Aceites esencialesen montana

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MARKET OPPORTUNITIES AND STRATEGIC DIRECTIONS FOR SPECIALTY HERBS AND ESSENTIAL OIL CROPS IN MONTANA

This report explores the economic feasibility of specialty herb and essential oil crop production in Montana. The focus is on twenty-four promising medicinal, culinary and essential oil herbs that have been grown in test plots at Montana agricultural experiment stations since 1998.Two additional crops, identified through research and interviews with industry experts as having market potential, are included in the study. The report includes an overview of the market for specialty herb and essential oil crops; details, by crop, about production, use and prices; general strategic management planning; and price and production risk management strategies. A case studyof Echinacea, with an emphasis on strategic management and the marketing plan, is featured. The report outlines opportunities and challenges in producing and marketing high-quality, specialty herbs and essential oils. The ability to offer consistent supply and volume of high quality volume will be important competitive factors. Organic production holds some promise. Overall success inthis market will require significant expertise and participation of the grower beyond the production stage.

Final Report

Contact: Brent Poppe Montana Department of Agriculture 406-444-2402 bpoppe@state.mt.us

Market Opportunities and Strategic Directions for Specialty Herbs and Essential Oil Crops in Montana
Contract # 0150620 February 27, 2002

Prepared for: MontanaDepartment of Agriculture U.S. Department of Agriculture Federal-State Marketing Improvement Program

Prepared by: Dr. Gary Brester Kole Swanser Tim Watts

Watts and Associates 4331 Hillcrest Road Billings, MT 59101

(406) 252-7776 Fax (4.6) 252-9753 watts@wattsandassociates.com

Table of Contents EXECUTIVE SUMMARY............................................................................................................1 I. INTRODUCTION.......................................................................................................................2 II. THE MARKET FOR SPECIALTY HERB AND ESSENTIAL OIL CROPS......................3 II.A. Market Decomposition and Classification ....................................................................3 II.A.1. Foods –Teas, Fresh-cut and Dried Culinary Herbs ...........................................3 II.A.2. Essential Oils .............................................................................................................4 II.A.3. Medicinal Botanicals .................................................................................................4 II.A.4. Floral, Decorative, and OrnamentalPlants...........................................................5 II.B. Marketing Channels and Methods.................................................................................5 II.C. Marketing Forms and Uses ............................................................................................5 II.D. World Production and U.S. Import / Export Data (Size ofMarket)...........................6 III. POTENTIAL SPECIALTY HERB AND ESSENTIAL OIL CROPS..................................9 III.A. Forms and Uses ..............................................................................................................9 III.B. Price Information ...........................................................................................................14 III.C.Production, Uses, and Pricing by Crop .....................................................................15 III.C.1. Anise........................................................................................................................15 III.C.2. Calendula ................................................................................................................16 III.C.3....
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