Commercialisation of Aromatic and Medicinal Plants in Catalonia, Spain
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1 Commercialisation of Aromatic and Medicinal Plants in Catalonia, Spain Eva Moré Palos and Roser Cristóbal Cabau Department of Non Wood Products (APSB) Forest Technology Centre of Catalonia (CTFC) E Solsona, Lleida Spain Antonio Colom Gorgues Business Administration and Economic Management of Natural Resources (AEGERN) Agricultural and Forestry Engineering School (ETSEAL) University of Lleida (UdL) E Lleida Spain Keywords: consumption, distribution, essential oils, extracts, flavours, herbs, marketing Abstract The production of aromatic and medicinal plants opens opportunities for the cultivation of marginal lands. A marketing research study was conducted to know which plant species provide higher returns. The commercialisation of these plants as dried matter or as a source of essential oils was considered. Data about the production, commercial use, and trade of aromatic and medicinal plants in Spain and at an international scale were collected. In addition, a market study was made in Catalonia, including surveys of production, transformation, and consumption. The results obtained give a clear global vision of the needs of the pharmaceutical, food, cosmetic, and perfume industry, emphasizing the existing supply and quality conditions. Finally, the performance standards required for the development of this sector in Catalonia, where a deficit of production was found, are listed. INTRODUCTION The cultivation of aromatic and medicinal plants (AMP) has been considered an alternative production scheme in Spain due to: a) existence of a rich local flora, b) favourable climate, c) consumption increase of products made from AMP, d) high revenues, e) environmental and social profit. From the 70 s many crop research projects have been developed (Solé, 1984), but there is a lack of market research (Seoane, 1989). The aims of this project were: 1) to discover and analyse the needs and lacks of the industry that utilizes AMP products, listing their main uses and stating which is the current marketing structure, 2) to know the opportunities and threats of production, giving special importance to selecting the more interesting plant species. MATERIALS AND METHODS Firstly, a bibliographic research on AMP was conducted on production, uses and trade, technical aspects of European and International trade, Spanish import-export and current market reports. Secondly, a market research in Catalonia was carried out, through an exhaustive poll to the user industry. Three hundred and eighty one companies located in Catalonia were contacted by fax to know which type of AMP products they used: herb dry matter, essential oil (EO), flavour, or botanical extract (BE). Secondly, questionnaires were sent depending on those AMP products consumed. The following topics were covered in the questionnaire: a) plant species purchased and botanical matter reception, b) supply and quality, c) manufactured products trade, and d) opinion about AMP cultivation. Data were analyzed using DYANE (Design and analysis of market and social research polls) (Santesmases, 1997). Blocks were analyzed according to product (herb dry matter, EO, BE, flavour) and Proc. WOCMAP III, Vol. 5: Quality, Efficacy, Safety, Processing & Trade in MAPs Eds. E. Brovelli, S. Chansakaow, D. Farias, T. Hongratanaworakit, M. Botero Omary, S. Vejabhikul, L.E. Craker and Z.E. Gardner Acta Hort. 679, ISHS
2 to industrial sectors (Bosse, 1989): 1) Primary processing industries (herbs wholesalers, BEs manufacturers and EOs manufacturers), 2) Secondary processing industries (conditioning companies and flavour manufacturers), 3) End-use industries (dietetic and pharmaceutical laboratories, agro-food industries and parapharmaceutical, perfume and cosmetic laboratories) (Fig. 1). RESULTS AND DISCUSSION From 381 registered companies, the questionnaire was sent to 359. From this exploration it was concluded that 50 companies were using AMP, 43 EOs, 36 flavours and 22 BEs. Only 30 companies answered (8.4% of the contacted set), 19 of which were AMP users, 18 EOs users, 11 flavours users and 8 BEs users. The industrial sectors analysed were: 2 herbs wholesalers, 4 BEs manufacturers, 1 EO manufacturer, 5 conditioning companies, 2 flavour manufacturers, 10 pharmaceutical and dietetic industries, 6 agro-food industries and 9 parapharmaceutical, perfume and cosmetic industries. The