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تجارت گیاهان دارویی
The Market for Herbs
and Essential Oils
Herbs and essential oils have created
a stir of interest among some producers in Western Canada. This has
come at a time when there are low returns on traditional crops, and
strong consumer demand for products made using herbs and essential
oils. For instance, it was estimated by a Harvard study done in 1997
that consumers in the United States spent over $5 billion US on herbal
products. Furthermore, it was quoted in a different article a couple
years ago that the market for natural food flavorings in the United
States was just over $1 billion US, and $400 million US was spent
annually for flavoring beverages. In addition, the fragrances in
cosmetics and toiletries were pegged at $900 million US annually.
The sudden growth in this industry has
been the emergence of nutraceuticals, functional foods, and the growth
in aromatherapy products.(1) North America is reviving an age-old
interest in natural health products that was never ignored in Asia or
Europe. Indeed, the vast majority of people in China have used natural
plants to treat common ailments for centuries and well-over half the
population in Germany use herbs in some form or another for treating
sickness. Even though the growth in herbal supplements in North
America has slowed down and may have reached a peak, (2) it is
unlikely to diminish. Consumers are more health conscious and could be
embracing herbs for prevention or treatment of minor aliments, at
least partially, because of the high cost of pharmaceutical drugs. It
is unlikely that the high cost of drugs will go away. Drug companies
create most of their drugs synthetically and recover the research
costs in the high drug prices that consumers pay. Natural plants
can’t be patented and it is not in the best interests of the
pharmaceutical companies to put in the costs of research for a natural
plant where the costs can’t be recovered.
For instance, whatever costs the
company incurs could be largely capitalized by another company that is
marketing the same natural plant even though they did not do the
research. There are many culinary and medicinal herbs that producers
are trying to grow and market in Western Canada. Probably any list of
the most popular culinary herbs includes (in alphabetical order):
anise-hyssop, basil, catnip, chamomile, comfrey, horseradish,
licorice, lovage, oregano, parsley, summer savory, stevia, tarragon,
thyme, and yarrow.
Some of the more common herbs
harvested for medicinal use in North America include black cohosh,
bloodroot, borage, burdock, calendula, echinacea (purpurea and
angustifolia), evening primrose, feverfew, fireweed, garlic, ginseng
(American and Siberian), goldenseal, milk thistle, seabuckthorn,(3)
seneca snakeroot, skullcap, sytrian pumpkin, St. John’s Wort,
stinging nettle, and valerian. The more likely crops mentioned for
extracting essential oils include anise-hyssop, angelica, basil,
catnip, chamomile, dill weed, lavender, monarda, peppermint, rosemary,
sage, and spearmint.(4) It is worth knowing that much of the world’s
supply of herbs is still coming from the wild and not from commercial
production on cultivated lands. However, this practice is changing,
and many of the wildcrafted herbs are being over collected and can no
longer meet current world demand. In response, cultivation of herbs
appears to be increasing around the globe. It has been noted that
Canada could be the "Sleeping Giant" of the medicinal plant
industry. Our advantages are numerous.
For example, the environment is
relatively pristine and the resources for crop production are vast.
Producers are well educated, land is relatively cheap, and the
infrastructure offers world class plant breeders. There is close
proximity to a large wealthy population with a new found interest in
herbal products just south of the border. Canadian producers
experience limitations that do not challenge competing countries. A
short growing season and harsh winter weather dramatically limit the
number of herbs that can be economically grown. The cost of labor is
prohibitive for many of the herb crops that do not lend well to
weeding (with herbicides) or harvesting with mechanical means. So,
after weighing the pros and cons, are there herbs (or essential oils)
that producers in Western Canada can produce and market profitably?
Many producers have tried echinacea and St. John’s Wort. Both of
these crops are household names, and according to at least one survey,
ranked number 1 and 2 in herbal supplement sales in the United States
in 1998. However, there are quite a few growers who have been
discouraged after trying to grow either crop. The price of echinacea
purpurea root has dropped from over $12 per pound in 1994 to less than
$4 per pound in 1999 for bulk non-organic product. In other words, by
the time the crop was planted and the root was harvested, 3 or 4 years
had elapsed, and the price for root had dropped to as much as
one-third the original price.
According to some sources, the price
of echinacea angustifolia root has fared better but still suffers from
overproduction. Apparently, in Ontario, many tobacco growers were
encouraged to diversify by their government, and the acres of
echinacea responded by increasing significantly. The price for St.
John’s Wort is going through a similar fate, dropping from about $7
per pound a couple of years ago to as low as $2 per pound for bulk
non-organic this year. Furthermore, echinacea growers in Western
Canada have had considerable problems with disease such as aster
yellows. St. John’s Wort grows relatively well in Western Canada but
some regions have banned commercial production, considering it a
noxious weed. Of all the herbs and essential oils, American ginseng
has been by far the most important in Canada in recent years. It has
been estimated that American ginseng grown in Canada has had an export
value of about $60 million annually in the past few years.
However, most of the production has
been either in British Columbia or Ontario, with very little American
ginseng grown in Alberta. In fact, mint has been the most important
herb crop in Alberta followed by borage seed. According to Statistics
Canada trade information, southern Alberta exported $3.4 million worth
of spearmint (scotch) oil and close to $1 million worth of peppermint
oil to the United States in 1998. This is a fairly substantial share
of the overall market for mint oil in North America. The Pacific
Northwest and the Midwest states are the primary growing regions for
peppermint and spearmint in North America. In a study done in 1989 for
Agriculture Canada, the authors indicated that monarda had the most
market potential of all the crops they studied for essential oil.
However, in hindsight, monarda has only been grown in Canada
experimentally. In southern Alberta, PANOIL Inc., tried growing
monarda but reverted to growing mint and dill because of production
problems. PANOIL (George Thacker & Sons) steam distills spearmint,
peppermint, dill weed, and catnip. The essential oils are sold on
contract to buyers in the United States.
The essential oils industry for
refined processing and marketing in Canada is very small. The market
for essential oils in North America is predominantly located in the
United States along the East Coast. Wholesale distributors and brokers
of culinary and medicinal herbs in Canada are mainly located in
British Columbia and southern Ontario. There are not many examples of
companies involved in processing herbs located in Western Canada.
However, there are some exceptions. Bioriginal Food and Science
Corporation, based in Saskatoon, is a leader in production and
marketing of essential fatty acids. Bioriginal’s most important
products are centered on Gamma Linolenic Acid (GLA). GLA are extracted
from crops such as borage seed and evening primrose. Bioriginal
investigated the potential of several other crops such as echinacea,
feverfew, and St. John’s Wort.
However, they decided against
developing a medicinal herb extract plant because they perceived the
market for processing these herbs was saturated. Apparently, they were
concerned that higher costs for small-scale herb production in
Saskatchewan could not compete with subsidized production in Ontario.
Fytokem Products Inc. of Saskatoon has created a niche market for
fireweed. They are marketing a group of skin care products developed
from fireweed in North America, Europe, and Japan. They recently
signed a distribution deal with a German company that supplies such
companies as ‘Estee Lauder’ and ‘L’Oreal’. Wise Owl Herbs in
Unity, Saskatchewan buy certified organic echinacea angustifolia root
for large sales in Europe and North America.
The company is researching and
reviewing plans to include echinacea purpurea, echinacea angustifolia
flowerheads, goldenseal, feverfew, St. John's Wort, and seabuckthorn
in their product line. Nutrivim Nutraceuticals is a new company that
is planning to custom process herbs from their location in Moose Jaw,
Saskatchewan. They would charge a fee (toll) for performing
encapsulation, tablet compression, bottling and labeling. According to
an article in the Western Producer, this company will be processing
such crops as evening primrose, ginseng, feverfew, hemp, and St.
John’s Wort. Fortius Inc. of Calgary received the distinction of
being placed on the list of Alberta’s Fastest Growing Companies in
2000 and received the 1999 Young Entrepreneurs Award of the Year for
Alberta. This company manufactures and distributes nutraceuticals and
dietary supplements for both human and animal consumption.
