pcti/20141021/cob/csir/77 ‘adding value to south africa’s ... · • csir entered into a...

‘Adding value to South Africa’s Indigenous Knowledge and Plant

Biodiversity through Scientific Innovation’

Marthinus HorakCSIR Enterprise Creation for Development

PCTI/20141021/CoB/CSIR/77

www.csir.co.zawww.csir.co.za

Contents

• Background

o South Africa’s knowledge and biodiversity resources

• Rural agro-processing enterprises: lessons from the trenches

o Essential oils and medicinal plant demonstration projects funded by Department Science and Technology

• Conclusions

Slide 2

www.csir.co.za

Background information

• The CSIR:o Is a leading technology development institutiono Contributes to socio-economic development of the country through

knowledge creation and knowledge application activitieso Contributes to national imperatives of job creation, rural development,

human capital development and meeting of basic needs.

• Enterprise Creation for Development (ECD):o Utilizes science and technology solutions to address poverty and

underdevelopmento Sources technology from CSIR units, universities, research councils

and other participants in the National System of Innovation‒ Currently implementing a portfolio of DST-funded essential oil and

medicinal plant (EO&MP) projects aimed at demonstrating agro-processing businesses in favour of socio-economically excluded, rural communities.

Slide 3

www.csir.co.za

South Africa’s plant biodiversity

• 24 500 plant species occur in South Africa

o Approximately 10% of plant species known to mano South Africa represents only 2% of land surface area of the

worldo Approximately 11 700 endemic specieso Nine unique vegetation types

• Plants occur in highly diverse ecosystemso Adapted to extreme climatic conditionso Many species evolved and survived for millenniao Developed sophisticated chemical defence mechanisms

‒ Potential source of biologically active metabolites

Slide 4

www.csir.co.za

South Africa’s indigenous knowledge systems

• Local Traditional Healer practices:

o A long history of traditional use of indigenous plants to treat human ailments

o More than 200 000 Traditional Healers are active throughout the country

o Approximately 70% of South Africans regularly consult a Healer

• Knowledge of medicinal value of indigenous plants

o not yet leveraged for the benefit of sustainable development in South Africa

Slide 5

www.csir.co.za

National System of Innovation

• Indigenous plant species have been researched by botanists, taxonomists, plant ecologists, etc. at many universities and research institutes during the past 60 years

• Natural product chemists, pharmacologists, etc. have contributed significantly to mankind’s understanding of biologically active substances from plants since the second world war

Slide 6


South Africa’s competitive advantage

Unique Plant Biodiversity

Indigenous Knowledge System

National System of Innovation


Harnessing South Africa’s competitive advantage

Biodiversity

ScientificInnovation

Indigenous Knowledge Systems

Research findings, publications, technology packages, patents

New enterprises that cultivate and process indigenous plants with fragrant, cosmetic, medicinal and/or nutritional value

‘Innovation chasm’


Why focus on Essential Oils and Medicinal Plants ?

• Lucrative global markets

• South Africa does not yet participate significantly in these markets, despite our access to resources:

o Heritage of indigenous knowledge on the medicinal use of plantso History of scientific research at local research institutes and universitieso The diverse climatic regions supports EO&MP species

• EO&MP productso shelf-stable o high-valueo low volume

• EO&MP - opportunity for on-farm value-addition through processing of harvested crops

Slide 9


EO&MP sector objectives

• Develop the EO&MP sector:

o Identify suitable EO&MP products o Identify technical production hurdles, source and implement technology

solutionso Create market linkages for locally produced EO&MP productso Develop sector protocols

− land and water use− environmental issues − biodiversity access and benefit sharing

• Enterprise creation projects to facilitate participation of developing rural farmers

• Commercialize novel, locally invented EO&MP products

Slide 10

www.csir.co.za

Conceptual Framework for developing the sector

Slide 11

Sector development initiatives

Donor Agencies and Private Sector

Government Departments

KnowledgeGenerationInstitutions

Beneficiaries:• Communities• Enterprises• Individuals

Stakeholders (NGOs, Agencies, Service Providers etc.)

