The potential of the New Zealand essential oils industry : [dissertation, Diploma in Natural Resources, Centre for Resource Management]

Abstract

The essential oils industry is identified as a potential use of the aromatic plant resource in New Zealand. Essential oils can be defined as; ' ... volatile aromatic substances of vegetable origin contained in certain aromatic plants which are used in perfume and flavouring.' ( 1: 1989, DSIR Report) Worldwide there are approximately 1000 manufacturers and sellers of flavours and fragrances of which 500 have annual sales greater than $1 million. (3: 1987, Bezar) Approximately 25 companies in New Zealand are importing essential oils. Only about four separate private concerns are directly involved in oil production. Oils of a quality acceptable to overseas buyers have been produced from a range of plant species in New Zealand. Potential exists for a vast range to be produced. The objective of this report is to consider why the essential oil industry in New Zealand is not realising this potential. It begins by identifying what are regarded as the basic requirements or support services for an essential oil industry to establish and become commercially viable. Then the current position of the New Zealand oils industry, in terms of meeting these requirements, is described. This leads into an analysis of how well the requirements of the essential oil industry are satisfied. The analysis takes the form of a SWOT analysis, whereby strengths and weaknesses in, and opportunities and threats for the New Zealand essential oil industry are identified. Other points are drawn in to provide a broader view of the industry and a greater understanding of the current situation. The aim of the approach taken is to highlight issues which may provide answers regarding the prospects of the essential oil industry in New Zealand. It is hoped that the issues identified will provide a starting point for further research. For the purposes of this report, the essential oil industry is divided into three areas; marketing, growing and processing. Each of these areas is dependent upon the others for it's success, and operates simultaneously, therefore, overlap is inevitable. However, their separation enables the specifics of each area to be considered. Within the report, marketing refers to the transfer of the essential oil from the producer to the end-user. Growing includes the cultivation and harvesting of the aromatic plant crop. And processing involves the transfer of the harvested material into oil form. The basic requirements of the industry will be discussed in terms of each of these areas.