Their product ingredients include
herbs such as echinacea. HerbTech Inc. (subsidiary company of CV
Technologies Ltd.) recently signed a deal to supply HerbTech brand
name products to Safeway. This includes products made from ginseng and
St. John’s Wort extracts. Norac Technologies Inc. of Edmonton, is
probably the largest commercial extraction facility in the province of
Alberta. This company is a subsidiary of UFL Foods, and processes and
distributes oleoresins, essential oils, cosmetic oils, and
nutraceuticals. Sakai Spice of Lethbridge, grows and markets Japanese
horseradish. They are a subsidiary of a Japanese company, Arashiya
Shiro Co. Ltd., and process a condiment product called ‘wasabi’
(made from horseradish and yellow mustard) for the Japanese export
market. Canada Seabuckthorn Enterprises Limited is a new entry in
Saskatchewan from British Columbia that is converting a former water
distillation plant to process seabuckthorn.
The facility is to be up and running
in 2001, and has plans for processing extracted essential oils for use
in nutritional supplements, skin creams, and pharmaceutical products.
Natural Performance Industries Inc. in Onoway, Alberta is a
manufacturer of herbal and natural products. This company is a custom
manufacturer for tablets, encapsulation and cold liquid filling. They
also offer packaging and private labeling. Flora Beverages Co. Ltd. of
Calgary manufactures, and custom formulates packages of botanical
beverages, tonics, and liquid herbal preparations. The company exports
product to the United States, Norway, Mexico, Japan, Hong Kong, and
Taiwan. Bedrock Seed Bank is a seed company located in Edmonton that
is involved in seed production, processing, procurement, and brokering
of herbs, native species, and specialty crops. This company also
markets directly to the consumer at the farmers’ market in Edmonton.
Blooming Prairie is another seed company located in Edmonton. This
company supplies organic seed for a wide variety of herbs, and
supplies fresh and dried flowers. The company also acts as broker and
consultant to culinary and medicinal herb growers. West Country Herbs
(the sister company of Morinville Greenhouse) of Morinville, Alberta
sells organic seedlings of echinacea angustifolia, valerian, St.
John's Wort, milk thistle, French tarragon, mountain mint, among
others. Northern Alberta Herb Growers Ltd. of Opal, Alberta operate a
greenhouse that specializes in supplying echinacea angustifolia and
St. John’s Wort plants. This company is in the process of setting up
threshing, washing, drying & grinding facilities at Redwater,
Alberta.
Ultimate Herbs Ltd. of Sherwood Park,
Alberta is another greenhouse operation that specializes in supplying
orders of echinacea angustifolia plants. As well, the company sells
dried echinacea root. Herbs for Your Health of Hayter, Alberta grows
and markets certified organic medicinal herbs and oilseeds. For
instance, they advertise for sale angelica, burdock, borage, caraway,
catnip, comfrey, dandelion, echinacea (angustifolia, purpurea, and
pallida), feverfew, hemp seed, St. John’s Wort, and valerian. Herbal
Greenhouses Inc. of Rockyford, Alberta grows fresh herbs such as
feverfew in an aeroponic greenhouse. It is possibly the first
greenhouse to grow herbs in an aeroponic environment. Aeroponics is a
system designed to mist water through the air to coat the roots with
oxygen-enriched water and food. Caribou Ginseng of Williams Lake,
British Columbia grows and sells certified organic herbs. They have a
branch outlet in Edmonton. At their Williams Lake location in the BC
interior, they grow organic ginkgo biloba trees. Even though there is
an impressive list of companies in Alberta and Saskatchewan that are
involved in this industry, the fact remains that the market for herbs
is small. For example, the results from a survey done in 1997 by
Saskatchewan Agriculture and Food,(5) indicated that most producers
sold less than $2,500 worth of product.
Only a small number of growers
reported sales over $5,000. Plus, producers mainly sold unprocessed
product through farmers’ markets, other growers, private sales and
wholesalers. The survey indicated that few crops were marketed outside
Saskatchewan and none were direct marketed outside Canada. The
producers ranked finding new markets as the greatest concern. In the
author’s discussions with wholesalers and processors, they expressed
the following criteria when buying herb crops: consistent, high
quality, certified organic product, available in a large volume, and
probably located close by. For instance, a company on the West Coast
indicated that they were sourcing many of their herb crops from the
Okanagan Valley. The farmers were all located in close proximity where
the buyer could look at all the crops in a day trip. Perhaps in
response to such concerns, producer groups have been created for the
purposes of pooling their herb crops and offering bulk supply. In
northern Saskatchewan, seven producers teamed together to form
Northern Lights Herb Growers. This group grows and markets several
organic herb crops that include motherwort, echinacea angustifolia,
astragalus, German chamomile, calendula, fireweed, skullcap, Siberian
morthwort, valerian, marshmallow, feverfew, and Siberian ginseng. In
Alberta, Western Canadian Organic Herb Association was created with
about 50 members growing certified organic echinacea angustifolia and
St. John’s Wort. Other groups in Western Canada include NorSask
Botanicals in the Melfort, Saskatchewan area, Mekiwin in Manitoba, and
Coulee Pickings in Regina. Provincial and National associations are
also playing an important role in the industry.
For instance, BC Herb Growers
Association and Saskatchewan Herb and Spice Association (6) represent
the industry in each of their respective provinces. In Alberta, last
year the Alberta New Crops Network was created as an umbrella from
several smaller associations, e.g., Alberta Dried Flower and Herb
Growers’ Association, Alberta Alpine Herb Association, and the
Alberta Ginseng Association. Nationally, there is the Canadian Herb
Society, Herb Info Canada, and the Saskatchewan Nutraceutical Network
(with membership outside the province). Plus there is the Canadian
Functional Food Network located at the University of Alberta. In
education, there are a couple educational institutions that offer
courses in the province of Alberta. These include Olds College Centre
for Innovation and Wild Rose College of Natural Healing. Nevertheless,
there remain some major obstacles for the industry to overcome. For
example, the Saskatchewan survey from 1997 indicated less than half of
the growers were using organic production methods. Even though, in the
author’s discussions with the wholesalers and processors, many of
them indicated that they are no longer buying or using non-certified
organic herbs. Another challenge in this industry is the lack of
resources, infrastructure, and proper equipment to grow and process
herbs and essential oils. For example, steam distillation units cost
more than most producers could afford. It is estimated that the cost
is as much as $1 million for a modern unit. In response, the province
of Alberta and the Alberta New Crops Network have developed a portable
oil distillation unit. They are testing several herb crops across the
province. As well, Ben-Don Innovators of Saskatoon have manufactured a
medicinal harvester.
The harvester is suppose to be able to
harvest a variety of herbs that could include chamomile, feverfew,
calendula, St. John’s Wort, and echinacea. Government regulations
and standardization are key outstanding issues that finally appear to
be getting addressed. In 1997, the government of Canada launched a
full review on how natural health products were regulated in Canada.
The government reached a consensus with those in the industry on how
to regulate the industry, and then drafted up a regulatory framework.
The government has set up an Office of Natural Health Products to
provide consumers some quality assurances on what they are buying.
Information pertaining to the new Office and the regulatory framework
that was drafted can be found at the following web address:
www.hc-sc.gc.ca/hpb/onhp. In a similar context, in the private sector
there is a concerted effort on the part of the more progressive
companies to self regulating the industry. For example, CV
Technologies Ltd. of Edmonton made an arrangement with the
multinational company, Dupont, to endorse CV Technology’s patented
ChemBioPrint technology platform for testing natural health products.
CV Technologies Ltd. plan to revolutionize the industry by using this
technology to identify, extract and standardize the natural compounds.
This could ensure that batch-to-batch production is consistent and
formulated for optimal use. It is the author’s opinion, that there
are market opportunities for new crops, however, the producer must be
selective. It is advised that producers in Western Canada consider the
following remarks prior to embarking on any herb crop:
1-it is often preferable to grow native versus introduced species;
2-plants which are perennial in other
areas are often annuals on the prairies;
3-better to concentrate on herbs or
essential oils that are ideally suited to a northern climate, i.e.,
the so-called ‘northern vigor’ in plants from the carrot or mint
family; (7)
4-large scale production is more
likely to succeed when growing dried herbs or essential oils that
don’t compete on cost with low wages for labor in other countries.
In other words, the production process should be highly mechanized;
5-it is wise to grow high quality,
certified organic herbs; and
6-Field or greenhouse fresh herbs
should probably be grown with the intention of selling in the local
urban market where the transportation advantage and timing is of
critical importance to the quality of the product.
