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ESSENTIAL OILS MARKET VALUE CHAIN PROFILE
1. OVERVIEW AND DESCRIPTION OF THE ESSENTIAL OILS’ INDUSTRY An essential oil is a liquid that is generally distilled (most frequently by steam or water) from the leaves, stems, flowers, bark, roots, seeds, fruits or other organs of a plant. Using the different technologies available essential oils are sourced from over 3,000 plants of which approximately 300 are of commercial importance. Most flowers contain very little volatile oil and their chemical components are too delicate and easily denatured by the high heat used in steam distillation. A solvent such as hexane or supercritical carbon dioxide is used to extract the oils. Extracts from hexane and other hydrophobic solvents are called concretes, which is a mixture of essential oil, waxes, resins, and other lipophilic (oil soluble) plant material. The majority of essential oils are usually obtained from agricultural plants but a number of oils are collected from wild sources including trees. The strengths of essential oils
• They are antibacterial, antiviral, antifungal, and antimicrobial. • Essential oils by-pass the digestive system so they are beneficial for people with
poor digestion/assimilation. • They require no refrigeration and require very little storage space. • They have the longest shelf life of any plant known to man. • Essential oils are highly oxygenating. • They are very cost-effective because they are one of the few substances that the
more you use them, the less you need them. • They are suitable for babies since they cannot swallow tablets and capsules thus
essential oils provide a solution as they only come in liquid form.
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Weakness of the Essential Oils (Production Constraints) • The essential oils production requires highly focused farm practices and field
maintenance for high quality yield. • Require more technical support, including the production inputs and most
effective plant material for new plantings • There is a high entry barrier which includes fencing, cuttings, distillation plants
and land preparation.
1.1 Production and Production Areas 1.1.1 Production Activities The major producers of essential oils are Brazil, China, USA, Egypt, India, Mexico, Guatemala, Morocco and Indonesia. All of them with the exception of USA are developing countries with low cost, peasant type economies. It is estimated that about 65% of world production emanates from developing countries. The major consumers are the USA (40%), Western Europe (30%) and Japan (7%). While the EU as a whole dominate world trade, exports and imports, no individual country from this bloc features in the list of major producers. Most of the major producing countries have large populations with huge internal appetite for essential oils. The table below shows the projected hectares under essential oil crops given by provinces in South Africa by 2010. Table 1: The projected ha under essential oil crops by 2010 as given by Provinces.
Province Species TOTAL ha Mpumalanga Vetiver, Citronella, Lippia, Eucalyptus, Artemisia, Rosemary,
Geranium, Lemon grass 943
Free State Tagete, Artemisia, Lavendin 70 Northern Cape Marjoram, Rosemary, Lavendin 45
North West Geranium, Rosemary, Lavendin, Chamomile 40 Eastern Cape Geranium, Rosemary, Lavender 200
Western Cape Eriocephalus, Lavender, Lavandin, Buchu, Rosemary 77
Limpopo & Machado
Lippia, Geranium, Rosemary, Lavendin, Tea tree 91
Gauteng Lavendin, Rosemary, Artemisia 82 KZN Lavendin, Rosemary Eucalyptus, Geranium, Tea tree, Lemon tea
tree, Spear Mint, Lemon grass, Artemisia, Melissa, Thyme 422
TOTAL 1970 These estimates exclude wild harvesting and community projects in progress
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Source: South African Essential Oil Producer Association (SAEOPA)
Table 1 show the estimated hectares of essential oil crops of different species which will be planted by different provinces by 2010. The table shows that in the Mpumalanga province it is projected that 943 ha will be planted to essential oil crops by 2010, followed by Kwazulu Natal with 422 ha and Eastern Cape with 200 ha. The estimated total hectares to be devoted to essential oil crops by all the provinces by 2010 are about 1970 ha. However of all the total species estimated, Geranium, Lavendin and Rosemary are the most projected species to be planted in all provinces by 2010. The table indicates that in all Provinces, Kwazulu Natal Province is projected to be the major producer of most kinds of essential oil species than the other provinces by 2010. Table 2: Estimated Production Statistics for Selected Essential Oils 2004
Average Yield Crops Material per ha (T) Oil Yield (%) Oil per ha (kg)
Eucalyptus (Cineole type)
20-30 1-5 200-400
Geranium 20-40 0.1-0.2 20-30 Citronella 10-40 0.5-1.5 50-400 Lemongrass 10-30 0.2-0.5 40-60 Tagette Wild collection 0.1-0.4 Vetiver 1-2 (dried roots) 0.3-3 3-30
Source: South African Essential Oil Producer Association (SAEOPA) Table 2 shows the estimated production statistics for selected essential oils during the period 2004. It is estimated that during the production period 2004, 20 to 30 tons of eucalyptus material were yielded per hectares producing about 1-5 percentage of oil and 200 to 400 kg of oil per hectares, while the average yield of 20-40 tons of geranium material per hectares produced 0.1-0.2 percentage of oil with 20-30 kg of oil per hectares during the same period.
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Table 3: The most utilized essential oils and major producers Product Country Orange Australia, Brazil, Dominican Republic, Israel, Italy and USA
Corn mint Brazil, China, India, Japan, North Korea, Paraguay, Taiwan and Thailand
Eucalyptus (cineole-type) Australia, Austria, Brazil, China, India, Paraguay, Portugal, South Africa and Spain
Citronella China, India and Vietnam Peppermint Australia, China, Italy, Japan and USA Lemon Argentina, Australia, Brazil, Greece, Spain, Italy, USA and Peru Clove leaf Brazil, Indonesia, Madagascar, Sri Lanka and Tanzania Cedar wood USA and China Litsea cubeba China Sassafras Brazil and USA Lime Brazil, China, Cuba, Ghana, Haiti, Ivory Coast, Jamaica, Mexico
and Peru Spearmint Argentina, Australia, Brazil, Bulgaria, China, Egypt, France,
Hungary, Japan, Korea, Morocco, New Zealand, Paraguay, Romania, Russia, Taiwan, UK, USA and Yugoslavia
Source: South African Essential Oil Producer Association (SAEOPA) 1.1.2 Overview of the essential oils market and its composition Production data for essential oils are hard to find, as it is very difficult to do an exhaustive compilation covering the broad spectrum of all of essential oils produced. The essential oil industry is dynamic with tastes and preferences of consumers changing by the day. The top 10 crops in terms of production account for about 80 percent of the total world market for essential oils. One of the most important things to do for farmers who want to be involved in essential oils production is selecting the right seed or plant material for sowing. It is recommended that this be obtained from a reputable supplier. Farmers should also be knowledgeable on weed control and management as this will affect the quality of the end product. If weeds are harvested and distilled with the crop, the oil from weeds can contaminate the desired oil, which would compromise quality. These would lead to a total rejection of the crop’s oil which will have a negative impact on the farm income.
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1.1.3 Identification of Products Given the appropriate equipment, essential oils can be fractionated and components sold individually. Alternatively, at home industry level, essential oils can be used in scented candles, soaps, and hand creams. Some authors are of the view that massaging oils into the human skin as in aromatherapy is of little therapeutic value, although it may induce a sense of sensual well being. However, in spite of the lack of a scientific basis for aromatherapy, it remains a viable component of the market for the South African essential oils industry. There are numerous ways to create value added products through the use of essential oils. Based on information gathered from a brief overview of the essential oil sub sector map and value chain, it has been decided that the following value added products will be investigated further, completing each investigation with a sub sector map for that product. The products are; Soaps, Scented candles, Bath salts, Aromatherapy creams and lotions and Potpourri. It has been determined that each of these identified products are relatively simple to make, thus making use of the home based production units, and have a viable market within South Africa, and particularly, the Eastern Cape. Each of these products will be discussed in detail. 2. HARVESTING OF ESSENTIAL OILS 2.1 Harvesting It must be noted that the essential oils can be harvested as either plants or seeds. For the plants the proximity of the steam distillation plant is important. If the period between harvesting and distillation is too long the oil from the plant can evaporate or decline in quality. The quality of the oil is volatile. It changes as the crop grows; this means that a farmer should ensure that the crop is harvested at the right time. 3. USES OF ESSENTIAL OILS
• Most essential oils are used for cooking, potpourri, crafting, cosmetics, massage, aromatherapy and other uses.
