Cape Town Roundtable Summary
The USAID-sponsored program, Agribusiness in
Sustainable Natural African Plant Products (A-SNAPP), conducted
its first Rountable in Cape Town, South Africa, 4-6 April 2000.
Over 142 delegates from 16 countries participated in the event’s
seminars, discussions and networking opportunities. The Rountable
considered a wide range of relevant issues and produced some
recommendations for immediate and future action.
The opening session emphasized the need, general
purpose, and importance of natural products as an Agribusiness.
Speakers were Dr Colin Johnson, CEO of the Agricultural Research
Council (ARC, South Africa), Mr. Rob McCaleb, President of the
Herb Research Foundation (USA) and Ms Bongiwe Njobe, Director-General
of the National Department of Agriculture (South Africa) who
delivered the keynote address. Ms Njobe emphasized that the
areas of action should be research projects, technical exchange
visits, trade opportunities, training programs, public awareness
and public policy.
The second session dealt with "A status
report on natural products in Africa." Dr Nigel Gericke,
a medical practitioner, and author of several books on plants
and natural plant products in South Africa addressed the delegates
on the Southern African perspective on this issue. He stressed:
(i) the high value of indigenous knowledge and the wealth of
information it may offer, (ii) the importance of this field
in providing substantial employment for skilled as well as unskilled
labor, and (iii) the critical need to cultivate the plants used
in botanical products in different geographical areas to avoid
extinction by natural disasters such as the floods in Mozambique.
Ms Diane Robertson Winn then gave an overview
of the history and Dr Oku Ampofo’s contribution to the use and
commercialization of traditional medicines in West Africa. Phyto-Riker,
a Ghanaian pharmaceutical company, has chosen to develop and
commercialize plant medicinals for the West African market,
to create agribusiness and employment in Africa. They will focus
on the production of finished products rather than the export
of raw materials.
Ms Patience Koloko, President of the National
Traditional Healers Association of South Africa, gave the delegates
her perspective on the use of medicinal plants. She raised the
following points: (i) there is a wealth of information known
by the indigenous people, (ii) due to lack of trust this information
is mostly withheld from outsiders, (iii) traditional medicinal
practitioners (TMP) are frustrated because they do not get any
recognition from the academic medicinal world and (iv) the little
knowledge that they do make available is subsequently used by
the academic medical practitioners. This makes TMPs secretive
and insecure as to where they fit in the world of healing people.
Mr. Rob McCaleb and Dr Elke Langner presented
"An overview of the respective American and European
markets in plant medicinals" in session three. The
United States showed a rapid growth in the natural product industry,
and with the change in legislation in 1994 (Dietary Supplement
Health and Education), competition became increasingly intense.
In the US, botanicals are generally regulated as dietary supplements,
allowing fast and easy access to the market without complicated
regulations, but leading to products of varying quality. In
Europe (who holds one third of the world market retail trade
in herbal products) a complete registration dossier is needed,
with detailed quality data. In Germany physicians prescribe
herbal medicines and they are dispensed by pharmacists, but
most are available without a prescription as well. In most other
countries they are generally available in pharmacies or health
shops without either prescription or professional guidance.
No value judgment need be attached to different regulatory schemes,
remembering that these botanicals have been in the public domain,
used by anyone in the population for many generations without
government requirements for professional guidance. The use of
essential oils, herbal teas, food flavorings and colorants,
and cosmetics, derived from natural plant products, also increased.
It is difficult to establish new products and therefore easier
to enter into the existing product market. This leads to the
under exploiting of the potential market.
These presentations served to highlight the
growth of the botanical industries, the subsectors within the
natural products industry (dietary supplements, herbal teas,
functional foods, phytomedicines, nutraceuticals, food ingredients,
fragrance and flavor products, cosmetic and toiletries ingredients
and industrial products such as castor oil and vernonia oil.
Individual segments of the business are in constant flux, but
the overall marketplace is robust and growing.
In the fourth session: "International
approach to natural plant products," Dr Howard Shapiro
gave hints and ideas on how to develop strong, successful business
linkages between small farmers/growers associations and commercial
buyers. He shared his experiences from South America. The following
are important issues to keep in mind when these linkages are
formed: (i) Means of identifying the grower? (ii) The importance
of communication, (iii) A description of the working relationship,
(iv) Product quality control and (v) The size of the prize and
the size of any potetial disaster. In other words, greater risks
should only be taken where opportunity is also great.
Mr. Rob McCaleb, Dr Jim Simon, and Mr. Elton
Jefthas discussed the A-SNAPP approach to natural plant product
commercialization and the potential role of Africa as supplier.
The issues pointed out were that Africa may get much of the
aid that is needed, but the options offered must turn into long
term successes and sustainable business. Through the establishment
of SMME’s rural agribusiness will become empowered and linkages
between producers and markets can be established. Niche markets
need to be identified for exploitation by rural farmers and
strategies developed to meet the market demands. Above all,
the farmers need backup and support for technical and agricultural
expertise. The ARC, a partner in the A-SNAPP team, offers this
support to the emerging farmer and communities. The key to the
A-SNAPP approach is a market-driven orientation, seeking markets
and market development, and business linkages to connect reputable
buyers with quality suppliers, then help both to improve relationships,
increase trade and maximize income to African businesses. This
must be achieved with win-win solutions that help to improve
quality, stabilize prices and assure sustainable supply.
