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Processing and Marketing Recommendations WP T1 Activity A. T1.2 Implementation of VCA OUTPUT FOR DELIVERABLE D T1.2.1 PROCESSING AND MARKETING RECOMMENDATION Author: ENVIRONMENT PARK STRUCTURE OF THE ITALIAN SUPPLY CHAIN ............................................................................ 9 MARKET IN THE EUROPEAN ALPINE SPACE ............................................................................. 15 GERMANY ....................................................................................................................................... 16 AUSTRIA .......................................................................................................................................... 19 SLOVENIA ....................................................................................................................................... 19 FRANCE ........................................................................................................................................... 19 NEW TREND IN THE MARKET OF HERBS .................................................................................... 25 REFERENCES ...................................................................................................................................... 29 THE VALUE CHAIN OF HERBS IN EUROPE THE MARKET SITUATION IN ITALY The cultivation of herbs represents a niche for specialist, since the particular requirements and needs they have for growing. Moreover, it is very difficult to obtain exhaustive statistical data due to the niche economic sector, where the productions are traditionally represented by spontaneous species and characterized by low volumes. Furthermore, for these crops, which are not subject to the Common Market Organization (CMO) of the Common Agricultural Policy (CAP) in the European Union, there isn’t statistical monitoring at European level, as opposed to other crops. The aromatic plants are included in the definition of medicinal plants (medicinal, aromatic and perfume plants). The list of officinal plants cultivated in Italy was realized with the collaboration of the Italian Federation of Officinal Plants Producers (FIPPO), of Assoerbe (Italian Association representing the Growers, Collectors, Transformers, Importers, Exporters, Wholesalers and Representatives of Foreign Houses of Medicinal Plants, Herbs, Spices, Plant Extracts, Essential Oils and their derivatives) and SISTE (Italian Society Applied sciences to medicinal plants and products for health). The list contains 296 species, spontaneous and cultivated, used in Italy (therefore also imported). Around 48% of the species included in the list, are also cultivated or cultivable in other countries. As for the habitat, 32 species (11%) are cosmopolitan. The species that have a habitat in Europe are 89 (30%); also, there are 56 Eurasian species, 33 Mediterranean species and 6 alpine species (Achillea erba-rotta subsp. Moschata- common name simple leaved milfoil, Alchemilla alpina, Artemisia genepi and Peucedanum ostruthium). In the table below there is a list of species cultivated in Italy (as a result of FIPPO members interviews in 2012). The total cultivated surface in Italy is about 1,500 hectares and the main species, in terms of cultivated area, are mint, lavender, chamomile, fennel, sage, lemon balm, passionflower, coriander, etc . The table also shows the term "different species" that refers to species, like saffron, milk thistle, yarrow, rota grass, Artemisia genipi that are present in areas under 0.3 hectares (Istat 2011). Species Surface in ha Mint 253.54 Lavender 136.64 Chamomile 123.10 Fennel 78.21 Sage 68.45 Melissa 47.69 Roman 45.05 chamomile Passiflora 39.21 Coriander 37.00 Hybrid 32.13 lavender Oregano 24.25 Psillo 23.00 Helichrysum 22.44 Rosemary 20.97 Absinthe 18.62 Savory 17.37 Dandelion 17.10 Nattle 15.10 Hyssop 14.53 Mallow 12.86 Aloe vera and 12.08 arborescens Thyme 11.48 Echinacea 7.52 Sclarea 7.33 Blackcurrant 7.31 Burdock 6.80 Artichoke 5.20 Yarrow 4.38 Escolzia 2.50 Galega 2.26 Violet 2.25 Marigold 2.11 St. John’s wort 1.62 Tarragon 1.25 Marjoram 1.10 Myrtle 0.52 Lespedeza 0.50 Different 379.94 species Total 1503.38 Table 1 List of plant and relative hectars of cultivation in Italy (ISTAT 2010, FIPPO, 2012) REGIONAL SPECIFICATION Region Number of Surface (ha) Companies Piemonte1 248 869.18 Valle d’Aosta 32 10.73 Liguria 89 34.50 Lombardia 119 151.11 Trentino Alto 71 19.18 Adige Veneto 75 115.13 Friuli Venezia 37 50.67 Giulia Tab. 2 Companies and surface- regional specification (ISTAT Censimento, 2010) PRODUCTS AND PROCESSES The main market areas for herbs in Italy are represented by: 1. PRIMARY AGRICULTURAL ACTIVITY PROCESSES PRODUCTS Cultivation and harvesting Fresh plants wash 4- range products (ready-to- eat fresh-cut herbs) 