NOTICE: Hard copies of the Australian New Crops Newsletter are available from the publisher, Dr Rob Fletcher. Details of availability are included in the
Advice on Publications Available.Peter Blessing
Principal Teacher, Commerce Unit
Toowoomba TAFE
Director, Solar D. Herbs
PO Box 1263
Toowoomba 4350 Queensland
Telephone: 018 714 548
Facsimile: 07 4635 2078
Email: d9611841@mail.connect.usq.edu.au
[Peter Blessing has been involved with the development of the Do Our Own Marketing Research program. He has previously presented a SWOT analysis of the chamomile industry in the DOOR Marketing Manual]
Why we selected chamomile
In 1995, my family company Solar Distributors Pty Ltd, as part of its strategic planning, was looking into diversifying its activities.
Medicinal herbs were identified as a rapid growth area. Tea-tree, skullcap, Echinacea, Eucalyptus and chamomile were all considered.
Chamomile was selected and the company has been supplying the Australian market since 1996.
A common folk saying in Czechoslovakia states that
'...one should always bow before the curative powers of the chamomile plant.'
Chamomile (Matricaria recutita L./Chamomilla recutita (L.) Rauschert), family Asteraceae, is considered by many as one of the most important of the medicinal plants.
It is in constant demand world-wide and the subject of considerable on-going research.
It is grown as a small or large scale crop in a number of overseas which, until 1996 supplied all of Australia's demand, except for a few boutique growers in southern states.
History of usage
Chamomile has long been a popular panacea of ills.
Dried chamomile flower is an age-old medicinal drug known in ancient Egypt, Greece and Rome.
In Egypt, chamomile was a religious plant consecrated to the god of the sun.
Chamomile's popularity grew throughout the Middle Ages, when people turned to it as a remedy for numerous medical complaints - nausea, nervous complaints, children's ailments, skin diseases and so on. (Peter Rabbit's mother dosed Peter on chamomile after he'd over-eaten in Mr McGregor's vegetable garden).
Recent and on-going research has identified chamomile's specific anti-inflammatory, anti-bacterial, anti- allergenic and sedative properties, validating its long-held reputation.
This attention appears to have increased the popularity of the herb.
Chamomile flower heads are used in phytotherapy (Flos chamimilae) and the chamomile drug is included in the pharmacopoeia of 26 countries (Salamon, 1996).
Identification of the active chemical components of the essential oil has led to the development of new chamomile types, which not only have higher yields of oil, but higher ratios of active components as well.
Where it is grown
Chamomile is presently grown commercially in:
According to wholesalers, much of the chamomile consumed as tea in Australia is supplied by Egypt at a very competitive price. Its flower colour density is similar to that of the local Toowoomba product, which has aged 18 months.
Most of the higher quality chamomile used by the manufacturers of herbal extracts for the pharmaceutical, functional foods and cosmetic markets is imported from Slovakia.
The product
Chamomile can be marketed wholesale in three main forms, viz. dried flower and steam-distilled essential oil and solvent-produced extracts.
Dried flower:
The main product from chamomile is the dried flower which is used for tea or natural medicine preparation.
There is demand for organically grown product in the medicinal tea market although it is not practical in Australia to grow on a large scale due to the labour costs.
In fact, it is difficult to believe the 15% premium paid for imported organic chamomile is able to cover the extra costs of growing to Australian standard.
The tea, perfumery and therapeutic markets require the dried flower whole and generally don't demand specific oil components percentages.
However, some natural medicine manufacturers require the dried flower from specific varieties of chamomile that will produce a high yield of specific chemicals.
Chamomile oil:
The oil can be produced by either steam distillation or solvent extraction. The higher priced blue chamomile (essential) oil is produced by steam distillation.
Flowers and plants:
There could be an as yet under-developed market for chamomile seedlings and cut flowers.
The market
The dried flower is bought by tea companies, natural medicine manufacturers, makers of herbal extracts and health food shops.
The floral water and the oil are bought by agents to supply cosmetic and aromatherapy companies.
There is occasional demand for the fresh flowers, both cut and potted, for use in herbal displays. It is envisaged that this market could be expanded to include 'get well' floral gifts.
Australian market:
The Australian market is growing approximately 30% per annum. Evidence of this growth is easy to be seen on supermarket shelves where chamomile tea proliferates.
Five years ago there was a very limited range of chamomile in the supermarkets and the main outlet was the health food shops.
