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.Focus on Herbs Consultancy and Information Service
PO Box 203
Launceston Tasmania 7250
Telephone: 03 6330 1493
Facsimile: 03 6330 1498
Email: admin@focusonherbs.com.au
Web site: http://www.focusonherbs.com.au
One of the most important resources any industry has is the knowledge of its participants. Any member of an industry probably has information and knowledge which is valuable to others.
Herbs Australia offers a free monthly e-mail newsletter which focuses on all aspects of the herb industry and gives participants a chance to share information so that everyone benefits. The newsletter provides up-to-date information from a variety of sources within the herb industry. The content has so far been very varied as demonstrated by the brief summary below.
There are currently 400 subscribers to the Herbs Australia Newsletter.
Subscription to the newsletter is free and can be achieved by filling in the form on:
http://www.focusonherbs.com.au/pages/newsletter.html
The following lists the topics covered in the first six Herbs Australia Newsletters. Some of the information from these topics has been extracted for readers of the Australian New Crops Newsletter, with the kind cooperation of the editors.
Issue #1: 11 February 1999
1.1 Terminator Seed Update
1.2 Complementary Medicine Page
[The Therapeutic Goods Administration has included a substantial Complementary Medicine Page on its web site to provide information on policy, registration, manufacture, sale, listing, importation etc of complementary medicine products in Australia:
http://www.health.gov.au/tga/pswpcm.htm]
1.3 Crops With Potential?
Indian medicinal herbs. The growing worldwide interest in Ayurvedic medicine and associated herbs is obviously now translating into increased use in herbal products being used/made here in Australia and elsewhere. While most herbs are currently being supplied through India and other Asian countries such requests indicate that buyers are now looking to other countries to supply. This may be an area of opportunity for Australian growers prepared to do some homework on Ayurvedic medicine and the herbs now appearing in local products.
1.4 St John's Wort
There is certainly a large worldwide demand for the herb at present and suppliers in Australia are receiving more requests than they can fill. Having St John's Wort on a farm isn't necessarily going to translate into dollars in the bank - returns will depend on many things including concentration of plants, weed infestation, ease of access for harvesting and processing and most importantly hypericin content. People encouraged by all the media hype on this herb need to do their homework thoroughly before committing to supplying it and should closely note trends in demand and supply.
1.5 Culinary herbs
The appeal of growing medicinal herbs seems to outweigh that of culinary herbs. Certainly some growers are making a good living out of supplying medicinal herbs to the domestic market; others are not so fortunate, finding that small quantities are difficult to sell with return for effort far below that expected. While culinary herbs may not have the same charisma there are certainly opportunities for growers to sell fresh herbs locally as well as intra- and inter-state in most areas of Australia. Cultivation of fresh-cut culinary herbs has been a steady industry for decades providing decent livings for many growers at various levels of production, although a large percentage of production has been at cottage industry level. Requests from the food processing industry for tonnage of fresh-cut herbs on a regular and on-going basis have unfortunately been largely unfilled because there are insufficient growers producing broadacre culinary herbs in Australia or considering entering this side of the industry. Unless more growers start looking at culinary herbs such opportunities will be lost to other countries.
1.6 Australian Herb Industry Resource Guide
The Resource Guide provides a comprehensive list of the sources and resources available within the Australian herb industry. It's similar to the Resource Guide on the Herbs Australia Web site (http://www.focusonherbs.com.au) but is more comprehensive with many more listings and categories, with thorough cross-referencing and indexing.
Categories include: consultants, courses, essential oils, associations, display gardens, equipment, general (retail herb shops), growers-culinary, growers-medicinal, herbal events, herbal food products, importers/manufactures, lavender farms, medicinal manufacturers, native herbs and products, nurseries, publications, seeds, technical services.
Australian providers of herbal products/services can be listed free of charge. The following information is required: name of business, address, postal address if different, contact person, phone/fax/email/website, wholesale or retail?, minimum order requirement, brief description of business/products/services, acreage under production (if a grower), open days and times, do you have mail order or supply overseas, any other information you want people to know.
The Resource Guide now also includes a New Zealand Supplement. New Zealand herb businesses can also be included free of charge in the Resource Guide.
