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Wild-Collected Botanicals and the Eu Market

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Wild-Collected Botanicals and the Eu Market WILD-COLLECTED BOTANICALS AND THE EU MARKET Trade for Development Centre – BTC (Belgian Development Agency) Author: ProFound – Advisers In Development http://www.ThisIsProFound.com Managing editor: Carl Michiels, BTC, 147 rue Haute, 1000 Brussels Cover: Compiled by ProFound © BTC, Belgian Development Agency, 2015. All rights reserved. The content of this publication may be reproduced after permission has been obtained from BTC and provided that the source is acknowledged. This publication of the Trade for Development Centre does not necessarily represent the views of BTC. 2 Trade for Development Centre – BTC (Belgian Development Agency) Table of contents TABLE OF CONTENTS ...........................................................................................................................3 1. INTRODUCTION .........................................................................................................................4 1.1 Market channels .................................................................................................................. 4 1.2 Raw materials vs. processed materials .............................................................................. 6 1.3 Market Segmentation .......................................................................................................... 6 2. COUNTRY BACKGROUNDS .....................................................................................................8 2.1 Palestinian Territory ............................................................................................................ 8 2.2 Algeria ............................................................................................................................... 10 2.3 Senegal ............................................................................................................................. 11 2.4 Mali .................................................................................................................................... 12 2.5 Niger .................................................................................................................................. 12 2.6 Benin ................................................................................................................................. 13 2.7 Uganda .............................................................................................................................. 14 2.8 Rwanda ............................................................................................................................. 15 2.9 Burundi .............................................................................................................................. 16 2.10 Congo (DRC) .................................................................................................................... 17 3. POTENTIAL MARKET SEGMENTS........................................................................................ 19 3.1 Food industry .................................................................................................................... 19 3.2 Cosmetic industry ............................................................................................................. 19 3.3 Health industry .................................................................................................................. 20 3.4 High potential cross- and sub-segments .......................................................................... 20 4. MARKET ACCESS REQUIREMENTS .................................................................................... 22 4.1 Legislative requirements ................................................................................................... 22 4.2 Non-legislative requirements ............................................................................................ 23 5. TRENDS AND DEVELOPMENTS FOR DIFFERENT SEGMENTS ........................................ 26 6. POTENTIAL EUROPEAN MARKETS ..................................................................................... 29 6.1 European imports .............................................................................................................. 29 6.2 Promising EU export markets ........................................................................................... 33 6.3 European buyer perspective ............................................................................................. 35 7. OPPORTUNITIES AND THREATS ......................................................................................... 36 8. PRIORITY LIST ........................................................................................................................ 38 9. CONCLUSIONS ....................................................................................................................... 82 LITERATURE SOURCES ..................................................................................................................... 86 ANNEX I ................................................................................................................................................ 90 ANNEX II ............................................................................................................................................... 94 ANNEX III .............................................................................................................................................. 97 3 Trade for Development Centre – BTC (Belgian Development Agency) 1. Introduction The Trade for Development Centre (TDC – www.befair.be) of the Belgian Development Agency (BTC) aims at economic and social empowerment of small producer organisations, by both enhancing business knowledge and improving their access to markets. TDC implements a Producer Support Programme through which financial and technical assistance is provided to producer organisations. Within the framework of this programme, TDC has decided to carry out a market study on wild-sourced botanicals and the EU market, thus anticipating the growing opportunities for these products in the food, cosmetics and pharmaceutical industries. The results of this study will be provided, among others, to ethical actors. Harvesting and trading wild-sourced botanicals is a critical source of income for rural poor communities in developing countries (DCs). Source countries of these wild-collected botanicals are increasingly looking for ways to export these products to international markets as it contributes considerably to the national incomes of these countries. However, they generally suffer from having limited access to these markets as well as restricted knowledge of options to improve livelihood benefits for local communities. In this context, the study focuses on wild-collected medicinal and aromatic plants (MAPs) which have a potential for livelihoods enhancement and conservation action locally, as well as a potential on the European market, and where producers may benefit from producer support programmes. Moreover, these species are assessed in terms of sustainable trade. The countries covered in this study are Algeria, the Palestinian Territory Senegal, Mali, Niger, Benin, Uganda, Rwanda, Burundi and Congo (DRC). For an overview of the long lists compiled per region, please refer to Annex III. Methodology The list of 20 botanicals investigated in this study is derived from a long list of prioritised species according to biodiversity and trade programmes in the 10 target countries. For a more elaborate description on how the final list of botanicals was derived, please refer to Chapter 8. The narrowing down of these species, in consultation with local and European experts & organisations, was based on the following criteria: Marketing criteria: scale of production, market readiness, competition and certification potential. Ecological criteria: availability, sustainability of supply, resource management and access, certification (potential). Socio-economic criteria: local benefits, value addition potential, fair labour conditions. Technological criteria: (adherence to) processing and quality requirements, traceability and access to technology. Product definition With the purpose of having a broad overview of trade and potential of wild-collected species, natural gums and resins and plant derived materials (herbal extracts, essential and vegetable oils) are included together with medicinal and aromatic plants (MAPs). In this study, these species and their derivatives are referred to as MAPs. The potential of these species is based on their uses in food, cosmetic and health industries. For an overview of these segments, please refer to section 1.3 on segmentation. These industries remain dependent on wild-collected materials for various species, as a result of the high cost or difficulty of cultivation if only a limited quantity is needed. 1.1 Market channels Regardless of the final segment in which they are used, wild-collected MAPs have a similar value chain (Figure 1). In the country of origin, the MAPs are collected, after which they can be processed locally and traded to the EU. The products can be exported both as raw materials and as processed products, such as extracts or essential oils (see section 1.2). 4 Trade for Development Centre – BTC (Belgian Development Agency) Traditionally, most extraction has taken place in Europe. More recently, for certain MAPs, this is shifting towards the countries of origin, which offers good value addition
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