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Developing Essential Oils in South-East Asia Murray Hunter School of Bioprocess Engineering Northern Malaysian University College of Engineering firstname.lastname@example.orgIntroductionThe essential oil industry in Australia has been slowly declining for many years. Mid last century,the eucalyptus industry moved to Spain, South America and China. The peppermint industryfailed to grow with any momentum in North-East Victoria and Central Tasmania and all the majorplayers in the tea tree industry have ceased production, leaving only small and medium familyconcerns surviving. Developing an essential oil plantation in Australia is a massively expensiveundertaking, due to high capital set up, maintenance and processing costs. Droughts and waterregulations by local authorities have put undue burdens on those entrepreneurial enough to ‘havea go’ in this industry. New crop development in Australia has also been smeared through toomany tax minimization schemes and mismanagement, which has made potential investors shyaway from alternative agricultural investments.The development of essential oil and other natural product plantations, unless they are a smallfamily affair, would appear to be daunting due to the costs involved. Australia’s potentialcompetitive advantage in agriculture relies on product differentiation through developinginnovative products for niche markets, rather than aggregate cost competitiveness. Developingniche natural products also runs into the gambit of European regulation which puts prohibitivecosts in the way of gaining registration for potential new products. This article will look at essentialoil development in Australia and South East Asia and examine the issues involved in developingproduction in the South-East Asian region, one of the most favourable places for future naturalproduct production due to its diverse climate range, relatively low establishment andmaintenances costs and proximity to the large European, US and Japanese markets, notforgetting the large market existing in the region itself.Is essential oil production a ‘sunset’ industry in Australia?Before looking at the essential oil industry in South-East Asia and its potential, it is necessary toexamine the current state of the Australian industry and its directions.William McCartney estimated the production of essential oils in Australia in 2003 in the table 1 1below .Table 1: Estimated Current Production of Essential Oils in Australia (2003) Annual Essential Oil Production Major Production Centres (tonnes) iTea Tree 405 New South Wales, QueenslandEucalyptus Cineole type 120 Victoria, Western Australia, New South Citronellal type 0.7 Wales, QueenslandCitrus Orange 35-45 Victoria (Mildura), South Australia (Berri) Lemon 4-8 Victoria (Mildura), South Australia (Berri) Mandarin 3-4 Victoria (Mildura), South Australia (Berri)i This figure is dramatically lower now.
Grapefruit 4-8 Victoria (Mildura), South Australia (Berri)Mints Peppermint 20 Victoria, Tasmania SpearmintSandalwood 12 Western AustraliaFennel 12 TasmaniaParsley 8 TasmaniaDill 2 TasmaniaLavender Lavender 1.5 Tasmania, Victoria, New South Wales Lavandin 0.5 VictoriaLemon Myrtle 8.4 New South Wales, QueenslandLeptospermum petersonni 4.3 New South Wales, QueenslandBoronia 0.1 TasmaniaOther Oils 2.4In monetary terms, Australian essential oil production (farmgate) is approximately a $15.0 millionper annum. This is about 1.2% of total world production.Australia’s position in production and market for each essential oil are summarized below.Eucalyptus oil production is primarily made up of Eucalyptus polybractea or Blue Mallee, whichis a cineole type. There is also some production of other cineole types, including E. smithii and E.radiata. This oil competes with the lower yielding E. globules which is cultivated commercially foroil in China, Spain, Portugal and Brazil. Small quantities of Corymbia citriodora are cultivated, butthe oil cannot compete internationally with production from China. Other varieties are alsoproduced for aromatherapy and tourist products, including E. viridis, E. cneorifolia and E. dives.The eucalyptus industry is over 100 years old and enjoyed its peak production period during the1940’s when over 1000 tonnes was produced annually. Production has declined to present levelsdue to the development of anti-biotics after World War II and competition from foreign producers.Today only two main producers remain. These producers (GR Davis in West Wyalong, NSW &Felton Grimwade & Brickford in Inglewood, Victoria) have switched from wild harvesting ofeucalyptus to plantation style production, developed high oil yielding planting stock withuniversities, introduced mechanical style harvesting to decrease labour and improve costcompetitiveness. Both companies also import, refine and trade in oil and other value added 2products . Another major production area is along the Western Australian wheat belt.Current Australian production is less than 5% of total world production and is marginally 3profitable. The industry has been subject to a number of booms and crashes over the years .Whether Australia can become a major player again will depend upon the success of developinga cost advantage over other producers, the ability and success of Australian companies indeveloping markets for high grade and other value added products and the prevailing marketprice levels in the future.Tea Tree Oil (Melaleuca alternifolia) was one of the success stories in Australian essential oilproduction during the mid 1980’s with prices topping $65/kg. This attracted large numbers of newgrowers entering the industry (in excess of 350), until production exceeded demand and pricestumbled to less than $10/kg. This has shaken out the industry and the largest producers have allceased production, leaving small and medium sized producers to supply the market. Prices havebeen creeping up again this year and are reaching the $20/kg mark and still increasing, howevermany large customers including some of the major European and US retail chains who carriedthe product have discontinued it, due to lack of confidence in future supply. Likewise many majorpersonal care companies have also switched to other natural additives in their product ranges,leaving the task ahead for producers to convince the cosmetic and retail industries to support the 4product again . This unstable period has opened the door for producers in countries like China tostep up production and compete with Australian producers.