1.7 An International Training Program in New Crops: Aromatic and Medicinal Plants'
Purdue University, Indiana, USA
Contact: Jim Simon
simon@hort.purdue.edu
1.8 Broadacre Herb Experiment Fails
While private investors take the risk of losing money on experimental ventures which sound good on paper, governments cannot afford to take such risks with the public's money.
Over the past decade of so local, state and federal government grants have been given to numerous herb ventures that promised to provide local employment opportunities in various states. Most of those ventures failed to achieve their stated aims and in a number of cases the groups involved collapsed totally.
In very few of these cases has any information gained from background research into potential markets or the trialling of crops actually been passed on to other individuals or groups so that they can learn from past mistakes.
If the industry is to benefit from money being invested by government bodies, grants need to be tied with a requirement that information be made available to others (except for some commercial-in-confidence information that would have an immediate adverse effect on the venture) and that if the venture fails then all information gained be made available and recorded before the principals disappear from the scene.
Individuals and groups are now finding it harder to access money for market research, for trialling crops or research into pest/disease problems with herbs. Funding bodies need to be more cautious about where their money is being spent and are now looking at reliable investments that will return the greatest good to the most people.
1.9 New Products
1.10 Web Site New Additions
Issue #2: March 1999
There are now 115 subscribers (after a month), from Australia, USA, Mexico, NZ, Canada, China, Netherlands, Kenya and the UK. The focus of most subscribers is on growing herbs commercially, with twice as many indicating an interest/involvement in medicinal as in culinary herbs. Other main areas of interest were manufacturing and the provision of information.
Most respondents have been involved in the industry for 1-4 years with only a handful (who were mainly manufacturers) indicating longer involvement (up to 63 years).
Requests for additional information to include on the Herbs Australia Web site mainly focused on crop profiles and agronomy, though there is obvious interest in marketing opportunities, information on buyers and their requirements, export regulations, tips for being successful.
Information for submission to the Herbs Australia newsletter should be forwarded through:
admin@focusonherbs.com.au
2.1 Natural Medicines And The Goods And Services Tax
2.2 Echinacea Again
It's easy to feel sorry for all those who planted echinacea (and other crops) at the height of the media frenzy and who now find themselves with a wonderful crop but no buyers.
Unfortunately this situation had been predicted by those in the industry who had been in long enough to understand trends and know how the industry works. Fortunately not everyone put all their eggs in one basket - those who decided to grow a range of other herbs in addition to echinacea or to diversify into other crops are probably thanking their lucky stars that they are at least able to sell one of their crops.
So what do you do with all that echinacea? Here are a few suggestions - with no guarantees.
Have your crop tested and if suitable have it value-added into tincture and bottled by a TGA licensed laboratory, then see how you go with marketing your own tincture to health food stores, chemists, practitioners, stables and horse breeders, family and friends. An expensive exercise, one fraught with potential dangers (what happens if no-one wants to buy every bottle?)
Try potting up all your plants and selling them to nurseries, through markets, to family, friends ... that may get rid of a small amount.
Harvest, dry and try selling it for animal fodder. Not a good return on investment but at least it may be a return of some kind providing you can convince the animal owner/s of the value of this crop.
Plough it in or use it to mulch other crops and cut your losses.
'Failure is not something to be avoided, rather it is a vital component of success.'
Managing Your Team
John Spencer and Adrian Pruss
Learn from this failure. If you are still interested in growing herbs commercially then go back to the drawing board and do an enormous amount of homework before deciding on the next venture.
Talk with those people who have been involved in the industry long enough not to be influenced by media hype, and have another non-herbal crop in mind that will complement your herb project so that you aren't reliant on one market.
2.3 Value-Adding - A Positive Move From Small Growers
Value-adding is where the money is for small growers. You can double your return if a simple dried herb is blended with another herb, packaged or bottled as an exotic herbal tea or a gourmet herb/spice blend. Similarly a mix of dried herbs with some carefully chosen essential oils in an attractive gift box stops being a mix of dried herbs but become a very presentable potpourri gift. The costs are higher because of the packaging but so are the returns. With creative thinking and marketing even costs of packaging can be kept fairly low.
