TEA TREE OIL In support of an iconic Australian industry

“Without help from the Rural Industries R&D Corporation – which has been substantial over time – the tea tree oil industry would not be anywhere near what it is today. They have done a particularly good job.” – rob dyason, tea tree oil producer for 34 years, northern nsw

Australia is the current leader in world production of tea tree oil and, concurrently, in research into the oil’s myriad biological properties and applications. The two achievements are not unrelated. Agricultural scientists and the Rural Industries R&D Corporation (RIRDC) have walked alongside growers as they took a native plant out of the bush, established modern plantation production systems, studied and vaunted the oil’s properties worldwide and came to dominate the international market. In the following pages, RIRDC showcases key achievements from its recent collaborative association with the Australian tea tree oil industry. tea tree oil: in support of an iconic australian industry march 2013 CONTENTS FOREWORD

FOREWORD 2 Science has played an important and varied role supporting the 2 development of a dynamic, internationally competitive Australian RESPONSE TO MYRTLE tea tree oil industry. For several decades – even before the industry RUST DISEASE INCURSION 3 was in a position to always co-fund important research initiatives – PROTECTING LIVESTOCK the Rural Industries R&D Corporation’s Tea Tree Oil Program has NATURALLY 6 provided a vital link between growers and researchers. PEST AND WEED MANAGEMENT INNOVATION 8 It is a partnership that has paid dividends many times over. ADDING VALUE The Tea Tree Oil Program is proud to have dealt with issues from THROUGH BREEDING 10 across the supply chain – from breeding higher-yielding varieties to PROSPERING WITH boost plantation productivity through to validating the oil’s various SUSTAINABILITY GAINS 12 biological activities. These now include demonstrable anti-microbial, anti-inflammatory, wound-healing and insect-repellant properties. PROTECTING EXPORTS 14 Benefits have not been restricted to growers. Safety and efficacy THERAPEUTIC BENEFITS AND SAFETY RESEARCH 16 studies in particular have benefited end-users and promoted new product development, which ultimately also boosts market demand RIRDC TEA TREE OIL PROJECTS 19 for the oil. Beneficiaries include the sheep industry, given the oil’s POSTGRADUATE newly discovered potency in eliminating lice infestations, and those SCHOLARSHIP PROGRAM 20 hospitals struggling to reduce impacts to patients from antibiotic- resistant bacteria. And there are more innovations in the pipeline. RIRDC acknowledges and However, the road from plantations to consumers can be a rocky one, as growers discovered in the past decade when regulatory thanks the Australian tea tree bodies threatened access to European markets. There again, oil industry for the voluntary science-based evidence proved its worth to industry by contributing cash contributions made to to a submission that challenged market restrictions. It also provided each project described in the a sound basis upon which to implement a Code of Practice that aligns with international quality assurance systems. following pages. Throughout, researchers have worked closely with growers, forging collaborative partnerships that have nurtured resilience and an © 2013 Rural Industries Research entrepreneurial spirit in this young rural industry. RIRDC looks and Development Corporation forward to many more years of productive engagement with this All rights reserved. innovative sector. The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable industries. The information should not be relied upon Craig Burns for the purpose of a particular matter. Specialist and/or Managing Director appropriate legal advice should be obtained before any rural industries research and development corporation action or decision is taken on the basis of any material in this document. The Commonwealth of Australia, Rural Industries Research and Development Corporation, the RIRDC CONTACT DETAILS authors or contributors do not assume any liability of any kind whatsoever resulting from any person’s use or Rural Industries Research and Development Corporation reliance upon the content of this document. Level 2, 15 National Circuit, BARTON ACT 2600 This publication is copyright. However, RIRDC PO Box 4776, KINGSTON ACT 2604 encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. P | 02 6271 4100 For any other enquiries concerning reproduction, contact the Publications Manager on phone F | 02 6271 4199 02 6271 4165. E | [email protected] Published in March 2013. Publication no 13/012. W | www.rirdc.gov.au march 2013 tea tree oil: in support of an iconic australian industry RESPONSE TO MYRTLE CASE STUDY RUST DISEASE INCURSION

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BACKGROUND AT A GLANCE The threat to Australia was explicit when the rate in South America (where only about Eucalypt plantations a new fungal rust disease was identified in 100 of the roughly 1000 Myrtaceae propagated abroad South American eucalypt plantations. The are vulnerable). have incubated a fungus attacks young, growing plant tissue and, The species used by the tea tree industry, unusually for a rust disease, it has an extremely Melaleuca alternifolia, proved to be susceptible. new disease – myrtle wide host range – about 3000 tree and shrub Efforts to exclude the rust reaching Australia rust – that found its species in the Myrtaceae family. faltered when the fungus partially crossed the way into Australia Many affected species are iconic to Pacific Ocean, reaching Hawaii in 2005. On in 2010. The rust’s Australia’s landscape where grow-back after 23 April 2010 the disease was first detected in unusually wide bushfires and floods is especially vulnerable to Australia, at a cut-flower-growing facility on the host range poses a the disease; some are of immense economic central coast of New South Wales. It has since hazard to the natural importance in the oil and native food spread along the eastern coast to Victoria and to industries, such as tea tree and lemon myrtle. far north Queensland. environment and Dubbed ‘myrtle rust’, the fungus can Once the Myrtle Rust National to rural industries cause deformation of leaves, heavy defoliation Management Group determined, in December based on native of branches, dieback, stunted growth and 2010, that eradication was not technically plants, such as the even death. Testing undertaken a decade ago feasible, research efforts – including by the tea tree oil industry. indicates that Australian plants display a varied Rural Industries R&D Corporation (RIRDC) response to myrtle rust, from highly resistant to – began into plant resistance and methods of highly susceptible. fungal control. Myrtle rust has been in About 9 out of 10 species tested proved Australian since 2010. susceptible in the glasshouse; much higher than continued on page 4 >