All in all, after reviewing a long
list of herbs, German chamomile, an annual herb, may have the best
potential. Even though German Chamomile is an introduced species, it
is an annual crop well-suited in a northern climate such as in Western
Canada, and it can be grown on a large scale using new technology for
harvesting the flower heads. Plus, there is a diversified and growing
market for chamomile in North America and Europe. For instance, the
dried chamomile flowers are used in herbal teas, and the extracted
oils are used in confectionery products, beverages, cosmetics,
perfumes, and medicinal products. In fact, Richters Seed(8) estimated
that the market size for chamomile was about 12,000 acres in North
America and Harvey Clark from the Canada-Saskatchewan Irrigation
Diversification Centre in Outlook, SK estimated that roughly 2,500
acres were being grown in Canada and the United States. As well,
Richard Alan Miller, who published the book, "The Potential of
Herbs as a Cash Crop," stated that the prairies could conceivably
grow 50,000 acres of chamomile. However, it should be noted that any
production in Western Canada would need to compete with production
already established elsewhere in the world such as France, Eastern
Europe, and Egypt. It is quite likely that echinacea (purpurea and
angustifolia) and St. John’s Wort will continue to be grown in
Western Canada by those who can grow a high quality certified organic
product in a size large enough to meet market needs in any given year.
Richard Alan Miller has noted that the
highest quality of echinacea angustifolia in North America comes from
the northern Midwest states and the bordering provinces of Canada.
Furthermore, Harvey Clark stated that one Western Canadian company
claimed they are still offering a good price of $30 CDN per pound and
can not get enough good quality echinacea angustifolia roots with 1%
or more echinacosides. Nevertheless, it is the author’s opinion that
it is unlikely that either of these herbs, echinacea or St. John’s
Wort, will sustain continued growth in bulk production. It is more
likely that production will retrench, and there will be more emphasis
on a high quality product grown only by well-informed producers that
probably belong to cooperatives that can pool their products and sell
them as a commodity. Richter’s market information would indicate
that echinacea and St. John’s Wort volumes and prices are down.
Borage seed was, up until this year, an important seed crop in Western
Canada. The seed is crushed to extract an essential fatty acid, gamma
linolenic acid (GLA), that is sold in a packaged health product to end
consumers. However, borage acres were estimated to have dropped
dramatically this past spring in response to a sharp drop in the price
($2.50 per pound last year to $1.00 spot price). Responding to a good
price of $2.50 per pound in the spring of 1999, Saskatchewan producers
grew 25,000 acres of borage, up from 10,000 acres the prior year. In
Alberta, it was estimated that seeded acres jumped from 8,000 in 1998
to 11,500 in 1999. The borage producers largely agreed as a group to
cut back in 2000 to prevent the further depression of prices. The two
major companies buying borage in Western Canada, Bioriginal Food and
Science Corporation and Specialty Distributing both pulled production
contracts and asked producers to store the previous years borage seed
in their bins.
There was also over production in
other countries, in particular England and New Zealand. As well,
evening primrose from China, another source of GLA, was flooding into
the North American market last year at a lower price. In parallel the
demand for GLA had softened in both North America and in Asia. For
instance, it has been suggested that consumers are confused about the
differences between the health benefits of the different essential
fatty acids, i.e., omega 3 and 6, and GLA. Plus, poor economic
performance in Japan has slowed demand for health products in general,
including GLA. It is expected that the market for borage seed will
recover, in a year or two, after the world oversupply is used up.
Evening primrose is a perennial native to North America but the hybrid
recognized as a commercial source of GLA does not over-winter well in
Western Canada. Evening primrose can be started in a greenhouse and
planted out, but this leads to a higher cost of production than in
Eastern Canada or in competition with borage. It appears to be better
suited to Eastern Canada where there is production already in Nova
Scotia and Ontario. The majority of GLA production in the world is
accounted for by evening primrose. Prior to 1995, according to one
source, it was estimated that 90% of GLA market was evening primrose.
However, until there are varieties that can over-winter in Western
Canada, borage is a better option. More information on the evening
primrose market can be found at Saskatchewan Agriculture and Food web
site: www.agr.gov.sk.ca The American ginseng market is expected to
rebound. The industry has made significant adjustments in production,
and can probably sustain stronger prices. For instance, in British
Columbia the ginseng industry peaked in 1997 with about 129 growers in
the province and dropped to 60 growers this past year.
Chai-Na-Tai Ltd. of British Columbia,
the world’s largest grower of American ginseng, filed for creditor
protection this past year, and has since restructured its finances and
scaled down production. According to one source, the price quoted in
1999 for American ginseng was between $9 and $13 per pound versus $15
to $17 per pound the year before. The main reason for lower prices,
besides over supply, was a substantial drop in demand when Hong Kong
reverted back to China in 1997(9), and the economic crisis in Asia
during the same time frame. The economic crisis in Asia is no longer
an issue and there are other markets besides China, such as the United
States and South Korea. However, it is expected in the future that the
number of cultivated acres of woodland grown ginseng will increase at
the expensive of shade-cloth ginseng. The price for woods-grown
ginseng has been quoted as much as ten times the price of shades grown
ginseng. However, Harvey Clark stated that the price of woods-grown
ginseng is falling in response to rising production. The ginseng
naturally growing in North America is seriously depleted from
wildcraft harvesting.(10) The U.S. Fish and Wildlife Service Office
has enforced regulations on the export of American ginseng. They only
allow the export of roots harvested from the wild that are 5 years of
age or older. The harvesting of wildcraft species is the jurisdiction
of each state. Some of the US states have taken measures to stop
wildcrafting of American ginseng in their respective states.
Richter’s market information would indicate that ginseng volume is
up and prices are down.
The production of black cohosh and
goldenseal is currently about 99% and 95% wild origin species,
respectively, but this is expected to significantly decrease, and more
production will have to be cultivated commercially to meet consumer
demand. According to Harvey Clark, many herbalists are discouraging
consumers from buying wildcrafted goldenseal and substituting with
Oregon grape root or cultivated production. Nevertheless, wild origin
goldenseal and black cohosh are depleted and it is expected that local
US states will be taking more action to regulate the wildcraft
harvest. Goldenseal is used in combination with echinacea and other
herbs for strengthening the immune system and black cohosh is used in
medicinal treatments for female menopause problems. Harvey Clark
reported that Saskatchewan growers have had mixed experiences and few
have succeeded in commercializing goldenseal production. However, he
further remarked that goldenseal is one of the highest priced
medicinal crops, so that it is quite likely growers in Western Canada
will continue to try. Clark pointed out that the price of goldenseal
was so high that the supplier to Eclectic Echinacea in Victoria, who
had succeeded in growing goldenseal in BC, was reluctant to show his
plot to buyers for fear of theft. However, Richter’s market
information would indicate that this might be changing. They stated
that goldenseal volume is up but the price is down. Black cohosh is
also an important medicinal plant but it, as well, is unlikely to
become established for commercial production in Western Canada. This
crop is better suited to climate conditions in Eastern Canada and the
United States. In Western Canada, seneca snakeroot and bloodroot are
wildcrafted. Manitoba and Saskatchewan are the major sources of seneca
snakeroot.
Their production is either exported to
Japan or Europe, or it is sold to pharmaceutical companies in North
America. There are several patented medicines that use seneca
snakeroot. For instance, Ernest Small and Paul Catling in their
publication from 1999 entitled "Canadian Medicinal Crops"
gave the following examples: cough medicine, veterinary medicine, and
prescription drugs in the treatment of bronchitis and asthma. There
are two opposing views in current literature. Small and Catling stated
that the wild plant population is still plentiful, and they suggested
that the market was in a decline. Manitoba Agriculture stated that
seneca snakeroot has been over harvested in the past few years and
demand is growing by 5 percent annually. Manitoba Agriculture also
reported that in 1995 about ten tons of wild harvested root product
was going to Japan, Europe and the United States. It is the author’s
opinion that seneca snakeroot will likely continue to be predominantly
wildcrafted for a few more years with little or no cultivated seneca
snakeroot commercially produced in Canada. According to literature
sources, Japan, India, and Brazil have commercially cultivated seneca
snakeroot but overall production cultivated in the world remains
small. There are no natural bloodroot plants in Alberta but it does
grow naturally in Manitoba. Most of the production of bloodroot in
North America is harvested from wild origin species in the eastern
United States. However, it is apparently depleted in the United States
with annual use estimated at 2,000 MT. In a report by Andrea Gunner
from 1998, "Technical Feasibility Study for Medicinal and
Aromatic Herbs," this is a crop that could be commercially
cultivated and could yield as much as 2,000 pounds per acre in the
third or fourth year after planting. Bloodroot is used medicinally for
the active ingredient of sanguinarine that is extracted from the root
rhizomes. Sanguinarine is used in toothpaste and mouthwash rinse
because it interferes with bacteria that may cause cavities and damage
gum tissue. However, Small and Catling pointed out that sanguinarine
occurs also in plume poppy and that this species in easier to
cultivate and produce commercially.