Opportunities for selling the products could be local markets, local motels/hotels, restaurants, local museums, businesses (reception areas could always do with an uplifting bowl of potpourri ...), nurseries, doctor's surgeries (better than the artificial aromatherapy blends many currently use), herbal parties before special occasions such as mother's day, Easter, father's day, school P&C and other community meetings (a guest speaker is surely allowed to take along products to 'show and sell').
2.4 Herb Conference
2.5 Pyrethrum
2.6 Meadowsweet
2.7 Bulk Herbs
2.8 Culinary Herbs
In the last newsletter there was mention made of the increasing interest on the part of some food processors in accessing tonnage of fresh-cut herbs on a regular basis. Unfortunately people just aren't growing the sort of quantities required to meet the demand. But is it worth putting money into rapid expansion with a view to working with these companies next season? That's a hard question to answer.
The feedback from some growers is that the companies involved are offering 'a pittance' at this stage which is taking the edge off growers' interest. With broadacre production economies of scale come into play, meaning greater relative returns for the grower, but an increase in the proposed 'pittance' would certainly be needed for growers to begin to think seriously about expansion.
It's the usual Catch-22 situation which will only be resolved with a bit more of a cooperative and supportive approach on the part of the buyers. Support an industry in its early stages and you'll have an industry to support you in the long-term. Give no support and you may as well look overseas for your supplies.
2.9 New Magazine
A new magazine 'The Guilded Herb' has just appeared in Canada. This magazine has received lots of attention because it provides information on growing herbs in fairly extreme conditions (hot summers, four months of snow in winter ...) whereas most of the other magazines tend to concentrate on growers in more southerly, less extreme areas.
2.10 'Herbal Harvest' by Greg Whitten.
Issue #3: April 1999
3.1 Updated Herb Networking Guide Released
3.2 Commercial Herb Production Reference (Herbal Harvest) Now Available
'Herbal Harvest' by Greg Whitten is a classic book on the commercial production side of the industry. Since it was first released in 1997, Herbal Harvest has rapidly become the bible for new as well as established herb growers. It provides a comprehensive guide to small/intermediate scale commercial production of dried herbs in temperate regions but much of the information is also valid for other parts of the country and elsewhere in the world (the author has experience growing in several regions of Australia and also in North America).
The emphasis is on organic and bio-dynamic production with details on growing, harvesting, drying and processing of over 100 species of tea/culinary/medicinal herbs. The book is based on over 20 years experience growing herbs commercially.
Recommended retail price: AUD79.95
Available from Focus on Herbs
Price: AUD70 plus postage and handling (AUD9.50 within Australia; NZ AUD23; elsewhere AUD35)
3.3 Potential Marketing Opportunity
A small article in the February 6 edition of 'New Scientist' points to some research conducted at Michigan State University, USA, by Muraleedharan Nair into the pain relieving properties of cherries, especially tart cherries. According to the report, tests were conducted on the anthocyanins found in cherries to see if they could inhibit enzymes targeted by painkillers such as aspirin and ibuprofen. Twenty cherries contain between 12-25 milligrams of anthocyanins, which were 10 times as potent at blocking inflammatory enzymes as aspirin.
Advertising the fact that cherries have been added to herbal products may provide a competitive advantage for some products.
3.4 Australian Culinary Herb Growers Association
Last year a group of herb growers from around Australia got together to talk about their needs as non-organic growers of culinary herbs. A series of meetings resulted in the group applying to the National Registration Authority for permits for a number of pesticides for use on herb crops. Temporary approvals were received for 11 pesticides which can be used on culinary herb crops - the approvals apply until 31 August 2000 with long-term approvals being dependant on the submission of research data on usage and residue levels etc.
The initiating group has now formed an Association to undertake a research project into pesticide usage so that these long-term permits will be approved for the benefit of the whole industry. Pesticides are being used and will continue to be used in the industry. It is essential that usage is regulated so that the industry can avoid problems found by other countries of inappropriate residue levels and potential environmental damage.