Citrus oils are produced as a bi-product of the large citrus industry centred around the Riverlandin South Australia, Murray Valley in Victoria and Riverina in New South Wales. Approximately 50-60 tonnes of citrus oils are produced annually and most of this oil is consumed domestically,which is less than 10% of domestic demand. The main oils produced include orange, lemon,grapefruit and mandarin. Citrus oil production is not internationally competitive with the US,Brazilian, Italian and Argentinean industries because of the much larger scale processing facilities 5in those countries, leading to better economies of scale .Peppermint oil (Mentha piperita) production was established in the Derwent and Huon Valleys inTasmania during the 1970’s and in the Ovens Valley, Victoria during the 1980’s. Approximately20 tonnes of oil are produced annually and sold to customers in Australia and overseas.Peppermint oil is purchased on its olfactory and taste profile by confectionary manufacturers.Players in this industry have been able to develop their niche customers, through their blends ofthe oil. Farmers involved in the production of this oil have decreased over the years leaving only asmall core of committed farmers to this crop. It doesn’t appear that this crop will be dramaticallyexpanded over the next few years. Spearmint oil (Mentha spicata) which is cheaper thanpeppermint oil is also grown in very small quantities.Peppermint harvesting in Myrtleford, Victoria6Sandalwood oil (Santalum spicatum) production was redeveloped during the 1990’s fromscattered wild collection over the wheat belt area of Western Australia, to a planned industry, 7partly in response to salinity problems . Sandalwood tree stock is both wild and plantation based.The industry has been able to redevelop because of over-utilised wild stocks of Santulum aibumin India, the existence of the species in Western Australia over sparse areas, the long length ofgrowth times (50 years) of the tree, preventing other entrants, and efficient processing andextraction methods employed by the producers. Thus Western Australia controls a scarce geneticresource, which enables industry viability. Sandalwood oil is used in fine fragrance, attars andincense and is exported to Europe, Middle East, Asia and USA.Lavender oil (cultivar of Lavandula angustifolia) was first produced in Australia by C. K. Denny atthe Bridestow Estate in 1921. The plantation currently produces approximately 1.5 tonnes of oilper annum which is valued by particular customers around the world for its specific olfactoryprofile. The remainder of the oil is sold locally and used in products sold at the estate which is amajor tourist attraction in the region. A number of small scale farmers in other parts of Australiaare also producing small quantities of lavender oil.Lemon Myrtle oil (Backhousia citriadora) is increasingly popular for its sharp citrus profile oil andthe leaves are highly valued for the production of boutique lemon teas. The tree is difficult topropagate and develop into large scale plantations, so expansion of this industry is slow. There is
not enough oil or leaf stock to satisfy the requirements of potential major users, i.e., teamanufacturers at this point of time.Lemon tea tree (Leptospermum petersonii) is produced by a number of growers in New SouthWales and Queensland for use in cosmetics and insect repellents. The essential oil is morelimited for use as a flavouring material than lemon myrtle because of its citronellal content,modifying the sharpness and sweetness of the citral constituent, so the market is more limited.There is currently excess supply of this oil as demand is not increasing at the same rate ofproduction.The Tasmanian oils. In the 1980’s a unique partnership was formed between the Government ofTasmania, University of Tasmania, Essential Oils of Tasmania (EOT) and farmers cooperatives todevelop selected herb oils in current use by the flavour and fragrance industry and new localbush herbs for the international market. This initiative attracted over proportionate funding fromthe Rural Industries Research and Development Corporation (RIRDC) to develop this industry.The project commercialized a number of oils in existing international trade including fennel oil,parsley oil, peppermint oil and dill weed oil. An investment was made in a solvent extraction plantand boronia absolute (Boronia megastigma) and black current bud concrete werecommercialized. Local plants have also been developed into essential oils and absolutes,including kunzea oil (Kunzea ambigua) and Tasmanian black pepper concrete (Tasmannia 8lanceolata) . The project had successfully developed and commercialized a number of naturalproducts suited for particular market niches and maximized the value of their products throughapplication of solvent extraction technology. It will be interesting to see the future growth of thisproject given the specialty approach taken and the number of times the company has changedownership in the last few years.A number of other oils for specialty markets are also produced in Australia, including a nativemint (Prastanthera spp.),for dried herbs and oil (around 500 kg per annum), white cypress(Callitris glaucophylla) a hardy timber tree native to the North Coast of Queensland, where smallamounts (100-200 kgs) of oil are produced as insect repellent, blue cypress (Callitris intratropica),which was heavily promoted as a therapeutic oil for cosmetic applications, but failed to gain wideacceptance due to formulation difficulties (300-600 kg), emerald cypress (Callitris columellris),around 10-30 kg per annum, other Malaleuca species, Australian nerolina (Melaleucaquinquenervia), Australian Rosalina (Melaleuca ericifolia) and Melaleuca linarifolia and dissitifolia.In most cases, the Australian essential oil industry was developed by passionate, entrepreneurialpioneers who were single minded and determined to develop their industries. These people arelegends on the Australian scene and played a paramount role in making the industry what it istoday. However, faced with international competition, these plantations have had to adapt to therealities of the international environment and develop strategies to cost minimize productionthrough mechanizing maintenance, harvesting and extraction, value add production throughspecialty products, develop niche products and niche markets, value add their business throughother activities like tourism and enter into the general trading of the oils, sourced from otherproducers, both locally and overseas to survive. The original businesses that exist today earntheir revenue from these expanded sources, rather than basic essential oil production. In generalover the last 60 years, the Australian essential oil industry has become a niche and specialtyplayer in the international market, rather than a volume supplier supported by competitive costadvantage.International interest in things indigenous to Australia enhances the market environment forAustralian niche production of essential oils. However, establishment costs with rigorousregulation and more regulatory scrutiny in the EU through REACH, the SCCP and BPD, withrequirements for GMP, HACCP, ISO and other certifications makes small boutique productiondifficult. In many cases new essential oils will have to be almost completely financed by theindividuals or companies concerned due to the reluctance of financial institutions to lend on whatthey see as speculative ventures due to a poor history of new crop development. Also hindering