“Myrtle rust is, potentially, a complete and utter disaster for the industry and the environment. In 2012 there was myrtle rust detectable in every single plantation I visited, without exception. The tea tree industry so far has dodged a bullet, in that the rust is present at levels that are not economically damaging. That is giving us time to work with researchers to identify resistant genotypes and effective fungicide treatments. But the problems are coming.” – tony larkman, industry development officer for the australian tea tree industry association tea tree oil: in suport of an iconic australian industry march 2013

RESPONSE TO DEADLY DISEASE INCURSION

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THE RESEARCH “I was first alerted to the myrtle rust incursion by From the outset, RIRDC established links RIRDC in 2010, soon after it was first detected, with affected industries and with myrtle rust but it was too late to stop its spread. Now it is researchers. RIRDC is currently managing multiple research projects in the ACT, NSW all about adapting to the presence of the rust and Queensland. and that means rebuilding the industry around “Projects are taking a multi-pronged resistant trees. As it happened, Bill Foley from approach,” says Alison Saunders, RIRDC’s the ANU was already working on the Melaleuca Senior Research Manager for the Tea Tree Oil Program. “We are addressing the use of new and Eucalyptus genomes and, with co-funding and established compounds to reduce fungal from RIRDC, he has joined the myrtle rust growth, including natural fungicides derived response and will be an important factor in our from essential oils. There are also efforts to identify naturally resistant plants from the industry’s long-term prospects.” widest possible genetic backgrounds and even – pat bolster, tea tree grower and australian methods to induce plants to fight the fungus.” tea tree industry association secretary at the At the Australian National University, Professor Bill Foley is making genomic tools time of the myrtle rust incursion in april 2010 available to track down the source of genetically based resistance that is known to exist in the Myrtaceae gene pool. Making that possible is the recently completed sequence of the eucalypt genome that Professor Foley is using as a map to reach

FACTS AND FIGURES

The first published report In the 1930s the rust In 2005, the pathogen It’s unknown how myrtle of rust infecting eucalypts became established in alarmed Australian rust reached Australia but dates back to 1929 in Brazil. Jamaica, where it severely pathologists when it crossed it most likely originated disrupted the allspice the Pacific and turned up from Hawaii. industry. By 1979 it had in Hawaii. found its way to Florida. march 2013 tea tree oil: in support of an iconic australian industry

RESPONSE TO DEADLY DISEASE INCURSION

5 “After the initial discovery of myrtle rust on

into the genomes of four species important to plantations by clonal propagation of trees that the NSW central rural industries: tea tree, lemon myrtle, riberries carried one resistance gene. A few years ago, coast there and anise myrtle. the myrtle rust pathogen evolved to overcome were attempts “Using genomic technology we can that resistance. to quarantine compare individuals that are resistant and “We are lucky because there has been a lot susceptible to identify the genes and genome of relevant work done in eucalypts, especially its spread and areas that provide resistance to myrtle rust,” in Brazil,” Professor Foley says. “But we want for a while it Professor Foley says. “We can then develop to look more broadly at what is coded in the didn’t move too DNA markers that vastly simplify and genome. We can then build an understanding accelerate the ability to screen vast numbers of of how the resistance works and when it is likely far. Now it is plants for their resistance status.” to break down. widespread up He is, however, wary of building the myrtle “This is all-important if science is to provide and down the rust response around just one resistance gene. long-term support for native plant industries. He explains that Brazil rebuilt its eucalypt So we continue to talk to farmers and make eastern coast, in sure they understand what we are doing and both agriculture why. Research is aimed at helping solve their and forests. I’m problems so their support is important.” quite concerned about the impacts and while I am prepared to replant with resistant tea 3 tree varieties, CLEAN YOUR CLOTHES I fear the impact on the species composition of 2 4 natural forests CLEAN EQUIPMENT INSPECT WITH DETERGENT REGULARLY into the future.” – rob dyason, 1 5 tea tree BUY MONITOR YOUR HEALTHY PLANTS grower and oil PLANTS producer for 34 years

FIVE STEPS TO SLOW THE SPREAD OF MYRTLE RUST tea tree oil: in suport of an iconic australian industry march 2013 PROTECTING LIVESTOCK NATURALLY

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AT A GLANCE THE RESEARCH Rural Industries The Rural Industries R&D Corporation existing pesticides, plus reduce occupational R&D Corporation (RIRDC) has made it possible to formally exposure to farm chemicals and greatly reduce (RIRDC) research establish that tea tree oil’s insecticidal and the threat of environmental contamination,” insect-repellent properties offer valuable pest says Dr Peter James of the University of has demonstrated control alternatives for the Australian sheep Queensland’s Alliance for Agricultural and Food the effectiveness industry. Studies found that dipping sheep in a Innovation (QAAFI) who headed the project. of tea tree oil as a dilute tea-tree-oil-based formulation eradicates A criticism often levelled at natural products natural alternative lice infestations. – the potential for variable composition – does to insecticides that Repellent and insecticidal effects were also not apply since tea tree oil composition is protect sheep from noted against sheep blowflies. Benefits from stipulated under international standard lice and blowfly using the tea tree oil treatment were further ISO 4730, providing confidence for boosted by previously validated anti-microbial consistency of effect. strike. The oil’s and wound-healing properties. “There are growing opportunities for insecticidal and These effects occurred at concentrations ‘natural’ products and a ready market for insect-repellent that are viable for the commercial development tea tree oil for use in ‘softer’ pest-control properties have of tea-tree-oil-based products against sheep technologies that can meet growing community potential further parasites. Such products would amount to concern about the use of artificial pesticides,” uses in other a new market for tea tree growers and one Dr James says. that capitalises on growing consumer demand veterinary and animal for natural products, particularly those INDUSTRY IMPACTS production systems. that can be accredited for use in organic Pat and Paul Bolster own Tweed Valley production systems. Tea Tree, a tea tree plantation and production FLYSTRIKE “Tea-tree-oil-based products could business at Chinderah in northern NSW. The $280 million potentially work to counteract resistance to harvest from their 106-hectare plantation is distilled on site, producing 35 tonnes of high quality tea tree oil that is marketed domestically and in the US, the UK and Europe. They view new product development as quintessentially important to the industry’s long-term prospects and are extremely keen to