• Other essential oils are used to repel insects and other arthropods that are pests of humans, livestock, and pets (mosquitoes, fleas, ticks, etc).
• There are four broad sectors in which the oils are also used, including the flavor, pharmaceutical, personal care and industrial.
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It is important to note that essential oils are not the same as perfume or fragrance oils. Where essential oils are derived from true plants, perfume oils are artificially created fragrances or contain artificial substances and do not offer the therapeutic benefits that essential oils offer. With so many plant species from which essential oil products are sourced it is even more problematic to accurately classify which plant belongs to which plant family or species. However, among the plants notable for their essential oils are members of the following plant families: carrot, ginger, heath, laurel, mint, myrtle, olive, orchid, pulse, rose and rue. Table 4: Common uses of selected essential oils
Essential oils Common uses Citrus Industrial solvent, fragrance for cleaning products,
flavoring Spearmint Toothpaste, mouthwash, confectionery flavoring
Peppermint Toothpaste, mouthwash, chewing gum, food flavoring, cosmetics, and tobacco
Lavender/ Lavendin Fragrances and toiletries Eucalyptus Cough/cold remedies, solvents, cleaning agents,
flavoring Tea tree Toiletries, insect repellents, germicides, cosmetics
Boronia Food flavoring, fragrance Blackcurrant bud Food and beverage flavoring
Source: South African Essential Oil Producer Association (SAEOPA) Table 4 above shows the list of common uses for selected essential oils in different industries. There are a number of uses for essential oils in general with some of those uses mentioned above. The table indicates that most of the essential oils are used interchangeably in all segments, with most of them being used mainly in the food flavoring.
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Table 5: Overview of end-user sectors markets
Sectors Segments Essential oils Cosmetic industry Personal care
Soap and detergent Dental care
• Lemon • Peppermint • Orange • Patchouli • Rosewood • Mint • Spice • Eucalyptus and
derivatives
Food industry Soft drink Confectionery Tobacco Candy Processed and canned food products Chewing gum
• Citrus • Spice oleoresins • Vanilla • Flavor and floral oils • Oleoresins • Peppermint
Pharmaceutical industry Homeopathy Health-care products Aromatherapy
• Orange • Citrus • Patchouli • Lavender • Geranium
Source: South African Essential Oil Producer Association (SAEOPA) Table 5 shows the overview of the end user sectors markets for different kind of essential oils. It is indicated that most essential oils are mainly used in three sector markets such as the cosmetic industry, food industry and the pharmaceutical industry. The essential oils of orange and patchouli are used in both the cosmetic industry and also in the pharmaceutical industry, followed by the use of essential oils of orange in the food and pharmaceutical industry. These indicate that the essential oils can in a given time period perform different kind of functions or uses in different industries.
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4. QUALITY MAINTANANCE OF ESSENTIAL OILS Over and above the barriers to entry alluded to above there is also the issue of quality. Entering lucrative industries such as the rose and boronia can be difficult as they have exceptionally rigid quality standards which require sophisticated equipment to attain/extract from the plants. Above the general quality requirements, storage of the product is also highly important as it can compromise quality. Storage materials should be solid and should be glass bottles; aluminium bottles and drums (used mostly for expensive essential oils), lacquered and lined steel drums, and plastic drums in high density polyethylene, which are less expensive than lined steel drums. Before they are stored for shipment oils should be dried by filtration or the use of anhydrous calcium sulphate. Head space should be filled with nitrogen gas although carbon dioxide is cheaper and easier to source in developing countries. The danger with using carbon dioxide though, is that it might react with residual moisture to form carbonic acid, which may react with essential oil ingredients. 5. ESSENTIAL OIL VALUE CHAIN ANALYSIS Essential oils in the value chain are generally used ‘as is’ when dealing with the flavor and fragrance industry, especially with the minor or smaller oils, such as rose geranium. Only some oils are further processed and made into synthetic chemicals. It is also important to know the different role players that are a part of this value chain. One of the main organizations is the South African Essential Oils Producers Association (SAEOPA). SAEOPA was formed in 2000 as an alternative to the council for Scientific and Industrial Research, as a source of information about current and potential producers. It is a voluntary association and has an objective to support its members, who primarily comprise producers of essential oils. The organization (SAEOPA) supports its members throughout the value chain, beginning with the sharing of information on agricultural issues and ending with marketing matters. The other role players in the essential oils value chain can be identified as; Growers, Distillers, Researchers, Government, Marketers and also the Consumers or Buyers. The value chain for essential oils is illustrated on the figure below.
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Diagram 1: Processing of essential Oils
Source: SEOPA (South African Essential Oil Producer Association)
Step 1 Manufacturing Process
Step 2 Compounding/Blending
Step 3 Sale into End Use Markets
Flavor/ Perfume Essences
Purification
Solvent Extraction, Distillation etc.
Further Chemical/ Biological Modification
-Retinoid -Oleoresins -Essential Oils
Aroma Chemicals
Organic Synthesis, biological catalysis
Compounded Flavors and Fragrances
-Foods -Cosmetics -Toiletries -etc
Chemicals
Natural Raw Materials
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The value chain of Essential Oils basically follows this pattern identified on Diagram 2 below. Diagram 2: Value chain pattern of the Essential oils
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Crop Selection
Primary Processing • Drying • Distillation
Further Beneficiation • Rectification, • Fractionating, • Formulations
Sales & Marketing • Market
Knowledge • Market
Reputation • Market Access
Consumer
Crop Cultivation Input Supplier
The value chain at farm gate and wholesale levels vary greatly across products such that it is impossible to develop stylized value chains. Diagram 2 represents the general essential oils’ value chain summarized in seven stages, which can be described as follows;
• The crop selection stage provides knowledge about the local soil, climate, correct genotype and potential markets.
• Crop cultivation stage which gives the sourcing of plant material (seeds or seedling), planting, crop management (pests and irrigation) and harvesting;
• Input Supply stage which provides information about the correct measure and application of different inputs according to the crop requirements.
• Primary processing stage shows the application of drying, distillation, quantities (economic yields), qualities (chemical and sensory qualities) and certification.
• Further beneficiation involves rectification, fractionating and formulations; and • Sales and marketing inform about the market knowledge, reputation and market
access. While it is difficult to quantify costs from farm gate to wholesale levels, it is estimated that harvesting costs make up between 10 to 35% of farm gate costs, with an average of 22%. Pest, weed and disease management costs are about 11 to 37%, with a mean of 22%. Nutrition, which includes irrigation and fertilizers are about 10% of grower costs. At wholesale level there is even greater variability as it depends on the extent of refinement and processing of the oil. Extraction costs are estimated to range between 60 to 75% of processor costs. 6. ESSENTIAL OILS MARKETING ACTIVITIES
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The marketing structure of essential oils is not different from most products. The traditional structure begins with the producer who sells to the flavor and fragrance industries. Fragrance houses may or may not embark on value adding to the product, they then sell it to the end users. At times system has been supplemented by traders, agents and brokers who use their knowledge to market niches and buy directly from producers and sell directly to the flavor houses or end users. Although it is very difficult to enter into the essential oils industry from either side, as producers or end users, there is always an opportunity for small players. The reason for the difficulty in gaining entry is that once end users have developed a product using specific oil they do not want to change that oil or the supplier as they may fear a compromise in quality. Small scale farmers may enter the market and target small industries such as Aromatherapy and Massage for their product market.