future new oil development is the cut back in government funded research in this sector over thelast few decades.The International Essential Oil MarketBefore focusing on the South-East Asian region, the following is a brief summary of the segmentsof the international essential oil market.Flavour, fragrance and pharmaceutical applications for essential oils was the traditional market,with the major trade in the hands of relatively a few major organisations. Essential oils are not anend product, but an intermediate material used in the production of other products, thereforedemand for these commodities are of a derived nature, influenced by a number of factors, thatare extremely difficult to measure. For example, a citrus oil used in the fragrance for shampoo orcosmetic ultimately derives its demand from the sum of demand for the all end consumerproducts, containing the essential oil within the fragrance, on the market. Measuring this demandafter taking into account consumer demand, changing tastes and preferences, corporatedecisions as to branding and formulation are almost impossible to calculate.Over the last thirty years, the natural product revival encouraged many cosmetic companies useessential oils rather than compound fragrances directly into their products. This has become amajor market where Australian tea tree oil was one of the major beneficiaries. Linked to this trendis the aromatherapy market, which has almost doubled in aggregate demand for natural materialsin this category, over the last twenty years. However, future growth of the aromatherapy market isunder question due to some outlandish claims made about the therapeutic benefits of essentialoils, forcing regulatory authorities to heavily scrutinize in this area. Consequently, European ii iii ivRegulatory Authorities like REACH , SCCP and BPD , have begun challenging the safety of 9many essential oils and asking producers to put up a case, as why they should continue to be onthe market without safety warnings on labels. This will slow down growth in the European market,although Asian markets are growing very rapidly to compensate for this.Another market for essential oils is as a feedstock to catalyse or isolate a pure aroma chemicalfor industry use. Examples of this would include the isolation of eugenol from clove oil, cineolefrom eucalyptus oil and terpenin-ol-4 from tea tree oil. Through new applications of biotechnologythis market may grow in the near future.Many essential oils, particularly those with anti-microbial properties are finding application inagricultural chemicals as fungicides. These products are organically certifiable and with the globalgrowth in organic farming, markets are growing exponentially in this application. Further, new 10uses as plant anti-stress agents are being developed, which will enhance demand for a numberof essential oils. Agricultural application of essential oils is a future high growth area. 11Figure 1 shows the size and break-up by use sector of the international essential oil market .ii Registration, Evaluation and Authorisation of Chemicaliii The Scientific Committee on Consumer Products – previously called the SCCNFP: Scientific Committeeon Cosmetic & Non Food Products) is an expert committee set up under the EC Health and ConsumerProtection DG. SCCP reports to the EC H&CP Scientific Steering Committee on matters relevant to the ECcountries in their defined area. The committee comprises a diverse range of experts in toxicology fromindustry, the medical fields and tertiary institutionsiv Biocidal Products Directive
World Farmgate value of Essential Oil Production (USD) Cosmetics, 70, 7% Agrochemicals, 60, 6% Intermediates, 90, 8% Flavour & Pharmaceutical, fragrance, 550, 51% 120, 11% Aromatherapy, 180, 17%Current Essential Oil Production in the South East Asian RegionThe production of essential oils in the various countries of the South-East Asian region is variedin its stages of development and adopted different strategies due to different historicalbackgrounds, stages of development, sizes of domestic markets, awareness about the industryand bases of competitive advantage. This paper will cover Indonesia, Malaysia, Thailand, Laos,Cambodia and Vietnam. The Philippines is a negligible producer of essential oils, even thoughmany still believe ylang ylang is actually produced there.IndonesiaIndonesia is considered one of the world’s major producers of tropical essential oils, over USD$65 million per annum. Most of the essential oils produced compete on the international marketwith other producers, based on a competitive cost advantage, benefiting from the low labour andcapital cost base that subsistence farming provides to the industry. This base also provides theindustry with a very elastic supply of product according to prevailing world prices. Indonesia hasbeen involved in the production of essential oils since early colonial times and thus has stronglinks with the international market and also a large domestic market which is often turned to intimes of low prices.Essential oils Indonesia produces include cajuput, cananga, cassia, citronella, clove leaf, ginger, 12gurjun balsam, nutmeg, palmarosa, patchouli, sandalwood, vetiver oils and vanilla resinoid .Some Massoia bark oil is also produced and eugenol is refined from cloveleaf oil and sold as anatural aromatic chemical.Cajuput oil is produced in the Moluccan Islands, East Java and parts of Sumatra from natural 13stands. Production varies according to demand and varies from 70-150 tonnes per annum .There are over 160,000 Ha. of Ylang trees cultivated around East Java, producing around 120
14tonnes of oil . Indonesia is the major world producer of cassia oil (Cinnamomum burmanii), 15producing over 40,000 tonnes in 2000 . Indonesia also ranks as the largest producer of patchoulioil from both small holder and plantation production in Sumatra, and Java. About 1,100 tonnesare produced annually. Nutmeg production in Indonesia dominates world supply with 300-500tonnes produced annually in Sulawasi, Moloccu Islands and Aceh in Northern Sumatra. Mostproduction is small holder enterprise. Citronella production has fallen over the last 10 years inIndonesia due to poor viability, even for small holders. Annual production is around 200 tonneswith the main production areas Sumatra and West Java. Cultivation of clove trees is extensive tosupply buds for the kretek (Indonesian cigarette) industry. However clove leaf oil is still producedas a by-product of the bud production, averaging over 1000 tonnes per annum. Approximately 15tonnes of sandalwood oil are produced in West Timor and Sumba Islands. Vetiver production isdeclining in West Java from competition from vegetable farming and production has slipped overthe last 10 years from 1000 tonnes to 40 tonnes. Indonesia is the second largest producer ofvanilla to Madagascar with the industry based in Bali. It is a very labour intensive crop and takesover 3 years for the vines to grow to fruit bearing age. Once harvested they must be stored forlong periods of time to develop their fragrance. About 150 tonnes of resinoid is producedannually.A Patchouli Still in SumatraMalaysiaMalaysia’s agriculture sector is primarily based on palm oil and rubber. The country hasdeveloped a strong competitive advantage in these crops and established a well managed estatesector. However one of the disadvantages with this success is the lack of interest in otherpotential new crops. Essential oil production has been a curiosity and is not attracting seriousmainstream interest. One of the major hindrances of essential oil development in Malaysia is lackof international market knowledge and until the last decade the small domestic consumer market,thus making it unfeasible to develop a local market for domestically produced essential oils.
