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ESSENTIAL OIL PRODUCTION for YANGSHILA:
A UC Davis D-Lab Feasibility Study
March 2014
Marketing Analysis Team
Tricia Andrade, DVM
Jaber Belkhiria, DVM
Evangeline Zhang
Technical Analysis Team
Owen Cortner
Jorge Espinosa
Jason Tsichlis
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Executive Summary
The Biodiversity Education Land Trust (BELT) is a non-government organization (NGO) based
in southeastern Nepal whose goals are to protect the ecosystem, teach biodiversity and create
sustainable livelihoods. The target community has an opportunity to use their existing knowledge
of local plants to create livelihoods that enhance rather than threaten biodiversity. BELT
requested a feasibility study of essential oil production in the Yangshila community.
This report focuses on the marketing analysis of essential oil production, which includes plant
selection and examines extraction technology options. BELT would like information on major
buyers, market profiles and quality standards for export of oils. A request was made to include a
variety of plant types, including citrus, and ideally represent plants from the different climate
zones of Yangshila. Our objective function was to maximize revenue opportunities and
biodiversity while minimizing environmental impact.
The project problem statement was: Identify an example medicinal essential oil product line and
market channel that is compatible with BELT goals (biodiversity, education, livelihoods) and
within the scope of a feasibility study.
We utilized the 4-Lens Analysis Framework (environment, social, financial and technical
aspects) to examine the feasibility of an essential oil production enterprise for the community
and to ensure our proposal remained compatible with BELT’s goals.
The analysis has four main outcomes. First, we define a working list of suitable plants for
product prototyping of Mixed Essential Oil Medicinal Remedies; second, we outline the
marketing channels and quality standards; and third, we identify potential competitors and
alliances. Lastly, common oil extraction technologies are explained and compared. General
challenges to sustainable essential oil production are mainly out of the control of the community,
BELT and D-Lab and center around country infrastructure and policy issues.
We reached the conclusion essential oil production is a feasible enterprise for the residents of
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Yangshila. Medicinal essential oils are a viable and desirable market to enter. We believe
establishing alliances and collaborations will provide an ethical, efficient and successful entry
into the essential oil market for the community of Yangshila. The choice of with whom and how
to establish these connections will need to be done with continued research and great
consideration of the community’s desires.
Respectfully submitted,
Tricia Andrade, Jaber Belkhiria and Evangeline Zhang
Owen Cortner, Jorge Espinosa, and Jason Tsichlis
Table of Contents
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SECTION I: FEASIBILITY REPORT for BIODIVERSITY EDUCATION LAND TRUST
Introduction and Brief Background……………………………………........................5
Problem Definition……………………………………………………….…….……...6
Methodology………………………………………………………………….……….6
Results………………………………………………………………………................7
Challenges……………………………………………………………………….…...14
Remaining Questions…………………………………………………………….…..14
Recommendations……………………………………………………………….…...15
Conclusions……………………………………………………………………….….15
SECTION II: BACKGROUND INFORMATION
Chapter 1. SETTING: Demographics In Nepal And In The Yangshila Community…16
Chapter 2. AGRICULTURE: Policy……………………………………………….....19
Chapter 3. BIOTRADE: MAPs Policies and Market Channels…………………….....21
Chapter 4. ESSENTIAL OILS TRADE: Demand, Quality and Quantity………….....23
Chapter 5. CONCLUSIONS: Potential Alliances Ease the Way into a New Market…25
References……………………………………………………………………………..27
SECTION III: APPENDIX
Interviews……………………………………………………...……………………....29
Boxes………………………………………………………...………………………...37
Problem Tree…………………………………………………………………………..41
Stakeholder Analysis…………………………………………………………………..42
Medicinal Taxa Spreadsheet………………………………………………………......45
Evaluative Matrix……………………………………………………………………...46
Certification Examples………………………………………………………………...47
Potential Alliances/Buyers/Competitors……………………………………………....50
Master Taxa Found Spreadsheet.……………………………………………………...57
Master Taxa Cultivation Potential Spreadsheet.………………………………………60
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SECTION I: FEASIBILITY REPORT for BIODIVERSITY EDUCATION LAND TRUST
Introduction and Brief Background
The Biodiversity Education Land Trust (BELT) is a non-government organization (NGO) based
in southeastern Nepal. The three main organization goals are to protect the ecosystem, teach
biodiversity and create sustainable livelihoods. This NGO is interested in the introduction of
essential oil production in Yangshila, Nepal as a way to fulfill its program goals.