Diagram 3: Essential Oil Value Chain Tree Diagram 3 above represents the various industries that are fully playing a part in the use of essential oils. Farmers can produce Essential oils and sell directly to the fragrance industry, flavor industry and to the traders who can also supply the flavor industry. The fragrance industry and traders may also buy the product directly from the producer and supply the end users, and after which the products reached the end users, is then supplied to the three different industries specifically, the cosmetic, food, and the pharmaceutical industry. 7. ESSENTIAL OILS DISTRIBUTION CHANNELS
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PRODUCERS
Flavor Industry
Traders, Agents & Brokers
Fragrance Industry
End Users
Cosmetic Industry • Personal
care • Soap &
Delegent • Dental Care
Food Industry • Soft drink • Confectionery • Tobacco • Candy • Processed &
canned food • Chewing gum
Pharmaceutical Industry • Homeopathy • Health-care
products • Aromatherapy • massage
International trade for the bulk essential oils (like citrus) takes place on a large scale. Shipments may be diverted to neighboring countries, and there is a substantial re-export business. Most of the leading traders in the European Union supply several countries. The re-exports are important, as they can reduce the effect of supply irregularities and domestic imbalances in supply and demand caused by the vagaries of climate, crop disease, inadvertent overstocking or unexpected peaks in demand. Some producers will bargain directly with major end-users. Other producers will sell through independent traders (importers) or sales agents. Figure below shows the various distribution channels for essential oils.
Diagram 4: Essential Oils Distribution Channels There are four major types of business partners for exporters of essential oils such as; Agents, Importers or Traders, The processing industry (processing importer), and the end product manufacturers. The trade structure illustrated in figure 4 changes constantly, the distribution channels and the specific functions mentioned are not as clear-cut as they might seem. However, sixty to eighty percent (60-80%) of the essential oil trade goes directly from producers or exporters to processing importers such as the multinational flavor houses. An advantage of processing importers is that they can create a total flavor composition and give excellent service. This can facilitate co-operation with end-product manufactures in the food or cosmetic industries. Many end-product manufacturers do not usually purchase essential oils directly from producers. The essential oil market is somewhat fragmented between the following end-user market sectors; Aromatherapy, Natural personal care and pharmaceutical, Flavor and Fragrance, Cosmetics and Beverages. 7.1 Value Adding in South Africa
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Foreign Producers/ Exporter
Broker/ Agent Importer/ Trader Re-export
Processing Industry Food/ Cosmetic/ Pharmaceutical Industry
Re-export Retail Trade
The production process and people involved vary depending on the type and end use of the product. Common stages of production include growing and harvesting the crop, extraction, further processing and the oil, increasing its suitability for end use. Value adding in the form of products such as creams, bath salts, candles, potpourri, and gifts has proved more profitable for producers in South Africa. The booming tourism industry has contributed to the success and survival of producers in difficult times. 8. MARKET INTELLIGENCE 8.1 Applied Tariffs for Essential Oils of Mint Exports and Imports The following Table indicates the tariffs that are applied by various countries to the exports of essential oils of mint originating from South Africa. Table 7 COUNTRY (IMPORTERS)
TRADE REGIME DESCRIPTION
APPLIED TARIFFS 2008
ESTIMATED TOTAL AD VALOREM EQUIVALENT TARIFF (2008)
Zimbabwe MFN duties (Applied) 5.00% 5.00%
United Arab Emirates MFN duties (Applied) 5.00% 5.00%
Nigeria MFN duties (Applied) 10.00% 10.00%
MFN duties (Applied) 0.00% 0.00% Belgium
Preferential tariff for South Africa
0.00% 0.00%
Brazil MFN duties (Applied) 2.00% 2.00%
China MFN duties (Applied) 15.00% 15.00%
MFN duties (Applied) 2.90% 2.90% Germany
Preferential tariff for South Africa
0.00% 0.00%
Source: ITC Market Access Map Table 7 indicates that during the year 2008, countries such as Zimbabwe and United Arab Emirates applied equal tariffs to the product originating from South Africa, while on the other side Nigeria applied 10% tariff to South African originated product. Table 7 shows that during the same period under review, the essential oil of mint exports to China were restricted by higher tariff obligations as to protect their local market. However, there was no tariff barrier for South African essential oils of mint exports to Germany and Belgium because of the common trade agreement between South Africa and the European Union, which makes it for all EU countries to maintain a preferential tariff of 0.00% for South African products.
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The following Table indicates the tariffs that are applied by South Africa to the imports of essential oils of mint from other countries Table 8 COUNTRY (EXPORTERS)
TRADE REGIME DESCRITION
APPLIED TARIFFS (2008)
ESTIMATED TOTAL AD VALOREM EQUIVALENT TARIFF (2008)
United States of America
MFN duties (Applied) 0.00% 0.00%
India MFN duties (Applied) 0.00% 0.00%
Spain MFN duties (Applied) 0.00% 0.00%
France MFN duties (Applied) 0.00% 0.00%
United Kingdom MFN duties (Applied) 0.00% 0.00%
Canada MFN duties (Applied) 0.00% 0.00%
China MFN duties (Applied) 0.00% 0.00%
Germany MFN duties (Applied) 0.00% 0.00%
Source: ITC Market Access Map Table 8 shows the level of tariffs applied by South Africa to the essential oil of mint originated from the partner countries. During the period 2008, imports of mint from the SADC and non SADC countries such as India, Spain, France, United Kingdom, Canada, China and Germany were entering South Africa free of tariff, due to the fact that South Africa is a net importer of essential oils. South Africa was charging a 0.00% tariff to all essential oils of mint originating from other countries I order to reduce the costs of importing these products for its importers. Even though the imports from partner countries were not charged, the requirements on quality and standards remain the restriction of imports into the country to protect the local markets 9. PERFOMANCE ANALYSIS
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9.1 Performance of the South African Essential Oils of Mint industry
Table 9: South Africa’s imports of essential oils of other mints during 2008.
Exporters Imported value in 2007 (thousand US$)
Share in South Africa’s imports (%)
Imported quantity in 2008 (tons)
Unit value (US$/unit)
Imported growth in value between 2004 and 2008 (% p.a.)
Imported growth in quantity between 2004 and 2008 (% p.a.)
Imported growth in value between 2007 and 2008 (% p.a.)
Tariff equivalent ad valorem applied by South Africa
World 619 100 25 24760
9 9 39
United States of America
364 58.8 12 30333 -2 -4 4 0
United Kingdom
124 20 5 24800 43 50 589 0
India 67 10.8 4 16750 180 0 103 0 Germany 40 6.5 3 13333 -21 0 0 0 China 8 1.3 0 0 -21 0 0 0 France 8 1.3 0 0 64 0 -56 0 Spain 7 1.1 0 0 17 0 -67 0
Source: ITC Trade Map Table 9 indicates that during 2008 South Africa imported a total of 25 tons of essential oils of mint from the world, with greater volumes being imported from the United States of America, followed by United Kingdom and India. The table also shows that USA as the leading import market commanded the greatest share of South Africa’s essential oils of mint imports. However, imports of essential oils of mint from the United State of America experienced a decrease of about 2% and 4% in both value and quantity between the periods 2004 and 2008. During the year period between 2007 and 2008, USA has also increased its value of the essential oils of mint exports to South Africa by almost 4%. The level of tariff equivalent ad valorem applied by South Africa to the imports of essential oils of mint originating from other countries was constant at zero percentages.