average use per company is shown in Tables 1 and 2. Technical Aspects of the Supply of Raw Material The main industrial sectors that utilize AMP are the herb wholesalers, followed by the conditioning companies, EO and BEs manufacturers. On the other hand, EOs are purchased in big quantities by the EOs wholesalers, though nowadays its consumption is increasing in the parapharmaceutical sector. Moreover, there is a group of user companies that consume either AMP or EOs, BEs and flavours, though these last two products do not represent a considerable percentage of raw material provisioning. Likewise, big pharmaceutical laboratories tend to buy chemicals (especially flavours) instead of AMP. For the most part, the herbs are purchased dehydratated, except for the EO manufacturers and the industry of drinks (Fig. 2). Concerning transformation, the wholesalers and EO manufacturers consume whole herb, the BEs manufacturers and conditioning mainly crushed, and the rest of user industries, crushed and powdered, except for the industry of drinks that buys whole herb (Fig. 2). The herb arrives mainly packed in sacks, though the parapharmaceutical, perfumery and cosmetic industry use carton drums, and the laboratories prefer carton boxes. All the sectors store the herb at air temperature, but laboratories use refrigeration systems and controlled humidity as well. Dry herb can be stored for one year or less. Nowadays, more than 60% of purchased herbs still come from wild harvesting (Fig. 2). Herb wholesalers and agro-food industry are supplied principally from foreign producers, while the rest of industries do it through the herb wholesaler. The criterion of companies for valuing purchase price is the quality, though sometimes the supply regularity is also valued as well as the market prices (the agro-food industry especially) and the organic registrations (case of paraphamaceutical companies). The payment is commonly at 90 days. Opportunities and Threats for Growers Catalan cultivators are characterized by the diversity of AMP species and small quantity produced, destined to national herbalists. Clients demand a dry, healthy product of good apearance, characteristics that involve a first transformation, though it is observed a lack of mechanization for processing herbs. Moreover, the small weight of the productive sector in Catalonia, in certain way due to the nonexistence of professional organizations (although in 2000 the Associació Catalana de Productors de Plantes Aromàtiques i Medicinals-ACPPAM was created), determines that the prices be fixed by the wholesaler and not by the own producer as in other producing countries. So, the producers want to sign supply contracts with the buyers, to avoid the uncertainty of the sales and to foresee production with more guarantee. On the other hand, the plant nurseries are specialized in a few certain aromatic Mediterranean species (rosemary, thyme, lavender, etc.) produced in important quantities (an average of 60,000 units per year) in pots for gardening and focused to export. 150
3 1. Imports. Imports play a very important role in the provisioning of raw materials, both of plants and of EOs (Table 3). The herb wholesaler, imports 70% of the total volume of AMP bought by the companies of this sector. The interest in importing is basically due to two reasons: better prices and plant species not produced in Spain. In case of the EOs, it is a question of oils that are not in the home market. Importing companies complain about the changeable availability of the product, the customs bureaucracy and, the lack of quality. There are more than 30% of companies that have supply problems with AMP imports (Table 4). Almost three-quarters of the polled companies consider a comparative advantage to have the supplier nearby. Diverse reasons exist: minor cost of the transport, a better relation and ease of treatments, a better attention and service, which results in a faster response to demands and to solving problems, better control of the goods, which arrive in better conditions and allow the stocks reduction. All the sectors have habitual suppliers, supplying more than 90% of the buys (for the wholesalers it is only a 75%). Supply contracts are realized, but they are not usual, for in many cases they are not respected. 