National, Provincial & LocalPolicies, Strategies, Programmes & Instruments

Needs

Solutions

Programmes, projects and funding

Funding

Technology and knowledge

www.csir.co.za

Level of involvement

Slide 12

Continually decreasing mentorinvolvement, control and responsibility

Continually increasing local/community involvement, control and responsibility

Initiate project

Mentorbusiness

Establish Infrastructure

Establish production and create market linkages

Train staff andembed Good Farming and ManufacturingPractices

Establishbusiness

5 years

100% 100%

10%


IKS and scientific research collaboration: a case study

• A consortium of Traditional Healers approached CSIR during early nineties to establish collaboration

• The aim was to scientifically validate the knowledge of Healers on the beneficial uses of various plant species

• The result was the invention of a novel insect repellent product by CSIR

• CSIR patented the use of the essential oil of Lippia javanica as an insect repellent

• CSIR entered into a benefit-sharing agreement with the consortium of Healers whereby royalties on sales are paid

• Three community-based essential oil agro-processing farms currently produce the insect repellent oil

• CSIR licensed a local entrepreneur to manufacture and distribute the mosquito repellent product

• The invention provided an opportunity to demonstrate the value of beneficiation of local natural resources and indigenous knowledge

Slide 13


CSIR innovation leads to community-based cultivation of an indigenous plant species….

Slide 14


Distillation of crop to give the essential oil….

Slide 15


Formulation of essential oil in candles….

Slide 16


Patented mosquito and fly repellent product on the shelves of more than 200 local stores

Slide 17


Current EO&MP projects

Slide 18

Geographic dispersion of projects increases implementation costs but facilitates inclusive development

www.csir.co.za

Rose geranium cultivated by Pella community, Northern Cape

Slide 19

Distillation factory

www.csir.co.za

Rose geranium essential oil production at KwaNobuhle

Slide 20

www.csir.co.za

Scientifically validated results allow replication of successful cultivation and processing sites

Slide 21

Telemetric weather stations and soil moisture meters are installed on project sites

The quality of EO&MP products areconfirmed through chemical analysisprior to shipment to buyers


Pilot production of Rosa damascena essential oil at Ficksburg

22

• Rosa damascena oil of Bulgarian origin certified as organic is worth R105 000 per kilogramo The species is suitable for very cold climates

• Project requires horticultural and engineering innovations:o Stem grafting of imported genetic material to establish a local

propagation systemo Hydro-distillation basedon recycled engine oil as fuel source to generate steam

Rosa damascena at Ficksburg – November 2013


Regional collaboration: development of the Essential Oil sector in Uganda

23

• Uganda Industrial Research Institute contracted ECD to assist with development of the Essential oil sector in Ugandao Aim is to benefit from ECD’s experience gained while developing the

sector in SA• Phase 3: Pilot Operation is currently underway• UIRI staff were trained in SA and ECD staff members undertakes

project site visits in Uganda

Rose geranium crop ready for harvesting Essential oil distillation unit being installed

www.csir.co.za

Requirements for establishing an essential oil production site

o At least 30 Ha of arable lando Access to irrigation watero Access to Eskom electricityo Approximately 15 workers and one supervisor on 30 Hao Construction of a distillation factory on the farmo On a well-managed farm, the financial returns from sale of oil is sufficient to

cover costs of area under cultivation and yield a profito Requires commitment from workers and management

Slide 24

www.csir.co.za

Requirements for establishing an essential oil production site (continued)

• The project and resultant enterprise must conform to a highly involved legislative framework:• National Environmental Management Act (Act No. 107 of 1998) (NEMA), as amended

in 2008• National Environmental Management: Biodiversity Act (Act No. 10 of 2004) (NEMBA)• National Environmental Management: Biodiversity: Amendment Act (2008) –

Integrated Export & Bioprospecting Permits, Material Transfer & Benefit-Sharing Agreements (BABS Regulations)

• National Environmental Management: Air Quality Act (39 of 2004) (NEMAQA)• National Environmental Management: Waste Act (Act No. 59 of 2008) (NEMWA);• National Heritage Resources Act (Act No. 25 of 1999) (NHRA)• National Water Act (Act No. 36 of 1998) (NWA) – application for a Water Use License• Conservation of Agricultural Resources Act (Act No. 43 of 1983) (CARA)• Occupational Health and Safety Act (Act No. 85 of 1993) (OHSA),

as amended in 2008

Slide 25

www.csir.co.za

Conclusions

• Agro-processing of high-value essential oils and medicinal plants under irrigation:

o A viable opportunity for rural farmerso Requires access to 5 -30 Ha – not a cottage industryo Technology transfer and market access models are proveno Wealth creation leads to job creation

But:• Business models for enterprises on communal land not yet proven

o Management of working capital, cash flow and ongoing mentoring remains a challenge

o Business partners may be required

• Legislative framework is stifling growth of the sector

Slide 26

www.csir.co.za

Thank You!

pcti/20141021/cob/csir/77 ‘adding value to south africa’s ... · • csir entered into a...

Documents