LICE FACTS AND FIGURES $125 million There are three species Long term, the nation- Currently, there are no of sheep lice: head, foot wide average prevalence alternatives to insecticide for and body. The body louse of lice infestation in sheep treating louse infestations, (Bovicola ovis) causes flocks is about 20% but despite market preference the majority of economic recent infestation levels for wool with low chemical losses by reducing the have been much higher. residues. The cheapest and quantity and quality of most effective chemical wool produced. for dipping, showering and jetting – diazinon – was ANNUAL COST TO THE suspended in 2009. SHEEP INDUSTRY (2012) march 2013 tea tree oil: in support of an iconic australian industry

7 “The results obtained from the RIRDC project were impressive and the commercial potential of the lice control application is something we develop products beyond the existing thought worth exploring. In fact, ‘lotions and potions’ market. To that end, we have decided to now continue they opted to jointly fund with RIRDC a project led by Dr Peter James. product development ourselves.” “We want to see large quantities of tea – pat bolster, tree oil being used in products with industrial tea tree grower and agricultural–veterinary applications,” Pat Bolster says. and oil distiller, nsw They are funding a commercial trial in several states during 2013 with a view to obtaining APVMA (Australian Pesticides and Veterinary Medicines Authority) registration for the anti-lice tea tree oil formulation. If this is achieved it would amount to the second time they have used RIRDC research as a platform RIRDC has established that tea tree oil is a beneficial, for the development of a new product. natural alternative to insecticides for protecting sheep For example, basic efficacy work on tea from lice and blowfly strike. tree oil funded by RIRDC underpinned the development of Gelair™, a unique tea tree oil product that helps control mould and bacteria in air conditioners.

Blowfly strike (cutaneous An effective industry tool The organic industry is Eco-friendly textile sales myiasis) in sheep is caused for preventing blowfly strike the fastest growing retail in the US have enjoyed by the invasion of fly larvae – mulesing – is being phased sector in the European double-digit growth – 32% that feed on living tissue. out by the wool industry and Union. Eco-labelling is for organic cotton in 2011 Extensive wounding can alternative ways to protect becoming widespread and – with 81% of brands and result and bacterial infection sheep are being sought. surveys in the UK show that retailers indicating they may lead to death from only 20% of consumers want to expand their use. septicaemia and toxaemia. “don’t care”. tea tree oil: in suport of an iconic australian industry march 2013 PEST AND WEED MANAGEMENT INNOVATION

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AT A GLANCE THE RESEARCH Besides assisting the As pest, weed and fungal disease control These include: tea tree oil industry challenges emerged in tea tree plantations, the APVMA registration of two ‘softer’ with tree breeding and Rural Industries R&D Corporation (RIRDC), insecticides (abamectin and indoxacarb) to in conjunction with growers, funded Peter control Pyrgo beetle in tea tree plantations market-development Entwistle, an agronomist with North East in time for the 2011-12 growing season; opportunities, the Agricultural Services, to investigate alternative permit application submitted to the Rural Industries plant protection strategies. APVMA for two chemicals (simazine and R&D Corporation The industry has experienced difficulties, metalochlor) as a post-harvest-applied pre- (RIRDC) also especially as recent wet seasons have necessitated emergent herbicide mix; supports innovation greater levels of pest control spraying. As a result, permit application submitted to APVMA in on-farm resistance has emerged to some of the limited for linuron to control a weed (Cuphea range of ‘hard’ insecticides available against carthagenensis) with no current control practices. One focus the major insect pest of tea tree – leaf-eating option once post-harvest knockdowns have with important Pyrgo beetles (Pyrgoides tigrina) – while the been applied; and productivity population of beneficial insects has declined. the myrtle rust fungicide trial found no and profitability Weed control too has become harder in fungicide residues were detectable in samples implications has been recent seasons and the incursion of a new taken six weeks after application. control options for fungal disease, myrtle rust, created the need to “Abamectin has proven to be very effective field test the fungicides made available by the in controlling Pyrgo and leaving a lot of insect pests, weeds Australian Pesticides and Veterinary Medicines beneficial insects in the crop, such as ladybirds and fungal disease. Authority (APVMA). and predatory shield bugs,” Peter Entwistle The RIRDC project has made substantial says. “Indoxocarb provided similar plant gains in fortifying plant-protection options protection effects but use has been restricted for through the development of new strategies. plantations that also graze livestock. “As to the herbicide mix, it will provide growers with another tool against difficult-to- control broadleaf and sedge weeds in the early coppice stage of plantations.”

FACTS AND FIGURES

Members of the The tiny seeds are Seedlings are grown for Australian Tea Tree Industry germinated in specialist 2 to 4 months before they Association produce nurseries. The hard exterior are transplanted into pure tea tree oil almost coat is softened either by prepared fields at planting exclusively from Melaleuca soaking seeds in aerated rates of 25,000 to 35,000 alternifolia, which occurs water or mixing with a trees per hectare. naturally in a relatively diluent (usually fine sand). small area of NSW. march 2013 tea tree oil: in support of an iconic australian industry PEST AND WEED MANAGEMENT INNOVATION

9 “On the whole, I can say I have better and safer chemicals to use on my farm and I look forward to more reliable production and a healthier plantation as a result of this research.” – glenn donnelly, tea tree grower, northern nsw

Myrtle rust and Pyrgo beetle will be better controlled using options identified and tested by RIRDC-funded research.