2. AGRO-INDUSTRY PROCESSES PRODUCTS Cutting and selection Herbs for infusions, flavors Extraction Liquid and semi-liquid extract (maceration, industrial, semi- industrial Distillation Essential oils Rectification Drying Dried plants for tea Concentration , freeze drying Concentrated extracts Formulation, packaging Final products with herbs In Italy, a limited range of species that include peppermint, passiflora, wormwood, dandelion, echinacea, lemon balm, oregano, sage and chamomile, there is a well- established agronomic practice, which allows its production in an advanced and competitive context. For other species, lacks of technical and agronomic notions on all the phases of the cultivation process are still present. ITALIAN IMPORTS In 2011, Italian imports of officinalis plants and their derivates amounted to about 161 thousand tons with an outlay of 999 million euros. Compared to the total imports of agricultural and food products, the sector represents around 2.5%. Fig. 1 Pie chart for the percentage of imported officinal plants and their derivates (ISMEA 2013) % Import of officinalis plants Odoriferous substances for the food 30.5% industry Odoriferous substances for the no- 22.8% food industry Juices and plant extracts 11.6% The and mate 5.9% Essential oils 4.8% Spices and aromatic herbs 4.7% Officinalis and aromatic plants 5.5% Dyes 3.9% Extract for tanning 3.5% Pepper 2.4% Tires and resins 2.3% Table 3 Export in Italy- Others 1.5% percentage ITALIAN EXPORTS In 2011, total Italian exports of officinal plants and their derivatives amounted to about 82 thousand tons with revenues of 413 million euros. Compared to total exports of agricultural and food products, the sector represents around 1.4%. Fig. 2 Pie chart for the percentage of exported officinal plants and their derivates (ISMEA 2013) Export of officinalis plants % Odoriferous substances for the food 15.6% industry Odoriferous substances for the no- food 7.8% industry Juices and plant extracts 27.0% The and mate 3.4% Essential oil 19.3% Spices and aromatic herbs 5.6% Officinalis and aromatic plants 4.4% Dye 8.7% Extract for tanning 4.5% Pepper 2.4% Tires and resins 1.2% Others 0.5% Tab.4 Export of officinal plants – percentage STRUCTURE OF THE ITALIAN SUPPLY CHAIN The value chain of officinal plants in Italy is particularly complex. The main difficulties in defining a model that summarizes and expresses in a complete manner the structure of the supply chain and the relationships between the different actors that compose it, can be traced to the following points: - High number of cultivated, semi-finished and finished products that are generated in this chain; - Number of types of actors taking part in the supply chain (collectors, producers, processors, end users, etc.); - Different degree of vertical integration between actors of different stages of the supply chain. Fig. 3 Structure of Italian supply chains (ISMEA, 2013) THE CARACHERISTICS OF ACTORS IN THE VALUE CHAIN SPONTANEOUS COLLECTORS The manual harvesting of herbs is the less practiced but it is recognized by the legislation on organic farming, which assimilates it to cultivation. The buyer is generally a wholesaler, often located also far from the collection areas, which on the basis of relationships established over time, assures a certain purchase of raw materials, year after year. The volumes and values of this market are unknown, even if there are important products - such as helichrysum, gentian roots, birch, oregano, etc. - which still largely come from spontaneous harvesting carried out in the Apennines, in the Alps and in the islands. FARMS In Italy, the area used for the cultivation of aromatic, medicinal and seasoning plants is about 7,000 hectares. In detail, the area dedicated permanently to the cultivation (according to properly agronomic canons) of herbaceous and arboreal plants that are strictly definable as officinalis is between 2,000 and 2,500 hectares, with a production that can be estimated between 2,000 and 3 thousand tons of product per year (FIPPO; 2012). This type of farms is mainly located in historical production areas, such as the Po Valley, between the Cuneo area and the Turin area (Moretta, Pancalieri, Savigliano), in some areas of the Veneto region, in the Marches (Macerata, Ascoli) and in some areas between Puglia and Basilicata, and in Sicily. This type of farms - in practice the heart of the primary sector - according to FIPPO covers about one hundred structures; the cultivation of officinalis plants is practiced on surfaces between 5 and 30 hectares, whith 3 up to 10 different species. From a technical point of view, this cultivation is done by following "intensive" models, using the irrigation and fertilization practice. According to FIPPO assessments, in these pedoclimatic and
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