Peppermint

 

Peppermint industry statistics from 2004

Summary

The peppermint industry in the North East was dominated by two producers and occupied an area of approximately 400 hectares until 2002. Both key producers in Corryong (Towong Shire) and Moyhu (Wangaratta Rural City) ceased production due to changes in market demand, falling yields and falling returns.

The Corryong based producer is re-entering the market with new plantings (2004) although production levels are unlikely to reach their former peaks.

North East Region

1996 – 97 AG Census

2000 – 01 AG Census

Gross value of production

$267,967

$506,138

Production volume (kg)

6,038

12,051
raw oil

Total area of production (ha)

127

398

Contribution to Victorian GVP of commodity

99.9%

99.9%

Contribution to Australian GVP of commodity

57.8%

99%

Estimated number of farms

9

2

Source: ABS Agricultural Census 1997 and 2001, Agricultural Survey 2002

Peppermint industry overview

The peppermint industry of the AlpValleys still continues to provide 100% of the Victorian production, albeit a much smaller volume.

Peppermint is a perennial crop, irrigated, and sown over 30 – 40 ha of Upper Murray River flats near Corryong.

After 2 years out of production, the introduction of new plant tissue and planting of a new property has renewed confidence in likely returns.

Location of the peppermint industry in the AlpValleys region

2001 Ag Census

% of GVP

% of production volume

% of farms for commodity

North East Region

Victoria

North East Region

Victoria

North East Region

Victoria

Towong Shire

0.9%

0.85%

0.9%

0.8%

50%

25%

Wangaratta (RC)

99.1%

98.19%

99.1%

98.2%

50%

25%

Source: ABS Agricultural Census - 2001

This location data was correct at the time of the census, however all peppermint in the AlpValleys region is now produced in Towong Shire.

Projected peppermint industry growth

Source

Indicator

Comments

(ABS) AG Census and survey data

Growth in production volume 1997 to 2001

Value, area and volume of production increased over the period, although the number of farms declined. Only 4 farms in Victoria and 8 in Australia in 2001 census. The region produced 99% of Victorian output by volume, area and value and comprises around half of Australian production. Note: production ceased 2002 until 2004.

Source: ABS Agricultural Census – 1997 and 2001, Agricultural Survey 2002

Peppermint industry labour requirements

One person can effectively manage plantings of peppermint up to 100ha. For the production of oil, 4 – 5 people are required for mowing, carting, chopping and boiling (the processing phase).

Peppermint industry marketing activities

Established relationships with wholesale buying are used to sell the peppermint oil produced in the AlpValleys. Currently production is targeted at an “Australian Made” market for better confectionary and cosmetics.

There is strong competition from producers in China and India.

Some AlpValleys production is also sold to the US – again via established relationships with US specialist oil companies.

Peppermint industry strategic advantages and opportunities

  • Excellent climate, soils and production capability.
  • Clean, green image positive for marketing purposes.
  • Can be difficult to produce, but this gives competitive advantage to experienced producers.

Peppermint industry strategic disadvantages and impediments to growth

  • Water availability.
  • Distance from markets (for very fresh produce, but not an issue for oil)
  • Fluctuating terms of trade
 
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