INDUSTRY IMPACTS Just east of Casino, Glenn Donnelly effective for use in an integrated currently has 140 hectares of tea tree under pest management program than our irrigated production. His 15-year involvement previous options.” with the tea tree industry means he is well Better weed control options also stand acquainted with the industry’s scourge – the to deliver production benefits by reducing PYRGO BEETLE Pyrgo beetle. competition for soil moisture, nutrients and up to 80% He describes the beetle as the industry’s other limited resources. most significant and persistent pest, both “As a result of Peter’s research, I should the beetle and its larvae causing production soon have a better range of chemicals to use to problems as they feed on the leaves of his tea address weed issues as well,” he says. “Without tree plantation. the weeds, the crop is much more productive.” WEEDS “The RIRDC projects mean growers The incursion into Australia of a new fungal up to 47% now have indoxacarb and abamectin to use disease, myrtle rust, adds a new dimension to against insect pests,” Glenn Donnelly says. protecting tea tree plantations. “These chemicals have proven to be effective Glenn Donnelly is grateful for the research and economical. I don’t have to use as much findings into the fungicides permitted for YIELD LOSSES chemical, which should improve profitability as emergency use against myrtle rust. That they well as the environment in which I grow tea tree. neither leave detectable residues nor adversely “Importantly, I know what is an effective affect the trees is an important finding that ESTIMATED FUTURE rate to ensure it is safe for me as a producer and provides peace of mind at a troubling time. MYRTLE RUST CONTROL COST: also for my customers. These products are more He is now able to respond to protect his trees $100 to $300 a hectare should the need arise.

The trees quickly form a The trees’ entire aerial The trees regenerate Tea trees are dense cover and grow to a growth is mechanically quickly and yields improve susceptible to damage height of 2 to 2.5 metres in a harvested annually using as they establish a strong from some insect pests and year before being harvested modified forage harvesters network of roots and a oil yields can be reduced for the first time. that chop leaves and twigs coppice of several shoots. by drought and prolonged into a finely cut mass ready flooding, although they can for steam distillation of tolerate some degree of the oil. inundation. 10

based industry. profitable plantation- to anefficientand from bush harvesting producers toprogress have allowed breeding program (RIRDC) funded R&D Corporation the Rural Industries developed through tea tree varieties Higher oilyielding AT AGLANCE based industry. and profitable plantation- grown into anefficient the tea tree industry has Industries, hashelped Department of Primary Baker, of theNSW breeding program Gary on theRIRDC-funded Principal Investigator CASE STUDY THROUGH BREEDING ADDING VALUE THE RESEARCH release ofseeddeveloped by theprogram. about 250kilogramsperhectare through the average inthe1990s)to hectare (theindustry progressively increased from 148kilogramsper BakerGary says.“Oil yieldshave been Association(ATTIA)Industry since1997,” improved seedtotheAustralian Tea Tree They remain attheprogram’s helm. ofPrimarythe NSWDepartment Industries. Bakerindependent consultant)andGary from between John Doran from CSIRO (now an the outset,breeding wasacollaborative effort first released improved seedin1997. From gains inoilyieldandquality. breeding program thathasmaderapidgenetic Australian toestablisha teatree oilindustry (RIRDC) hasmadeitpossibleforthe The Rural Industries R&DCorporation “The program hascontinually released The program wasestablishedin1993and tea tree oil: insuport treeoil: ofaniconictea australian industry

orchards allow thebreeders toapplyalotof seed production tosupplygrowers. The that favour highflowering ratestomaximise seedling seedorchards, ofteninenvironments growing conditions.” greatly withenvironmentalvary differences in passed onfrom parent toprogeny, anddoesnot says. “It isatraitthatstrongly inherited, in theleaves ofindividualtrees,” Baker Gary achieved by measuringtheoilconcentration selection tool. progeny, thescientistsdeveloped acost-effective select trees thatpasshigh-yieldingtraitsto genetic biodiversity ofthespecies. To reliably collection ofteatree seedthatsampledthe adoptionofseedhasbeenexcellent.”industry increase yields. With suchoutstandinggains, The program alsoestablishedits own “We foundgeneticgaininyieldcouldbe They basedtheprogram onabroad “Future releases are expectedtofurther march2013 march 2013 tea tree oil: in support of an iconic australian industry

11 “RIRDC has done a tremendous job, funding selection pressure, culling low performing trees needed to meet growing demand for the oil,” he and supporting and crossing the best yielding lines. says. “While the decision had the full support the breeding “We are now into our third generation of the grower association, ATTIA, it was really of seedling seed orchards,” Gary Baker says. driven by RIRDC.” program for “Every generation has seen an improvement Of the suggested proposals, ATTIA chose many years until in oil yield while maintaining oil quality. a classic breeding strategy that made rapid the industry We also have a number of clones under gain based on the exploitation of natural selection. The advantage with clones is that biodiversity. was established growers can achieve maximum yields from the “Starting with a broad genetic base means enough that first year of planting, whereas seedlings take a a high initial rate of gain,” Richard Davis says. it could start few years to mature.” “It provided a huge increase in oil yield over standard seed, which translated into huge contributing.” INDUSTRY PERSPECTIVE productivity and financial benefits to growers.” – richard Even by local standards, Richard Davis’s The strategy also means breeders can go davis, grower willingness to contribute his services to benefit back into the gene pool for additional traits as the tea tree oil industry is notable for its they become needed, including resistance to and host of a endurance. For 20 years, this grower has also pests and diseases. seedling seed chaired the RIRDC breeding committee. As the industry matures it has contributed orchard, west “The breeding program has helped the more funds to the breeding program, with wyalong, nsw industry progress from harvesting bush tea ATTIA currently raising half the program’s tree to plantation-based production – a move costs. RIRDC’s support, however, remains crucial as the industry rides market highs and RETURN ON TOTAL R&D lows and growers endeavour to bring demand INVESTMENT (2010) and supply into balance. ANNUAL “Without RIRDC’s involvement and GAIN TO support – both financial and managerial – there GROWERS is no way the breeding program could have $10.8 million (oil priced at $35 continued unabated for the past 20 years,” per kilogram) Richard Davis says.