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Figure 3: Performance of South African essential oils of other mints in 2008
Source: ITC Trade Map Figure 3 shows that South Africa’s essential oils of other mints export growth to Zimbabwe during the period 2008 was good at 83.3 % the same time Zimbabwe’s import growth in value terms from the world also increased at 41%. South Africa received more of its imports from the dynamic markets existing mainly in Zimbabwe which contributed to the total South Africa’s essential oils of other mints shares. However, country such as Nigeria also increased its contribution of essential oils of other mints imports to the total South Africa at the same level of its exports growth to the world. Zimbabwe remains the major markets for South African essential oils of other mints imports during the period under review because of its high production and supply, even though its export growth to the world is greater than its export to South Africa.
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Table 10: South Africa’s exports of essential oils of other mints during 2008
Source: ITC Trade Map Table 10 shows that during the period 2008, South Africa exported a total of 2 ton of essential oils of mint to the world. It further outlined that in world terms between the period 2004 and 2008, South Africa’ essential oils of mint export increased in value terms and declined in quantity. However, the level of essential oils of mint export growth in value declined between the periods 2004/08 to 0% and increased to 12% during the periods between 2007/08. During the period 2008, major essential oils of mint export destination for South Africa were Zimbabwe and Nigeria with Zimbabwe commanding the greatest shares of 83.3% of South Africa’s essential oils of mint exports followed by Nigeria with 16.7% shares. The total essential oils of mint export growth to Nigeria declined by 0% during the period between 2007/08, with exports to Zimbabwe increasing by almost 41% between the same periods. The table also shows that Zimbabwe and Nigeria charge the common tariff equivalent ad valorem of 5% to product originating from South Africa.
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Importers Exported value in 2008 (thousand US$)
Share in South Africa’s exports (%)
Exported quantity in 2008 (tons)
Unit value (US$/ton)
Exported growth in value between 2004and 2008 (% p.a.)
Exported growth in quantity between 2004 and 2008 (% p.a.)
Total import growth in value between 2007 and 2008 (% p.a.)
Tariff equivalent ad valorem faced by South Africa
World 6 100 2 3000 -17 0 12 Zimbabwe 5 83.3 0 0 4 0 41 5 Nigeria 1 16.7 2 500 -38 0 0 5
Belgium 10 Brazil 0 Japan 5.3 Mexico 15
Switzerland
Figure 4: Prospects for market diversification for the essential oils of other mints exported by South Africa in 2008
Source: ITC Trade Map Figure 4 indicates that in world terms Zimbabwe was the main market of essential oils of other mints between 2004-2008 periods. Zimbabwe commanded the greatest share of partner countries in South Africa’s exports in 2008 at approximately 82%. If South Africa were to look for options in terms of markets for essential oils of other mints, markets exist in India, United States of America, Germany and Switzerland. The same small markets (countries) of essential oils of other mints mentioned above are importing less essential oils of other mints from South Africa but more from the world between 2004-2008 period.
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10. THE ESSENTIAL OILS OF PEPPERMINT 10.1 Description of the herb peppermint Mentha x piperita L. is a sterile, perennial herb originating from a hybridization between watermint (Mentha aquatica), and spear mint (Mentha spicata), and therefore must be propagated vegetatively. The entire plant has a very characteristic sharp, mint odor, because of the presence of the volatile oil. This is an easy growing perennial herb, growing up to 1 meter high, with underground runners and a distinctive menthol fragrance. 10.1.1 Properties of peppermint Peppermint is a decongestant, cooling, fragrant and bitter herb that is anti-spasmodic, diaphoretic, digestive, antiseptic and slightly anesthetic. It contains a high amount of essential oil, which contains menthol, menthone, menthyl acetate and menthofuran. 10.1.2 Safety precautions and warnings Peppermint essential oil must be used in moderation and the menthol contained in the oil may cause sensitizing to some individuals skin. It can irritate the mucus membranes if the dosage is too high. If used in pregnancy, very small amounts should be used and not recommended for infants. 10.1.3 Production levels in South Africa Under irrigation and good management, peppermint will yield 20 to 25 tons of plant material per hectare per year, at an oil recovery rate of o.3 % or 60 to 75 kg essential oil per hectares. Dry land production will generally be less, but it will depend entirely on the quantity of rainfall and its frequency throughout the season. 10.1.4 Major Production Areas in South Africa Peppermint can be grown in most parts of South Africa where rainfall of higher than 1000 mm per annum occurs with long periods of sunlight and cool night temperatures. The latter are needed for the correct balance of high quality oil production and it limits the constituent menthofuran, which is undesirable in the oil. There are indigenous species growing in South Africa in the temperature zones and these are indicators of where the crop can be grown successfully. The best areas are the escarpment of Mpumalanga, Gauteng, Eastern Free State, higher altitudes of Kwazulu Natal, and areas in the Eastern and Western Cape.
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10.1.5 Stem, Leaves, and Flowers Peppermint is a summer growing perennial with upright, usually purplish, smooth stems growing to one meter in height. The lance shaped leaf margins are finely toothed, their surfaces smooth, both above and beneath, or very slightly hairy (hardly visible), on the principal veins and midrib on the underside. The whorled clusters of little reddish violet flowers are in the axils of the upper leaves, forming loose, interrupted spikes, and rarely bear seeds. 10.1.6 Essential part of peppermint The whole plant is cut at flowering stage for steam distillation. The oil is found on the undersides of the leaves. 10.1.7 Post harvest handling
• Sorting and Distillation The crop is steam distilled and the steam/oil vapor is condensed and separated. Condensing and separation equipment should be manufactured from stainless steel and a general processing hygiene followed to ensure no contaminants are present. The time for oil extraction varies, depending on the type of steam source, the herb weight, and the moisture content.
• Grading The main chemical constituent of peppermint oils is menthol; however, it also contains menthyl acetate and isovalerate, menthone, cineol, pinene, limonene and other constituents. The quality of the oil is determined by the correct combination of chemical constituents, especially menthol and menthone and the absence of menthofuran. Once the oil is separated, the product is relatively stable for many months, provided it is stored out of direct sunlight and away from heat. The odor and taste is a good indication of the quality of the oil.
• Packaging and Storage Epoxy lined, fluorinated plastic and galvanized drums are used for bulk storage and transportation. Peppermint essential oil should be stored in a cool, dry area until it is used. Once opened, refrigeration and tightly closing the cap will prolong its shelf life.
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• Marketing The market for essential oils in South Africa is divided into local buyers and international buyers. The local buyers include marketing agents and companies from chemical and pharmaceutical, as well as food and flavoring industries. The international buyers are divided into flavor and fragrance houses, cosmetics and personal health care, aromatherapy and food manufacturers who buy in large quantities. The major market in the world for essential oils exists in the United States, followed by Japan and Europe. However, production continues to be concentrated in Europe, with seven of the world’s largest essential oil processing firms. In the United States, the major users of essential oils are the soft drink companies. 10.1.10 The peppermint sale price Price is largely regulated by the world supply and demand. Peppermint is presently being produced in countries with low labor costs such as china and India. This can make it difficult for a South African farmer to compete, unless there is a fair degree of value adding applied. Organically grow mint oil is always in demand and will fetch better prices. 10.1.11 Essential Oils of Peppermint Industrial Utilization Peppermint essential oil is mainly used as flavoring in toothpaste, ice cream, confectionery, soft drinks, tobacco, chewing gum, and other varieties of foods. It can also be found in shampoos, soaps, balms and liniments. The oil has a cooling effect for fevers. Peppermint tea and tea blends are becoming more popular as natural food stuff. Peppermint tea is used for relief of palpitations of the heart and nausea. 10.1.12 Cosmetic Utilization The therapeutic peppermint value lies in its ability to relieve flatulence, bloating and colic, inhibit the growth of certain bacteria, and can assist in smoothing and relaxing muscles when inhaled or applied to the skin. It increases sweating, stimulates secretion of bile, assists in curing ulcers. Peppermint eases nervous headaches and is used for aid in cases of cholera and diarrhea. Peppermint is used to disguise the taste of unpalatable drugs, as it imparts its aromatic characteristics to whatever prescription it enters into. In aromatherapy the essential oil is used to stimulate hot and verve endings and increase blood flow.