It is expected that cultivated
commercial production in Western Canada is still a few years off, or
until other uses for the active ingredients in bloodroot find
commercial use. Bloodroot is used as an ingredient in cough syrups and
in the Chinese rubbing oil called ‘Po-Sum-On’. It was used in the
Colgate toothpaste, ‘Viadent’, however, the company discontinued
the use of bloodroot in this product. Anise-hyssop is a native plant
originally used, according to Manitoba Agriculture, by the Native
Americans as a breath-freshener, as a tea, and as a sweetener. It is
now mainly used in dried flower arrangements and as an essential oil
in perfume, aromatherapy products, liqueurs, and even some root beer
formulas. Manitoba Agriculture reported strong demand in the dried
flower trade and some demand in the herbal tea market. According to
quoted sources in Small’s publication from 1997, "Culinary
Herbs," there are several strains of anise-hyssop that have been
selected and developed for essential oil containing high
concentrations of methyl chavicol. This constituent is used in many
industries. Dandelion is a plant naturalized to North America by early
European settlers, yet the United States is evidently importing
something like 45 MT of dandelion in some years. Ernest Small wrote in
the publication from 1997 that dandelion is found in over 50
commercially sold medicinal preparations in Canada and it has the
value of over a half million dollars in the Canadian market alone each
year. The dandelion greens and root extracts are used for a variety of
problems that include treating jaundice and other liver aliments. The
root is supposed to be used as a coffee substitute and in anti-smoking
preparations. Small and Catling wrote in their publication in 1999
that no modern investigation on medicinal claims of dandelion has been
done and most research on the plants effectiveness are dated pre-World
War II.
It was Small’s view in his 1997
publication that there was a small commercial market for dandelion
greens and that it was quite possible that cultivated dandelion would
increase. Richter’s market information would concur, indicating that
volume and prices are up. Fireweed is native to Western Canada but it
is likely contracted for commercial production only in Saskatchewan.
Most of the supply has been obtained by harvest of wild fireweed in
northern Saskatchewan. Fytokem Products Inc. use fireweed in their
cosmetic and personal care products because it is reported to have
active constituents that help soothe skin irritation and burns. Even
though, it is expected that commercial production will heavily
dependent on the needs of Fytokem, there could emerge other players in
this market in the future. Fireweed is one of the more successful
commercial herbs in Saskatchewan. Stinging nettle is a native species
that has a wide range of uses. It is used as a specialty tea for
weight loss and maintenance. Manitoba Agriculture reported that the
worldwide demand for nettle was estimated at 100 tons in 1996 and that
‘Clairol’ uses more than 40 tons/year as a hair conditioner. It is
also found in a beer product, tonics, capsules, and in a juice
product. It has potential for fibre applications similar to flax and
hemp. Harvey Clark pointed out that herbalists like to prescribe
nettle for a wide variety of ailments when the use of other herbs is
unclear. However, it should be noted that stinging nettle is a skin
irritant and it is generally regarded as a noxious weed. It was
Danielle Simonot’s opinion in March 2000 in the report
"Bio-manufacturing in Saskatchewan" that stinging nettle is
one of the most undervalued of economic plants with potential
applications in a wide range of uses. However, Richter’s market
information would indicate that the volume and prices are stable.
Yarrow, is a perennial native that according to Small and Catling
(1999) is used in more than 20 pharmaceutical products marketed in
Canada, and is very popular in commercial European herbal remedies.
Robert Rogers a herbalist in Alberta in a presentation at the Prairie
Medicinal and Aromatic Plant Conference in 1997 indicated that yarrow
is used for such things as menstrual pain, nervous disorders, and poor
digestion. Small and Catling wrote in their publication that most of
the commercial supplies of medicinal yarrow are obtained from Europe.
They estimated the production of
yarrow in the world to be about 800 MT, worth $88 million US annually.
It is a crop that is relatively easy to grow in Western Canada.
Manitoba Agriculture stated that there is a steady market as an
ornamental and in dried flower arrangements. However, Richard Alan
Miller, indicated on Richter’s Q & A web site that yarrow
flowers hold a limited market and requires special equipment not yet
invented to be competitive. It was his thoughts that the entire
domestic market needed less than 400 acres, with most being imported
from India at a landed price of less than $1.20 per pound. He did
state that yarrow could have some potential as a mosquito repellent,
although these types of markets are limited. Siberian ginseng is a
crop quite different from its counterpart, the American ginseng. It is
a perennial that originates from Siberia. Supposedly, it could easily
be grown in Canada and is much cheaper to grow than American ginseng.
However, it is reported to be difficult to get established in a stand
and for the best medicinal properties, it should be grown with shade.
This crop is grown in some small acre plots in Western Canada and the
market will likely hold up until the agronomics of growing it are
better understood. However, Harvey Clark mentioned that Siberian
ginseng is widely grown and prescribed in China, and North American
growers may not grow it cheaply enough to compete effectively with
imports from China. Devil’s club (also known as Alaskan ginseng) is
another herb that could have similar medicinal properties but is
native to Western Canada. According to Small and Catling in their
publication in 1999, the market outlook for Devil’s club could be
quite promising. Licorice is a well-known plant used in medicine and
by the flavoring industry. Even though, true licorice probably won’t
survive winter in Western Canada, wild licorice is native to Western
Canada. There could be markets where wild licorice could be a
substitute for true licorice.
For example, Manitoba Agriculture
suggested that it could be used as a natural sugar substitute, for
flavoring root beer and chewing tobacco. True licorice is used as a
natural sweetener in beverages, confections, candy, chewing gum, ice
cream, and as a medicine in cough syrups and cough drops. However, the
market is expected to be quite small. Wild licorice is regarded as
inferior to true licorice and many products that taste like licorice
are actually flavored with anise oil. Harvey Clark mentioned that
there is reported to be good demand for licorice from Europe. He
further stated that Chinese licorice is used in many Chinese
formulations, but has been placed on Canada’s restricted list of
herbal products for concerns over safety. Richter’s market
information would indicate that for true licorice the volume is up and
the price is down. Skullcap is native to North America and is used in
the medicinal and cosmetic industries. Medicinal claims include
treatment of nervous disorders, high fever, and respiratory tract
infections. In cosmetic products it is described as having
anti-inflammatory and anti-allergic properties. It is also stated in
the report by Danielle Simonot that it is used in herbal teas and
tobacco products. Supposedly there are skullcap species growing in
marshlands in Western Canada that could be wildcrafted. Richter’s
market information would indicate that the volume is stable and the
price is up. Milk thistle and feverfew are quickly moving toward
commodity status. Milk thistle is a native species but feverfew is
native to southeastern Europe. For either of these crops, low cost
production using mechanized farming technology is needed. There are
already quite a few producers in Western Canada growing milk thistle
or feverfew, and the number of acres required for growing either for
medicinal purposes is estimated to be small. Harvey Clark indicated
that milk thistle tends to be a long season crop and may therefore
have difficulty competing with more southerly climates. But the
comparative advantage for milk thistle in Western Canada is that our
winter prevents it from spreading significantly, especially if
producers are careful to harvest all the seed heads.
Milk thistle has gained notoriety as a
liver cleanser. The active constituent in the seeds of milk thistle
are called ‘silymarin’ and it is suppose to increase protein
synthesis in liver cells to stop the absorption of toxins by the
liver. It is worthwhile mentioning that milk thistle is often regarded
as a problem weed because it spreads and creates a near impenetrable
barrier to get rid off. It can also supposedly reduce forage
production and cause nitrate poisoning in cattle and sheep. Contrary
to some other sources, Richter’s stated that milk thistle volume and
prices are up. Harvey Clark mentioned that organic production is being
popularized for the North American market. Feverfew leaf prices were
reported by Agriculture Canada to have been at one time as high as $50
per pound but dropped considerably in the past few years. It is
estimated that the price for certified organic feverfew leaf is now no
more than $15 per pound. There is supposed to be a wide variability in
parthenolide content in the leaf material. According to Richters, the
buyers want a minimum parthenolide content to be between 0.4 and 0.8%.