FACTS AND FIGURES COST Tea tree oil is sourced Although produced and Seed sourced from $1.2 million from the cultivation of marketed in Australia since the rudimentary selection Melaleuca alternifolia, the 1920s, until the 1990s tea of bush trees limited in the coastal region tree oil was sourced from plantation production to of northern NSW bush harvesting. about 148 kilograms of oil and Queensland’s per hectare. NET VALUE Atherton Tablelands. $6.1 million

BENEFIT COST RATIO 5 to 1 tea tree oil: in suport of an iconic australian industry march 2013 PROSPERING WITH SUSTAINBILITY GAINS

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AT A GLANCE THE PROJECT Rural Industries To support the development of a low- tea tree trial,” he says. “Called pyrolysation, it R&D Corporation emission tea tree industry, the Rural Industries involves burning the waste at high temperature (RIRDC) is R&D Corporation (RIRDC) is coordinating in the absence of oxygen.” a three-year trial of innovations to farming Currently, 21,000 tonnes of leaf waste is coordinating an on- practices (due for completion in mid 2015). produced following oil extraction. It is exported farm trial to validate Under investigation are the production of from farms, primarily as garden mulch. This tea tree farming biochar from leaf waste and inter-row cropping nutrient loss means the industry relies heavily practices that reduce with nitrogen-fixing legumes. on imported fertilisers that are costly, cause greenhouse gas Hosting the trials are four NSW farms high nitrous oxide emissions and do little to emissions and energy that encompass the major soil types and build soil carbon. consumption while environments used for Australian tea tree “The trial aims to establish whether production. Growers involved are John Frazier converting leaf waste into biochar can increasing carbon (Main Camp) in Rappville, Rob Dyason and reduce soil-nutrient loss from tea tree sequestration in the Glenn Donnelly in Casino, and John Seccombe plantations, fertiliser application and soil. Innovations in Coraki. It is envisaged these properties will greenhouse gas emissions,” Dr Rose says stand to improve continue as broadacre demonstration sites Further gains to soil fertility are being tea tree plantation following the trial. sought by testing inter-row legume cropping. profitability and Dr Terry Rose from Southern Cross Besides providing a crop, legumes act as a University who heads the project explains that natural fertiliser since their roots can effectively sustainability. biochar refers to a charcoal-like substance fix nitrogen in the soil while further decreasing that can hold carbon in soils while improving nitrous oxide emissions. The project aims to soil fertility. compare the effectiveness of eight different “A cutting-edge treatment to convert leaf legume types. waste into biochar has been selected for the “Results that are highly relevant and practical are pivotal, and this will remain the key focus given the project is being driven by industry,” Dr Rose says. Efforts are also underway to develop a decision-support tool that allows growers to quantify financial benefits through either

FACTS AND FIGURES

Biochar refers The ‘terra preta’ (‘black Biochar in soils can help In some cases biochar to biomass that has soil’) found in the Amazon increase moisture-holding can remain stable in the been charred with Basin is an example of the capacity, improve fertiliser soil for hundreds to limited oxygen. fertility and productivity of efficiency, increase organic thousands of years, biochar-rich soils. matter and improve habitat providing organic routes for beneficial soil microbes. for carbon sequestration. march 2013 tea tree oil: in support of an iconic australian industry PROSPERING WITH SUSTAINBILITY GAINS

13 “The future of Australia’s tea tree industry relies on improving long-term productivity while increasing sustainability and resilience to climate change.”

Trials, coordinated by RIRDC, are – rob dyason, tea tree oil producer, nsw taking place to validate environmentally sustainable farming practices.

sequestering soil carbon or reducing emissions nutrient-rich biomass that is lost following tea of nitrous oxide. tree oil extraction. Collaborating on the trial alongside “The biomass is largely sold at a price Southern Cross University are the Australian I regard as too low into the landscape market, Tea Tree Industry Association and the NSW mainly on the Gold Coast,” he says. “I think Department of Primary Industries. The that is a waste.” project, coordinated by RIRDC, is funded He also sees applications in mitigating by the Australian Government Department carbon emissions, given the energy intensity of of Agriculture, Fisheries and Forestry under the tea tree industry, especially harvesting and the Carbon Farming Futures – Action on the distilling, which are dependent on fossil fuels. Ground program. “There are a lot of positives for tea tree plantations from the use of biochar relative to a INDUSTRY IMPACTS number of production challenges,” Rob Dyason Rob Dyason is one of four tea tree growers says. “Besides benefits in off-setting the energy hosting the trials to improve the industry’s required to make tea tree oil, the sale of biochar carbon footprint in ways that improve soil or the use of it on-farm is either going to be fertility and farm profitability. profitable or good for the soil.” He has been aware of biochar and its possibilities for agriculture for quite some time; an interest that saw him engage directly with Net carbon withdrawal from atmosphere 20% researchers at Southern Cross University. He sees it as especially relevant to his own CO farming practices, given the large amount of 2 respiration 25% photosynthesis

50% Biochar has to be prepared and incorporated 5% release carbon BIOENERGY into soils correctly to pyrolysis obtain the benefits. Carbon neutral Biochar sequestration: reduced emissions from fossil fuels BIOCHAR Carbon negative Biochar sequestration: CREATION AND reduced emissions from biomass BENEFITS OF BIOCHAR tea tree oil: in suport of an iconic australian industry march 2013 PROTECTING EXPORTS