Tea Tree cultivated in Perlis, MalaysiaWith renewed national interest in agriculture and the biotechnology sector, essential oils arebeing viewed seriously again. There is currently around 200 hectares of tea tree plantation inMalaysia, producing small commercial quantities, which is consumed in the local market. Thismay expand over the next few years. There is also some very minor production of patchouli,citronella and lemongrass used in the local herb and aromatherapy industries.ThailandUnlike Indonesia and Vietnam, interest in Thailand is mainly in producing herbs and traditionalremedies. Essential oils are cultivated in a number of projects in small quantities foraromatherapy products and sold at retail level, thus maximizing their value and integratingcultivation and production with agro-tourism. These activities are strongly supported by the Royal 16family as with the Non-Commissioned Royal Project on essential oils . Oils produced includeLime (Citrus aurantifolia), Lemongrass, Tangerine (Citrus reticulate), Ginger, Tuberose(Polianthes tuberose Linn.), Tumeric, Vetiver, Grapefruit (Citrus maxima var. racemosa), sweetbasil, clove, citronella, Galanga (alpinia galangal), Jasmine, Kaffir Lime (Citrus hystrix), andChampaka. Many novel essential oils like Plai oil (Zingiber cassumunar) have been developed foruse in herbal therapies and small quantities of oil are marketed internationally to thearomatherapy market.(insert photo 3)Domestic sales of essential oil based cosmeticsIs a growth market in ThailandA company (Phurua Natural Oils) is operating in the highlands of Loei Province utilizing a newsolvent extraction technology developed by Dr. Peter Wilde of the UK. The benign solventemployed (HFC 134a or 1,1,1,2 - tetrafluoroethane), is a liquefied gas. It was originally developedas the "green" replacement for CFC refrigerants (the use of which was curtailed under theMontreal Convention). Because the process operates entirely at ambient temperature, theproducts are of unsurpassed quality, not damaged by heat (cooked) nor vacuum stripped (as isthe case when attempting to remove less volatile solvents such as gasoline and alcohol) nor 17exposed to acids (as with SCFE CO2 products) . A modern plant is operating there producinghigh value flower and plant extracts for the US and European markets. Products producedinclude Arabia Coffee Bean extract (Coffea arabica L.), Champaka Absolute (Michellia champaca),
Ginger Extract (Zingiber officinalis L), Rose Absolute (Rosa damascena Miller), Jasmine Absolute(Jasminum sambac L) and Tuberose absolute (Polianthes tuberosa L.).A worker preparing rose flowers for extractionLaosLoas is a landlocked country between Thailand, Cambodia and Vietnam. The country producesaround 100 tonnes of bezoin resin, integrated with shifting agricultural practices, of which about40 tonnes are exported to France. A variant of sassafras oil from Cinnamomum camphor isproduced and exported to Vietnam and China. Agarwood is produced by some of the tribalcommunities in the country. This has been undertaken through wild collection. Currentlyplantations are being developed to step up production of agarwood.Timber is currently a large industry in Laosleaving large amounts of unused land availableCambodiaCambodia is a relatively new producer of essential oils with the economy rapidly developing aftermany years of war. Most land is idle and rural populations are looking for activities to earn astable income. Currently three essential oils are being produced. Cajuput oil is produced from thewild in Southeast Svay Rieng province. Production of around 100 tonnes per annum is estimated,which is sold to neighbouring Vietnam. It is also estimated that between 100-200 tonnes ofsassafras oil is also produced and being sold into Vietnam. Pilot production of tea tree and 18lemongrass oils are also being undertaken in the country .
A still for cajuput oil in CambodiaVietnamThe cultivation of essential oils dates back to colonial times, however this industry was destroyedduring the Vietnam War. Under Government support the industry recommenced in the early1980’s, focusing on exporting to the then Soviet Union and China. Oils developed through this eraincluded basil, cornmint (Mentha arvensis) and citronella oils. With the Government allowingfarmers to decide what to grow themselves, production of essential oils followed prices. Citronellaproduction varies between 200-500 tonnes per annum and has taken up much of the market thatIndonesian production has dropped. Sassafras oil was produced from wild growing plants in LamDong Province, but banned in 2000 because of depletion of the forest. Now sassafras oil ispurchased from neighboring Laos and Cambodia to supply the international market. Between 20-40 tonnes of basil oil (methyl chavicol type) are produced annually and exported to France.Around 150 tonnes of cajuput oil are produced for the local medicinal market each year. Vietnamis reported to also produce star anise, cassia, Litsea cubeba, patchouli, palmarosa, tea tree, 19Eucalyptus citriadora, ginger and agarwood oils .As mentioned at the beginning of this section, the established essential oil industry in Indonesiadeveloped through a long history of trade links with trading companies from the country of theirpast colonial master. This continued to be a sustainable industry because of natural competitivecost advantage and large domestic market. However not many new essential oils are beingdeveloped and commercialized. The case is similar in Cambodia, Laos and Vietnam. Althoughthese industries died out during political instability and war, they have been re-established undertrade promoted through the now defunct communist block in the 1980s. Entrepreneurs both localand foreign are primarily responsible for the development of new essential oils in Cambodia andLaos. Malaysia’s agriculture is heavily influenced by focus on palm oil and rubber and thus hasbeen very slow to develop essential oils and development has relied upon entrepreneurs with thepassion and interest in this industry. Essential oil development in Thailand was also like Malaysia,slow, but recently focused on value adding agro-products as a market channel, seeking todevelop domestic demand rather than focus on the international market. Other development inThailand is focused on high value and specialty products.The Potential to Develop Essential Oils in the RegionUntil recent times, discussion and focus on developing essential oils in the region concentratedon the international flavour and fragrance industry. The key to essential oil development in theregion was seen by many experts in the flavour and fragrance industry as an exercise incompeting with other producers in other countries on competitive advantage and looking for
20markets where there was dramatic growth in demand . However demand for essential oils in theflavour and fragrance sector has dropped dramatically as a percentage, as other applicationsectors have grown outside the traditional market. If an enterprise rather than an economicapproach is taken to developing essential oils, many new opportunities emerge for essential oilproduction in the region. These opportunities are strengthened more by the continuing resilientgrowth of local South East Asian economies and their domestic consumer markets. What wehave seen from the Australian industry review is that developing essential oil production based oncompetitive cost advantage is difficult even with adequate research and development backingand modern planting, harvesting and processing technologies. Those successful in the Australianindustry are those who value add into specialty and niche products and maintain small boutiqueproduction. Successful producers have ventured into agro-tourism and developed their ownconsumer products. Thursday Plantations in Northern NSW is a very good example of this. While 21the tea tree industry struggled to survive, Thursday Plantations just grew and prospered .Although now they produce very little oil themselves, they are supporting local growers. Thaiproducers are following this model and growing successful businesses, while in Malaysiaproducers are trying to follow the extensive estate model to develop competitive cost advantageand not succeeding.The development of new markets over the last twenty years (aromatherapy, cosmetics,agricultural applications), both in specific country domestic niches and internationally is opening anew Pandora’s box of opportunities for small scale boutique industry development, rather thantraditional large scale competitive cost advantage development aimed at exporting and competing 22with other third world producers .Developing a Project
