Production Of Essential Oil And Vegetable Oil Has .

Production of Essential Oil andVegetable Oil has potentialfor Socio-Economic Transformationin South AfricaKM Swanepoel

Thanks to farmersThere is oilThere is a presentation2

Essential Oil Pioneers in SAWithin other industriesMedicinal PlantsSugar CaneForestryTobaccoMaizeCitrusWineTourism

Increasing Markets rmaceuticalVeterinaryAromatherapy

Content How do we compare withother BRICS countries? What can we learn fromother BRICS coutries? What about the rest ofSADC and Africa? What about others inSouthern Hemisphere e.gAustralia? What about production byMINTS countries?

BRICS Countries

avg.)PopulationCountryIn ,886 2,395.9bn 846.6 bn 256.0 bn 238.8 bn 11,875 88.6%72.2Russia 143,451,702 2,021.9bn 414.0 bn 542.5 bn 358.1 bn 17,708 99.6%67.7India1,210,193,422 1,824.8bn 281.0 bn 309.1 bn 500.3 bn 3,82974.04% 64.2China1,354,040,000 8,227.0bn 2,031.0bn92.2%72.7SouthAfrica51,770,560 384.3 bn 95.27 bn 101.2 bn 106.8 bn 11,375 86.4%51.2Exports 2,021.0bnImports 1,780.0bnEconomic data is sourced from the most recent IMF figures and given in US dollars.[1] 9,161

Export Essential oils, perfumes,cosmetics, toileteries4500000Unit : US Dollar 000BrazilSouth Africa1500000Russian Federation10000005000000Exported Exported Exported Exported Exported Exported Exported Exported Exported Exportedvalue in value in value in value in value in value in value in value in value in value in2005200620072008200920102011201220132014Sources: ITC calculations based on UNCOMTRADE statistics.

Import Essential oils, perfumes,cosmetics, toileteriesUnit : US Dollar thousand4000000350000030000002500000Russian FederationChina2000000South e in2005Importedvalue in2006Importedvalue in2007Importedvalue in2008Importedvalue in2009Importedvalue in2010Importedvalue in2011Importedvalue in2012Importedvalue in2013Sources: ITC calculations based on UNCOMTRADE statistics.

2000000Trade BalanceEssential oils, perfumes,cosmetics, toileteriesUnit : US Dollar thousand10000000Balance in Balance in Balance in Balance in Balance in Balance in Balance in Balance in Balance in Balance invalue invalue invalue invalue invalue invalue invalue invalue invalue invalue ChinaIndiaBrazilSouth AfricaRussian Federation-2000000-3000000-4000000Sources: ITC calculations based on UNCOMTRADE statistics.

Brazil Now World’s Top Marketfor Fragrances Brazil has overtaken the U.S. to become the world’s largest market forfragrances, according to a report recently . (Euromonitor International) While U.S. sales of fragrance stood at 5.3 billion, Brazilian sales rose 33%to 6 billion in 2010. Data from the Brazilian Association of the Cosmetic, Toiletry & FragranceIndustry (ABIHPEC) indicates that the fragrance market grew about 18% in2010. Besides the sharp growth in consumption, results were also impacted bythe appreciation of the Brazilian real (R ) against the U.S. dollar. “Fragrance sales in Brazil are concentrated primarily on mass marketbrands, which now account for 93% of revenue,” said Euromonitor analystMarcel Motta, who noted the leading companies are Natura and OBoticário, which combined account for a market share of 60%. 61% of the Brazilian population wears perfumes on a regular basis. Potential market of nearly 40% to be explored!

BRAZIL Focus on Citrus (40 000 T/a) no 1 producer in the world. Also like SA, producing Lemon Grass, Eucalyptus and mint. Over the past 10 years, first- and second-tier emerging markets have beenat the forefront of growth in the global bath and body care category,offsetting performances in the traditionally higher value markets of NorthAmerica, Japan and Western Europe. Brazil has stood out among the crowd, driving the biggest absolutegrowth rates year-on-year in the world. In 2010, Brazil’s bath and body care category posted real growth of 11%.This was the equivalent of more than US 900 million of incremental retailbusiness. The retail value of bath and body care products grew by 99% in Brazil (atconstant prices) compared, for example, with 41% in China, 4% in Mexicoand a contraction of 5% in the U.S. According to projections by Nivea, Brazil tends to present the bestperformance in the block of developing countries.

Global Scales of Consumption TipFrom North to South America Over the next five years, global retail sales of bath and body care products areforecast to generate more than US 8 billion of new business, of which Brazil isprojected to fuel around one third.India, Russia and China are tipped to be the next three biggest growth stories inabsolute terms, but their combined incremental retail value is still forecast to bearound US 1 billion less than in Brazil. (Euromonitor International)What is striking is that in the emerging world order of fast-moving consumergoods, it is rare for China to be held so firmly off the top growth position.That alone is a measure of the dynamism of Brazil’s bath and body care market.Nail Polish Market Grows 23%; Competition IntensifiesWith a sales growth of 23% in 2010, the nail polish market reached revenues ofR 800 million (with approximately 600 million units sold), according to data fromNielsen.While the Risqué (Hypermarcas) and Colorama (L’Oréal) brands lost market share,Impala’s market share grew from 10.9% to 13.8%.According to Brazil’s IPCA, the country’s consumer price index, there was a13.83% rise in prices of nail care products, which was above the inflation rate of5.91% registered in the same gions/bric/125482083.html

