Herbs

Herb industry statistics from 2004

Summary

The region has a small number of individual producers supplying a range of fresh culinary herbs and 'herbal products'. In most cases, herbs provide a supplement, rather than the main source of income, with small returns.

Industry overview

The Australian market for culinary herbs falls into two major categories, fresh and dried. There are specialist organic growers in the region and there is a strengthening in the growth of herbs for the medicinal market as well as herbal teas. The production of herbs is usually in conjunction to other vegetable production. Most growers are currently involved at the cottage industry level (averaging in size between a backyard and a hectare).

Demand drove a growing number of people to enter the industry often for lifestyle reasons but as recently as four years ago, the industry had a 95% drop out rate.

The Australian herb growing industry is relatively small in comparison to world production.

Location of the industry within North East Victoria

Labour requirements

The grower and one other person provide labour for herb growing.

Marketing activities

The Organic Herb Growers of Australia Inc is the major herb industry grower association.

Strategic advantages & opportunities

• Opportunities exist for increasing market share domestically and internationally.
• A greater number of new entrant growers may be able to grow broad acre herbs for specific on-sale or for self-processing markets.
• Opportunity for regional growers will include domestic fresh-cut and dried culinary herbs, fresh-cut herbs for the overseas culinary and catering market particularly for the Asian market and the alternate growing season in the US and Europe.
• Opportunity for specialised production in essential oils and medicinal crops, as well as identified new herbs in the medicinal area.
• Herb product value adding and down-stream processing ventures in the areas of tea blends, and gourmet products, plant medicines and other herb extractives.
• Major growers and processors have formed a new industry association to be known as the Australian Herb and Spice Industry Association Limited (AHSIA). The principal purpose of the association is to implement national strategies for the industry to gain continued access to chemicals for current and future needs.
• The small hectares needed for the enterprise allows grower better farm diversification, and also allows existing farmers to enter the industry.
• Niche markets to local food industries

Strategic disadvantages and impediments to growth

• To further develop and commercially expand the herb industry, growers will need to access impartial technical support.
• The herb industry is still highly fragmented and poorly organised and the returns are low and the work is often labour intensive.
• Temporary permits issued for pesticides and herbicides expired in April 2004. No money is available to fund the research necessary to have the permits renewed.
• Lack of a peak body to ensure that public health and safety standards are met and do not impede potential export trade.
• Potential growers struggle with the uncertainty of returns where supply and quality are not guaranteed and the market in respect of this creates unstable price and quantity.
• The lack of recognition of Australia's ability to grow and supply quality herbs in quantity.
• The lack of industry intelligence means there is insufficient accurate data on existing and potential domestic and international markets, and the unavailability of agronomic information on a range of herb crops to regional growing conditions create apprehension for growers.
• Growers also expressed concern regarding a lack of comprehensive industry networking and a widespread reluctance within the industry to share information and knowledge