There are many advantages of developing essential oil projects in the South-East Asian region.These advantages are primarily; 1. A large area of biodiversity where it is estimated that over 70% of the world’s flora 23 species are located in this region , 2. A wide variety of climates from tropical, monsoonal and temperate, 3. Adequate water in most of the region for farming, 4. Low land and infrastructure costs (almost 1/10 of cost in Australia), 5. A growing level of natural product research and development, particularly in Indonesia, Malaysia, Thailand and Vietnam, 6. Large tax exceptions and other positive incentives and grants available in some countries, 7. Rapidly growing populations, disposable income levels and consumer markets, 8. Finance available through Government owned banks, International financial institutions and venture capitalists, and scope to develop integrated projects.The rest of this paper will examine the major issues in regards to developing an essential oilproject in South East Asia.Type of Project StrategyMost recent new promoters and investors to the natural product industries (herbs and essentialoils) tend to be individuals and companies with specific interest in downstream activities likecosmetic or traditional medicine. They view the project as a source of materials for their own usein marketing other products utilizing essential oils. Thus scale is small and profitable in the view ofthe whole enterprise. For example, United Plantations Bhd. in Malaysia produces tea tree oil fortheir own soap manufacture. Any excess is marketed as a material to other users.Other small plantations produce essential oils as an integrated herb and tourism project, whereessential oils become an important image part of the whole project. This is very popular inThailand. Some of these projects like the Royal Projects in Thailand and the Kelantan Womens’ 24Project in Malaysia are community groups organized to produce essential oils and herbs formanufacture into consumer products.Most plantations set up to cater directly for the global market have seemed to fail incommercialization, unless they are producing specialty products with demand in Europe or theUS. Potential development strategies are summarized in Table 2 below;Table 2: Potential Entry Strategies for Essential Oil Production Strategy Advantages DisadvantagesLarge scale cultivation • Low cost base in Indonesia, • Low cost countries likefor international market Laos, Cambodia and Vietnam 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 marketNew Essential Oils • No or little competition in early • Registration cost of new stages products for F&F, cosmetic • Novelty has a marketing story and pharmaceutical behind it – cosmetics & industries very high aromatherapy
Integrated Project as part • Adds synergy to the business • Business complexity greatlyof another business/ • Costs distributed across whole increasesagro-tourism/ businessconsumer products • Production becomes part of the marketing strategy • Develop own market for productionCommunity • Low entry financial costs • High organizationalEmpowerment • Assist in providing sustainable resources requiredproject/small holder income for communities insupply on buy back poverty • Becomes part of companies social responsibility activities • Marketing benefitsReasons for Failure of ProjectsBefore going any further it is apt to mention the major reasons for failures of projects. The type ofproject failure risks may differ slightly from country to country, but the general reasons are listedas follows; 1. Cultural Understanding (or misunderstanding): Each country has a unique culture with different values and those working with local Governments, companies, communities and individuals must understand the beliefs and values that are important in each country. Failure to do so can result in sometimes un-repairable misunderstandings. 2. Politics: Brian Lawrence listed politics as one of the major reasons for project failure in projects in many countries. This does not just include issues with political figures but politics and misunderstood agendas of Government agencies, corporations and 25 individuals, one may have to deal with . 3. Regulation: Getting new essential oils registered requires many studies with internationally recognized monographs prepared. This may cost more than the market is worth. 4. Market: Many new ventures have failed because they did not analyse the market correctly and found when production came online there was a glut of oil and they were not able to get the projected price in the market. 5. Identifying the Wrong Essential Oils to Produce: Many projects have failed because they just produced the wrong essential oils and couldn’t sell them competitively in the marketplace. 6. Poor Weather: Many projects have failed because of poor weather, drought, unusual temperatures which are all variables outside of the control of the producer. The el nino effect is beginning to influence the region again which could lead to prolonged droughts in some areas. 7. Poor Infrastructure: Many ventures fail because infrastructure has not being completely developed such as land preparation, irrigation, efficient harvesting and processing 26 facilities . 8. Finance: Some ventures run out of finance before the crop is ready for harvest and processing, a long time lag between harvest, processing and sale, or just poor estimation of project costs during planning and 9. Incorrect Chemotype: Many ventures have failed because of just selecting the incorrect chemotype of the plant species they are cultivating. This problem occurred in a basil oil project in the Ord River scheme in Western Australia during the 1980s. Ease of Entry into South East Asia – Investment Regulations
South East Asia is a diverse region with each country having different investment regulations and modes of doing business. Each country also has differing incentives, R&D levels and available land. Table 3 summarises the different investment and business climates of each country in the region. Table 3: Summary of Investment Climates in Selected South East Asian Countries Investment Land Infra Costs Finance Grants & R&D Local Regulation Availability Availability Incentives Capability Market SizeIndonesia Up to 100% Very limited Depend on Foreign 5 year tax Excellent Extremely equity but location Banks exception R&D large cannot own Institutes land Cannot engage in local market activities directlyMalaysia Can own Plentiful Relatively Local 10 year tax Excellent Moderately 100% (40% (can obtain inexpensive Banks & holiday R&D sized but foreign grants) Govt Various Institutes large equity Agencies, financial herbal eligible for VC grants for market financial commerciali grants) zation & R&DThailand Require Very limited Relatively Local N/A Excellent Large and board of in private inexpensive Banks & VC R&D growing investment hands Institutes especially permission herbsCambodia 100% Plentiful Require Foreign Up to Very limited Very small equity (Can obtain outside Banks negotiation local allowed grants) assistance marketLaos 100% Plentiful Require Foreign Exemption Very limited Very Small equity (Can obtain outside Banks of local allowed grants) assistance equipment market import duties 7 year tax exceptionVietnam Up to 100% Plentiful Relatively Foreign Tax Good R&D Large upon (Can obtain inexpensive Banks incentives Institutes market & approval of grants) rapidly FIB growing Going Alone or Finding a Partner Finding a partner may be advisable due to inexperience in operating in the chosen country. There are a number of options with advantages and disadvantages. Government agencies and semi Government organizations are common partners in South East Asian development projects in all the countries concerned. One must be very careful that your vision and objectives are the same as the agency’s. Another problem when dealing with a statutory body is personnel will be moved around from time to time and the group you negotiated with may not necessarily be the same group you work with. In South East Asia one must also be aware of individual personal agendas, which if not understood and addressed could lead to future difficulties. Government Agencies in the two socialist countries may be extremely formal and bureaucratic. Large public companies are another option and there are also a number of intracompany political dynamics that need to be looked out for. Small business and individuals are another group and building up personal relationships and clearly defining both parties roles is extremely important if misunderstandings in the future are to be avoided.
