
Atmosphere
Nitrogen, gasses, etc
Lakes Rivers Canals Oceans
Daylight hours UV radiation Temperature Humidity Rainfall
Conducive weather, or floods, droughts, etc
Regional Eco-System A Farm/Plantation as a System
Other Farms
Insects and pests
Genetic Biodiversity
Soil Surface
Rainfall (Moisture Source)
Organic Materials Phosphorous (P)
Sulfur (S)
Nitrogen (N)
Nitrogen fixing bacteria In root system
Water (H2O)
Mineral Based Materials (Amphibole & Feldspar)
Calcium (Ca)
Potassium (K)
Magnesium (Mg)
Iron (Fe)
Carbon (C) Oxygen (O2) Hydrogen (H) Through
air in pores
Essential Oil Technical Development
• Development of Propagation Material
- Easy to Domesticate?
- Seed Collection (genetic variance)
- Other Propagation Methods
Genetic materialChemotype Variances for Melaleuca
cajuputi
Principal Oil
Constituents
Variant 1 Variant 2 Variant 3 Variant 4 Variant 5 Variant 6
a-pinene 2.1 2.5 3.1 2.1 19.5 3.8 a-thujene 0.3 0.9 1.2 0.2 - 0.8 b-pinene 1.1 0.9 1.1 1.4 8.6 2.5 Limonene 5.6 4.9 4.8 5.2 17.4 6.9 1.8-cineole 62.8 41.6 34.0 66.5 21.5 50.7 g-terpinene 1.2 7.4 5.0 0.9 8.7 3.1 g-cymene 1.3 3.5 5.7 0.5 3.0 1.4 Terpinelene 0.6 1.0 0.5 0.3 4.1 1.5 b-caryophyellene
3.7 6.9 7.4 3.3 2.8 4.9
Aromadendrene 0.9 1.4 1.7 0.7 1.2 0.9 Humulene 1.8 3.9 0.3 1.9 0.1 2.3 Vindifflorene 4.5 3.1 2.5 3.8 1.7 3.7 a-terpineol 4.5 3.0 2.4 3.8 1.9 3.8
Geographic Variances within a single chemotype
Brophy et al., 1996
Constituent Variations
Slee, M., U., 1995
Yield Variations
Sample Linalool Methylchavical
Olfactory Profile
India 14.2% 77.5% A grassy herbaceous and mildly spicy predominating note, with a herbaceous subsidiary note; back notes slightly fruity.
French 55.3% 10.9% A smmoth fresh and diffusive herbaceous note with harmonized cool anisic and slightly balsamic subsidiary notes and warm woody back notes.
Australian 34.3% 34.7% A clean vegetableptype note with a cool herbaceous menthol-like subsidiary note; a green and grassy back note.
Seychelles 27.7% 40.2% A sharp diffusive clean grassy herbaceous note, with a fruity anisic subsidiary note and a very slightly camphoraceous back note.
Reunion (Australian grown) 3.4% 75.7% A sharp, if not somewhat dry, anisic note; the subsidiary notes were herbaceous with a slight sweet camphoraceous floral back note.
Different Major Chemical and Olfactory Profiles of Five Basil Oils
Hunter et al, 1996
Chemotype Variances within the Genotype Tanacetum vulgare L.
Base Population
Seed collected from selected natural stands
Emphasis on collecting a diverse genetic sampling
Breeding Population
Seed Nursery Established with a
number of ‘families”
Trees eliminated according to a complex set of criteria
including growth parameters, biomass, yield, oil constituent
markers, re-growth, etc.
Propagation Population
Seed Nursery with reduced number
of ‘families” Seed release
Replanting for further selection
A Simplified Index Selection Strategy for Genetic Crop Improvement
Preparation & Transfer
Area
Composting & Media Mixing Area
Seed Sowing Area
Seedling Standing Area
Perimeter Drain Recycling Tank
Seedling Standing Area
Activity Staff Required Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Materials Required1. Seed Germination Sterile media, growth
(bed preparation, sowing, 8 fertiliser, polytraysmaintenance) for germination
2. Sowing bed maintence 33. Transfer Seedlings to trays 6 Composted media,
trays4. Tray Maintenance 35. Transfer Seedlings to polybags 6 Compost media,
polybags6. Maintence of polybags 37. Transfer to seedlings Field team ►
A Simple Gantt Chart Summarizing Each Nursery Activity for Costing Purposes
Planting & Maintenance
Post harvest practices
Irrigation
Methods
Planting
& Harvesting
Methods
Farmscapping Barriers
Crops Boundaries Sanitation
Crop Diversity
Forecasting and Monitoring Climate & Weather Forecast, Pest Mapping, Setting
Thresholds, Monitoring, Record Keeping.