Membership of the Association is open to commercial culinary herb growers (full) and those who are part of the industry but who are not growers (associate). For more information on the Association and on the research project contact:
Membership Officer
Australian Culinary Herb Growers Association
PO Box 737
Melrose Park BDC
Melrose Park South Australia 5039
Telephone: 08 8272 5026
3.5 Delisting Of AQIS-Approved Organic Certifying Body for Export of Organic Produce
[This delisting was subsequently reversed a few days later]
3.6 Organic Certification
If you intend to grow and market your crops as organic it is crucial that you become certified with one of the organic certification bodies:
Biological Farmers of Australia Cooperative
National Association for Sustainable Agriculture
Organic Herb Growers of Australia
Bio-Dynamic Research Institute
Organic Vignerons Association of Australia
TOPS or
Organic Food Chain.
Certification will mean a commitment to meet the Standards covering production, processing, transport, labelling and inspection set by the certifying body and maintenance of all the associated paperwork. This can seem a time consuming exercise to those new to the industry but is essential to guarantee the quality and validity of organic certification. One of the requirements of organic certification is an annual inspection of the farm and farm system.
3.7 Growers Workshop
3.8 Herbal Medicine Seminar - On Cancer
3.9 High Demand Herbs Not Currently Sourced From Australia
Before trying new species, it is important to ensure that the crop will grow, whether it is a declared secondary or noxious weed and can't be grown, whether you can get planting stock that is properly identified, how much it is or is likely to be in demand, what its agronomic requirements are, what it will cost to grow compared to the likely returns from other species etc.
3.10 Herbs Australia - Update
Issue #4: May 1999
4.1 National Herbal Medicine Week
Australia's inaugural National Herbal Medicine Week was June 12-18. This initiative was designed to broaden public awareness of the role that herbal medicine plays in our health care system.
4.2 Education For Herbalists And Naturopaths
There are now several respected Herbal Colleges and Institutes around Australia offering a high level of professional training in medical herbalism and naturopathy, requiring 3-4 years full-time study with a significant amount of clinical experience involved either in a hospital or clinic situation.
Study is being offered at tertiary level with the first students graduating with a Bachelor of Naturopathy degree through the School of Natural and Complementary Medicines at Southern Cross University, Lismore, last year. The recently formed Australian College of Herbal Medicine offers training in herbal medicine to GPs and other health care professionals to broaden their knowledge and understanding of the value of herbs in health care.
To locate a qualified practitioner, contact the National Herbalists Association of Australia, the Association of Traditional Health Practitioners or the Australian Natural Therapists Association.
4.3 Government Recognises Value Of Complementary Medicines
It has been estimated that 60% of Australians use complementary medicines at least once a year. Hence, the government, working with industry and consumer interest groups, has undertaken a review of legislation as it affects such products to improve the regulation of their development and availability to the public.
The key features of the reform package include:
The Office of Complementary Medicines was launched within the Therapeutic Goods Administration on 28 April 1999 by the Parliamentary Secretary for Health and Aged Care, Senator the Hon. Grant Tambling. It will regulate complementary medicines, be responsible for progress in implementing the reform measures listed above and play a role in the review of the Therapeutic Goods Advertising Code.
More information can be obtained from:
The Information Office
Therapeutic Goods Administration
PO Box 100
Woden ACT 2606
Telephone: 1800 020 652
4.4. Growers' Workshop Update
4.5 Herb Industry Media Coverage
4.6 Essential Oil Production
There is increasing interest among small growers in producing essential oil from their crops as a way of maximising return. Essential oils can provide good returns to growers - a look at the success of the essential oil industry in Tasmania attests to this.
However, before committing to an essential oil venture growers need to do some homework and ask the following questions:
The successful essential oil ventures in Australia are multi-million dollar ventures with a history of, and an on-going commitment to R&D. While returns can be good, the market for essential oils is very much a global market subject to instability.
Growers in the essential oil industry cultivate crops on a broadacre and not a cottage industry scale and make sure they are situated close to a central distillation unit ensuring that the fresh crop arrives at the unit in peak condition. They are usually part of a cooperative effort with other farmers with established farming backgrounds - though in some cases such as tea tree, eucalyptus and lemon myrtle, the whole process may have been developed by an individual with access to the necessary finance.