Finally cooperatives and community groups are another option and negotiating with theseforms of organizations require patience and re-explaining a number of times.The author with the Vice President of theLao Peoples Democratic Republicdiscussing essential oil developmentCommunication in South East Asia is completely different than in the West. Many deals andventures have failed to conclude and materialize because of misunderstanding the culture,values, beliefs and expressions of these. Generally Asians seek harmony with a group andprefer not to be confrontational in negotiations. Thus agreement with a nod may not meanthat they are in agreement with you and your idea. Western cultures accept up frontdiscussion, where the verbal message contains all the meaning, whereas Asian culture thereis need not just to focus on the content, but the tone, expression, ambiguous language and 27actions to understand what is really meant . Many of the more conservative Chinesebusinesspeople in South East Asia will toss around various ideas and scenarios over anumber of meetings over a period of time, where westerners will feel they are getting no-where. This is the process building up a relationship with the one they will be working with ona long term project and this process is much more important than any future contract signed 28between the parties , as the person during this process will be continually sizing up theother’s commitment, ideas, thoughts, honesty and vision. Without understanding the cultureand in particular its values and beliefs, one will not really be able to understand what is reallygoing on. One recent potential investor to the region commented “I feel that I am in a paralleluniverse….we have got nowhere”.Another important point in the selection of partners is that many people that one may meetand negotiate with may have little idea about essential oils and the concepts being conveyedand little experience in negotiating with foreigners. This will be the case with someGovernment agencies in Indonesia, Laos, Vietnam and even parts of Malaysia. Privatebusinesspeople may be in the same position, so the process of negotiation will take a longperiod and great patience and many visits maybe required.It is normal in this region that the negotiation period could take up to two years. A lesson canbe learnt from Japanese investors in South East Asia. When they come, they know thelanguage and are quite comfortable staying long periods of time in the country concerned toexpedite and finalise this process. A number of short visits to the region will not achieve muchuntil all parties really know each other and compromise on a common vision.The Development Process
The rest of this paper will describe the major issues involved in developing a project. It isassumed that the crops have already been selected. The following comments refer to aproject between 20-100 Ha in size. It is best to develop a complete plan and budget beforetouching the land so that all work required is estimated and budgeted for. In addition to afinancial budget, a manpower and resource budget is necessary. This means that every inputrequired for the project must be sourced prior to requirement, so it is available when needed.This is very important during nursery, planting, maintenance, harvesting and processing workand for organic farming where bio-materials will be required to convert into mulches andfertilizers.Land SelectionSite selection is a very crucial issue as the conditions and available infrastructure and accessto transport and communications greatly varies across the region. Important issues are thesuitability of the soil for the type of crops that are planned to be cultivated, the drainage of theland, availability of water for irrigation, access to available labour, access to transport, accessto support services like engineers for building and servicing equipment and prior use of theland.Land selection will have a crucial bearing on the cost of the project. Developing drainage,irrigation systems, land preparation and other infrastructure as fences to keep out cattle, etc.,is very time consuming and costly. Soil types can vary over a single parcel of land and thismust be surveyed before a plantation schematic is designed.If the project is going to be developed with agro-tourism in mind, then the project should berelatively accessible to high traffic tourist areas in the region. These areas include West Java,Central Java, Bali, Melaka, Penang, Terengganu, Kelantan, Sabah & Sarawak, Trang,Phuket, Krabbi, Hua Hin, Chang Mai, Nong Kwai, Udon Thani, Vientiene, Hue and Danangfor example. Climate is very different in each area ranging from tropical, monsoonal withspecific and long dry periods, sub tropical and temperate.Land DevelopmentActual land development once the final site is selected can take up to a year before anythingcan be planted. Fields need to be leveled and a gradient for rain run-off established withadequate drainage to ensure fields are not water logged. Poor fertility soil patches need to beidentified and corrected. Irrigation ponds are required and must be coordinated with thedrainage system. Roads for workers and equipment need to be developed around the fields.A seed propagation facility and nursery needs to be established. Some sort of erosion controlstrategy is required. Vetivert is a good crop to use to prevent embankments eroding.A distillery and waste management area has to be build up and finally other infrastructure forstoring tractors and equipment, worker housing (if necessary) and facilities for tourists.
Almost complete NurseryBuilding a pilot distillery plantReclaiming swampy landGenetic Stock and PropagationCrucial to the success of the project is identifying the correct genetic material to develop aplantation from. Some essential oil bearing plants have a number of chemotype variants andthese must be correctly identified before increasing the population by propagation. There will
also be variances in yields and oil quality in different materials of the same species. Theseissues can be examined through replicated experiments in the pilot stage of production.Propagation usually is undertaken through seed, cutting and grafting, vegetative propagationor tissue culture. Propagation and the nursery activities are costly and time consuming, sothe correct strategy must be selected to produce enough plants for the field at the minimumcost. It is better to develop gradually and plant incrementally so that mistakes can beidentified earlier on, rather go all out for a single planting.Once the nursery has been used for initial propagation, the complex can be utilized for furtherexperimentation of new species and variants. The nursery can become a profit centre forcontract growing of herb and exotic plants, especially if agro-tourism is also being developed.Pilot ProjectThe pilot project is also part of crop selection to monitor the performance and growth of newplants to the area. This process also enables examination of how some plants from the wilddomesticate in a plantation regime. Levels of nutrient and water application can also betested and monitored to determine the best practices needed to achieve the best quality andyield of oil from the crop.Basic questions that should be answered during this phase are;a) Will the plant grow well in this environment?b) Are there any climatic restrictions?c) Can the plant be integrated with other crops?d) What are the potential problems?e) What are the economics of the crop?f) Does the yield and quality look promising?g) Does planting time affect the growth?h) What are the optimum plant spacings?i) What is the projected yield per Ha.?j) What is the diurnal fluctuation in the oil yield?Planting & MaintenanceDue to low labour costs, planting can be undertaken manually for crops that don’t requirereplanting for many years. This is suitable for tree crops like eucalyptus and tea tree, etc. Forseasonal essential oil crops that require replanting every couple of years, small inexpensivemechanical planters can be used. Plant spacings must be designed to take account of boththe area each tree requires for maximum bio-mass production and allow for mechanicalharvesting.