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11. Applied Tariffs for Essential Oils of Peppermint Exports and Imports The following Table indicates the tariffs that are applied by various countries to the exports of essential oils of peppermint originating from South Africa. Table 12 COUNTRY (IMPORTERS)
TRADE REGIME DESCRIPTION
APPLIED TARIFFS (2009)
ESTIMATED TOTAL AD VALOREM EQUIVALENT TARIFF (2008)
Zimbabwe MFN duties (Applied) 5.00% 5.00%
MFN duties (Applied) 5.00% 5.00% France
Preferential tariff for South Africa
0.00% 0.00%
United States of America
MFN duties (Applied) 0.00% 0.00%
Spain MFN duties (Applied) 0.00% 0.00%
Belgium Preferential tariff for South Africa
0.00% 0.00%
Hong Kong (SARC) MFN duties (Applied) 0.00% 0.00%
Italy Preferential tariff for South Africa
0.00% 0.00%
MFN duties (Applied) 3.20% 3.20% Japan
Preferential tariff for GSP countries
0.00% 0.00%
Source: ITC Mac Map During the period 2009, countries such as Zimbabwe and France applied 5% tariff to essential oils of peppermint originating from South Africa, with 0.00% tariff applied by the United States of America, and 3.20% from Japan to protect their domestic markets from South African essential oils of Peppermint. However, other partner countries such as Spain, Belgium, Hong Kong and Italy applied zero percentage tariffs to South African essential oils of peppermint due to the preferential tariff measures for South Africa.
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The following Table indicates the tariffs that are applied by South Africa to the imports of essential oils of peppermint from other countries: Table 13 COUNTRY (EXPORTERS)
TRADE REGIME DESCRITION
APPLIED TARIFFS (2009)
ESTIMATED TOTAL AD VALOREM EQUIVALENT TARIFF (2008)
United Kingdom MFN duties (Applied) 0.00% 0.00%
United States of America
MFN duties (Applied) 0.00% 0.00%
Germany MFN duties (Applied) 0.00% 0.00%
Argentina MFN duties (Applied) 0.00% 0.00%
India MFN duties (Applied) 0.00% 0.00%
Singapore MFN duties (Applied) 0.00% 0.00%
China MFN duties (Applied) 0.00% 0.00%
France MFN duties (Applied) 0.00% 0.00%
Source: ITC Mac Map Table 13 shows the applied tariffs by South Africa to the product of the essential oils of peppermint originating from the world. South Africa applies zero percent tariff to all product of essential oils of peppermint originating from, the United States of America, United Kingdom, Germany, Argentina, India, Singapore, China and France, due to limited production and supply in the domestic markets.
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12. Performance of the South African Essential Oils of Peppermint industry Table 14: Essential Oils of Peppermint exports during 2008
Importers Exported value in 2008 (thousand US$)
Share in South Africa’s exports (%)
Exported quantity (tons)
Unit value (US$/unit)
Exported growth in value between 2004 and 2008 (% p.a.)
Exported growth in quantity between 2004 and 2008 (% p.a.)
Total exported growth in value between 2007 and 2008 (% p.a.)
Tariff ad valorem faced by South Africa
World 61 100 2 30500 -3 -8 -16 10 Zimbabwe 43 70.5 1 43000 10 7 48 5 Singapore 9 14.8 0 0 0 0 200 0 United Kingdom
7 11.5 1 7000 0 0 0 0
Source: ITC Trade Map Table 14 shows that during the period 2008, South Africa exported a total of 2 tons of the essential oils of peppermint to the world, decreasing its export growth in value to the world between the period 2004/ 2008 by 3% and decreases its export quantity growth by almost 8% during the same year periods. A decrease of 16 percent in the essential oils of peppermint exports in value was realized between the periods 2007 and 2008. The major exports destination for South African essential oils of peppermint during 2008 were Zimbabwe, Singapore and United Kingdom, with the greatest shares in total RSA ‘exports commanded by Zimbabwe with (70.5%) followed by Singapore (14.8%) and United Kingdom with (11.5%). however, South Africa’s export growth to Zimbabwe showed an increase in value by 10% between the period 2004/2008 and 7% increase in quantity between 2007 and 2008.
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Figure 5: Performance of South African essential oils of peppermint in 2008
Source: ITC Trade Map Figure 5 indicates South Africa’s essential oils of peppermint export growth to Zimbabwe during the period 2008, was more than Zimbabwe’s import growth from the world. The figure also indicates that South Africa exports of peppermint essential oils during the period 2008 increased towards Zimbabwe than to other countries.
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Figure 6: Prospects for market diversification for peppermint exported by South Africa in 2008
Source: ITC Trade Map Figure 6 indicates that in world terms Zimbabwe was SA’s main market of essential oils of peppermint exports between 2004-2008 periods. Zimbabwe commanded the greatest share in South Africa’s exports in 2008 at approximately 70% share. If South Africa were to diversify its markets of essential oil of peppermint exports, the biggest markets exist in Singapore, United States of America, India, Germany and United Kingdom. Some of the smaller markets exist in France, Spain, Italy and Argentina.
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Table 15: Essential Oils of peppermint imports during 2008
Exporter Imported value 2008 (thousand US$)
Share in SA’s imports (%)
Imported quantity in 2008 (tons)
Unit value (US$/unit)
Import growth in value between 2004 -2008 (% p.a.)
Import growth in quantity between 2004 -2008 (% p.a.)
Import growth in value between 2007 -2008 (% p.a.)
Tariff equivalent ad valorem applied by South Africa
World 770 100 28 27500 -1 -7 -11 United Kingdom
367 47.7 14 26214 -1 -10 -13 0
United State of America
347 45.1 11 31545 -1 -4 -7 0
India 14 1.8 1 14000 22 0 56 0 Germany 12 1.6 0 0 56 0 -60 0 China 11 1.4 1 11000 -7 0 120 0 Netherlands 8 1 1 8000 0 0 0 0 Argentina 7 0.9 1 7000 47 0 -53 0
Source: ITC Trade Map Table 15 indicates that South Africa imported 28 tons of essential oils of peppermint from the world during the period 2008, with its import growth in value decreasing by 1% and 7% in import growth in quantity between the periods 2004/2008. The trends in the essential oils of peppermint imports by South Africa experienced a 11 percent decrease in value between the periods 2007 and 2008. Comparative study between the essential oils of peppermint imports and exports shows that South Africa is a net importer of essential oils. However, during the year 2008, essential oils of peppermint imports that constituted much of shares in South Africa’s imports percentages were originated mainly from the United Kingdom (47.7% share), USA (45.1% share), India (1.8% share), Germany (1.6%) share), China (1.4% share), Netherlands (1% share),) and Argentina (0.9% share).
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Figure 7: Competitiveness of supplier to South Africa for peppermint imports during 2008.
Source: ITC Trade Map Figure 7 shows that India, United States of America and India were the biggest markets of essential oils of peppermint in 2008. South Africa’s imports from Germany were higher in 2008 as compared to Germany’s Essential oil exports to the world during the same period under review. Figure 7 also indicates that Germany as the small market compared to India, United Kingdom and USA, has increased its Essential Oils’ export shares to South Africa in value between the periods 2004-2008, but with the United Kingdom and USA remaining the big markets for Essential Oils exports for South Africa and for the world.