Harvey Clark stated that in discussions with an Ontario company, they
reported that they had developed a process for extracting the active
ingredients from feverfew but instead of developing the market
themselves, the company was sold to a large European pharmaceutical
company. Feverfew is used as a medicinal crop for the treatment and
prevention of migraine headaches. Richter’s market information would
indicate that feverfew volume is down and prices are stable. Calendula
is an annual native to the Mediterranean region. The flower petals are
used to make creams, salves and teas. According to literature from
Alberta Agriculture it can be used as a substitute for saffron in
cooking. According to the report by Andrea Gunner in 1998, calendula
is under commercial cultivation in Europe, the United States, and even
in Canada. The United Kingdom is supposed to be researching calendula
as a source of resins for the paint and varnish industry.
There is also research aimed at
lubricant additives and it was Gunner’s opinion that the market for
calendula looked promising with potential for several thousand tonnes
of production. Richter’s market information would indicate that
volume and prices are stable. Catnip is a perennial native to Europe
and Asia. The essential oils are used in perfumes, candies, and
pharmaceuticals. The fresh leaves and stems are used in herbal teas,
and as a flavoring in foods. The dried leaves and flower tops are also
found in cat toys. Alberta Agriculture reported that this crop has
good economic potential. However, it was Small’s opinion in his
publication in 1997 that the culinary use was too restricted to be of
economic interest. He did indicate that there could be some potential
as a source of oil but foreign competition would limit possibilities.
There is already a well-established production base in Europe and in
some locations in the United States. However, Richter’s market
information would indicate that volume is stable and price is up.
Valerian is a perennial crop native to Europe and Western Asia but has
naturalized in Canada and the United States. This plant is important
for its medicinal properties. The essential oil extracted from the
root and rhizomes is used in production of Valium. A number of
scientific studies have shown that the active ingredients of valerian,
the valepotriates, act as a sedative. Agriculture Canada reported that
valerian oil is used in the flavor and pharmaceutical industries, and
limited quantities are also used in the fragrance industry. Valerian
is approved as a GRAS (generally recognized as safe) food ingredient
in the United States. Extracts and the essential oil are also used in
flavoring components in many food products and beverages. Agriculture
Canada indicated that the major commercial producers of valerian
preparations are Belgium, France, Holland, Germany, Russia, China, and
Eastern European countries. Harvey Clark in his presentation this past
spring indicated that the demand for valerian was increasing but it
was probably over produced. Richard Alan Miller, indicated in a Q
& A on Richter’s web site that the market for valerian root was
in excess of 4,200 tons and that North America valerian was very
competitive with product originating from Europe. However, he
concurred that the market is currently oversupplied. In fact, Harvey
Clark stated that when he examined the expected world demand, and the
yield given for valerian root in New Zealand, it appeared that a very
small area (several acres) would supply a large portion of world
demand.
He also stated that valarian had not
overwintered well at the Canada-Saskatchewan Irrigation
Diversification Centre (CSIDC), and was dropped from targeted studies.
Harvey Clark mentioned that Jo Detillieux from the Conservation
Learning Centre stated that when the valerian root is irrigated the
root does not grow straight down which is desirable for commercial
production. Richter’s market information would indicate that the
volume is up and the price is down. Angelica is a native of northern
Europe. There is very limited production in Western Canada and most
production in the world is wildcrafted from northern Europe. The
extracts from the root and the seeds are used in flavoring for
candy-making and liqueurs. It is also used for medicinal purposes. The
essential oil from the root is used as an antibiotic agent, and it is
used in the pharmacological and chemical industries. However, note
that the use of angelica is cautioned because of blood thinning
properties of the constituents in the plant. Harvey Clark stated that
angelica is on the restricted list for herbs in Canada, indicating a
safety caution from the Health Protection Branch. He also mentioned
that angelica has grown well in small plots at the CSIDC. However,
even though, this crop could likely be grown successfully in Western
Canada, it would need to compete with imported production harvested in
the wild from Northern Europe. Furthermore, this market is relatively
small and could easily be oversupplied with a few growers commercially
producing this crop. Small indicated in his publication in 1997 that
angelica would remain of minor importance as a food plant because of
the potentially dangerous chemicals in the plant’s constituents.
Although, Harvey Clark indicated that some herb distributors are
asking good prices for the root. Burdock is a biennial crop native to
North America that yields a large biomass. All parts of the plant can
be harvested and used but the roots have the most value. The plant is
used for medicinal purposes such as a blood purifier, mild laxative,
for skin treatment, and as an ingredient in "Essiac" or
"Floressence" herbal formulas. Harvey Clark stated that the
main demand for burdock root has been as an ingredient in the
"Essaic" formula. He further stated that while the success
of "Essiac" has been questioned as a treatment for cancer,
and a doctor in the US was jailed for malpractice when he prescribed
this to a patient (and the treatment was unsuccessful), most
herbalists feel that burdock root has properties as an
anti-carcinogen, possibly better used in the prevention of cancer than
as a major cure. In Japan, burdock is eaten as a vegetable called
‘gobo’. Most burdock production is still wildcrafted in North
America. It is produced commercially in Eastern Europe and in China.
Note that it is regarded in some regions to be a noxious weed. It
remains more economical to wildcraft this crop for the time being.
However, it was stated in the report by Andrea Gunner (1998) that
wholesalers in Vancouver were importing burdock sprouts as an edible
in limited quantities from China two or three times a year.
Richter’s market information would indicate that volume and prices
are up. Horseradish is a perennial plant that originated in Russia or
southern Europe. It is an introduced species in the United States.
The plant (rhizomes and the root) is
used in condiments and can be eaten as a vegetable. Small indicated in
his publication in 1997 that the primary use of Canadian-grown
horseradish is for the extraction of horseradish peroxidase. This is
an enzyme that was used for the treatment of the AIDS virus. However,
supposedly the price is not high for this purpose, and the company has
only used local producers thus far to reduce cost. Sakai Spice in
southern Alberta grows horseradish for the preparation of
‘wasabi’, a Japanese spice condiment. Small stated in his
publication that horseradish is well suited to Canada and production
could easily increase. However, the market is stable and an expansion
in the market would need to occur to increase production of the raw or
processed product.
Furthermore, Harvey Clark stated that
the demand would be limited as a condiment because of the strong,
pungent flavor it has. Syrian Pumpkin has gained notoriety for
medicinal use for preventing and treating prostate and bladder
problems. This crop is grown in Austria and there is only one grower
known in Canada, located in Ontario. There is supposedly a growing
market for it in Japan and North America. The seed is consumed like a
nut or the oil is extracted from the seed and sold in health food
stores. The crop is reported to take 120 to 125 growing days frost
free, and soil type will apparently influence the medicinal
properties. It is unlikely that the market size or the agronomics are
viable for this crop in Western Canada. Although, Harvey Clark stated
that pumpkin seeds are known to have some beneficial medicinal
effects, and it is quite possible that this market could be expanded
for other types of pumpkins in Western Canada. For instance, he
pointed out that Nicaragua is exporting certified organic pumpkin seed
to the United States.
Comfrey is a perennial high biomass
crop with a wide array of uses. It was used as a forage crop for
livestock but this practice has been discontinued. The root is used in
the cosmetic industry in such products as skin creams, bath oils, and
hair care products. It could also have medicinal uses, however, it is
a restricted plant and may not be used for internal use in humans in
Canada, Australia, and Germany. The plant has a high level of
pyrrolizidine alkaloid content that is regarded as toxic for
consumption. In the United States, it appears that this crop can be
used for products that does include internal use but there are many
hazard warnings that discourage such use. The market for this crop
will remain small until the plant is deemed safe for medicinal use.
