Issue No 3, January 1995.

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.

7. Summary of Two International New Crop Conferences Recently Held in Argentina-Implications for Australia

Peter Milthorpe
NSW Agriculture and Fisheries
PO Box 300, Condobolin, NSW, 2877, Australia

Dr Lennox Davidson has also sent a Letter to the Editors on his impressions of these Conferences. It is included in this issue.

The Ninth International Conference on Jojoba and Its Uses and the Third International Conference on New Industrial Crops and their Products were held in Catamarca, Argentina from September 26-30, 1994. The conferences were attended by over 200 people from at least 25 countries, and they heard of new developments in the jojoba industry as well as in a dozen other potential industrial crops.

Australia was represented by a contingent of seven people, who were mostly interested in jojoba. This group included four jojoba growers and a nurseryman who commercially propagates jojoba. The conferences provided an ideal forum to update progress with research and development on new industrial crops and to assess Australia's potential for their production.

Worldwide, there are now more than 12 000 ha of cultivated jojoba producing about 2500 tonnes of seed annually. Although jojoba is grown on each of the continents, the Americas currently produce the bulk of the seed. At least fourteen other countries have now commenced planting jojoba so the areas of major production are likely to change in the next decade.

Australia is the only country where jojoba plantations are being established within the recognised cropping zones. In all other countries, jojoba, with its extreme xeromorphic attributes, has been used as 'a plant of last resort' to exploit arid environments. These plantations are being encouraged by a range of taxation and political benefits that the grower receives for developing a region which is otherwise agronomically valueless.

Australia and Israel have supported their jojoba industries with a program of agronomic research and varietal selection. In other countries, the selection work has not been carried out or little attempt has been made to validate early selections. Because of this, crop management has had to rely heavily on environmental manipulation rather than the genetic attributes of selections for successful production. The need to use saline and often deep water supplies adds to the difficulties of producing high yielding crops in some areas.

Given the vast area of land in inland Australia which is climatically suited to this crop and the availability of suitable varieties, Australia is in a good position to capitalise on the potential of jojoba. As a result of a comprehensive long-term research program, Australia now has a number of varieties which are genetically suited to the environment and are not reliant on risky management techniques which, by necessity, are being used by other countries.

The present world consumption of jojoba oil is around 1200 t p.a., about 90% of which goes into the cosmetics industry. The cosmetics industry has only recently become established in many Asian countries and is far from saturated. The use of pure jojoba oil as a skin conditioner is gaining rapid popularity throughout the world, adding another product to the cosmetics range.

A concerted marketing program is required to fulfil the potential of jojoba. The number of American processors and marketeers has contracted in recent years, mainly due to variable supplies of oil, but the number of oil crushers has increased. Much of the oil is sold through brokers and the sellers have been accepting the best available price offered. There are only a few groups that are actively marketing the oil and its products.

In an overview presented at the conference it was stated that "the total world market potential for jojoba oil has been projected by some sources to be 64 000 t p.a." Other sources have predicted that industrial uses exist which would utilise up to 200 000 t p.a.

The conference was also informed of two new important developments in jojoba products.

Firstly, jojoba oil can be used as a low absorption cooking fat in the preparation of processed foods; in controlled proportions, this reduces the gross energy absorbed. The studies which were carried out on both animals and humans showed a decrease in the amount of fat absorbed and a lowering of the cholesterol levels in the subjects. These findings were presented in a paper describing several years research by Nestlé in Switzerland. Once FDA approval has been obtained for the use of jojoba oil in this manner a huge new market for jojoba oil will be opened.

Secondly, jojoba meal can be used to restrict feed intake in animal production systems. Research work in Belgium has shown that the incorporation of 4% jojoba meal (which contains the appetite suppressant, simmondsin) into the ration of broiler pullets restricted their feed intake to a level which gave favourable muscle to fat ratios, eliminating overfat birds. This work raises the prospect for using the meal which is presently considered a waste product not only in the poultry industry, but also in other feedlot enterprises.

The key to market development and pricing is stability of production. Market development of jojoba oil during the past few years has been cautious due to uncertain supply caused by large yield fluctuations. This has restricted further demand for jojoba oil and curtailed product development. The unusually high yields obtained in North America over the past two years in conjunction with an almost non-existent marketing plan, has created a temporary oversupply, exacerbated by the fire sale of several growers who ceased operations.

From comments made at the Conference it appears that only a few growers are actively engaged in the marketing and market development of jojoba oil and its products. Many growers simply leave the sale of the seed or oil in the hands of their brokers. Those who undertake their own marketing appear to gain price premiums of a least 50% above the quoted price range.