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AT A GLANCE THE RESEARCH Support from the Based on rigorous scientific evidence, Committee on Consumer Products (SCCP) to Rural Industries the Australian Tea Tree Industry Association counter safety concerns. The SCCP found that: R&D Corporation (ATTIA) developed a Code of Practice in 2005 “Based on the information given, the SCCP is to ensure a common standard of quality for of the opinion that, on the basis of the ATTIA (RIRDC) has assisted tea tree oil production. With support from the Code of Practice and the Guidance document, the tea tree oil Rural Industries R&D Corporation (RIRDC), safe processing and storing of Tea Tree Oil industry develop, ATTIA’s industry development officer Tony can be achieved which can be controlled by implement and audit Larkman has since assisted producers with measuring p-cymene content.” a Code of Practice for adopting the quality control system and Adoption of the code imposed few tea tree oil quality, auditing compliance. additional costs on the industry, including no which benefits Uptake of the standards has reached more major audit costs, and was facilitated by farm than 85 per cent of ATTIA members who visits by Tony Larkman. consumers and collectively produce about 90 per cent of “Almost all the growers were already doing provides enormous Australian tea tree oil. everything they needed to comply – looking after marketing and “Growers are now marketing their product the oil once distilled and making sure it does regulatory value as Code of Practice accredited, 100 per cent not become contaminated or degraded,” Tony to growers. pure Australian tea tree oil,” Tony Larkman Larkman says. “The major operational difference says. “It is an innovation that helps maintain was to maintain records so that they could credibility with consumers and regulators, demonstrate compliance; I developed a number especially since our Code of Practice works of documents designed to assist with that.” seamlessly with almost all other quality The industry has now acquired a taste for assurance systems.” proactive engagement with the regulatory The Code of Practice was included in the bodies that ensure market access. Tony Larkman industry’s submission to the European Scientific says that given the volume of new research results, ATTIA is keen to compile the data as part of a new submission to the SCCP. The 2005 Code of Practice “The original SCCP opinion restricted tea ensures a common standard of quality for tea tree oil production.

FACTS AND FIGURES

The ATTIA Code of The Code of Practice Commercial standards Practice outlines a quality protects an industry whose for tea tree oil are management system that farm-gate value was in determined by international begins on the farm and excess of $21 million in 2010. standard ISO 4730 (2004) continues throughout and the identical Australian processing and the supply standard AS 2782-2009 (Oil chain to the end-user. of Melaleuca, Terpinen-4-ol type). march 2013 tea tree oil: in support of an iconic australian industry PROTECTING EXPORTS

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tree oil in cosmetics to one per cent or less,” “As part of a lodgement with the European he says. “The goal in the next five years is to regulators, the industry undertook to develop submit the new data and have the opinion and implement a Code of Practice. It was a updated to better reflect what we know about proactive move since it was becoming evident tea tree oil’s properties.” that marketing of tea tree oil would be significantly assisted by general compliance to INDUSTRY IMPACTS quality control standards.” Rob Dyason runs a family farm near Casino When he adopted the standards, he found his in northern NSW that harvests and distils tea business was already compliant with a number tree oil from a 144-hectare plantation. of requirements, limiting the number of changes He planted his first block of tea trees in he had to introduce. He has remained compliant 1979 and his tea tree oil business has been ever since, even as auditing of the Code of in operation ever since. Practice gradually becomes more rigorous. At first wary that a Code of Practice could “The reason we are doing that is to try to introduce a two-tier market, he has since continually improve the standard to something adopted the standards and believes they have that is readily acceptable by the external “RIRDC has benefited the industry. standards organisations,” Rob Dyason says. “As “The regulatory situation in Europe is an industry, we now try to stay right up there as been a great such that the industry is obliged to provide far as standards and compliance goes.” friend of the tea reasonable evidence that tea tree oil is safe, tree oil industry uncontaminated and that it would reach a over quite a certain standard for pesticide residues,” he says. long time. It is a source of continuing surprise to me that they have been so committed to Total production 4900% assisting a small rural industry Total export value 4110% to get on its feet and remain Annual production 175% competitive.” – rob dyason, tea tree oil Annual export value 147% producer, nsw GROWTH IN THE TEA TREE OIL INDUSTRY, 1982 TO 2010 16

properties oftheoil. properties and woundhealing anti-inflammatory anti-microbial, demonstrated the RIRDC, thatclearly work co-funded by substantiating prior settings, aimedat conducted inclinical tree oilhave been uses. Trials oftea of therapeutic tree oilinarange potential oftea to demonstratethe has beenundertaken (RIRDC) research R&D Corporation the Rural Industries With of thesupport AT AGLANCE CASE STUDY AND SAFETY RESEARCH THERAPEUTIC BENEFITS CONSIDERABLE BENEFITSTO INDUSTRY. CONCERNS AROUNDTHEUSEOFTEATREEOIL HASGENERATED COMMITTEE ONCONSUMER PRODUCTS (SCCP) TO CLARIFYSAFETY A 2007DOSSIER TO SUBMITTED THEEUROPEAN UNION’S SCIENTIFIC THERAPEUTIC APPLICATIONS tea tree oil. demonstrate theefficacy, safetyandstabilityof R&D Corporation(RIRDC)hashelped radiation therapy. to protect patientsfrom skindamageduring trials across Australia intheuseofteatree oil Dr Manfred Beilharz (UWA) isundertaking options forhospital-basedpatients. lend themselves wellskintreatment tonew results.promising preliminary forskincanceraftersome opportunities therapeutic whether theoiloffersnew UWA isalsocontinuingwork todetermine andwound-healingproperties. inflammatory anti-bacterial, anti-fungal,anti-viral,anti- UWA hasdemonstratedthatteatree oilhas who headsthe Tea Tree Oil Research Group. The University of Western Australia (UWA), date back20years isProfessor Tom Rileyof Research fundedby theRural Industries A current research project beingledby Professor Rileysaysmanyoftheseproperties He saysthatresearch by undertaken One researcher withtiestothiswork that 1 tea tree oil: insuport treeoil: ofaniconictea australian industry $23.5 million NET VALUE virus, whichcausescoldsores.virus, anti-viral activityagainsttheherpessimplex the firsttoshow thatteatree oilhassignificant of Western Australia, Dr ChristineCarson,was that respectively causetineaandvaginal thrush. fungi likedermatophytesandCandida albicans like Streptococci andEscherichia coliandeven demonstrated againstotherproblematic bacteria wound dressing. whenincludedin wound healingproperties exploiting theoil’s and anti-inflammatory conventional washes.” a teatree oilbodywashisaseffective as Westmead Hospital inSydney foundthat Professor Rileysays.“A clinicaltrialat as hospitalsuperbugorgoldenstaph,” Staphylococcus aureus (MRSA),alsoknown tree oiliscounteringmethicillin-resistant Professor Riley’s colleagueatThe University Anti-microbial effectshave alsobeen Another lineofresearch hasfoundsuccess “A mostpromisingfunctionoftea new $320,000 COST 2 591% 74.6 to 1 Internal rate of return Benefit cost ratio 3 march2013 march 2013 tea tree oil: in support of an iconic australian industry THERAPEUTIC BENEFITS AND SAFETY RESEARCH

