This document discusses developing an essential oils industry in South Africa by transforming rural farmers into a major essential oil producing network. It outlines a strategic approach involving close-circuit business development, value and supply chains, industry incubation, and specialized support services provided through strategic partners. Case studies are presented showing how certain essential oils like vetiver could generate significant revenue and returns on investment through cultivation and production. The goal is to disrupt the market and displace established leaders through innovative rural development of essential oils.

1. “Essential Oils….
The gold of the agricultural sector”

2. To transform Rural Farmers into
the biggest essential oil
producing network in South Africa

3. Disruptive innovation
• that creates a new market and value network
• and eventually disrupts an existing market and
value network, displacing established market
leaders and alliances
• The term was defined and phenomenon
analyzed by Clayton M. Christensen beginning in
1995.

4. A disruptive innovation
• Initiation - Analyse your current business model
• Ideation - Not always brand new ideas, you look
at about 55 Business Paterns
• Integration - Adapt, refine or combine
• Implementation - Implementing Carefully – Keeping
in mind Success Factors and
Pitfalls

5. Close-circuit
Business
Development
Value
Chain
Supply
Chain
Business
Support
Industry
Incubation
Seobi’s Strategic Approach

6. SEOBI deliver specialised support and services to incubatees
with the assistance of strategic partners (Just a few listed
below)
Collaborative support and services to develop Essential
Oils Enterprises

9. September 2015

10. December 2015

18. .. Company 2010 2011 2012 2013 2014 Est. 2014
Rank .. =US $ =US $ =US $ =US $ =US $ Market Share1
1 Givaudan $4074.6 $4433.4 $4541.8 $4715.9 $4818.5 19.4%
2(3)
Firmenich $2673.7 $2,985.0 $3083.3 $3186.4 $3291.1 13.2%
3 IFF $2622.9 $2,788.0 $2821.4 $2952.9 $3088.5 12.4%
4 Symrise $2086.5 $2205.5 $2230.6 $2431.6 $2818.0 11.3%
5(4)
Takasago $1310.9 $1425.4 $1491.1 $1345.0 $1247.1 5.0%
6 Wild Flavors NA $905.3 $1077.4 $1189.0 (est) ~$1241.3 (est) 5.0%
7 Mane SA $637.3 $738.3 $820.8 $960.7 $1022.1 4.1%
8 Frutarom $451.1 $518.4 $618 $673.7 $819.5 3.3%
9 (6,7)
Sensient Flavors ~$582.6** ~$619.7** $715.2** $736.1** $724.7** 2.9%
10 Robertet SA $480.8 $483.7 $508.6 $517.4 $518.4 2.1%
11 (4)
Huabao Intl. $355.7 $392.9 $407.7 $408.4 $436.0 1.8%
12 (5)
T. Hasegawa $515.5 $545.8 $556.3 $462.9 $425.5 1.7%
... Top 12 $15791.9 $18086.5 $18872.2 $19580.0 $20450.7 82.2%
All Others $6208.1 $3713.5 $4027.8 $4327.6 $4439.3 17.8%
$22,000 $21,800 $22,900 $23,907.6 $24,890

19. Internships:
•Agronomy
•Horticulture
•Business support
•Social facilitation
Masters:
•MoU with ARC, NWU, TUT
•Moringaoleifera
•Nematode management
New development
Internships & Masters studies

20. Jobs
• NC, EC, LIM
• 12 jobs = 36jobs
• R2.4mil @ R200 000p/p
• 360kg = R720 000x3=R2.1mil
• 360kg = R8.2million
• X3 R24.6million
ROI = R2000000

21. 6 Hectares Pilot
• NC, EC, LIM
• 360kg = R720 000
• 360kg = R8.2million
• R24.6million

22. • 6000kg = R12million p/a
• 10mil - R230
• 600 000 - R138million p/a
• R12million vs R138million
•
• 240% vs 2760% = R414million

23. Uses:
• Herbal skin care – perfumes, antiseptic
• Soil and water conservation
• Animal feed
• Crop protection and pest repellent
New development: vetiver
Chrysopogon zizanioides
(vetiver)
Roots harvested Oil steam-distilled

30. THANK YOU