2. Contracts of Cultivation. Due to supply problems, most companies are prepared to realize contracts for cultivation, if the production fits their needs, the price is interesting enough, the quality is demonstrated, and a supply and delivery service is also assured. However, only three of the polled companies had crops for their own production. 3. Quality. The companies are prepared to pay more for plants of better quality, if it is guaranteed with analysis and registrations, and up to a certain limit of price. The most valued criterion of quality is the content in active principles, though the visual aspect is important for the herb wholesalers and conditioners; secondly, the absence of impurities is also important. The main control system is visual, and others less practiced are: heavy metals and pesticides (herb wholesalers and conditioners), microbiological, humidity and ashes (herb wholesalers, laboratories, agro-food industries), valuation of EOs (BEs, agro-food, perfumery and parapharmaceutical industries). The principal deficiency detected is a low content in active principles, though the presence of foreign matter, such as insects, bacterial and fungi, is very important. In EOs purchases, the most valued criterion is the chemical quality defined by the esters content. It is required a better quality for pure EOs used in aromatherapy, and for those destined to high perfumery and to food products of high consumption. The most common analyses for EOs are the visual control and the chromatography, and the deficiencies found are adulterations and deficient quality. 4. Most Searched Plant Species. In case of AMP, the plant species used by a higher number of laboratories are horsetail (Equisetum arvense) and passionflower (Passiflora incarnata). Those that are most consumed in volume are: the seed of milk thistle (Sylibum marianum), horsetail, the leaf of eucalyptus (Eucalyptus globulus) and an algae, fucus (Fucus vesiculosus). On the other hand, the plant species that are better paid are: the root of ginseng (Panax ginseng) that must be imported, tarragon (Artemisia dracunculus) that has difficulties in being cultivated, and round leaf sundew (Drosera rotundifolia), a plant species threatened by massive wild harvesting in the Iberian Peninsula (Blanco et al., 1996). In case of EOs, those consumed by more companies are: rosemary (Rosmarinus officinalis), eucalyptus (Eucaliptus globulus), thyme (Thymus sp.), lemon (Citrus lemon), peppermint (Mentha piperita) and orange (Citrus aurantium). Those with a high consumption in volume are: orange, lavandin and lavender (Lavandula sp.), and those that have a higher price are: melissa (Melissa officinalis), because of its low distillation yield, sandy everlasting (Helichrysum angustifolia or H. italicum), rockrose (Cistus ladaniferus), both from wild harvesting and, noble chamomile (Anthemis nobilis). The companies consuming BEs demand those of ginkgo (Ginkgo biloba), fucus (Fucus vesiculosus) and horsetail (Equisetum arvense), in case of medicinal extracts, and of liquorice (Glycyrrhiza glabra), in case of food extracts. And in relation to natural flavours, only a small quantity is used in food and medicines, mainly fruity flavours 151
4 (strawberry, lemon, etc.), though the flavour of mint (Mentha piperita) is very used. According to the manufacturers comments, the best selling herbs are: fenugreek (Trigonella foecum-graecum), anise (Pimpinella anisum), oats (Avena sativa), milk thistle (Sylibum marianum), horsetail (Equisetum arvense), juniper (Juniperus communis), purple coneflower (Echinacea sp.), fucus (Fucus vesiculosus), gentian (Gentiana lutea), ginkgo (Ginkgo biloba), St. John s wort (Hypericum perforatum), hop (Humulus lupulus), chamomile (Matricaria chamomilla), feverfew (Chrysanthemum parthenium), melissa (Melissa officinalis), and peppermint (Mentha piperita). 5. AMP Cultivation in Catalonia. The AMP cultivation can be destined to either dehydratated herb or to EO. Table 5 shows the plant species with better possibility of cultivation for each destination. The criterion of selection has been based on the analysis of two factors: the total volume consumed by the companies polled, multiplied by the price paid for every plant specie. Herb cultivation is a viable alternative if the plant species are adapted to soil and climate conditions, and allow obtaining a production of very good quality and price. Nevertheless, its necessary to have a well developed commercial network and a sensitive market. Moreover, AMP species that would adapt better to Catalan conditions are the autochthonous ones. However, it would be necessary to