Evaluation and Decision Making
Cultural Controls Soil Health Crop Genetic Diversity
Planting times Harvest times Crop Rotations Intercropping
Mulches
Biological Controls Natural enemies (predators & parasites)
Mechanical Controls
Tillage Pest Traps Flaming or
Controlled Fire Flooding
Soil Solarization Clipping
Vacuuming Steam Sterilization
Genetic Controls Phonemes
Release of beneficial/
Predator Insects Microorganisms
Biological and Organic Pesticides Insecticidal soaps, Horticultural oils, Biorational Pesticides, Particle Film , Botanical Pesticides
Curative Methods
Preventative methods Organic Pest Control
(Bio-Intensive Integrated Pest Management)
Practice Explanation Example
Prevention Using practices and methods to prevent something like weed growth or pest and inhabitation
Cleaning tractors and other agricultural equipment before entering a field to prevent the spread of weed seeds or spores.
Cultural Control Choosing the best cultivars and planting materials, engaging in practices that will promote growth and protect crops, etc
Selecting high yielding seeds through index selection, use of intercropping to improve soil fertility, select best seasonal planting times to prevent weed competition with crop.
Mechanical Control
Mechanical methods to assist with crop maintenance.
The use of flaming to control diseases like root rust and control weeds, utilizing no-till approaches to prevent weed seed spreading and maintain soil fertility.
Chemical Control The use of chemicals to assist in crop maintenance.
The use of pre-emergence herbicides to prevent weed growth, the use of pesticides, etc.
Strategy Guideline for Conventional Crop Maintenance
Disease TreatmentPowdery Mildew Providing adequate sunlight, air circulation and lower relative humidity to
prevent powdery mildew. The use of fungicide sprays to treat powdery mildew.
Rust Watering early in the day to prevent rust. The application of fungicidal spray to treat rust.
Leaf Spot and Blight Use resistant cultivars, maintain plant vigour through adequate fertilizer application, the enhancement of leaf drying through pruning and watering early in the day will help prevent spotting and blighting. Fungicides able to assist in preventing leaf spot and blight but poor in eradicating it.
Root and Crown Rots Prevent through creating a well drained soil environment.Stem and Twig Cankers Prevent through maintaining plant vigour and removing diseased parts.
Fungicides of limited use in treating stem and twig cankers.Vascular Wilts Prevention through resistant species, maintaining plant vigour and soil
sanitation. No effective fungicides for treatment. Smuts and Moulds Use of resistant cultivars and fungicides to protect. No effective fungicides for
treatment. Bacteria Protect through the use of disease resistant cultivars and good soil sanitation.
Use of sterilization in nursery operations to prevent contamination. Streptomycin and copper sprays help to slow the spread of bacterial disease. Chemical sprays unreliable for treatment of bacterial diseases.
Viruses Control virus carrying insects, animals and humans around crop area. Remove and destroy infected plants.
Nematodes Difficult to control.
A Summary of Prevention and Treatment Methods for Plant Diseases
Outside Control
Partial Control
Inside Control
Soil pH
Temperature (Frost & excessive heat)
Soil salinity
Pla
nt
Str
ess
Soil fertility
Light (UV radiation)
Aeration
Water (flood & Drought)
Plant disease
Herbivores
Air pollution
Poor handling (harvest, etc.)
Some of the Major Sources of Plant Stress.
Climate Scenario Temperature
Solar Radiation Wind
Humidity Rainfall
Topography and Soil Characteristics
Water holding capacity Drainage
General topography
Physical System Type of System Manpower requirements &
availability Economics Efficiency (i.e., delivery, run-
off)
Windbreaks & other protective
measures
Plant & Crop Requirements
Crop factor Stage of growth Basic physiology
Irrigation Practices
Procedures and Timetables
Influenced by plant spacing & density and
life span
Rainfall Reliability
Overhead Sprinklers
Drip Irrigation Capillary Sand Beds
Installation cost
Moderate Moderate/High High
Maintenance Low High High
Excellent Low Moderate
Labour Low Moderate Low
Water Distribution Fair Good Good
Water Use Efficiency
Poor, wasteful Good Good
Pump Requirement
Large, high pressure
Small, low pressure
Small, low pressure
Water Volume Requirement
Large Small Small
Wind Influence Serious None None
X = 0.6 m • • • • • Y = 1.0 m • • • • • • • • • •
Plant Populations
• Regular plant spacings maximise biomass
• Climate, weather, soil fertility and Plant physiology influence
Plant spacings
• Selected plant spacings influenceBiomass, leaf size, fruit & rhizome
Size, stem growth.