The oil price for budgets prepared for Australian plantings has been $A7-10 per litre, which, although conservative, was selected as the probable long-term price range. In this range, Australia would be very competitive, even at present prices for oil. The high value-to-weight ratio and stable nature of the seed and oil make it an excellent commodity to handle in terms of storage, transport and trade.

Australia is just recommencing the establishment of the jojoba industry based on the use of selected varieties which have a proven yield record. Until now there has been a restriction on planting due to a lack of 'mother' plants and it has only been possible to plant about 50 ha to date with the improved varieties. However, by next year there should be no restrictions on availability of planting material. Interest in establishing jojoba has been high and there are indications that at least 2 000 ha could be established in Australia over the next five years.

In the past two years there have been four field days/seminars conducted on jojoba, mostly at the request of farmer groups. As a result of these functions and the interest shown by the participants an 'Association' has been formed which aims to keep its members informed on developments in the industry.

It is well recognised by the current producers that market development is the key to successful development of jojoba in Australia. As production increases there will be a need for the ordered development of the many potential products which come from jojoba oil and its meal. There is interest at present to formalise the nascent 'Association' and then utilise it to oversee the task of marketing.

The potential market for the oil alone is conservatively estimated at $A512 million p.a. without value-adding. Production for such an industry would require about 130 000 ha of land. As the bulk of the sales would be offshore, the industry would become a valuable export earner for Australia. The crop also offers many other advantages at the local level, including a new land use enterprise which not only hedges farmers' incomes but which can easily be assimilated with other land-use practices.

Increasing salinity through rising water-tables (caused by annual crops and pastures grown on cleared land) as well as the inability of traditional crops to support farmers, has created intense interest by farmers to find alternative crops.

Jojoba with its perenniality, deep rooting ability and drought resistance is one alternative. Not only is it environmentally friendly, but it can also easily be integrated with other farming practices, such as alley farming, to reduce groundwater recharge and afford wind protection.

The need to diversify into other sustainable crops has been further re-reinforced by the current drought throughout south-eastern Australia. However, farmers are presently severely constrained financially from being able to shift from one enterprise to another. They do not enjoy some of the political and tax savings advantages that farmers in other countries receive from their governments. Some of these financial constraints faced by farmers could be removed by a government initiative to support them to diversify into such crops as jojoba.

Australia is in an excellent position to capitalise on the potential of jojoba if it can combine the skills of its farmers with plantings of adapted varieties in areas having suitable land and climate.

There was keen interest at the Catamarca Conference in a number of new industrial crops, particularly from the industrialised countries of the Northern Hemisphere. The crops which received greatest attention were kenaf, guayule, Lesquerella and chia. Collectively, there were about the same number of papers devoted to these crops as to jojoba, with the remaining third of papers dealing with minor crops and general subjects. Because the two conferences were run concurrently and as my main interests were with jojoba, I was only able to sit in on a few papers dealing with these crops. Although abstracts for all papers were available at the conference, the Proceedings will not be published before April 1995.

Kenaf is receiving attention for its potential in fibre production in the paper and textile industries where it has potential to replace forest products. It is also one of several crops which may be used on 'set aside' land in Europe and North America. Further work using different lines may give birth to a new industrial crop in the better-watered agricultural areas in Australia.

Guayule, which has previously be evaluated in Australia, has renewed potential for commercialisation through the supply of non-allergenic natural rubber. The marked increase in use of protective coverings following the HIV epidemic has resulted in an explosion in the number of people who have become sensitised to rubber. Once sensitised, a person is unable to undergo surgery unless non-allergenic surgical equipment is available. Guayule is the only plant which can produce this product. Low production and price for rubber have been the major constraints to the commercialisation of guayule in Australia. If demand for guayule rubber for use in surgical products is sufficiently high, with commensurate pricing, then a reassessment of its potential in Australia will be warranted.

Lesquerella and chia have potential for the production of oils which have specialised industrial application, as with other minor crops, including cuphea. It would appear that crops, such as chia, may have some application in Australia, particularly in the summer cropping areas for use as a break crop in traditional cropping systems.

New crops, and new industrial crops in particular, have received little support in Australia to date. This was very obvious at these Conferences as all but one of the Australian attendees were from private enterprise and only one was directly interested in new industrial crops other than jojoba.

This is due to the policy of supporting traditional food and fibre industries which, while successful in the past, are currently experiencing major financial and environmental difficulties. The level of support and interest expressed in new industrial crops by people from other countries suggest that Australia could miss opportunities to diversify into them if the current policy is not changed and more resources directed into new crop research and development.

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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originally created by: GK; latest update 6 June 1999 by: RF