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Figure 8: Prospects for market diversification of suppliers for peppermint imported by South Africa in 2008.
Source: ITC Trade Map If South Africa were to diversify its Peppermint essential oil imports, the biggest markets exist in Singapore, India and the USA.. The other markets exist in the United Kingdom, since this country commanded a greater share in South Africa’s essential oil of peppermint imports during the period of 2008.
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13. ESSENTIAL OILS OF GERANIUM 13.1 Introduction Geranium is an evergreen, bushy perennial herb and has light green round leaves with curvy edges and apple aroma. White flowers with red appear in clusters, on trailing stems. Geranium oil is derived from the Rose geranium, Pelargonium graveolens (Family: Geraniaceae). This woody, perennial herb is native to South Africa and is also produced in Egypt, France, China, Algeria, Morocco and Spain. The essential oil accumulates in small glands found in the foliage and flowers. Harvesting, this is usually done by hand two or three times annually, begins as the plant starts flowering. The herb is cut in the morning in sunny, dry weather. Distilled begins after a few hours of field drying. 13.2 Oil Uses The oil of geranium, is widely used in perfumery and cosmetics, it is stable and blends well with other fragrances. Dried leaves are used in sachets and potpourris. Leaves of geranium are also used in herbal teas and the oil is used in baked goods and fruit desserts. As a medicinal plant, geranium has traditionally been considered an astringent and used as a folk remedy in the treatment of ulcers. Its leaves are also reported to have antifungal activity. 13.3 The crop properties The herb has an apple like aroma and the therapeutic properties are astringent, tonic, anti septic, stems the flow of blood, enhances healing and insecticide. 13.4 Safety precautions and warning Geranium essential oil is well tolerated by most individuals, but since it helps in balancing the hormonal system, care must be taken during pregnancy.
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13.5 Performance analysis of South Africa’s Essential Oils of Geranium Table 16: Essential Oils of Geranium imports between the periods 2004-2008
Exporters Imported Value in 2004 (US$’000)
Imported Value in 2005 (US$’000)
Imported Value in 2006 (US$’000)
Imported Value in 2007 (US$’000)
Imported Value in 2008 (US$’000)
World 88 136 159 0 0 Egypt 0 1 0 0 0 Australia 2 1 0 0 0 Belgium 2 3 0 0 0 China 3 5 5 0 0 France 8 3 2 0 0 Italy 0 2 2 0 0 Malawi 59 107 104 0 0 United Kingdom
13 15 16 0 0
Source: ITC Trade Map Table 16 shows South Africa’s essential oil of geranium imports between the periods 2004 and 2008. During the period 2004, South Africa imported essential oils of geranium to the value of US$88 000 from the world with most of its imports originating mainly from Malawi (US$59 000), followed by United Kingdom (US$13 000) and France with (US$8 000). However, on average the level of geranium imports value from the world by South Africa increased between the periods 2004 and 2006, with the major imports originating mainly from Malawi and the United Kingdom, followed by less imports from France, China and etc. Malawi has been the major supplier of essential oils of geranium to South Africa between the periods 2003 and 2006. The table indicates that from the period 2007 to 2008, there were no imports of essential oil of geranium from the world by South Africa.
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Figure 9: List of Supplying markets for the essential oils of Geranium imported by South Africa in 2008.
Source: ITC Trade Map Figure 9 shows that during the period 2004 South Africa imported its essential oils of geranium mainly from Malawi and the United Kingdom, followed by very few imports from France, China, Belgium and Australia. Figure 9 also indicates that Malawi was the major supplier of essential oils of geranium to South Africa between the periods 2004 and 2006, followed by the United Kingdom, China and France. However, the figure indicates that Malawi as the major supplier increased its exports to South Africa from the period 2004 to 2005 at an import value of between 59 and 120 thousand US$. The United Kingdom exported essential oils of geranium to South Africa at a lesser value between the period 2004 to 2005 at an import value of less than US$ 20 000.
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Table 17: Essential Oils of Geranium exports between the periods 2004-2008
Importers Exported Value in 2004 (US$’000)
Exported Value in 2005 (US$’000)
Exported Value in 2006 (US$’000)
Exported Value in 2007 (US$’000)
Exported Value in 2008 (US$’000)
World 77 248 300 0 0 France 15 55 140 0 0
Germany 0 1 1 0 0 Italy 0 0 8 0 0 Malawi 8 0 0 0 0 Singapore 0 3 13 0 0
Spain 11 9 27 0 0
United Kingdom
34 178 75 0 0
Source: ITC Trade Map Table 17 indicates that during the period 2007, South Africa exported essential oil of geranium to the value of US$77 thousands to the world. The major destination for the South African essential oil of geranium exports was the United Kingdom, followed by Spain, France and Malawi. South Africa increased its value of geranium essential oil exports continuously between the periods 2004 and 2006, with most of the essential oils of geranium being exported to the United Kingdom and very few to Spain, Singapore, Germany and France. However, between the periods 2007 and 2008, there were no essential oils of geranium exported to the world by South Africa.
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Figure 10: List of importing markets for the essential oils of Geranium exported by South Africa in 2008.
Source: ITC Trade Map Figure 10 shows that between the periods 2005 and 2009 South Africa exported its essential oils of geranium mainly to the United States of America, Netherlands and the United Kingdom. In 2008 the value of essential oil exports from South Africa also increased to countries such as Ireland, Japan, Spain and Italy. 14. ESSENTIAL OILS OF LAVENDER & LAVENDIN Lavender known as Lavandula angustifolia from the family Lamiaceae is a small shrub with gray, downy, linear leaves with blue to violet flowers, growing in compact or interrupted spikes. A wide variety of lavenders are found, but consist of two main types angustifolia being the most popular, while latifolia produces harsher more camphoraceous oil. L. stoechas (French, Italian, Spanish lavender) are often planted since they are very hardly, but these have very high camphor content in their oil, compared to that of L. angustifolia.
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14.1 Crop Properties Lavender is an aromatic, tonic herb with a sweet scent. It relaxes spasms, benefits the digestion, stimulates peripheral circulation and the uterus and lowers fever. It is anti septic and has an anti depressant effect. It contains linalyl acetate, linalool, cis-b-ocimene, trans-b-ocimene, 1-terpenen-4-ol, limonene, 1, 8-ceneole, camphor, a-terpineol, caryophyllene epoxide and 3-octanone. The leaves contain rosmarinic acid and other tannins, coumarins, triterpenes and phenolic acids. 14.2 Uses The fresh and dried flower tops are used, as well as an essential oil.
• Internal Uses Lavender is used internally for indigestion, irritability, anxiety, exhaustion, tension headaches, migraine and bronchial complaints.
• External Use Lavender it is used externally to treat most type of burns, including sunburn, rheumatism, muscular pains, neuralgia, cold sores, insect bites, head lice, halitosis, vaginal discharge and anal fissure. It has an analgesic effect on the skin, which helps with pain relief, but it is the antiseptic and stimulant properties which make it very effective for use on wounds and burns. It is mainly used for its antiseptic and anti-dandruff properties but also have antibacterial, spasmolytic (relieving spasms) and local pain killing actions. It also contains ursolic acid, which is not only antibacterial, but also active against lipid oxidation and inhibits elastase, which results in tissue degeneration as well as inflammatory processes as well as tissue degradation such as psoriasis and eczemas. On the skin, lavender oil tones and revitalizes it and it is useful for all types of skin problems, such as abscesses, acne, oily skin, boil, burns, sunburn, wounds, psoriasis, lice, insect bites, stings and It also as an insect repellent. 14.3 Safety precautions and warnings Although the essential oil of lavender is well tolerated by all skin types, it must be like all essential oils, used with care as essential oils are powerful and very concentrated.