A D B C B A C D C B D A D C A B
Randomised Complete Block Design for a Field Experiment.
1 A
2 B
3 A
1 B
2 A
3 B
3 B
1 B
1 A
2 B
3 A
2 A
2 A
2 B
3 B
1 B
3 A
1 A
A Factorial Arrangement of Treatments (Moisture (A) and Nitrogen (B)) in a Randomised Complete Block Design
• Fertilizer Application• Pesticide Application• Herbicide Application
• Irrigation• Spacings & plant populations
Activity Areas of Potential Mechanisation
Nursery Seedbed planters Some aspects of micro-propagation Irrigation, pesticide and fertilizer delivery Conveyer flow for efficiency Compost, potting mix and media mixing
Tillage General field preparation Laser leveling Moisture conservation Accurate herbicide, pesticide and fertiliser delivery Minimising erosion potential
Planting Vegetative and seedling planting Accurate spacing placement
Crop Maintenance Weed control and eradication through roto-cutting and flaming Automated drip or overhead sprinkler systems Sensor array for field moisture and nutrient assessment
Harvesting A combined harvest, mulching and boxing process for foliage (applicable to some crops only)
Distillation Box distillation system
General Aspects of a Farm System That Can Be Mechanised
Harvesting
Manual
Automated
Selected method often restricted by type of crop
Most herbaceous crops can be mowed
Many flowers must be hand picked
Innovative systems can be designed and developed
Machinery Size
Mach
inery
Cost
s per
Hect
are
Labour Costs
Operating Costs
Task Window Lapses
Ownership costs
Total Costs
The Relationship between Increasing Machinery Size and Machinery Costs.
Harvest Timing Critical for Some Crops (Mentha piperata)
Harvesting Maturity
Desired Standard
Tea Tree (Melaleuca alternifolia)
80 70 60 50 40 30 20 10
1 2 3 4 5 6 7 8 9 10 11 12
80 70 60 50 40 30 20 10
% in Oil Yield kg/ha
Oil Yield
Optimum harvest window
Menthone
Menthol
Methyl Acetate
Menthofuran
Weeks from January 1
The Harvest Window Applicable to the Victorian and Tasmanian Mint Industries
Influencing Factors Compound
characteristics (volatility/mol. Weight) Surrounding Material
Distillation
Historical
Solvent Extraction
Cold Pressing
Highly volatile terpenes
Compounds mixed with waxes, also lactones, esters etc.
Low/medium volatility/stable
Influencing Factors Price vis. Market
Volume Plant cell structures
Field size Topography
Soil/field characteristics Part of plant (i.e.,
rhizome/leaf) Coppice
Automated harvest and distillation
system
Harvest and later load system
Manual harvesting
due to scale,
material, investment
Extensive large scale
farming High --- Low
Value
Specialties Distillation
Hydro
Water-Steam
Steam
Material Characteristics
Material Characteristics
Solubility in water
CO2 ‘Finer’
composition spectrum
Fractional Distillation
Individual aroma
compounds
A Basic Harvest to Distillation Flowchart for
Peppermint Oil
Determination of Harvest time (Sampling)
Mowing and leaving to wilt on field
10 tonne fresh herb per Ha. Fresh herb contains 80% moisture
Wilting Must wilt to 50% moisture level where ‘crisp and brittle’
Pick up with forage harvester Collect 6 tonne of dry herb
Deliver to Distillation system Must insure that herb is not bruised. Use cartridge or box to avoid too much handling
Distillation
Volume of 4 m2 per tonne of herb. If single charge, yield 15kg oil If distillate ratio is 0.062/1 (oil/water), then 241.8 litres water required for distillation.
Assume 35 minutes distillation time, 10 minutes change over, 6.90 litres/minute steam rate per minute. 9 hours will handle 12 tonnes of dried herb in a vat of 4m3.
