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The essence of success?

Essential oils are generally regarded as high value, low volume commodities and yet many developing countries import large quantities of oils to meet local demand for use in soaps, detergents, perfumes and other household goods. With agriculture providing the main source of income for rural communities, diversification to growing and even processing agricultural plants for essential oils, can help protect farmers from unstable prices of cash crops. However, despite the increasing trend for alternative products and therapies, such as massage, aromatherapy and acupuncture, which are currently taking up a larger share of the oils market, inconsistent buying from importing traders can leave farmers with a crop they cannot sell.

Eucalyptus trees

Essentials oils (volatile oils) can be extracted from the leaves, flowers, seeds, bark, roots from a wide variety of plants and the rind of certain fruits. An estimated 3,000 essential oils are known of which approximately 300 are of commercial importance. The majority are obtained from agricultural plants but a number of oils are collected in commercial quantities from wild sources (e.g. Sandalwood). On account of their aroma and highly volatile nature, essential oils have been traditionally used as basic raw materials in perfumes and flavourings: Sandalwood, for example, has been used in perfumery for over 4,000 years. However, oils are also used for medicinal purposes and even as insect repellents or insecticides. With increasing preference for natural products, demand for natural fragrances and flavourings continues to grow despite competition from synthetic substitutes (e.g Sandala, a synthetic substitute for Sandalwood developed in the 1970s), which have the advantage of lower production cost, stable pricing and regular supply. Maintaining quality and regularity of supplies is therefore fundamental to sustaining markets.

Small-scale solutions

With support from national and international research institutions, several countries in Africa and Latin America, have risen to meet local demand for essential oils, provide sufficient quantities for export and, in some cases, led to the commercialization of oils from native plants. Since 1987, IDRC has been funding collaborative research in Bolivia to help diversify the agricultural sector and to contribute to efforts made by the Bolivian government to find alternative sources for farmers who were previously growing coca for cocaine. The first phase of the project involved the perfection of steam-extraction methods for collecting oil from the foliage of eucalyptus trees, lemongrass, and mint, and developed the expertise for purifying the oils to meet international standards. Oil extraction using steam is a comparitively simple and inexpensive process that is readily adaptable to rural areas particularly as training in techniques only requires a few weeks. Since 1988, 12 rural extraction units have been installed in the Province of Cochabamba, one of the country's poorest regions. Their success has led to the independent purchase and installation of extraction units in other villages. 11 essential oil co-operatives have also been established in the region which have provided alternate employment and additional income for more than 200 families. Native plant species are also being processed for oil and providing peasants with a higher value-added product. While it is more difficult to develop markets for these new oils, producers tend to have a monopoly once a market is established.

In Morocco, cottage industries for extracting essential oils have existed since the C7th AD utilising the aromatic plants that make up a large part of the natural vegetation. However, researchers have been able to improve and add value to this 'essential' industry and to provide additional environmental benefits for growing these aromatic plants. Improved stills have been designed to reduce wastage of oils and to retain quality, and the composition of plants and their oils has also been studied leading to enhanced yield and quality of oils produced. For instance, verbena, which grows in the shade of date palms, yields 70% more oil 3-5 days after it has been harvested. By distilling the oil locally, incomes for farmers have greatly increased. Sagebush has also been found to exhibit genetic chemical polymorphism i.e. different oils are produced by the same species. Mixing two particular types (alpha-thujone and camphor) produces a standard essential oil much sought after by perfume makers. In addition, researchers have been able to identify the variety able to produce the strongest concentration of alpha-thujone, the least abundant of the two oils. To increase production of this particular variety, seeds have been sown by aircraft over desolate areas of Morocco with the added advantage that sagebush binds the soil and helps prevent desertification.

In West Africa, production of essential oils is helping to provide employment in rural areas and to protect farmers from unstable prices of traditional cash crops, such as cocoa, coffee, cotton and palm. In Togo, Benin and Ghana, a regional project has supported rural communities in mastering the extraction of essential oils from Gambian tea, basil, lemongrass, and other native plants. The production of these oils is not only meeting local demand but is earning valuable foreign exchange through sale on international markets.

Distillation of oil from the Waria-Waria tree (Asteromyrtus symphyocapra) is providing much needed cash income for villagers in the lowlands of the Western Province of Papua New Guinea. CSIRO scientists have worked with locals to develop a system for growing, harvesting and processing the leaves from this tree species to provide an oil, similar to eucalyptus oil, for treating colds, aches and pains - and even as a hair restorer. The Waria-Waria tree re-shoots profusely after being cut and the coppice shoots can be harvested annually. Vetiver grass planted as a barrier against soil erosionAlthough the oil is currently only sold in the Western Province the benefits of the industry are rapidly being recognized by local people.

A volatile business?

While the growing popularity of oils is good news for traders, producers have to ensure that supplies can satisfy demand. Inclement weather and economic instability can affect exports and, if the shortage is too severe, consumers may seek alternative supplies or turn to synthetics. In addition, inconsistency from traders can result in unsold consignments of oil. For example, as a result of poor demand from western traders, a company in El Salvador previously producing vetiver grass for oil production has now diversified into planting the grass for conservation purposes. The grass acts as a barrier against soil erosion and landslides, particularly for crops which are grown in mountainous areas and it is currently being planted in an effort to rebuild parts of El Salvador and Nicaragua damaged by Hurricane Mitch in 1998. This particular company has benefited from the alternative environmental benefits of growing this particular plant but, for smallholders to benefit from the export potential of growing plants for essential oil, they need to be assured that there is a consistent market.

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