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14.4 Performance analysis of South Africa’s Essential Oils of Lavender & Lavendin Table 18: Essential Oils of Lavender & Lavendin imports between the periods 2004-2008
Exporters Imported Value in 2004 (US$’000)
Imported Value in 2005 (US$’000)
Imported Value in 2006 (US$’000)
Imported Value in 2007 (US$’000)
Imported Value in 2008 (US$’000)
World 159 202 148 0 0 Australia 9 0 0 0 0 Bulgaria 2 2 2 0 0 China 0 1 3 0 0 Croatia 2 2 2 0 0 France 91 142 75 0 0 Germany 2 5 5 0 0 Italy 3 7 4 0 0 United Kingdom
49 40 48 0 0
Source: ITC Trade Map Table 18 shows South Africa’s essential oils of Lavender and Lavendin imports in thousand US Dollar between the periods 2004 and 2008. South Africa imported essential oils of lavender and lavendin to the value of US$159 000 from the world during 2004. During 2004 major suppliers of essential oils of lavender and Lavendin to South Africa were France, Malawi and the United Kingdom. However, the value of essential oils of lavender and Lavendin imports by South Africa increased from the period 2004 to 2005, and decreased towards the period 2006 until there were no imports in 2007 and 2008.
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Figure 11: Supplying markets for the essential oils of Lavender and Lavendin imported by South Africa.
Source: Trade Map Figure 11 further confirms that during the period 2004, major imports market for the South African essential oils of Lavender and Lavendin existed in France, followed by the United Kingdom and very few from Italy and Germany. However, France and the United Kingdom continued to be the major suppliers of the essential oils of Lavender and Lavendin to South Africa, with the France being the major supplier in 2005 and 2006.
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Table 19: Essential Oils of Lavender & Lavendin exports between the periods 2004-2008
Importers Exported Value in 2004 (US$’000)
Exported Value in 2005 (US$’000)
Exported Value in 2006 (US$’000)
Exported Value in 2007 (US$’000)
Exported Value in 2008 (US$’000)
World 182 2 5 0 0 France 143 0 0 0 0 Germany 10 0 0 0 0 Zimbabwe 1 0 0 0 0 United Kingdom
7 0 0 0 0
United States of America
20 0 3 0 0
Zambia 1 1 1 0 0 Source: ITC Trade Map During the period 2004 South Africa exported essential oils of lavender and Lavendin to the value of US$182 thousands to the world. The level of essential oils of lavender and Lavendin exports by South Africa decreased towards the periods 2005 and 2006 to lower values until there were no exports destined to the world between the periods 2007 and 2008. However, during the period 2004, the major exports destination for South Africa’s essential oils of lavender and Lavendin were France, United States of America, Germany and the United Kingdom, followed by Zimbabwe and Zambia with very few imports values. The table shows that Zambia was the only importer of South African essential oils of lavender and Lavendin during the period 2005, with to the value of US$1 000. During the periods 2006, South Africa exported essential oils of lavender and Lavendin (to the value of US$5 000) to the world, with the major exports being destined to the United States of America, followed by very few exports to Zambia. It is indicated on the table that no essential oils of lavender and Lavendin exports occurred during the periods 2007 and 2008. .
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Figure 12: Importing markets for the essential oils of Lavender and Lavendin exported by South Africa.
Source: ITC Trade Map Figure 12 above shows the imports market for the essential oils of Lavender and Lavendin exported by South Africa between the periods 2004 and 2008. During the period 2004, South Africa exported its essential oils of Lavender and Lavendin mainly to France, followed by the United States of America, United Kingdom and Germany. The level of essential oil of lavender and Lavendin exports by RSA decreased towards 2005, with only US$1 000 in values being exported to Zimbabwe. However, during the period 2006 South Africa increased its exports of essential oils of Lavender and Lavendin to the United States of America with almost US$3 000 values exported and similar values in US Dollars as of 2005 exported to Zimbabwe.
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15. ESSENTIAL OILS OF TEA TREE 15.1 Description of the herb Tea Tree Oil This Australian shrub has papery bark on its stems and thin pointed leaves, with small white flowers in thick spikes, followed by the capsule like seeds. The oil is used, while the ground up leaves is also used in cosmetic application. 15.2 Properties It is an antiseptic herb with a clear smell and expectorant, antifungal, bactericidal and sudorific properties, which stimulates the immune system. 15.3 Essential Oil uses
• Therapeutic uses This much used oil is used to treat vaginal yeast infections, acne, athlete’s foot, plantar warts, warts, insect bites, cold sores as well as being most effective in treating scalp infections and fighting dandruff. The oil can be used neat on minor wounds and small infections, as well as plantar warts, as well as rubbing it into the scalp to get rid of nits (the eggs of head lice), but for other applications must be diluted in a suitable carrier oil. 15.4 Safety precautions and warnings Tea tree essential oil is normally well tolerated by people, but may cause irritation or sensitizing in some individuals. A small amount may be used neat on plantar, warts and insect bites, but should be diluted for other applications. 16. ESSENTIAL OILS OF EUCALYPTUS The eucalyptus, blue gum or Australian fever tree, genus and species Eucalyptus globulus (Family: Myrtaceae), has a wide spread crown and the trunk has smooth, white bark, which peels to reveal a red shade. The leaves are silver green when young, ranging to green when adult and differ in shape, from lance like to sickle shaped, with the white flowers appearing in spring and summer. 16.1 Properties of Eucalyptus Eucalyptus is an aromatic herb that stimulates the system, a decongestant and expectorant that relaxes spasms and lowers fewer. It also has antibiotic properties. It contains an essential oil, which contains 1, 9 ceneole, a pinene, pcymene, limonene and other monoterpenoids, while the fresh leaves also contain sesquiterpenes (aromadendren and globulol), euglobals (derivatives of acylphloroglucin) and flavonoids.
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16.2 Uses of Eucalyptus
• External Use Both the mature leaves and essential oil are used. Eucalyptus is most commonly used externally as an inhalation and vapor rub, to treat and relieve mucus congestion. It cleans the chest, helps bronchitis, sinusitis, colds and flu. Also used as a liniment for bruises, sprains and various muscular pains. Ointments are also manufactured, with eucalyptus as an ingredient, to treat wounds and abscesses.
• Aromatherapy and essential oil use
When a clear head is needed, eucalyptus oil may help, and at the same time will help with concentration. Although good for muscular aches and pains, it is a very effective oil to use for respiratory problems during flu, colds, coughing, sinus and asthma. It furthermore is of value on the urinary tract and is good for skin eruptions such as herpes (fever blisters), cuts and wounds. It also helps to clear congested skin. It has analgesic, anti-rheumatic, antiseptic, antispasmodic, antiviral, bactericide, balsamic, cicatrisant, decongestant, deodorant, dieretic, expectorant, insecticide, rubefacient, stimulant and vulnerary properties.
• Safety precautions and warning Eucalyptus oil has no specific contra indication, yet it is strong, and should be used in low concentration. People suffering from epilepsy and high blood pressure should avoid using eucalyptus essential oil. The use of eucalyptus can also reduce or negate the benefits of homeopathic medicine. Excess use can cause headaches, convulsions and delirium and in extreme cases may prove fatal
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Table 20: Role players in the South African Fragrance and flavour industry and essential oil trading.