Initial Parameters of Prototype Still diameter
Still height Steam source Steam type
Initial Distillation Conditions
Material preparation Packing density
Steam flow/temp/pressure Stop point of distillation
Initial Distillation Results Oil Constituents
Oil Yield Total oil verses time
Oil to water ratio
Determination of distillation Stop point
Determination of distillation Time (according to various
conditions)
Evaluate steam flow/temp/pressure to yield
Determination of steam flow/ Temp/pressure rates
Further modification of still
Vapour Outlet Running into Corrugated Tank
Lid with Clamps Counterweight
Brick Compartment
Distillation Vat Welded Steel Mesh Bottom
Water
Corrugated Iron Condenser Tank Vapour Outlet Running into Corrugated Tank
Oil
“T” Pipe for Pressure
Equalisation
Separator Constant Level Tank
“Firebox” for wood fire
Boiler
Condensers
Separators
Box No. 1.
Box No. 2.
Boxes driven in by tractor and coupled up to steam
inlet and condenser.
Each box can be distilled on rotation or both together, governed by boiler
capacity.
Standards
Item Description Cost (RM) % TotalInfrastructure Development 1. Land Clearing 1,000,000 18.02%2. Fencing 250,000 4.50%3. Drainage Work 250,000 4.50%4. Buildings 450,000 8.11%5. Dams 250,000 4.50%6. Internal Roads 300,000 5.41%7. Utility Access 50,000 0.90%8. Distillery 750,000 13.51%9. Farm machinery & Equipment 750,000 13.51%10. Harvester 450,000 8.11%10. Laboratory Equipment 350,000 6.31%12. Other 350,000 6.31%
5,200,000 93.70%Equipment1. Pumps 25,000 0.45%2. Small Distillation Unit 25,000 0.45%3. Electricity Generators 25,000 0.45%4. Pick-up Truck 150,000 2.70%5. Misc. Farm Equipment 50,000 0.90%6. Nursery Equipment 20,000 0.36%7. Other 20,000 0.36%
315,000 5.68%Administration Issues1. Business Registration 2,500 0.05%2. Legal Fees 5,000 0.09%3. Labour Permits and Costs 10,000 0.18%4. Water & electricity Deposits 5,000 0.09%5. Insurances 12,000 0.22%
34,500 0.62%Total: 5,549,500
Item Qty Cost (RM)MaterialsSeeds (purchased or collected) 150 gram @ RM12,000/kg 1,800Bed Soil Media 2 Tonne @ RM 1,000 Tn 2,000Compost & sand 5 Tonne @ RM200 Tn 1,000Polybags & Trays 300000 @ RM6/1000 1,800Fertiliser 500 Kg @ RM5 kg. 2,500Other 2,000
11,100LabourSowing & transfer to trays 200 man days @ RM25 per person 5,000Transfer to polybags 300 man days @ RM25 per person 7,500Maintenance 180 man days @ RM25 per person 4,500
17,000Total Cost: 28,100Estimated Yield in Plantable Seedlings: 90% 270,000 270,000Cost per Seedling 0.10
Nursery Cost Estimates
Item Qty Cost (RM)Planting 20 man days @ RM25 per person 500Maintenance 10 man days @ RM25 per person 250Harvesting 40 man days @ RM25 per person 1,000
Irrigation 5 man days @ RM25 per person 125Fertiliser 250 kg @ RM5 per kg 1,250
3125
Item Qty Cost (RM)Maintenance 10 man days @ RM25 per person 250Harvesting 40 man days @ RM25 per person 1,000
Irrigation 5 man days @ RM25 per person 125Fertiliser 250 kg @ RM5 per kg 1,250
2625
One Hectare Field Cost for Subsequent Year Tea Tree Cultivation in Malaysia
One Hectare Field Cost for First Year Tea Tree Cultivation in Malaysia
Foliage Harvested Yield Distillation Yield Distillation Yield DistillationHectare 0.80% Cost/Kg 1.00% Cost/Kg 1.20% Cost/Kg Diesel Qty Diesel Cost Other Total