initiate breeding programs to select and differentiate varieties. Finally, the incipient Catalan production faces to some commercial and technical problems: insufficient farm dimension, competition from foreign countries, product supply not adapted to the industry needs, price oscillations, marked fluctuations of the production, lack of technical advice and need of investment in processing equipments. On the other hand, AMP growers face some obstacles when initiating a crop: availability of commercial seed (Spanish seed providers only supply AMP varieties of wild origin); lack of selected material of local AMP; few plant nurseries prepared to make big quantities of seedlings, due to low technical knowledge on AMP species). CONCLUSIONS In general, the soil and climate conditions of the Iberian Peninsula are suitable for cultivating AMP, though its economic success resides in its correct marketing, taking into account the manufacturers requirements, the existing legislation and the quality. A growing demand of AMP is observed. In case of aromatic plants, the market always has been stable, with an important consumption in the food sector (seasonings, drinks, etc.). In case of the medicinal plants, the herbalist market seems to increase due to attitude change of consumers towards natural products; on the contrary, the BEs market is unstable and unforeseeable, due to changing healing tendencies influenced by scientific studies. On the other hand, the EOs market is supported by the diversity of products, the great number of users (increased with the food aromatisation with natural flavours) and the international trading aspect. The interest in developing cultivations in Catalonia is supported by the fact that many industries have import problems of raw material supply. But, the success of these crops depends on several factors: variability of the demands, fluctuations of supply, installation of new crops of the same plant species, synthetic substitution of botanical principles actives, reduction of wild harvesting that makes cultivation necessary, capacity of growers to produce sufficient quantity, research and extension of production technical knowledge. Besides these, there are other inherent factors in Catalan production: few AMP growers, geographically spread, very small crop surfaces, reduced technical knowledge, and reluctant to associate for producing or marketing. In any case, there are several weaknesses to improve. Firstly, the cultivation techniques research and selection and breeding programs of local AMP species to obtain proper varieties with a commercial quality. Secondly, development of an AMP growing sector, favouring the crops establishment by means of funding production and installation of common processing equipments (dryers and distillers) in some strategic areas, to allow growers concentration and association. On the other hand, it is very important to find 152
5 meeting points between the growing sector and the user industry, to adjust efficiently to the current demand and the required quality, by the creation of an interprofessional organization (Ballesteros, 1986). ACKNOWLEDGEMENTS Thanks to the co-ordinators of project Life-Environment ENV/E/ for financial assistance and for technical advice. Literature Cited Blanco, E., Fernández, MªD. and Breaux, J.J Plantas medicinales. Incidencia ambiental y económica del uso de las plantas aromáticas y medicinales en España. Informe técnico, WWF Adena, Fondo Mundial para la Naturaleza, Madrid. Bosse, L. and Vigue, J Plantes aromatiques et médicinales dans les Pyrénées- Orientales. Étude de base concernant les potentialités du marché. Enquête apures des industries utilisatrices; École Superieur de Agriculture d Angers. Santesmases Mestres, M DYANE. Diseño y Análisis de Encuestas en investigación social y de mercados. Ed. Pirámide, Madrid. 243p. Seoane, J.A., Blanché, C., Sala, A. and Vallès, J Estudi de l estructura de les plantes medicinals a Catalunya. Possibilitats d actuació en el context nacional i internacional, i proposta d un programa de desenvolupament per la comarca del Priorat; Laboratori de Botánica, Facultat de Farmacia, Universitat de Barcelona. Solé, M.A Informe sobre les possibilitats de cultiu de plantes aromàtiques, medicinals i condimentàries, i l extracció d olis essencials. Servei d Extensió Agraria, Departament d Agricultura, Ramaderia i Pesca (DARP), Generalitat de Catalunya. Tables Table 1. Consumption per company according to used product. Plant species Volume Imports rm on/exp. Product min 4 (num.) (t per year) (%) (%) 1 max 5 ave. 6 min max ave. min max ave. min max ave. n.e. 2 s.d. 3 n.e. s.d. n.e. s.d. n.e. s.d. Herbs , , Essential oils , Flavours , , Extracts , rm on/exp.: Cost of raw material on the whole of expenses of the final product. 2 n.e.: number of polled companies 3 s.d.: standard deviation 4 min.: minimal 5 max.: maximum 6 ave.: average 153