Harvey Clark mentioned that Richard
Alan Miller has reported that the tests done reporting the dangers of
comfrey use are fraudulent. For example, a case of comfrey causing a
death in the United States turned out to be another herb entirely, but
this did not prevent the US Food and Drug Administration from
restricting its use. Miller also pointed out that concerns over
alkaloid content can be alleviated by harvesting the comfrey at a
young age which is a practice being followed by comfrey growers in the
United States. Nevertheless, according to the literature, even though
it could make an excellent forage crop, the level of toxicity would
have to be much lower for acceptance, and until such time, it is not
advised that this crop be used as a livestock feed or for internal use
in humans.
Richter’s market information would
indicate that volume and prices are up. Stevia, a perennial plant
native to South America, has several people in industry in Canada
keenly interest in its future. This crop has already captured a
significant share of the low-calorie sweetener market in Japan. The
leaves are ground into a natural sweetener that could go head-to-head
with the artificial sweetener, ‘Nutrisweet’. According to Ontario
Ministry of Agriculture, it is measured to be 200-300 times sweeter
than that of sucrose. However, this plant doesn’t have approval for
use in the United States as a food product or additive. It is unclear
what guidelines Health Canada has. It is reported on the Internet that
the stevia leaf in its unrefined form can be sold as a food in Canada
but not as a refined product. As well, there is concern that the
public in North America would not accept the taste of stevia as a
sweetener. According to some literature, stevia extracts are regarded
as too bitter with a metallic aftertaste, while others contend that
there is no reason why stevia could not be used as a replacement for
artificial sweeteners.
It is reported to be used in Japan and
several other countries in a wide range of products such as a tabletop
sweetener, baked goods, candies and gum, cereals, ice cream,
toothpaste and mouthwashes, and in numerous salty products (dried
seafood, miso, pickled vegetables, soy sauce, and so on). It was even
suppose to have been in Diet Coke in Japan until Cola-cola
standardized the coke products globally using aspartame. Agriculture
Canada and the provincial governments are experimentally growing
stevia and the results have been mixed. It is reported by Small in his
publication in 1997 that there is low fertility and a great
variability in the stevia plants grown. This poses difficulties for
generating a uniform, high quality crop. Harvey Clark stated that
CSIDC tested stevia a number of years ago but it did not yield well,
while Alberta Agriculture report that this crop will produce more leaf
tissue in a northern climate because of the longer daylight available
for growing. Clark also stated that the costs of production appeared
prohibitive in comparison to the prices it was expected to receive.
Further, he mentioned that it appeared that stevia uses have been
exaggerated for commercial production. Nevertheless, this is a crop
worth watching.
The future of comfrey and stevia will
largely depend on changes in government regulation in Canada and the
United States. For example, comfrey cannot be sold for internal use in
Canada until Health Canada recognizes that comfrey is safe for human
consumption. This could require the development of new varieties, and
the research to prove that it is safe for consumption. As well, stevia
cannot be sold for human consumption or as an additive until the
United States government grants "generally recognized as
safe" (GRAS) status. This could require more lobbying on the part
of stevia industry, or the development and research of cultivars that
can be recognized as GRAS. However, Harvey Clark mentioned even if
stevia was accepted by consumers in the United States, Canadian
producers could be at a disadvantage with any growers in the United
States.
Apparently, stevia is currently
regarded as an artificial sweetener and would not fall under the US
sugar policy but the United States is re-examining its sugar policies
to comply with free trade provisions, and this may change stevia’s
status. If stevia qualifies under the US sugar policy, then tariffs
designed to protect the US sugar industry would be applicable to
stevia grown in Canada. Garlic, a perennial native to west central
Asia, is a good example of a crop that likely has little potential in
Western Canada unless it is fresh and/or grown certified organic. For
instance, there is little chance that producers in Western Canada can
compete on price with bulk garlic from China or California. Harvey
Clark stated this past spring in a presentation, that California is
producing garlic at $0.35 US per pound and Chinese garlic is being
imported at a price of $0.54 US per pound. However, fresh garlic is
wholesaled in the United States at a price of $1.15 US per pound and
organic garlic wholesale price is quoted between $4.75 and $7.30 US
per pound.
A plant breeder in Western Canada also
suggested that garlic grown in plots in Western Canada have much
higher active constituents and tastes better than garlic grown
elsewhere. Plus garlic active constituents rapidly deteriorate, and
imported products have usually been in shipment and storage for an
extended time period. Harvey Clark indicated that in British Columbia
garlic is planted in the fall and overwintered so that it is ready for
the summer tourist season. Tourists buy braided organic garlic at
fairly high prices, but once the tourist season is over, the prices
drop substantially. He also noted that even though organically grown
garlic has higher prices on the prairies, CSIDC and others have had
difficulty growing garlic organically. Harvey Clark indicated that an
area of northeastern Saskatchewan, however, has been growing good
quality crops of garlic, which can be sold for $5 or $6 per a pound to
limited markets. Saskatchewan Agriculture have information on
medicinal garlic worth checking out on their web site at
www.agr.gov.sk.ca. Canada recently established a countervailing duty
against garlic imported from China during the in-season period for
Canadian growers, in order to preserve a portion of the garlic market
for Canadian growers.
The duty on garlic does not apply in
the off-season period. As such, Harvey Clark points out that since
garlic stores reasonably well when properly dried, importers simply
bring in sufficient supplies early in the season, which continues to
depress prices for local growers. Seabuckthorn is a shrub native to
Asia that is growing in shelterbelts across Western Canada. There has
been quite a bit of interest in the berries from the shrub for
medicinal purposes. The medicinal properties include antibiotic,
anti-flammatory and analgesic uses. The berry is also a good source of
vitamins C and E, beta-carotene, and essential fatty acids. It is used
in fruit drinks, jams and jellies, and the leaves in herbal teas. This
shrub is already being commercially utilized in Russia and China.
According to an article in The Furrow in October 1998, there were
suppose to be 100 small plants processing seabuckthorn in China.
There were also suppose to be
processors scattered through the former Soviet Union and Eastern
Europe. It is expected that this crop will be used in North America by
the cosmetic and pharmaceutical industries. According to the same
article in The Furrow, Global Seabuckthorn Agro Products (alias Canada
Seabuckthorn Enterprises Ltd.) anticipated paying growers about $3.85
per kilogram for the fruit at the farmgate. Their field trials
indicated that an orchard planting of 1,700 shrubs per acre would
yield about 4,000-7,000 kilograms per acre. It should be noted that
several people within the new crop industry have indicated in
discussions that there is a potential for this crop in Canada.
However, as Harvey Clark has pointed out, there is the challenge for
seabuckthorn, as in most fruit production, in developing a
cost-effective method of mechanical harvesting. The Prairie
Agricultural Machinery Institute in Portage la Prairie, Manitoba has
developed a seabuckthorn berry harvester that is reported to
effectively remove the fruit without damaging the shrub. The sharp
spines tend to reduce its attraction for U-pick enterprises (which are
the most successful form of fruit orchard on the prairies), and its
demand within North America will probably require some additional
promotion. Mint, spearmint and peppermint, are perennial herbs that
escaped cultivation and have naturalized in North America.
Peppermint is used in herbal teas and
the essential oil is one of the most important. It is used in
flavoring and adding to food and beverages. It is also used in
household products, perfumes, cosmetics, and hygiene products.
Spearmint oil is also used to flavor food and beverage products. It is
added to soft drinks, baked good, condiments, and pharmaceutical
products. The United States imports about $5 million worth of
peppermint each year and exports approximately $80 million worth. The
United States also imports approximately $5-6 million worth of
spearmint each year and exports between $20 and $35 million worth. The
largest US export markets were the United Kingdom, Mexico, France, and
Japan. The largest import markets were Canada, China, and India.
Canada exported $1.3 million of peppermint and over $4.6 million of
other mints in 1998. The vast majority was exported to the United
States. There are reports that China is planting record acres of
spearmint, and that India’s production of peppermint is increasing.
Small indicated in his publication in 1997 that the mint oil market
was controlled by five or six companies in the United States that
contracted with growers.