The success of the essential oil industry in Australia has been the result of a cooperative effort between growers, researchers and government and has taken many years to establish, yet it still has its ups and downs.
Small-scale growers of herb crops cannot hope to achieve the same success. Boutique production using small portable distillation units is a possibility for small-scale growers. But the same questions need to be asked:
4.7 Investing In Business
If investing in agricultural (or any other product) ventures that guarantee high returns, find out about the company heading the venture, the background of the principals, what other activities they have been involved in, what the success rate was for such activities, what the current financial status of the company is, what their expertise is in relation to the current crop/product and what their peers in that particular industry think of them.
4.8 'Herbs Australia' Update
4.9 Conference On QA In Herb Production
4.10 Australian Herb Industry Resource Guide With New Zealand Supplement
4.11 Black Cohosh - Name Change
The current issue of the American magazine 'Herbalgram' features a literature review of Black Cohosh, a herb in which growers are showing interest. According to the review of the herb's botanical nomenclature Black Cohosh, currently called Cimicifuga racemosa, should more correctly be designated Actaea racemosa L. This move to a different genus has resulted from extensive morphological and DNA sequencing carried out at the University of Reading in the UK.
Issue #5: June 1999
5.1 Essential Oil Production - Knowing What Process To Use
There are methods other than steam distillation to extract essential oils. Solvent extraction, and gas extraction using nitrogen and carbon dioxide are also important. The method depends on the plant and the oil quality required.
For example, water/steam distillation of rose petals results in a low yield of essential oil and the quality depends on the species, the oil content and the efficiency of the equipment and the operator. The preferable method with roses would be producing an extract from the petals using a chemical solvent. This process is more costly to establish but is more efficient.
The following texts are recommended:
Field Distillation for Herbaceous Oils (EFK Denny)
The Essential Oils (E Geunther, 1948)
Volatile Oil Crops (Hay & Waterman, 1993)
5.2 Nutraceuticals
'Nutraceuticals' can be defined as foods that have a demonstrated physiological benefit that goes beyond their basic nutritional content - a collaboration between food and medicine.
They have the potential, for instance, to help reduce the risk of chronic disease, help reduce cholesterol levels, increase mental acuity, improve oral care, counter depression, help with appetite suppression and in other ways help improve human health.
5.3 Disaster Can Spell Opportunity
The destruction of agricultural industries in one part of the world will inevitably lead to opportunities in other places:
Such windows of opportunity open and close quickly.
5.4 Herbal Tea Bags
A popular form of value-adding for herbs is herbal teas - single or blended herbs usually sold in cellophane bags with or without further distinctive packaging.
Putting teas into convenient tea bags greatly increases the value of the crop and, with good marketing, enables a grower to compete with recognised brands on supermarket shelves for a greater return on effort.
Tea bagging equipment can cost anything from $20,000-$25000 for a second hand machine that may bag 50-70 2g units per minute to $1million for a sophisticated machine that will bag 200 2g units per minute. At the lower end of the scale, 6-8.4 kg of material is needed to keep the machine running for an hour; at the top end, 24 kg is processed per hour. The minimum viable quantity for tea bagging machinery would probably be half a tonne.
Most growers would probably be better off seeking contract bagging if they have sufficient crop available or investing in more sophisticated packaging based on the bulk cellophane packet idea.
5.5 Landline Programme
5.6 Therapeutic Reference Manual Of Complementary Medicines
With the extensive range of herbal medicines now available in chemists, health food stores, supermarkets etc it's becoming increasingly difficult for practitioners, those who sell the products and users to know which products are best taken for specific ailments, what if any side effects are likely, and if there is likely to be a problem of drug interaction with other medications.
Doctors have MIMS as a reference to the minefield of proprietary and prescriptive medicines, the herb industry now has the 'Therapeutic Reference Manual of Complementary Medicines' compiled by Spero Tsindos and Paul Orrock (Published by TRM Publishing).
The Manual contains information on over 900 single and compound products available in Australia through the main phytopharmaceutical manufacturers, identifying recommended usage, constituents, adverse reactions, contra-indications to use, dosage, description, presentation and comments on storage, mode of action etc.