10000 Kg 80 100 120 150 kg RM450 RM 180 RM 63015000 Kg 120 150 180 225 Kg RM675 RM 270 RM 94520000 Kg 160 200 240 300 Kg RM 900 RM 360 RM1,26025000 Kg 200 RM 7.88 250 RM 6.30 300 RM 5.25 375 Kg RM1,125 RM 450 RM 1,57530000 Kg 240 300 360 450 Kg RM 1,250 RM 540 RM 1,79035000 Kg 280 350 420 525 Kg RM 1,575 RM 630 RM 2,20540000 Kg 320 400 480 600 Kg RM 1,800 RM 720 RM 2,52045000 Kg 360 450 540 725 Kg RM 2,175 RM 810 RM 2,985
Calculated Distillation Cost per kilogram Essential Oil
Item Year 1 Year 2 Year 3 Year 4 Year 5
Cash at Beginning 0 -6,062,000 -6,251,440 -5,819,740 -4,769,380
Revenue 445500 1188000 1930500 2673000Oil Produced 3 tonnes 8 Tonnes 13 Tonnes 18 Tonnes
Expenses and CostsCapital and Infrastructure Costs 5,515,000
Nursery Costs 60000 60000 60000 60000 60000
Packaging Materials 2040 5400 8640 12000Direct land costs 25000 25000 25000 25000 25000
Salaries 200000 200000 200000 200000 200000Other Salary costs 25000 25000 25000 25000 25000
Fuel and vehicle costs 40000 44000 48000 52000 56000Administrative costs 34500 25000 25000 25000 25000
Cultivation & maintenance costs 62500 115000 167500 220000 272500Distillation costs 18900 50400 94500 144900Marketing Costs 100000 120000 150000 170000 190000
Total Costs 6,062,000 634940 756300 880140 1010400
Cash at Year End -6,062,000 -6,251,440 -5,819,740 -4,769,380 -3,106,780
A Cashflow Projection for A Tea Tree Plantation in Northern Malaysia
Price Foliage Revenue Fixed Variable Total Operational(USD) Yield (Ha.) (RM) Costs (RM) Costs (RM) Cost (RM) Profit/Loss
USD 10 15 Tonne 495000 865500 94500 960000 -46500025 Tonne 825000 157500 1023000 -19800035 Tonne 1155000 220500 1086000 6900045 Tonne 1485000 298500 1164000 321000
USD 15 15 Tonne 742500 865500 94500 960000 -21750025 Tonne 1237500 157500 1023000 21450035 Tonne 1732500 220500 1086000 64650045 Tonne 2227500 298500 1164000 1063500
USD 20 15 Tonne 990000 865500 94500 960000 3000025 Tonne 1650000 157500 1023000 62700035 Tonne 2310000 220500 1086000 122400045 Tonne 2970000 298500 1164000 1806000
USD 25 15 Tonne 1237500 865500 94500 960000 27750025 Tonne 2062500 157500 1023000 103950035 Tonne 2887500 220500 1086000 180150045 Tonne 3712500 298500 1164000 2548500
USD 30 15 Tonne 1485000 865500 94500 960000 52500025 Tonne 2475000 157500 1023000 145200035 Tonne 3465000 220500 1086000 237900045 Tonne 4455000 298500 1164000 3291000
USD 35 15 Tonne 1732500 865500 94500 960000 77250025 Tonne 2887500 157500 1023000 186450035 Tonne 4042500 220500 1086000 295650045 Tonne 5197500 298500 1164000 4033500
USD 40 15 Tonne 1980000 865500 94500 960000 102000025 Tonne 3300000 157500 1023000 227700035 Tonne 4620000 220500 1086000 353400045 Tonne 5940000 298500 1164000 4776000
USD 45 15 Tonne 2227500 865500 94500 960000 126750025 Tonne 3712500 157500 1023000 268950035 Tonne 5197500 220500 1086000 411150045 Tonne 6682500 298500 1164000 5518500
USD 50 15 Tonne 2475000 865500 94500 960000 151500025 Tonne 4125000 157500 1023000 310200035 Tonne 5775000 220500 1086000 468900045 Tonne 7425000 298500 1164000 6261000
USD 55 15 Tonne 2722500 865500 94500 960000 176250025 Tonne 4537500 157500 1023000 351450035 Tonne 6352500 220500 1086000 526650045 Tonne 6682500 298500 1164000 5518500
USD 60 15 Tonne 2970000 865500 94500 960000 201000025 Tonne 4950000 157500 1023000 392700035 Tonne 6930000 220500 1086000 584400045 Tonne 8910000 298500 1164000 7746000
Published 1st October
2009:
Nova Scientific Publishing, New York
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