17 THE THERAPEUTIC GOODS ADMINISTRATION The Therapeutic Goods goods before they are marketed Administration (TGA) is responsible and monitors products once for regulating therapeutic goods they are on the market. It also including medicines, medical assesses the suitability of medicines ESTABLISHING SAFETY devices, blood and blood products. and medical devices for export from Australia. STANDARDS FOR HUMAN USE This includes goods that people rely In a direct response to a request by the on every day, such as sunscreens, The TGA also regulates consumer products regulator in Europe in through to goods used to treat manufacturers of therapeutic goods December 2004, the Australian Tea Tree serious conditions, for example to ensure they meet acceptable Industry co-funded a series of studies and prescription medicines, vaccines, standards of manufacturing quality. blood products and implants. It has a team of manufacturing reports with RIRDC to demonstrate the safety inspectors that audit manufacturing Essentially, any product for which of tea tree oil as a consumer product ingredient. facilities around the world to ensure therapeutic claims are made must When used and stored properly, studies that products supplied in Australia be listed, registered or included are of high quality. confirmed 100 per cent tea tree oil, used in the Australian Register of 4 topically, does not pose a risk to consumers. Therapeutic Goods (ARTG) before The TGA administers the Correctly formulated, consumer products it can be supplied in Australia. Therapeutic Goods Act 1989. This legislation provides a framework for containing tea tree oil also pose no risk. Currently there are over 80 items a risk management approach that Should tea tree oil be used as an active listed as medicines on this register allows the Australian community to ingredient in an intended medicine or drug with tea tree oil or Melaleuca have timely access to therapeutic alternifolia as an active ingredient. therapy, further and more extensive studies goods that are consistently safe, are required to secure a registration from the The TGA evaluates therapeutic effective and of high quality. Australian Therapeutic Goods Administration (TGA; see box). The studies also found that exposure of tea The results from the SCCP dossier have tree oil to air and light can oxidise some of the been summarised comprehensively, with oil’s components and could cause sensitised skin evidence from scientifically-peer-reviewed in susceptible individuals.5 journal articles, in a report by RIRDC to As a result, the tea tree oil industry is make them accessible to a wide range of unanimous in its recommendations that interested producers of tea tree oil and tea tree oxidised tea tree oil should not be used, and oil products, companies, regulatory authorities provides guidelines for labelling of product and and researchers. use after opening. The return to industry of RIRDC The safety, stability and The Australian Tea Tree Oil Industry investment in preparing the dossier on safety efficacy of tea tree oil has been established Association has developed a Code of Practice for the SCCP is extremely high, according to independent assessment by Agtrans Research by RIRDC and has and guidelines to ensure the quality of tea tree great potential for oil supplied to the market. They are also active economists Peter Chudleigh and Sarah hospital-based care. in promoting information about the correct Simpson. They found a benefit-cost ratio of formulation, storage and use of the oil to 74.6 to 1 and concluded: manufacturers and consumers. “The very high benefit-cost ratio is partly a Data supplied in the industry’s response to function of the low cost at which the research the European consumer products regulator (the was carried out, and the very high proportion of SCCP) satisfied the regulator about the safety of the total tea tree oil market that was protected tea tree oil as a cosmetic ingredient. Toxicology by undertaking the research.” data proved especially valuable in challenging the SCCP that the use of undiluted tea tree oil in cosmetic products may be unsafe.6 continued on page 18 > tea tree oil: in suport of an iconic australian industry march 2013

THERAPEUTIC BENEFITS AND SAFETY RESEARCH

18 STUDY CASE “Unless I can develop new tea tree oil products and address regulatory concerns then I am self-limiting my opportunities for sales. The R&D that addresses these issues works REFERENCES to build a reliable, reproducible picture at a regulatory, 1. Carson, C.F., Hammer, K.A., and Riley, T.V. 2006. Melaleuca consumer and manufacturer level that tea tree oil is a alternifolia (tea tree) oil: a review of antimicrobial and beneficial ingredient to include in a product.” other medicinal properties. – pat bolster, tea tree grower Clin Microbiol Rev 19: 50-62. 2. Caelli, M., Porteous, J., and product developer, northern nsw Carson, C.F., Heller, R. and Riley, T.V. 2000. Tea tree oil as an alternative topical decolonisation agent INDUSTRY IMPACTS But wherever I go knocking, it is on the same for methicillin-resistant Staphylococcus aureus. Pat and Paul Bolster of Tweed Valley Tea doors as everybody else.” J Hosp Infect 46: 236-237. Tree are acutely aware that their business stands Validating the oil’s biologically active 3. Carson, C.F., Ashton, L., Dry, or falls on their ability to find markets for the properties has been essential to marketing L., Smith, D.W. and Riley, T.V. tea tree oil, especially its anti-microbial 2001. Melaleuca alternifolia oil they produce. Experience garnered over (tea tree) oil gel (6%) for many years leads Pat Bolster to conclude that activity. While novel uses for the oil are under the treatment of recurrent selling tea tree oil is quite unlike most other development, it is skin care products that herpes labialis. J Antimicrob have been the industry’s commercial mainstay, Chemother 48: 450-451. agricultural produce. 4. Greig, J.E., Carson, C.F., “People buy tea tree oil because they believe especially for oil exported to Europe and Stuckey, M.S. and Riley, T.V. it will do something not because it tastes good the US. 2000. Prevalence of contact or makes nice leather or fibre,” Pat Bolster says. “When regulatory issues came up in Europe sensitivity to the European standard series in a self- “No one is going to come by the farm gate and impacted our farming, it highlighted that selected population. Australas and buy what you produce,” she says. “You market issues are just as important – maybe J Dermatol 41: 86-89. cannot be ignorant about your market and even more so – as projects that address on-farm 5. Stability of Tea Tree Oil Study productivity,” Pat Bolster says. undertaken by Southern Cross survive. To sell my oil I have to literally go door University – Published as a part knocking to find buyers either here or overseas. “So while the breeding program gave of the Safety Dossier. us huge rewards and dropped our cost of 6. Hammer, K.A., Carson, C.F., production, it has helped us enormously that Riley, T.V. and Nielsen, J.B. 2006. A review of the toxicity RIRDC has been willing to apply research of Melaleuca alternifolia (tea to address issues underpinning product tree) oil. Food Chem Toxicol development including safety and efficacy.” 44: 616-625.