The number of growers stayed
relatively constant because of the capital investment required for
distilling the oil. It was his view that the market for peppermint and
spearmint didn’t have significant potential for increasing in
Canada. It was further his opinion that there was enough competition
from existing producing areas to limit market opportunities. However,
Richter’s market information would indicate that volume and prices
are up. There could be potential for increasing mint production in
Western Canada but the initial investment and the time it takes to
establish a market are enough to restrain any new entry and expansion
will likely continue to occur with existing producers. Monarda, is a
perennial herb native to North America. It is one of the highest
quality sources of geraniol. This essential oil is used in perfumes,
soaps, and other scented consumer products. Robert Rogers in his
presentation at the Prairie Medicinal and Aromatic Plant Conference in
1997 stated that medicinal properties of monarda oil included that it
was a general nerve tonic and it was strongly anti-fungal,
anti-bacterial, and anti-viral. Monarda production peaked in Alberta
in 1991 with about 100 acres. However, the market price for the
essential oil went down and the crop was later discontinued. Refe
Gaudiel stated at the Prairie Medicinal and Aromatic Plant Conference
in 1997 that it was in his opinion that this crop could be attractive
again in Western Canada if the market price for the oil rebounded.
Manitoba Agriculture stated that
Canada has the potential market for 2,500 acres of monarda. However,
they cautioned that the markets tend to be volatile, and the quality
of the oil is very important to the marketing of the product. Marjoram
is a perennial herb native to North Africa and the Middle East that
could be grown in Western Canada as an annual. It is used in the food
and flavoring industries as a fresh or dried herb. The extracts have
anti-oxidant properties and the oil is used in cosmetics, perfumes,
creams and lotions. Egypt produces about 90% of the world’s supply.
Small indicated in his publication in 1997 that marjoram was one of
the herbs most frequently found in short supply. It was his view that
there was potential for a few growers to produce it in the warmest
parts of Canada but he cautioned that Egypt has shown a quick response
to periodic short supplies and that the growth in demand for marjoram
was not increasing much. Richter’s market information would indicate
that volume and prices are stable. Lavender, is a perennial native to
the Mediterranean region that probably could not survive winter in
Western Canada. It is a multi-purpose herb that is used for culinary,
medicinal and aromatic uses.
The oil is used in cosmetics,
perfumes, lotions, and soaps. It was Small’s opinion in his
publication in 1997 that there was little prospect for commercial
production of lavender in Canada and it was better suited to a warmer
climate. Richter’s market information would indicate that volume and
prices are stable. Lovage is a perennial native to the Mediterranean
region but growing as an introduced species in parts of North America.
It is primarily used as a culinary herb added to food dishes. The
essential oil extracted from the plant is used in condiments,
perfumes, and liqueurs. It was quoted in Small’s publication in 1997
that the estimated annual world value of lovage essential oil was only
$1.2 million US in 1993. This crop could have some minor use as an
herb and essential oil. It was Small’s judgment that this crop was
well adapted to a northern climate and could be grown for the markets
near urban regions. Savory (summer) is an annual shrub native to the
Mediterranean region and grows as an introduced species in parts of
North America. The leaves are used for flavoring and blended into
cooking. The essential oils are used as a seasoning and in the perfume
industry.
It was Small’s opinion in his
publication in 1997 that commercial production would be limited to
small quantities sold in the local markets and that the demand for
summer savory was flat with little prospect for growth. However,
Richter’s market information would indicate that volume is stable
and price is up. Sage is a perennial evergreen shrub used in the
flavoring and fragrance industries. The fresh or dried leaves are used
as ingredients in packaged meats. The essential oil is used in the
pharmaceutical and cosmetic industries in perfumes and mouthwashes. JR
Reynolds, the tobacco company, has about 4,000 acres of clary sage
contracted in North Carolina for essential oil production. The United
States imports as much as $5 million or 2,000 MT of sage in any given
year.
The largest producers are in the
plants native habitat of the Mediterranean. It has only been grown
experimentally in Canada. It was Small’s opinion in his publication
in 1997 that sage could grow in warmer parts of Canada but it would
not likely be able to compete with cheap high quality imported sage
from southeastern Europe. Richter’s market information would
indicate that volume and prices are stable. Rosemary, is a perennial
native to the Mediterranean region that could only be grown in Alberta
as an annual. The leaves are added fresh or dried to meat products and
baked goods. The oil extracts are used as antioxidant additives for
the food and beverage industry. As well, the oil is added to soaps,
cosmetics, perfumes, lotions, and creams. The United States imported
nearly 250 MT of rosemary oil in 1998 worth approximately $1.5 million
US. Morocco and France were the major suppliers to the United States.
It was Small’s opinion in his publication in 1997 that it had little
prospect in northern areas of North America.
This plant is better adapted to a
warmer climate. Richter’s market information would indicate that
volume is up and price is stable. Thyme, is a perennial herb native to
southern Europe. Thyme is used for culinary purposes for flavoring
foods and the essential oil is used to preserve meats. The oil is also
used in condiments, beverages, mouthwashes, and soaps. Spain is the
leading producer with most production from the wild. According to one
source, producers in France cultivate a higher quality selection of
thyme for a premium market at a higher price. The United States
imports $250,000 US worth of thyme each year or about 150 MT. There is
some garden production of thyme in Canada but there is no commercial
cultivated production that the author is aware of. Small indicated in
his publication in 1997 that thyme produced in Canada would not be
able to compete with wild harvested thyme imported from Europe.
Richter’s market information would indicate that volume and prices
are stable. Tarragon is a perennial herb used in culinary cooking.
The oil extracted from the plant is
used in perfumes, beverages, and condiments. French tarragon is the
type used universally. Another type, Russian tarragon, is mostly grown
in Eastern Europe for domestic consumption. According to information
from Alberta Agriculture, even though Russian tarragon is more likely
to survive winter, the flavor is inferior to French and the plant does
not dry properly. It was Small’s view in his publication in 1997
that French tarragon had little potential in Canada but could perhaps
be grown for the local market in greenhouse production. Richter’s
market information would indicate that volume and prices are stable.
Parsley is a biennial that could be grown as an annual for fresh or
dried leaves.
It is used as a food garnish in a wide
array of culinary dishes. Dehydrated parsley flakes are used as a
condiment and the essential oil is used in fragrances for perfumes,
soaps, and creams. Information from Alberta Agriculture indicates that
parsley seed oil is used in fragrances for perfuming soaps and creams.
Canada is a major producer of dehydrated parsley flakes and exports
limited quantities to the United States in some years. The United
States imports over $2.5 million US or about 700 MT of manufactured
parsley in any given year. It was Small’s opinion in his 1997
publication that fresh parsley production could be increased to meet
growing consumer demand. Richter’s market information would indicate
that volume is up and price is stable. Oregano is a perennial that is
wildcrafted from its native habitat in the mountains of Greece.
The other major producers of oregano
include Mexico and Turkey. The herb or the extracted oil is used in a
variety of meat and sausage products, salads, stews, sauces and soups.
There is an ever-growing market for using it as a dried herb on pizza.
It is only being grown in Western Canada experimentally. Small stated
in his publication in 1997 that oregano is better adapted to warmer
climates and that there was little commercial potential. Richter’s
market information would indicate that volume is up and price is
stable. Basil is an annual herb, the leaves and stems are used for
cooking purposes and the essential oil extracted from the leaves is
used in food and flavoring industries, and also in cosmetics. It is
cultivated commercially in Europe and North Africa.
The largest producer of basil is
Egypt. The biggest growing region in North America is California.
Small indicated in his publication in 1997 that there was some
potential for greenhouse basil production but little potential for
field production. Richter’s market information would indicate that
volume is up and price is stable. Besides basil, there could be
potential for some other greenhouse fresh herbs. The most likely
candidates include chives, cilantro, sweet marjoram, oregano, parsley,
and French tarragon. As well, there are some herbs specific to ethnic
markets that could be grown locally in greenhouse or field conditions.
These include, but are not inclusive to, lemon balm, lemon grass,
Mexican oregano, mitsuba and Vietnamese balm. Some herbs have
alternative uses besides the market for culinary and medicinal uses.
For instance, they could be used in ornamental gardens, agri-tourism,
dried flower arrangements, industrial use, as livestock forage, a
nectar source for honey production, and herb food products for pets
and show horses. There are several crops that would be complementary
to agri-tourism. For instance, the Purple Haze Lavender Farm in
Washington States have done this very well. They have a purple
lavender farm located within an hour and half of Seattle. According to
the owner, his farm averages 1,000 visitors each day between June and
September.
