Advertisement

Agroforestry Systems

, Volume 83, Issue 2, pp 257–266 | Cite as

Potential of clones in improving the financial benefits of essential oil production from Melaleuca alternifolia plantations

  • PrastyonoEmail author
  • J. C. Doran
  • J. D. Nichols
  • C. A. Raymond
Article
  • 207 Downloads

Abstract

Australian tea tree (Melaleuca alternifolia) is a woody plant that produces an essential oil with antiseptic, anti-bacterial, anti-fungal, and anti-inflammatory properties and is widely formulated into many products. Yield and financial analyses were done to compare the viability of replanting 20 ha tea tree plantations using elite clones and improved seedlings over a 15 year time frame were carried out. Four plantation options were modelled: (1) plantations established using genetically improved seedlings (ATTIA 2B) planted at a stocking of 33,333 plants/ha and (2) 16,667 plants/ha, (3) plantations established using the best three selected clones planted at a stocking of 33,333 plants/ha and (4) 16,667 plants/ha. Financial analysis showed that, at an oil price of $45/kg (as at Sep 2008), replacement plantations of either elite clones or improved seedlings are both highly profitable irrespective of the stocking employed. The Net Present Values per hectare at 7% discount rate was $107,824, $63,640, $163,162 and $104,055 for plantation options 1, 2, 3 and 4, respectively. Plantation option 3 was predicted to give the greatest profit at any of the oil prices tested, followed by plantation option 1, 4 and 2. The break-even prices for tea tree oil production, using the production parameters in this model were $11.81/kg, $15.19/kg, $10.72/kg and $12.96/kg for plantation options 1, 2, 3 and 4 respectively.

Keywords

Melaleuca alternifolia Essential oil production Clonal plantation Financial analysis 

Notes

Acknowledgements

ATTIA members Craig Chapman, Rob Dyason and Glen Donnelly kindly provided costings for the financial analyses which were collated with the help of Gary Baker of Wollongbar Primary Industries Institute. Infrastructure support came from Southern Cross University and NSW Industry and Investment through the RIRDC/ATTIA tea tree breeding program. This work was undertaken as part of an MSc degree by Prastyono. Thanks are due to the Australian Centre for International Agricultural Research for the John Allwright Post Graduate Scholarship awarded to the first author. B.J. Lepschi and Milos Ivkovic of CSIRO Plant Industry provided helpful comments on an early draft of this paper.

References

  1. Agtrans Research (2001) Benefit-cost analysis of proposed tea tree breeding program. In: Doran JC, Baker GR, Murtagh GJ, Southwell IA (eds) (2002) Improving Australian tea tree through selection and breeding (1996–2001). RIRDC, CanberraGoogle Scholar
  2. ATTIA (2006) Available at http://www.attia.org.au. Accessed 1 Aug 2007
  3. Baker GR, Doran JC, Williams ER, Southwell IA (2007) Breeding and cloning tea tree for greater profitability (2001–2006). RIRDC publication No. 07/142. RIRDC, CanberraGoogle Scholar
  4. Benin S, You L (2007) Benefit-cost analysis of Uganda’s clonal coffee replanting program. IFPRI Discussion Paper 00744. International Food Policy and Research Institute, WashingtonGoogle Scholar
  5. Campbell H, Brown R (2003) Benefit-cost analysis: financial and economic appraisal using spreadsheet. Cambridge University Press, CambridgeGoogle Scholar
  6. Colton RT, Murtagh GJ, Drinnan J, Clarke B (2000) Tea tree oil. Agfact p6.4.6, 2nd edn. NSW Agriculture, OrangeGoogle Scholar
  7. Davis RL (2003) The Australian tea tree industry. In: Green C (ed) Proceedings of international federation of essential oils and aroma trades international conference, Sydney, Australia, 2003. IFEAT, LondonGoogle Scholar
  8. Doran JC, Baker GR, Chludleigh P, Simpson S (2000) Using clones to establish tea tree plantations. Rirdc short report no. 73. RIRDC, CanberraGoogle Scholar
  9. Doran JC, Baker GR, Williams ER, Southwell IA (2006) Genetic gains in oil yields after nine years of breeding melaleuca alternifolia (myrtaceae). Aust J Exp Agric 46(11):1521–1527CrossRefGoogle Scholar
  10. EOPAA (2008) Available at http://www.eopaa.com.au/. Accessed 3 Sep 2008
  11. Evans J, Turnbull J (2004) Plantation forestry in the tropics: the role, silviculture, and use of planted forests for industrial, social, environmental, and agroforestry purposes, 3rd edn. Oxford University Press, OxfordGoogle Scholar
  12. Frampton LJ, Foster GS (1993) Field testing vegetative propagules. In: Ahuja MR, Libby WJ (eds) Clonal forestry I: genetics and biotechnology. Springer-Verlag, Berlin, pp 110–134Google Scholar
  13. Hinton A (1994) Production of tea tree oil in the mareeba-dimbulah irrigation area: an economic perspective. In: Paper presented at the Choices Seminar Series No. 5: Tea Tree, May 1994, Queensland Department of Primary Industries North Region, TownsvilleGoogle Scholar
  14. Murtagh GJ (1999) Biomass and oil production of tea tree. In: Southwell I, Lowe R (eds) Tea tree: the genus Melaleuca. Medicinal and aromatic plants––industry profiles, vol 9. Harwood Academic Publishers, Amsterdam, pp 109–134Google Scholar
  15. Perkins F (1994) Practical cost benefit analysis: basic concepts and applications. Macmillan Education Australia PTY LTD, MelbourneGoogle Scholar
  16. Prastyono P (2009) Potential of clones to boost yields in tea tree plantations. MSc Thesis, Southern Cross University, LismoreGoogle Scholar
  17. Reilly T (1991) The economics of tea tree. In: Murtagh GJ (ed) Report of the tea tree marketing and planning conference, Ballina, 1991. Tea tree marketing and planning, BallinaGoogle Scholar
  18. Scafer JPR, Ponce EV (2007) Growth and economic analysis of a Eucalyptus globulus clonal spacing trial in Chile. In: Paper presented to Australasian forest genetics conference breeding for wood quality. The Old Woolstore, Hobart, 11–14 April 2007Google Scholar
  19. Selkirk SW, Spencer RD (1999) Economics of fibre production from industrial hemp and blue gum plantations. Aust For 62:193–201Google Scholar
  20. Sinden JA, Thampapillai DJ (1995) Introduction to benefit-cost analysis. Longman, MelbourneGoogle Scholar
  21. NSW Treasury (2007) Nsw government guidelines for economic appraisal. http://www.treasury.nsw.gov.au/__data/assets/pdf_file/0016/7414/tpp07-5.pdf. Accessed 27 Nov 2008
  22. Whittock SP, Greaves BL, Apiolaza LA (2004) A cash flow model to compare coppice and genetically improved seedling options for Eucalyptus globulus pulpwood plantations. For Ecol Manag 191:267–274CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  • Prastyono
    • 1
    Email author
  • J. C. Doran
    • 2
  • J. D. Nichols
    • 3
  • C. A. Raymond
    • 4
  1. 1.Centre for Forest Biotechnology and Tree Improvement (CFBTI)YogyakartaIndonesia
  2. 2.Australian Tree Seed CentreCSIRO Plant IndustryCanberraAustralia
  3. 3.School of Environmental Science and Management SCULismoreAustralia
  4. 4.Centre for Plant Conservation Genetics SCULismoreAustralia

Personalised recommendations