FACTS AND FIGURES

Safety and efficacy About 50 per cent of The average annual Over the past 21 years data presented to the Australia’s annual production farmgate value of tea tree two of the world’s largest European Union’s Scientific of tea tree oil is imported oil exports to Europe is tea tree oil manufacturers Committee on Consumer into Europe, averaging about $8.75 million (valued at $35 have together sold more Products (SCCP) helped 250 tonnes annually. per kilogram). than 150 million bottles retain European market of oil but registered only access for Australian tea minor complaints, at a rate tree oil producers. of just 0.0016 per cent. march 2013 tea tree oil: in support of an iconic australian industry

Rural Industries Research and Development Corporation Level 2, 15 National Circuit, BARTON ACT 2600 RIRDC TEA TREE PO Box 4776, KINGSTON ACT 2604

P 02 6271 4100 F 02 6271 4199 THERAPEUTIC BENEFITS AND SAFETY RESEARCH OIL PROJECTS E [email protected] Ww ww.rirdc.gov.au March 2013 19 CODE PROJECT PRINCIPAL INVESTIGATOR PRJ-000002 Use of tea tree oil against buffalo flies in cattle Lex Turner PRJ-000005 Effects of tea tree oil on microbial adhesion Kate Hammer PRJ-000009 Anticancer activity of tea tree oil Thomas Riley PRJ-000451 Effects of tea tree oil on biofilm formation Kate Hammer PRJ-000459 Tea tree oil to prevent staphylococcal infections in dialysis patients Thomas Riley PRJ-000500 Improved tea tree varieties for a competitive market Trevor Olesen PRJ-000559 Breeding and cloning tea tree for greater profitability Ian Southwell PRJ-000648 Stability testing of tea tree oil David Leach PRJ-000734 Preparation of SCCP submission for TTO – Stage 1 John Issa PRJ-000767 Allergy to tea tree oil: qualitative aspects and risk assessment Susi Freeman PRJ-000819 Skin sensitisation: local lymph node assay Patricia Bolster PRJ-000820 Diagnostic tools for quality enhancement in Australian essential oil industries William Foley PRJ-000822 Pilot study of tea tree oil in the decolonisation of MRSA positive wounds Christine Carson PRJ-002334 Tea tree oil for control of sheep ectoparasites Peter James PRJ-002395 Anticancer activity of Melaleuca alternifolia (tea tree) oil Thomas Riley PRJ-002403 Microbial adaptation and tolerance to tea tree oil Christine Carson PRJ-002803 Genetic tools for improving Melaleuca alternifolia oils William Foley PRJ-002804 Advances in the genetics of essential oils; tools for industry diagnostics William Foley PRJ-003529 Can tea tree oil prevent the development of antibiotic resistance? Kate Hammer PRJ-003689 Highly improved tea tree varieties to maximise profit Trevor Olesen PRJ-003939 Use of tea tree oil handwash products to remove bacterial spores from hands Thomas Riley PRJ-004221 Tea tree oil communication project Tony Larkman PRJ-005131 Anti-tumour mechanisms of action and prophylactic activity of tea tree oil Manfred Beilharz PRJ-005628 Advances in terpene genetics for the tea tree and Eucalyptus oil industries William Foley PRJ-005771 Improving the sustainability of Plant Protection in TTO production systems Peter Entwistle PRJ-005782 Impact of tea tree essential oil on antibiotic resistance development Kate Hammer PRJ-005801 Genetic markers for yield improvement in tea tree William Foley PRJ-005829 Anticancer activity of tea tree oil Sara Greay PRJ-006245 In vitro activity and clinical efficacy of tea tree oil products against acne Kate Hammer PRJ-007750 Tea Tree Oil R&D Plan 2012–17 Michael Clarke PRJ-008456 Using tea tree residues and legumes to develop a low-emission tea tree industry Terry Rose PRJ-008802 Tea tree oil economic analysis of funding models (part of the 5-year plan) Michael Clarke tea tree oil: in suport of an iconic australian industry march 2013 POSTGRADUATE SCHOLARSHIP

20 PROGRAM

The Rural Industries R&D Corporation (RIRDC) proudly sponsors the next generation of agricultural scientists and promotes technical innovation by awarding postgraduate scholarships for both PhD and Masters Degrees that contribute to the Corporation’s research priorities. Joining the program is Hamish Webb, whose PhD studies will contribute to the Tea Tree Oil Program. His project – entitled ‘The genetics of oil yield in Melaleuca alternifolia’ – is being undertaken at the Australian National University under the supervision of Professor Bill Foley. The aim is to investigate myrtle rust resistance and how expression of the commercially important terpene-biosynthesis genes changes upon infection.

RIRDC scholarships are open to Australian citizens and permanent residents holding an honours degree or equivalent in an appropriate discipline. Applications from mature age students with experience in rural industries are also encouraged. Application forms can be downloaded from the RIRDC website at www.rirdc.gov.au or by contacting RIRDC on 02 6271 4100.

Rural Industries Research and Development Corporation Level 2, 15 National Circuit, BARTON ACT 2600 PO Box 4776, KINGSTON ACT 2604 P 02 6271 4100 F 02 6271 4199 E [email protected] W www.rirdc.gov.au Bookshop 1300 634 313