Each visitor to the farm pays $5.00 US
and receives a spike of lavender plus a small glass vial with a stem
of lavender in it to take home.(11) This year a farm in Lacombe,
Alberta made a corn maze, and has already had over 3,000 visitors by
mid-September. A maze could be created from any number of fast, tall
growing crops such as hemp (depending on Health Canada regulations).
Selling herb crops for dried flower arrangements is an another
alternative market. The byproducts from root crops could find a
supplementary market, or if the market for culinary or medical
purposes dries up, this could become the primary market. For example,
selling echinacea flowers for dried floral arrangements may at times
be more profitable then selling the roots for medicinal purposes. The
herb crops that make for a good source of nectar for honeybees include
anise-hyssop, borage, catnip, dandelion, fireweed, mountain mints,
summer savory, and yarrow. It is often the case that both the honey
bee producer and the producer of the herb can mutually benefit. The
honey bee producer has a good source of nectar and the bees pollinate
the crop for higher seed production. There are herb crops that could
be used for forage for livestock. These include dandelion, fireweed,
monarda, stinging nettle, yarrow, among others. In the report by
Danielle Simonot it was stated that stinging nettle was found to have
amino acids that were nutritionally superior to the amino acid
concentration of dehydrated alfalfa meal. Dandelion greens are
regarded as a nutritious plant for beef cattle. Some livestock consume
yarrow but it can create undesirable flavor in dairy products.
Fireweed is regarded as only fair forage.
Comfrey could have potential as a
livestock feed source if there were varieties developed with low
pyrrolizidine alkaloid content. Richard Alan Miller suggested in his
book from 1998 that 60% comfrey/40% alfalfa pellets might have
excellent opportunities as a cattle food. However, current cultivars
of the crop should not be used for livestock feed because of the
toxicity found can supposedly cause serious health problems in
livestock and humans. There are also several forage crops with
potential for culinary and medicinal use such as alfalfa, sweet
clover, and red clover. Alfalfa has generated interest for its
potential for nutracuetical properties. Sweet clover is stated in a
report by Danielle Simonot to be used for taste enhancement in herbal
remedies and for medicinal purposes in several drug products such as
Venalot, Phlebodril-Crème, and Pascovenol. Harvey Clark in a
presentation this past spring noted that demand was increasing for red
clover, however, the medicinal use was being questioned by those with
a pharmaceutical background. Herb crops could offer hobby farmers a
viable economic opportunity to farm. For instance, most acreage owners
or young farmers, mostly likely, could not afford the modern equipment
and the large land base needed for conventional crop production.
However, some herbs can generate much higher returns per acre and do
not require a large capital investment. In unison, herb crops may
offer the large conventional farm operations a means of diversifying
their farm and maximizing their farm’s returns.
There are literally hundreds of herb
crops that have not been discussed in this article. Robert Rogers gave
the following crops as plants for the future for the northern prairies
in a presentation at the International Herbs Conference in Saskatoon
in July this year: roseroot, black cohosh, seabuckthorn, purslane,
hemp, periwinkle, fleeceflower, tassel flower, bear root, and
lomatium. As well, discussions with the industry indicated potential
for these crops: andrographis (Chinese herb), astragalus (Chinese
milkvetch), bearberry, calamus, foxglove, hawthorn, mandrake,
schisandra (Chinese herb), slippery elm, wild indigo, and wormwood.
(12) The crops given above and many
others could well be worthwhile exploring for market potential. It is
the author’s suggestion that some of the best opportunities are with
crops that have not yet received much attention and have yet to be
discovered. In the table below are the estimated farmgate prices for
several herbs and expected yields. Note that the market for all these
crops are small and the prices are only a rough estimate based on
discussions with the industry. As well, the yields were sourced from a
literature review and may not pertain to local area conditions. A
subjective adjustment was made to the yields from the literature to be
more realistic with local growing conditions and growing the crops
organic. Note that no expenses are included and it could be 3 or 4
years before harvest. It is also to be understood that these figures
are provided only for the reader to get a ballpark idea of which crops
could have market potential. It is advised that each producer do their
own thorough research for their specific farm operation prior to
embarking on growing any of these crops. The costs of growing any of
the crops in the table vary but, in general, the costs will be
considerably higher for seed (or propagation method) and labor than
traditional crops.
Source: Richter's Herbs 2000
Catalogue, ProGrowers Information factsheets; note that numbers have
been converted from hectares to acres, and rounded off. * Alfalfa
excludes acres seeded for fodder. ** These crops are discussed in
detail in another article, " The Market for Spices and Other
Specialty Crops." *** Borage acres actually seeded in Alberta and
Saskatchewan were estimated to be about 36,500 in 1999. A directory of
companies in the herb and essential oil industries in North America
will be available later this year from Alberta Agriculture, Food and
Rural Development. The directory will complement a full report on the
"Market Opportunities for New Crops in Alberta." The report
will have more detailed information on many of the herbs and essential
oils discussed in this article.
There are directories available now on
the World Wide Web with their lists of the companies involved in herbs
and essential oils. These include the following web sites:
www.agric.gov.ab.ca/crops/special/directory
www.agric.gov.ab.ca/store/specialcropsales www.bcherbgrowers.com
www.agric.gov.ab.ca/agdex/200/263_830-2.html
www.nutranet.org/subpages/members.htm
www.hort.purdue.edu/newcrop/med-aro/default.html
The author would like to acknowledge
and thank all those who contributed. This includes Alberta Agriculture
staff, Trace Johnson with Bedrock Seed Bank, Katie Benschop with
Blooming Prairie, Harvey Clark with the Canada-Saskatchewan Crop
Irrigation Diversification Centre in Outlook, Saskatchewan, and Stan
Skrypetz and Ernest Small with Agriculture and Agri-Food Canada.
Footnotes throughout the document is used. The following is the
explanation of each footnote.
1-For the purposes of this article a
nutraceutical is defined as a product isolated or purified from a food
for health use. A functional food is defined as a food that is shown
to have health benefits beyond the basic of nutrition of a
conventional food. Aromatheraphy is classified as products used
externally for the purposes of health or beautification.
2-It was stated by a speaker at the
Herbs International Conference in Saskatoon (July 2000) that herbal
sales reached a peak last year and dipped this year.
3-Seabuckthorn is included in this
article as a medicinal herb crop but it is actually a shrub that is
grown in farm shelterbelts across Western Canada.
4-Note that many of these herbs have
more than one use and could be used for culinary and medicinal
purposes, as well as being distilled for essential oils. Further, this
entire list of herbs is by no mean inclusive.
5-The survey had 58 respondents from
the membership of the Saskatchewan Herb and Spice Association, of
which 21 producers were growing or collecting herbs, and 37 were
producing spice crops.
6-SHSA membership extends across
Western Canada and even includes outside groups such as Richter's
Herbs.
7-There is some research results that
would indicate that plants from the carrot family (Umbelliferae) yield
a higher percentage of oil, and may yield more active constituents
desired by the industry. Some examples in the carrot family include
anise, caraway, coriander, cumin, dill, mistuba, etc. This may also be
true with echinacea and members from the mint family such as spearmint
and peppermint.
8-Richter's Herbs is a seed company
in Ontario that is well known in this industry. Each year they publish
an herb catalogue with prices and herb descriptions.They also include
some market information on some of the most important commercial
herbs.
9-The drop in demand from Hong Kong
is attributed to the fact that Hong Kong could no longer black market
ginseng into China, but had to pay the Chinese duty. Note that the
duty on ginseng could be reduced when China gets entry into the World
Trade Organization.
10-Harvey Clark stated that demand is
growing for organic ginseng in North America, partly from negative
publicity over the use of deregulated chemicals to prevent fungal
yield losses in British Columbia and Wisconsin.
11-Owner of Purple Haze Lavender Farm
spoke at the International Herbs Conference in Saskatoon, July, 2000.
12-An extensive list of herbs and a
brief description of each can be found at the web site for Purdue
University Center for New Crops and Plant, Products,
http://www.hort.purdue.edu/newcrop/"; Alberta Agriculture has a
large list of crops on the web site.
13-Sources for information on the
table included the provincial governments and Agriculture Canada,
Harvey Clark from Canada-SK Irrigation Diversification Centre,
Richters 2000 catalogue, a report by A. Gunner, March, 1998, titled,
"Technical Feasibility Study for Medicinal and Aromatic
Plants," and the report by D. Simonot, March, 2000, titled,
"Bio-manufacturing in Saskatchewan".
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