Finances are always a major constraint when
discussing sustainable agriculture. The fifth session handled
"Strategies and options to overcome financial difficulties."
Mr. Mohammed Karaan, an agricultural economist stressed that
the agribusinesses must be sustainable, economically viable
and a good return must be possible, before financing will be
considered by any financial institution. Several financiers
discussed the terms on which their institutions will give financial
help, be it a loan, a grant, or a combination of both.
Session six on Thursday, April 6, addressed
"Benefit sharing and intellectual property rights,"
both issues that came up several times during previous discussions.
Mr. Preston Scott from the World Foundation for Environment
and Development (USA) spoke about germplasm, biodiversity, and
conservation. Conservation includes more than the traditional
term used for threat against endangered species. The conservation
of germplasm, resources, and genetic material offers new incentives
to stakeholders in the new bioactive compounds found in botanicals.
Intellectual property rights (IPR) can be claimed on patents,
through trade secrets, copyrights, trademarks, and plant breeder’s
rights. Different laws apply in different countries. A more
informal way of protecting IPR is to negotiate a know-how license,
which can be much more cost effective. It does not give worldwide
rights or copyright, but acknowledges the partnership, and funds
raised can go into a trust fund or a community. Dr Cobus Coetzee
(ARC, South Africa) showed examples of genetic material taken
from Africa and South Africa and commercialized somewhere else
in the world, without any benefit sharing. He discussed different
models of benefit sharing existing in South Africa, pointing
out the advantages and disadvantages of each model. During the
discussions it was stressed that the public has power and they
must enforce it. If they become aware of indigenous knowledge
or genetic property taken illegally from them, they could launch
a publicity campaign; the voice of the masses is not modest.
ARC team members discussed cultivation trends
in sustainable agribusiness during session seven. The ARC researchers
responsible for selected products are Ms Jacky Goliath (buchu),
Mr. Petrus Langenhoven (hibiscus), Mr. Michael Brinkhuis (rooibos
tea) and Mr. Michiel Meets (honeybush tea) They presented information
on the commodities they cultivate, and their contribution to
sustainable agribusiness and community empowerment. Dr Jim Simon
shared the experiences of cinnamon and other essential oil production
in Madagascar. The problem experienced here is quality of the
product, not in growing it, but negligent or irresponsible storing
of the distilled oil in dirty containers. Additionally, in many
cases starting materials are picked from the wild without regard
to the different chemotypes involved, all of which can produce
different fragrance profiles in the herbs. Prof. Gundidza from
Zimbabwe gave an overview of the development and research on
natural medicinal plant products used in Zimbabwe. He stressed
the need for sustainable use of traditional medicinal plants
as that is the only source of medication for 70 to 80% of all
Africans. Prof. Earle Graven (Grassroots Natural Products) discussed
the history and potential of devil’s claw cultivation in Southern
Africa.
During the "International trade and
regulation of plant based products" session Mr. Rob
McCaleb and Dr Elke Langer once again stressed the importance
of the quality of product needed. Market research is needed
to determine the type of product required, while growers must
familiarize themselves with the specifications of the required
product. These presentation considered also regulations involved
in export, trade barriers including tarriffs and environmental
restrictions enacted in response to disappearing resources.
The last afternoon was spent on a videoconference
with representatives from US buyers of natural products where
delegates had the opportunity to find out about the businesses
they are running and to ask questions on issues of concern or
interest. The participants from the US included the world’s
largest specialty tea company, Celestial Seasonings; Tom’s of
Maine, a body care company branching out into herbal extracts;
KHL Flavors, a spice and herb broker; Frontier Herbs, the major
buyer of organic herbs; Whole Herb, a full service botanical
trader with a wide range of herbs; and Botanicals International,
one of the major processors of bulk botanicals for supplement
manufacturers. Participants had a chance in this session to
hear the perspective of major overseas buyers and to ask questions
about entering the marketplace and how to distinguish one’s
company among the thousands worldwide who seek to sell botanicals
to the same buyers.
"The Way Forward," the last session,
was addressed by Mr. Jerry Brown from USAID, Washington DC.
Participants on the natural plant product program need certain
hard and soft skills to succeed, and the only way forward is
together!
Recommendations on how to proceed were the
following:
- Development of specific processes in which research and
marketing come together and share responsibility
- Transparency, which is needed in technology transfer
- Strategic market planning, which is needed across the region
- Continuous interactive market and technical information
exchange
- Development of products linked to market research
- Establishment of trust between traditional medicinal practitioners
and the ARC
- Development and passage of legislation on organic certification,
sanitary and domestic issues, benefit sharing, and intellectual
property rights
- A national workshop to regulate co-operative building
Summary
The Rountable was heralded as a success by
those attending who have provided feedback. The diversity of
topics, of interest and in stakeholders points to a clear interest
in and need for more fora to continue building a dialog for
the advancement of the natural products sector throughout the
continent of Africa.
M. Smith, R. McCaleb, April 2000
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