Manual plant of kesum (Persicaria odoratum)Small scale planterThe single most perplexing issue in South East Asia is weed control. Conventional herbicidescan be used but really not conducive to the cultivation of herbs and essential oils, if we wishto maintain the persona of a natural product. This is thus a very challenging task in this regionas weeds can literally grow 10 cm in 24 hours after rain. Plastic lining along the fields can beutilized, manual weeding, butane burning or the use of cover crops. The author isexperimenting with a herbicide developed through enzymes. This produces as generalspectrum efficacy and has proved quite successful.Field definitions, contours and drainage systems need to be maintained due to the highvolume of water through rainfall during the wet seasons. Time must be allocated after eachharvest to maintain the fields and drainage.Pests & DiseasesPotential pest and diseases are usually identified during the pilot project, thus allowing time todevelop a strategy to combat this problem. Prevention is the best form of defense and SouthEast Asian is blessed with the neem (Azadirachra indica), which in four years of use invarious areas of the region, the author has found to be much more effective thancommercially available pesticides. Neem extracts can be prepared on site from both theleaves and fruits and in an aqueous solution applied to the soil under the crops. Neemextracts attack the pathology of insects in a different way to conventional insecticides, acting 29to disrupt the insect lifecycle, preventing multiplication, rather than outright killing them . Theauthor has observed that neem has a much longer residual effect than conventionalinsecticides and insects fail to develop any tolerance to the extract. By having your own trees
lining the roads and perimeter of the plantation, one can lower input costs in the maintenanceperiods through producing your own extract and less need to spray crops.HarvestingEvery crop will require a specific method of harvesting. Where possible the harvesting systemshould be integrated with the distillation and processing system. There are a number ofsystems around the world, some fully mechanized while others still rely on traditional andmanual methods. How fully mechanized the project should develop depends upon land sizeand economics of the crop.Taking a harvest of tea tree to distilleryExtraction ProcessingDistillation is an age old process and plants around the world vary in their sophistication, assome of the pictures accompanying this article denote. Most plantations start with a verysimple system and over time and experience periodically upgrade their systems as theylearn. The mint industry in the Ovens Valley, Victoria built three systems before they went tohighly mechanized bin harvesting system. Distillation of essential oils is as much an art,learnt by experience and particular processes vary according to the crop and even factorslike how much moisture is in the bio-mass.One critical issue to distillation is the fuel source to develop heat energy to produce steam forthe process. Diesel is the usual choice on modern plantations, although subsistence farmersin Indonesia, Vietnam and Laos use firewood. The cost of distillation is the highest single costin producing essential oils. Bio-fuels are an area of extensive research in the region and atPrince Songkhla University (PSU) in Thailand, a small bio-diesel conversion unit has beendeveloped that is adequate for the production for a single farm environment, utilizing 30feedstocks like Jatropha curcas . In this situation some land should be allocated in theproject for cultivation of a bio diesel feedstock. Other possibilities could include the use ofspent rice paddy husk or palm oil refuse as an energy source.
Running the distillery at nightFarm scale bio diesel plantsOrganic FarmingOrganic farming means different things to different people and it is growing in South EastAsia, not for the same reasons as in the west. Organic farming in South East Asia lowers thecost of inputs and assists in creating better incomes to the farmers. In many places organicfarming is still practiced as slash and burn, but this is not sustainable. Organic farming as wellas a means to provide chemical free produce is a whole mindest about solving everydayproblems of farmers who face the problem of maintaining sustainability of their land. Organicfarming is way to maintain soil fertility and prevent soil erosion, control pests and diseasesand utilize wastage back onto the farm.Organic farming methods vary greatly from location to location because of different criticalissues that need to be addressed by farmers in each locality. Heavily influencing what typesof practices can be used is what bio-materials and wastes are available in each location.Specific recipes for fertilisers and mulches are developed from what is available. Thecommon theme is integration and a holistic approach to farm management with the objectiveof maximizing sustainability.Organic essential oils are a small market segment but have a market value up to three timesof conventionally produced oils. In the aromatherapy and cosmetic markets, organically
produced oils are more important. This is an advantage for niche essential oil production inSouth East Asian, as input costs are less for organic farming than conventional farming.Newly completed facilities for organicfertilizer preparationRegulation & ApprovalsAs a flavour and fragrance ingredient used in the international market, any new essential oilsmust be of the GRAS list (Generally Regarded as Safe). The EU has the REACH regulations.In Australia a new essential oil will most probably require registration under the NationalIndustrial Chemical Notification and Assessment Scheme (NICNAS). As a cosmetic, personalcare and industrial oil, the material will have to be registered under the FDA in the UnitedStates, SCCP in the EU, NICAS in Australia and with each relevant board in South East Asia.Therapeutic ingredients must have a monograph listed in a pharmacopoeia and in Australiaunder the Therapeutic Goods Act (TGA) and similar bodies in South East Asia. As aninsecticide, veterinary or agricultural material the product would be registered under theAustralian Pesticide and Veterinary Medicines Authority (APVMA) and similar authorities inSouth East Asia.If the oil is sold to other users in the manufacture of consumer products, they may requireISO, GMP, GAP and HACCP accreditations. Halal, Kosher and organic certifications will alsobe required if the relevant claims are made.Downstream ActivitiesTourism is one of the largest industries in the South East Asian region. Agro-tourism isdeveloping very successfully in Thailand and these tourist centres cater more for locals thanforeign tourists. Herb plantations have luxurious spas and accommodation and are verypopular. Tourism has become a major source of income, up to 60% of some projects. Mostplaces also sell their products through websites connecting their concept and theme to boththe tourism aspect and use these images and goodwill to launch consumer brands. Thetourism aspect of the project synergizes with the marketing of the products, thus turning theproject into a totally holistic business. This is not unique to South East Asia, some Australianessential oil producers undertake this strategy, as do some of the essential oil productionhouses in Grasse, France.