RUSSIA Aggressively Agricultural Production PriorityScientific and Technology Approach–––––––––––State scientific institution All-Russia Research Institute of Oil Crops by V.S. Pustovoit (VNIIMK) is theleading institution of Russia occupied with breeding, seed growing and technologies of cultivation ofoil crops.VNIIMK offers you seeds of the following oil crops: sunflower, sunflower hybrids, oil flax, soybean,winter and spring rapeseed, castor, mustard, turnip, coriander.Varieties and hybrids of the VNIIMK development were put in the State Register of breedingachievements eligible for production use.All varieties and hybrids of oil crops have passed the evaluation tests and ensure gaining of highyield.Seeds of oil crops provided by the Institute satisfy the requirements of the State Standard of sowingqualities.Specialists of the Institute are always ready to offer consultations on technologies of oil cropscultivation and mechanical means which make it possible to realize the potential of our varieties andhybrids to the full extent.Breeding of high-yielding oil and essential-oil crops varieties and hybrids with improved quality ofoil, proteins, essential oils and resistant to main diseases and pests;Improvement of system of seed growing and production of seeds in Russia;Development of adaptive, ecologically sound technologies of oil and essential-oil crops managementfor different zones of the country;Development of methods and devices for analysis of seeds and oil quality;Construction of machines and devices for managing, harvesting and postharvesting processing ofseeds

RUSSIA CONT Russia joined the World Trade Organisation(WTO) on 22 August 2012 EU exports to Russia are dominated by machineryand transport equipment, chemicals, medicinesand agricultural products. Russia's facial care market is the fifth largest inEurope, according to Datamonitor, with 8% yearon-year growth and a CAGR of 9% to 2017 Russia's cosmetics market is robust, althoughrouble decline has prompted uncertainty

STUDY OF COMPARISON:

A guide for an Indian Exporter to Brazil A guide for an Indian Exporter to Brazil The Embassy of India,Brazil has brought out a publication entitled India-Brazil in Focus The information available in this publication is detailed, useableand very practical. Based on the information, an exporter should be able to planfocused trade promotion of the specific product. This would result in more fruitful outreach for the exporters inBrazil. Brazil being far away and culturally requiring face to face contact,this publication would be useful to the Indian exporters. Member-exporters to Brazil may kindly refer this publication whichis available at https://issuu.com/embaixada da india/docs/a guide for an indian exporter tob/3?e 0

INDIA Indian manufacturers export a wide range of quality cosmeticproduction which have gained acceptance of consumers all over theworld. India exports such natural and herbal cosmetics products tocountries like UAE, USA, Netherlands, Saudi Arabia, Germany,Japan, Malaysia, Nepal, Sri Lanka, UK, china, Indonesia, France,Russia and Italy. The Indian cosmetic industry has shown its ability to produce awide range of products of good quality and price. When it comes to the herbal and natural cosmetics, the newglobalize scenario has created the need to maintain consistentquality and price at par with international markets. The exports of Cosmetics, Toiletries & Essential Oils during 201213 touched US 1898.5 Million

INDIA India is acknowledged to be the second largest exporter of Herbalcosmetics to the world market after China The range of products being skin care products, including creams, lotions,lubricants, skin fresheners, bleaches, medicated ointments, deodorants,sunscreens, face creams, toilet powder, lipsticks, mascaras, eye browpencils, eye shadows etc. Hair cosmetics include shampoos, conditioners, hair dyes/color, Hairtonics, hairdressings, bleaches and depilatories etc. Oral cosmetics covers dentifrices, mouth wash, toothpastes, mouthfresheners etc. Recently, aromatherapy products have also achieved popularity for theirmedicinal values and perfumery attraction. In the entire range of productsthat fall within the territory of the Indian cosmetic and toiletries market,the most popular items are color cosmetics, of which nail varnish, lipsticksand lip glosses account for the most sales.

INDIA The Indian Cosmetic Toiletries & Essential Industry haswitnessed rapid growth over the last couple of decades. Beauty products manufacturers in India mostly cater to thegreat demand for cosmetics and toiletries that fall into thelow or medium price categories as the greatest demand inIndia has always been for these economically priced. Herbal cosmetics from India have a great demand in theoverseas market and many cosmetic products that aremanufactured in India, today are supplied to internationalsuppliers to branded cosmetics products. The first being the increase for the demand in Indian costeffective products and the second being the increasedpurchasing power of the average Indian.

COSMETICS IN CHINA The cosmetics sector on the Chinesemainland has been growing at a fast pace intandem with the rapid development of theChinese economy in recent years. Data from Euromonitor reveals that totalretail sales of skin care products and make-upproducts in China reached Rmb142 billion andRmb21 billion respectively in 2014, achievingyear-on-year growth of 8.0% and 9.4%respectively.

CHINA IMPORTS

The retail sales of cosmetic products ofenterprises above designated size in thewholesale and retail trade in recent years.

Geranium inCHINAChampions in valueadding AND trade27

SOUTH AFRICA Underperforming: could be changedImports exceeds exports: WILL have to changeSome initiative from several organizationsGood academia and technology availableCoordination improvingHuge potentialWill to do

South African Market – Overview South Africa has a well-developed chemicaland consumer products manufacturingindustry which has a demand for fragrances(mostly synthetic aroma chemicals) and has awell developed food processing industrydemanding flavours. The current South African production ofessential oils is approximately 2100 to 2900tons per annum.

GERANIUM IMPORTS by US

GERANIUM EXPORT VALUE

Eucalyptus produced by4 of 5 BRICS countries

TURKEY Increasing value addingFocus on Rose but declining in productionOther oils oregano, cumin, laurel, sage, etc.Excellent publications by academia andindustry Coordination between EU– and ASIA