In 1995, it was estimated that Australia imported approximately 7 tonnes annually plus 7 kg of the essential oil (based on estimates from wholesalers).
In 1998 this figure was estimated to have risen to 20 tonnes of dried flower and 20 kg of essential oil.
Overseas market:
The world market, also, is growing.
World wide production figures are difficult to isolate due to the small scale of the farming and the fact that statistics generally do not quote chamomile separately from other herbs.
In 1995, we estimated world production to be approximately 500 tonnes of dried flower per annum from large scale farming.
The 1998 figures are estimated to be l,000 tonnes of dried flower per annum from large scale farming.
The world production of chamomile blue essential oil in 1989 was estimated by the USDA to be 5.4 tonnes.
The sale price
Price is largely regulated by the world supply and demand.
Chamomile is presently being produced in countries with low labour costs.
This can make it difficult for an Australian farmer to compete unless there is a fair degree of value-adding applied.
However, there is potential for premium quality lines in niche markets as Australian produce becomes sought after as 'pollution free'.
The 1991 world price for dried chamomile flower ranged from $1,000 per tonne for low grade to approximately $16,000 per tonne for high oil content flower.
Bulk Botanical Herbs (1997) was advertising organically-grown chamomile on the Internet at US$28 per pound (US$61.73 per kg).
Continuity of demand
The Australian market requires not more than 20 tonnes per year at present, but this figure is growing.
Discussion with one herbal medicine manufacturer indicated that Australian buyers are used to including chamomile with their overseas herb orders.
Some education of the market has been required to encourage Australian buyers to consider switching to a home grown product.
Another important factor in developing Australian markets has been the need to establish confidence in the continuity of Australian supply.
Local buyers do not want to risk losing overseas sources.
The world market appears to run short of supply by March when the northern hemisphere crops are being planted for harvest in June.
Australian buyers of top-of-the range flower find they have to wait in line, after the large European medicine manufacturers, to obtain large quantities.
The essential oil and chamomile water market is difficult to ascertain. There appears to be an excess supply on the world market at present and only a small number of Australian buyers who are not sure of the quality their clients require. The market for chamomile water is variable.
Harvesting
The primary product, dried flower, is generally sold as a dried whole flower-head. Harvesting is by hand or special machinery with sorting and stem cutting equipment.
The drying process is simple and done on the farm with low technology if you are prepared to rely on the weather. This may be supplemented by using gas, solar air heating or a heat pump system.
The flower can undergo further processing on the farm beyond drying.
As evidenced from the range of products available in the supermarket, most chamomile in Australia is consumed in tea bags. This milling is a relatively simple process not requiring complex or expensive machinery. However, the tea bagging machine can cost $100,000.
The steam-distilled chamomile blue essential oil and high grade floral water can also be produced on the farm with basic home-made equipment or a capital outlay of up to $50,000.
With less complex and expensive equipment, the flower can be solvent-extracted to produce chamomile essential oil which can be value-added further into floral waters, soaps and medicinal bases.
Synthetic replacements
To date, the important anti-inflammatory components of chamomile have not been chemically synthesised and according to Slovakian researchers, this is not likely to happen for some time.
Conclusion
My family company, Solar Distributors, decided the opportunities and strengths outweighed the threats and weaknesses if a niche market could be developed for high quality Australian grown German Chamomile.
Solar D Herbs was established to research chamomile production at Helidon and Toowoomba in 1995.
Resources were concentrated for production in Toowoomba 1996 where production has continued and the required niche market was developed.
Orders have exceeded production and contract growers are being established to increase supply in 1999.
Reference
Salamon Dr I (1992) Production of Chamomile in Slovakia. Journal of Herbs, Spices and Medicinal Plants 1 (1/2).
Any claims made by authors in the Australian New Crops Newsletter are presented by the Editors in good faith. Readers would be wise to critically examine the circumstances associated with any claims to determine the applicability of such claims to their specific set of circumstances. This material can be reproduced, with the provision that the source and the author (or editors, if applicable) are acknowledged and the use is for information or educational purposes. Contact with the original author is probably wise since the material may require updating or amendment if used in other publications. Material sourced from the Australian New Crops Newsletter cannot be used out of context or for commercial purposes not related to its original purpose in the newsletter
Contact: Dr Rob Fletcher, School of Land and Food, The University of Queensland Gatton College, 4345; Telephone: 07 5460 1311 or 07 5460 1301; Facsimile: 07 5460 1112; International facsimile: 61 7 5460 1112; Email:
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