For ease of reference products are grouped according to the bodily system they are most appropriate for. An appendix identifies contraindications, adverse reactions and drug interactions of product constituents including herbs, spices, vitamins and minerals.
For more information, contact:
TRM Publishing Pty Ltd
1 Fromhold Drive
Doncaster Victoria 3108
Telephone: 03 9840 2329
Mobile: 0418 356 050
Email: tsindos@vicnet.net.au
Issue #6: August 1999
6.1 New National Herb Industry Database
For the past year, Herbs Australia has maintained a web version of the Australian Herb Industry Resource Guide on the 'Herbs Australia' Web site to enable herb businesses to promote their products and services to the internet audience. The success of this and other site activities has highlighted the potential this type of promotion has for assisting herb industry development in Australia and overseas as well.
As a result, and mindful of the need for the best input as far as information technology is concerned, we have negotiated a strategic alliance with the Canberra-based company Internet Solutions to undertake a three- stage redevelopment of the Herbs Australia Web site to increase its effectiveness in promoting individual businesses and to provide a more interactive marketing tool for the industry as a whole.
Stage 1 involves redesigning the site for easier navigation, implementation of content news database, reworking of the events/calendar database and establishment of a new National Herb Industry Resource Database.
This database will be searchable and will be able to be edited on line by listed businesses using their own unique user-name and password. A basic listing on this new searchable, internet-based National Herb Industry Resource Database will be free.
Stage 2 involves the implementation of online membership forms for the database, establishment of Istore E-commerce facilities to be offered to listed businesses and the implementation of an interactive forum discussion board.
Stage 3 involves the deployment of an upgraded Online Bookstore and the implementation of web-based email facilities.
The transition to the new site will commence in August and is expected to be completed by September.
6.2 Y2K
It is essential that all businesses start now, if they haven't already done so, to assess their Y2K readiness. You need to look at the immediate business, then work your way along the chain that is involved in some way with your business, identifying who is and who isn't compliant at each stage. If you are compliant then you still need to assess your suppliers, buyers and all the other people who may have some sort of impact on your business. For information on the Millennium bug and its implications have a look at http://www.y2kregister.com.au or http://www.year2000.gov.au
6.3 Quality Control - Who Is Responsible?
The quality of fresh herbs now available in supermarkets and greengrocers has improved markedly over the past few years. Concern for quality production plus the ready availability of 'smart' packaging mean that consumers can now buy fresh herbs that are flavoursome, free of blemishes and likely to stay that way for up to 10 days after purchase. In ideal conditions suppliers should feel confident that their product will attract consumer interest and result in ongoing sales.
Unfortunately, conditions aren't usually ideal. Often displayed under inappropriate lighting and/or temperature conditions, fresh herbs start to lose their fresh appearance, start to brown or yellow and quickly show signs of rotting. This is not likely to lead to sales of stock or improve the reputation of the particular supplier of the herb.
It would be overly optimistic to think that store managers would keep an eye on what's happening with the herbs they carry, especially as herbs are usually only a minor item in any vegetables section. Ultimate responsibility for the quality of herbs until they are sold rests with the supplier. Regular checks on how herbs are standing up to display conditions and how long they last at their peak at each store before they become unsaleable (while ensuring that those that are past their best should be removed), will provide growers with valuable information that will enable them to maintain the quality of their product - and ensure that their position as a supplier of premium fresh herbs remains intact.
6.4 Subscriber Survey
Of the 341 subscribers surveyed, 36% are growers and 19% of these have been in the industry for 2 years or more; 18% of subscribers are information providers (including researchers and students) and 50% of these have been in the industry for two or more years. Only one third of the 341 subscribers analysed have been in the herb industry for two years or more.
For further details, contact:
Focus on Herbs Consultancy and Information Service
PO Box 203
Launceston Tasmania 7250
Telephone: 03 6330 1493
Facsimile: 03 6330 1498
Email: admin@focusonherbs.com.au
Web site: http://www.focusonherbs.com.au
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:
r.fletcher@mailbox.uq.edu.au[
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GK; latest update 17 October 2001 by: RF