The cosmetic manufacturer can utilize this type of project to strengthen their image to the consumer. The project is proof that the company is serious about sustainability and bringing the consumer the naturalness purported on the labels. South East Asia is a source of herb extracts and these are synergistic to essential oils in the marketplace. The emergence of bio- active products utilizing enzymes is another growth area in the industry that can utilize materials produced through the project. ConclusionThe farm-gate value of Australian essential oil production is around AUD $15.0 million, but addedvalue is in excess of AUD $100 million with consumer products and integrated business activitieslike agro-tourism. As a competitive cost advantage producer, the Australian industry record hashad its failures in the eucalyptus and tea tree oil industries. Indonesian production is primarilycommodity based essential oil production and trading and is subject to the cyclical price trends inthe market which destroys continuity of the industry. Products that are the result of wild collectionof bio-mass are under threat from over-exploitation. As a competitive cost advantage producer,Indonesia is also struggling to sustain the production of a number of crops, even though itdominates some markets and exports crude oils in excess of AUD $90 million per annum. Laos,Cambodia and Vietnam are following the Indonesian strategy and those industries will prosper orsuffer according to prevailing prices in the market. Thailand has developed both niche andspecialty production returning to small scale production with a market they can control. This iscreating empowerment for some communities, where production is by the people and for thepeople in community projects linked by the One Tambon One Product Program. This is a modelthat one would expect to be emulated more in the future by communities in other countries as we 31return to the philosophies of Schumacher in his revelation Small is Beautiful , rather than the 32development economists telling the third world how to develop themselves . Kao et al reflectsthe growing move by companies being concerned about society as follows, “If serving people isthe philosophy of the corporation, then the corporate value system must be the spirit that drivesthe individual to act for the individual’s interest and the interest of the corporation, and thereby, of 33society” .New business models for new markets are allowing more innovation in essential oil production, 34which was locked into a commodity item with a commodity mentality . Many essential oilplantations around the world heavily rely on tourism as a primary source of revenue. South EastAsia is a very important tourist destination and there are many opportunities for projects to bedeveloped. As a cosmetic manufacturer trying to develop an edge in image with the consumer,such projects may become very appealing where consumers want to know that the companymanufacturing the products they buy is really concerned with the environment, committed toharmony with nature and helping the global community.Consumer wants for the natural and exotic will continue to be a major theme in cosmetics andpersonal care and essential oil production will be needed to cater for the quickly changing trendsin the market – that something new that consumers want and manufacturers look for. Scalingdown to boutique production through an integrated project or through communities in South EastAsia would be a corporate strategy that would make sense to some people. It is also likely with70% of all flora species in the region that new natural materials are likely to require feedstockssourced from this region. Low cost biotechnology processes will allow small scale production ofmany new specialty cosmetic products, which will have some influence on the markets in the nearfuture. South East Asia with this diversity and rapidly growing markets again after the recoveryfrom the 1997 crash, will be the location to develop business with more holistic strategies.1 McCartney, W., T. An Introductory Overview of the Essential Oil Industry in Australia, in Green, C.,(Ed), Proceedings of the IFEAT International Conference 2003: Australia and New Zealand: Essential Oils
& Aroma Chemicals – Production and Markets, International Federation of Essential Oils and AromaTrades (IFEAT), London, UK., 2-6 November 2003, P. 4.2 Abbot, P., S. and Abbot, C., The Australian Eucalyptus Oil Industry, in Green, C., (Ed), Proceedings ofthe IFEAT International Conference 2003: Australia and New Zealand: Essential Oils & Aroma Chemicals– Production and Markets, International Federation of Essential Oils and Aroma Trades (IFEAT), Vol. 1.,London, UK., 2-6 November 2003, pp 18-28.3 Boland, D. J., Brophy, J., J. and House, A., P., N., Eucalyptus Leaf Oils: Use, Chemistry, Distillation andMarketing, Melbourne, Inkata Press, 1991, P. 10.4 Davis, R, L., The Australian Tea Tree Industry, in Green, C., (Ed), Proceedings of the IFEATInternational Conference 2003: Australia and New Zealand: Essential Oils & Aroma Chemicals –Production and Markets, International Federation of Essential Oils and Aroma Trades (IFEAT), Vol. 1.,London, UK., 2-6 November 2003, pp 29-40.5 McCartney, Opt. Cit., P. 10.6 Photo courtesy of Mr. Fred Bienvenu, Dept. Agriculture, Victoria7 Birkbeck, S., The Australian Sandalwood Industry, in Green, C., (Ed), Proceedings of the IFEATInternational Conference 2003: Australia and New Zealand: Essential Oils & Aroma Chemicals –Production and Markets, International Federation of Essential Oils and Aroma Trades (IFEAT), Vol. 1.,London, UK., 2-6 November 2003, P. 41.8 Nguyen, N., The Essential Oil Industry in Tasmania, in Green, C., (Ed), Proceedings of the IFEATInternational Conference 2003: Australia and New Zealand: Essential Oils & Aroma Chemicals –Production and Markets, International Federation of Essential Oils and Aroma Trades (IFEAT), London,UK., 2-6 November 2003, P. 47-56.9 Directive 2003/15/EC of the European Parliament and of the Council of 27th February, 2003, EN, OfficialJournal of the European Union, 11.3.2003, 1.66/26-3510 Bodapati, P and Cameron, D., F., (1999), Reducing Plant Stress Using Australian Melaleuca; A Reportfor the Rural Industries Research and Development Corporation, Canberra, RIRDIC, December.11 Hunter, M., Developing Essential Oils in Malaysia as a Global Industry, Paper presented to the 2ndMalaysia Agro-Bio Business Conference 2006, Putra World Trade Centre, Kuala Lumpur, Malaysia, 13-14th July, 2006.12 Hunter, M., The flavour and fragrance industry: structure and future trends, Cosmetics, Aerosols &Toiletries in Australia, Vol. 9., No. 6.,March 1996, P. 21.13 http:///www.fao.org/docrep/X5043E0g.htm (accessed 21st September 2006)14 http://www.worldforestry.org/sea/Products/AFDbases/af/asp/SpeciesInfo.asp?SpID=18103 (accessed 21stSeptember 2006)15 Johnson, R., A., Cinnamon and Cassia – Past, Present and Future, , in Green, C., (Ed), Proceedings ofthe IFEAT International Conference 2003: Australia and New Zealand: Essential Oils & Aroma Chemicals– Production and Markets, International Federation of Essential Oils and Aroma Trades (IFEAT), Vol. 3.,London, UK., 2-6 November 2003, pp. 133-147.16 http://www.nco-project.com/eng/about_us.html.17 Wilde, P., Establishment of a new natural aromatic oils industry in Thailand, paper presented to the 4thMalaysian International Conference on Essential Oils and Fragrance and Flavour Materials (MICEOFF4),held at Putra Palace, Kangar, Perlis, Malaysia, 8-11th May, 2005.18 Shrimpton, N., V., Essential Oil Production in Vietnam, Cambodia, Laos and Burma, in Green, C., (Ed),Proceedings of the IFEAT International Conference 2003: Australia and New Zealand: Essential Oils &Aroma Chemicals – Production and Markets, International Federation of Essential Oils and Aroma Trades(IFEAT), Vol. 2., London, UK., 2-6 November 2003, P. 184-190.19 Shrimpton, N., V., Opt. Cit.20 See for example;NRI, (1979),The Market for Mint and Menthol, Chatham, UK, Natural Resources Institute,NRI,( 1979), The Market for Selected Herbaceous Essential Oils, Chatham, UK, Natural ResourcesInstituteNRI, (1982),Selected Market for Essential Oils of Patchouli and Vetiver, Chatham, UK, Natural ResourcesInstitute,NRI,( 1983), Selected Markets for Essential oils of Lime, Lemon and Orange, Chatham, UK, NaturalResources Institute,
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