6 Table 2. Consumption of herbs per company according to sector. Plant species (number) Volume (kg per year) min max. ave. n.e. 1 min. 2 max. 3 ave. 4 n.e. Herbs wholesalers BEs manufacturers Conditioning companies Pharmaceutical-Dietetic laboratories Agro-food industry Paraph. 5, perfumes, cosmetics ind n.e.: number of companies 2 min.:minimal 3 max.:maximum 4 ave:average 5 Parph.:parapharmaceutical Table 3. Main imported plant species. Chamomile (Matricaria chamomilla) Devil s claw (Hapagophytum procumbens) Horsetail (Equisetum arvense) Peppermint (Mentha piperita) Rosemary (Rosmarinus officinalis) Jasmine (Jasminum grandiflorum) Herbs Passion flower (Passiflora incarnata) Valerian (Valeriana officinalis) Boldo (Peumus boldus) Alder (Rhamnus frangula) Essential oils Incense (Boswellia carterii) Patchouli (Pogostemon patchouli) Ginkgo (Ginkgo biloba) Linden (Tilia sp.) Juniper (Juniperus communis) Table 4. Plant species with supplying problems. Patchouli (Pogostemon patchouli) Star anise (Illicium verum) Fenugreek (Trigonella foecum-graecum) Borage (Borago officinalis) Sage (Salvia officinalis) Herbs Anise (Pimpinella anisum) Chamomile (Matricaria chamomilla) Purple coneflower (Echinacea sp.) Essential oils Spike lavender (Lavandula latifolia) Lavandin (Lavandula x hybrida) Valerian (Valeriana officinalis) Gentian (Gentiana lutea) St. John s wort (Hypericum perforatum) Patchouli (Pogostemom patchouli) Ylang-Ylang (Cananga odorata) Sandal wood (Santalum album) 154
7 Table 5. AMP plant species with possibility of cultivation in Catalonia. Purple coneflower (Echinacea sp.) Gentian (Gentiana lutea) Cyprus (Cupressus sempervirens) Sandy everlasting (Helichrysum angustifolia) Herbs St. John s wort (Hypericum perforatum) Melissa (Melissa officinalis) Essential oils Spike lavender (Lavandula latifolia) Lavender (Lavandula angustifolia) Mints (Mentha sp.) Thyme (Thymus vulgaris) Valerian (Valeriana officinalis) Rosemary (Rosmarinus officinalis) Clary sage (Salvia sclarea) Thyme (Thymus vulgaris) Figures PRODUCTION Cultivation (conventional / organic) Wild Harvesting! FRESH HERB / DRY HERB COLLECTION Herb wholesalers PRIMARY PROCESSING INDUSTRY! RAW MATERIAL ( FRESH HERB / DRY HERB) Herb wholesalers! HERBS PROCESSED DRY MATTER Botanical extracts manufacturers! MEDICINAL/FOOD EXTRACTS Essential oils manufacturers! ESSENTIAL OILS COLLECTION Essential oils wholesalers SECONDARY PROCESSING INDUSTRY PROCESSED DRY MATTER! Conditioning companies! HERBAL TEAS ESSENTIAL OILS! Flavours manufacturers! FLAVOURS END-USE INDUSTRY! RAW MATERIAL (botanical extracts, flavours, essential oils, processed dry matter) Pharmaceutical and Dietetic laboratories Paraphamaceutical, Perfumes and Cosmetics industry Agro-food industry! CONSUMIBLES (medicines, cosmetics, perfumes, seasonings, food, drinks, confectioneries ) WHOLESALER DISTRIBUTION Import / Export Trade agents RETAILER DISTRIBUTION Controlled shops (chemist, herbalist shops, nutraceuticals shops, parapharmaceutics) Not controlled shops (supermarkets, direct sale, other shops) CONSUMERS Fig. 1. Scheme of the chain of supply and commercial distribution of aromatic and medicinal plants and their derivatives. 155
8 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Presentation of herbs depending on agents and uses wholesaler extracts man. conditioning ent. pharma. diet. lab. whole crushed powder agro-food ind. parapham. perf. cosm. ind. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Percentages of fresh or dry herbs purchased, depending on agents and uses wholesaler extracts manuf. conditioning ent. pharma. diet. lab. agro-food ind. parapharm. perf. cosm. ind. fresh dry 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Origin of purchased herbs depending on agents and uses wholesaler extracts man. conditioning ent. pharma. diet. lab. agro-food ind. parapham. perf. cosm. ind. wild harvesting conventional crops organic crops Fig. 2. Characteristics of purchased herbs in Catalan companies (1998). 156
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