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COMMERCIAL HERB GROWING

1. Industry & Products

drying herbs Herbs have been produced and used worldwide for centuries. They are commonly grouped into the categories of culinary and medicinal and can be either fresh or dried.

The plant parts used cover the full range. Roots, stems, leaves, flowers and seed are all used and often more than one part of a species has a place in the industry.

In recent years a number of factors have combined to increase the demand world wide for an increasing ranges of herbal products.

They include globalisation, improved living standards, sophistication and environmental and health consciousness.

There is a conceptual association of herbs with organic and chemical free foods, natural medicines and quality living. Opportunities are expanding for a range of products including essential oils, pharmaceuticals, therapeuticals, culinary, foodstuff, novelties and even pesticides.

2. Physical Requirements

The Murray Mallee was identified as an area with special potential in the early 1990's, when local people formed the Australian Commercial Herb Growers' Association Inc.

The experiences of members illustrate the potential and provide a basis on which to develop viable enterprises. Experience has confirmed that a Mediterranean climate with warm temperatures and low humidity provides for minimal pest and disease and good growth. The hot dry climate is also an advantage where drying is part of the process.

While not all herbs are suited to the dry climate, many prefer these conditions, and most can be grown to a high quality standard by careful selection of soil type and location. Some supplementary irrigation is required in the Mallee.

The advent of Murray river water by pipeline to the Mallee wheatbelt opens the way for herb production as a supplementary income form. The potential is illustrated by two farms which have developed productive enterprises of one hectare or more for dried production in the past 5 years.

Other growers in nearby irrigation areas are developing enterprises based on fresh or culinary herbs and flowers, and export markets are being tapped.

Production and marketing of fresh herbs requires some cool storage and packing facilities. Dried herb production requires drying facilities in the form of drying sheds and or some form of dehydration. Small scale harvesting, grading and storing equipment is also required.

Equipment of this type can be seen locally, with much of its modifications to or developed from facilities already on the farm or in the district.

3. Production Process

As little as one hectare of a range of herbs has been shown to provide a useful enterprise for dried production and as little as one third of a hectare is needed for fresh herbs.

Plants of the desired species are commonly purchased at the two leaf stage from a reliable nursery and potted up in a small home nursery and planted out in spring or autumn. Alternatively seed may be bought but may be expensive in small quantities. Land should be well prepared and free of any perennial weeds. The ideal is one year fallow, and formation with raised beds irrigated by trickle tape and mulched for weed control with seed free material such as clean lucerne hay.

The area should be fenced to protect from rabbits, hares and livestock, and provided with natural shelter belts such as rye corn, or artificial wind breaks.

Management and agronomy will vary with species as will harvesting stage. Whether for fresh markets or for drying the plants should be harvested while cool and immediately transferred to the cool room or drying room as appropriate. Fresh product is packed and transported in the way demanded by the market or purchaser. After drying, product is cut with a small chaffcutter or a hammermill, sieved, graded and stored in airtight containers.

4. Marketing

The end market and the marketing chain must be considered before any decision is made to plant herbs. Australian imports large quantities of dried herbs, and large potential markets exist. However, big users must have a guarantee of quantity, quality and certainly consistency of supply. Buyers of herbs are likely to want specific varieties within a species and have strict standards related to production and presentation.

When producing dried herbs there is real advantage in working with other producers to develop quantities which will open up markets. Many of the larger users in Australia import their needs as they require quantity and assured consistency of supply.

There is a distinct advantage for herb growers who produce organically certified herbs. The Mallee with low humidity and low rainfall gives an advantage over most other localities. It is not necessary to have the whole farm certified organic, but there is a need to approach an approved organic organisation as it will take at least two years to obtain full certification. The NASAA organisation is the only organisation currently accepted by IFOAM the international body. Biological Farmers Australia (BFA) and the Organic Herb Growers are other organic farming organisations.

5. Financial Aspects

5.1. Costs and Returns

The return from dried herbs will vary with the season and the variety, but a common figure for crops such as sage and yarrow is $12.00 - $15.00 a kilo.

It should be noted too that the perennial herbs will give some crop in the second year and full crop in year three.

A product such as the dried root of Achinacea angustifolia may return $50.00 a kilo, but it may be harvested only every second year.

A bay of 30 metres by one metre can be expected to produce around 10 kg of dried product in the third year.

One metre spacings will provide 170 bays to the hectare by $120.00 (10 kg x $12) would provide a gross return of $20,000.00 in the third year.

Major operational costs apart from the labour cost are: Plants at $ 30.00 per bay $5,000.00 Mulch @ $ 20.00 per bay $3,400.00 Water @ 3 mgl @ $500.00 $1,500.00 Fertiliser $ 500.00

5.2 Establishment Costs Based on 1 Hectare

Cost will vary with the layout and equipment available on the farm but indicative costs are:
Trickle irrigation system $ 5,000.00 Small rotary hoe (back hoe capacity) $ 3,000.00 Glass house $ 2,000.00 Shade house $ 1,000.00 Grading Table $ 2,000.00 Hammer mill $ 2,000.00

A major cost is a suitable drying room or a suitable dehydrator which could be anything up the $50,000.00.

An unused shearing shed makes an excellent drying shed.

6. Key Organisations

Tumbetin Broad Acre Herbs
RMB 1135C Via WODONGA VIC 3691

Hobler Mann P/L - Keysborough
Box 4095 MULGRAVE VIC 3170

Pharmaceutical Plant Co
2/24 London Drive
BAYSWATER VIC 3153

Australian Commercial Herb Growers' Association
PO Box 470 KERANG VIC 3579

"Wheatlands Cottage"
8 River Road
QUAMBATOOK VIC 3540

Mystic Herbs
RSD KERANG VIC 3579

7. References

A Modern Australian Herbal
Fletcher, Kim (1991)
Penguin Books Ltd

Herbal Harvest
Whitten, G. (1996)
D.N.R.E. Information Centre
8 Nicholson Street
EAST MELBOURNE VIC 3002


This publication may be of assistance to you but WARMPlan the State of Victoria and its officers do not guarantee that the publication is without flaw of any kind or is highly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.
Healthy Viable Mallee Farms

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