Company Address Contact Person
Telephone Number
Comhan Products (Pty) Ltd
Box 413066, Craig hall 2024
Nathalie Jelonek
+27 (0) 11 325 6090
Cranbrook Flavours
Po Box 1644, Edenvale 1610
011 398 6000
Craetive Flavors International (Pty)Ltd
Box 302, Strubens Valley 1735
Adri Stander +27(0) 11 760 1830
Danlink Ingredients (Pty)Ltd
Box 3208, Cramerview 2060
Sambashni Govender
+27(0) 11 469 4508
Deli Spices (Pty)Ltd
Box 611, Eppindust 7475
Robin Haller +27(0) 21 505 2000
Dunmustard Distributors
Box 1518, Westville 3630
Anthony Krijger
+27(0) 31 701 7734
Firmenich (Pty)Ltd
P/Bag X113, Halfway House 1685
Dody Leijenaar
+27(0) 11 653 0700
FlavourCraft (Pty) Ltd
Box 962, New Germany 3620
Ryan Ponquett
+27(0) 31 764 9760
Flavourome (Pty) Ltd
P/Bag X6, Kyalami 1684
David Wright
+27(0) 11 314 0219
Foodspec Co (Pty) Ltd
Box 1783, Pinegowrie 2123
Jenal Harduth
+27 (0) 11 793 1333
Fruition CC Box 505, Wellington 7654
Nick Schwerin
+27 (0) 21 873 6716
Frutarom South Africa (Pty) Ltd
Box 4449, Honeydew 2040
Darrell Gray +27 (0) 11 794 1362
Givaudan South Africa
Box 83027, South Hills
Antoine Nourrain
+27 (0) 11 406 8700
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(Pty) Ltd 2136 Illovo Sugar Ltd
Post Office Sezela 4215
Charles Kruger
+27 (0) 39 975 8216
International Flavors & Fragrances (SA)(Pty) Ltd
Box 40, Isando 1600
Levi Thamage
+27 (0) 11 922 8800
Junnderee (Pty) Ltd
P/Bag X2025, Isando 1600
Chris Young +27 (0) 11 974 7822
Letaba Citrus Processors (Pty) Ltd
Post Net Suite 100, P/Bag X 4019, Tzaneen, 0850
Carmen Sacco
+27 (0) 15 304 4000
McCollum & Associates SA (Pty) Ltd
Box 880, Morningside 2057
Peter Harrison
+27 (0) 11 234 8470
Mane South Africa (Pty) Ltd
Unit 1, Bertie Park, 12 Bertie Avenue, Eppindust
Mark Mulholland
+27 (0) 21 534 4422
McCormick South Africa (Pty) Ltd
P/Bag X 64, Halfway House 1683
Mike Palmer +27 (0) 11 690 0311
Nicola-J Flavours & Fragrances (Pty) Ltd
Box 6837, Halfway House 1685
Jason Vlantis +27 (0) 11 315 6582
Petrow Food Ingredients (Pty) Ltd
Box 11172, Randhart 1457
Craig Taylor +27 (0) 11 613 2702
Savannah Fine Chemicals (Pty) Ltd
Box 75864, Gardenview 2047
Colleen Maroun
+27 (0) 11 856 4500
Savoury Food Industries
Box 43028, Industrial, 2042
Harry Meyer +27 (0) 11 309 1606
Sensarome (Pty) Ltd
P/Bag X 6, Kyalami, 1684
Themba Nghalaluma
+27 (0) 11 805 8294
Sensetek CC Box 2598, Bedfordview 2008
Mike Capon +27 (0) 11 608 4944
Sensient Colors South Africa (Pty)
Suite 173, P/Bag X 7, Northriding
Dershana Jackison
+27 (0) 11 462 7150
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Ltd 2162 Sharon Bolel Chemical Marketing
Box 693, Edenvale 1610
Sharon Bolel +27 (0) 11 454 5400
SK Chemtrade Services (Pty) Ltd
Box 5101, Meadowdale 1612
Vanessa Salt +27 (0) 11 974 1124
Sunspray Food Ingredients (Pty) Ltd
Box 43057, Industrial 2042
Rene Cross +27 (0) 11 473 6811
Symrise (Pty) Ltd
Box 143, I sando 1600
Rudy McLean
+27 (0) 11 921 5600
Unique Flavors
Box 9583, Centurion 0048
Johan Smith +27 (0) 12 644 0334
Val-U-Flavours (Pty) Ltd
Box 10053, Belhar 7507
Rurik McKaiser
+27 (0) 21 981 7892
Von Holy Consulting CC
Box 4449, Edenvale 1610
Corene Von Holy
+27 (0) 83 267 6004
Afriplex Flavours & Fragrances (Pty) Ltd
Box 3186, Paarl 7620
Grant Momple
+27 (0) 21 872 4976
Agrana Fruit South Africa (Pty) Ltd
Box 143, Bergvliet 7864
Philippe Gomez
+27 (0) 21 705 0210
Bidfood Technologies (Pty) Ltd
Box 37200, Chempet, 7442
John Morris +27 (0) 21 527 5020
Cargill Flavor Systems (RSA) (Pty) Ltd
Box 354, Table View 7439
Nicole Lombard
+27 (0) 21 556 1512
Carst & Walker (Pty) Ltd
Box 87710, Houghton 2041
Gloria Ford +27 (0) 11 489 3631
Chemimpo SA (Pty) Ltd
Box 1378, Randburg 2125
Dawie S Maartens
+27 (0) 11 293 2000
Claman (Pty) Ltd
Box 70667, Bryanston
Clarissa Heyman
+27 (0) 11 704 5289
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2021 Clive Teubes (Pty) Ltd
Box 4919, Randburg 2125
Ron Allwright
+27 (0) 11 793 1207
Coca Cola South Africa (Pty) Ltd
Box 9999, Johannesburg 2000
Karen Vokes +27 (0) 11 644 0666
Soil 27 Musgrave Avenue, Durban, 4001
Nikki or Grant
+27 (0) 31 201 2778
[email protected] [email protected]
Source: South African Association of the Flavour & Fragrance Industry (SAAFFI) Table 21: Sector Organizations and Research Institutions Involved in the Essential Oils Industry.
Organization Role South African Essential Oils Producer Association (SAEOPA)
Its role is to provide knowledge for current and potential oil producers with information ranging from species selection, quality control etc.
Small Enterprise Development Agency (SEDA) SEDA has been involved in setting up essential oil business incubation, which provide technical assistance in the Eastern Cape & North West Province
The Council for Scientific & Industrial Research (CSIR)
CSIR is active in developing production techniques and has developed various steam distillation techniques. It also provides technical consulting services.
Agricultural Research Council (ARC) It introduced essential oil crops into selected rural communities and it also provides mentorship support to selected farmers of essential oils.
Department of Agriculture and Academic Institutions in South Africa
Conduct research and development of manuals to help growers.
Source: South African Essential Oil Producer Association (SAEOPA)
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ACKNOWLEDGEMENTS The following organizations and Departments are acknowledged: Agricultural Statistics: Department of Agriculture, Forestry and Fisheries Tel: (012) 319 8453 Fax: (012) 319 8031 Website: www.daff.gov.za South African Essential Oil Producer Association (SAEOPA) Karen Swanepoel University of Zululand Tel: 035 902 6359/ 082 785 8700 Fax: 035 902 6428 Website: http://safarmer.net/SAEOPA South African Association of the Flavour & Fragrance Industry (SAAFFI) Tel: +27 (0) 11 447 2757 Fax: 0866 203 723 E-mail: [email protected] Website: www.saaffi.co.za ITC Market Access Map Website: http://www.macmap.org/SouthAfrica ITC Trade Map Website: http://www.trademap.org. Disclaimer: This document and its content have been compiled by the Directorate Marketing of the Department of Agriculture, Forestry and Fisheries for the purpose of detailing the essential oils industry. Anyone who uses the information as contained in this document does so at his/her own risk. The views expressed in this document are those of the Department of Agriculture, Forestry and Fisheries with regard to the industry, unless otherwise stated. The Department of Agriculture, Forestry and Fisheries therefore accepts no liability that can be incurred resulting from the use of this information.
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