There
is a significant market challenge for BC agroforestry enterprises involved in
the production of herbs and botanicals originating from low-cost,
commodity-driven imports from Asia, Eastern Europe and South America. Most Canadian producers of herbs and
botanicals have focused on broker/distributor and direct sales, primarily
targeted at export markets (Europe and Asia) or small direct-to-consumer sales
(via farm gate and e-commerce). However,
despite a growing domestic retail market for NHPs, the
sector has experienced decreased grower participation over the past 15 years. This is primarily attributed to the lack of
perceived market opportunities and low returns on raw material sales,
particularly in the commodity marketplace through brokers
and distributors where producers may receive 10% or less of the wholesale prices.
However,
unique opportunities exist in the largely untapped, NHP practitioner market, particularly for high quality fresh or frozen raw ingredients such as
hawthorn. Through a detailed analyses of this sales channel, development work
led by HerbPro will provide much needed Canadian data on a new market opportunity
for all BC hawthorn producers. In
addition, it will explore the potential of value-chain development with
NHP practitioners. NHP manufacturers and practitioners are increasingly
looking towards local supplies for raw herb materials where they can be assured
that suppliers have supply chain control systems in place and can provide a
safe supply of accurately identified herbs and botanicals. Together with leveraging the 'buy
local' and food security movements, and a forward-thinking approach linking
environmental sustainability with health, BC agroforestry producers are well positioned
to add value in the practitioner sales channel supply chain and expand their sales opportunities and profitability.
Incorporated
in 2004, HerbPro grew out of a rural community economic development initiative
in the BC Rockies. The purpose of
HerbPro is to develop herbal opportunities that balance economic, social and
environmental concerns for HerbPro cooperative membership. In 2005, HerbPro established the Hawthorn
Agroforestry Demonstration Farm Trial to determine best practices for hawthorn
production management based on the agroforestry land management principles of alley
cropping. This system promotes
conservation and sustainable management practices and encourages biodiversity
in the ecosystem, while providing a means to diversify farm revenues through
intercrop production, and generation of revenue streams from short- and
long-term harvested crops.
*****************************************************************
Funding for this work has been provided through the BC Agroforestry Industry Development Initiative (AGF1101)
Funding for this work has been provided through the BC Agroforestry Industry Development Initiative (AGF1101)