In the last twenty years, Nepal has lost 25 % of its forest cover, which threatens Nepal’s rich
natural resources of flora and fauna. A major threat to the biodiversity is the lack of biodiversitybased livelihood opportunities, which leads to dangerous environmental practices. This lack of
opportunities contributes to unemployment, especially in rural regions and results in
outmigration (primarily men). Nepal transitioned to a more decentralized government in 1990,
with the Local Self-Governance Act. Today, there is a complexity of institutional arrangements,
which ultimately affects rural agriculture and environmental tenure.
Yangshila is a community of about 8000 residents, 75% (women and children included) of who
participate in agricultural related activities. This includes crops and livestock. The area
represents a variety of climate zones and elevations. The locals possess an expansive knowledge
of indigenous plants and their uses. Allopathic medications have been slow to enter the rural
areas and the locals consider the forest as a pharmacy.
BELT would like a UCD D-Lab team to conduct a feasibility study of essential oil production in
the Yangshila community. The study was divided into technical considerations and marketing
analysis. BELT would like information on extraction methods, major buyers, market profiles and
quality standards for export of oils. A request was made to include a variety of plant types,
including citrus, and ideally represent plants from the different climate zones of Yangshila. Our
objective function was to maximize revenue opportunities and biodiversity while minimizing
environmental impact.
We were supplied with NGO and community background information and a long list of possible
plants. BELT had not yet identified specific plants, technologies or markets to analyze.
Considering there are over 400 species of plants naturally available for essential oil extraction,
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we were pleased to get a list that had been limited to about 80 plants. (For more detailed
background information, see Section II.)
Problem Definition
Due to the broad scope of BELT’s request and the breadth of product (plant) options, we
embarked on a process of understanding essential oil production to clarify our problem
statement. It quickly became clear the essential oil industry is a vast and complex system.
Plants are collected from the forest or cultivated as crops. Once harvested, they are sometimes
dried, and then put through an extraction process. The extraction of oils can be with water, steam
or chemicals and can be pressed or heat steamed. After the oils have been collected, they are
used directly or mixed into remedies. These oils can be used externally, inhaled or consumed. A
partial list of uses includes: perfumes, cosmetics, edibles, alcohol, tobacco flavoring, medicinal,
ritual use, repellants and industrial uses.
Our marketing analysis team decided to focus on medicinals as an example product line class to
outline the supply chain from harvest to retail product. This approach gave us a framework to
conduct our feasibility study and facilitated making contacts with industry stakeholders. Our
client contact, Rajeev Goyal, agreed this would be a good place to start. We requested a
community meeting to narrow the list of plants based on locals’ preferences.
As a result of focusing on essential oil medicinals, we were able to make a problem statement:
Identify a potential medicinal essential oil product line and market channel
that is compatible with BELT goals (biodiversity, education, livelihoods)
and within the scope of a feasibility study (simple yes or no answer to
investigate further).
Methodology
Our first step was the generation of a broad problem tree.
We utilized the 4-Lens Framework (as proposed by Kurt Kornbluth) to examine the feasibility of
an essential oil production enterprise for the Yangshila community and to make sure our
proposal remained compatible with BELT’s goals.
Medicinal essential oil production will:
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1. Environmental Lens
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Support biodiversity and conservation
•
Encourage sustainable practices
•
Be an eco-friendly micro-enterprise
2. Social Lens
•
Preserve traditional knowledge
•
Honor connections to plants and animals
•
Involve community in decision making
3. Financial Lens
•
Create economic opportunities
•
Promote a value-added product
•
Create alliances and partners
4. Technical
•
Build capacity with new skills
•
Use available local resources
•
Inform regulation and policy development
We defined our main initial tasks for our team:
1. Identify plant types compatible with medicinal essential oils
2. Outline market channels
3. Define quality standards
4. Define and compare extract technologies
5. Conduct a stakeholder analysis
In this approach, we determined we needed to narrow our focus from general medicinals to
veterinary products to further facilitate our process of gathering information.
Once again, we looked at the 4-Lens framework and consulted our client. Veterinary remedies
provide:
-environmental lens: biodiversity of mixed remedies avoids monoculture
-social lens: indigenous knowledge honored
-financial lens: opportunity for multiple growers
-technical: small-scale technology utilized
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Our methods to collect information included communication with our client, review of
unpublished documents, internet searches of related businesses and NGOs, and literature
reviews. Data was organized in word documents and spreadsheets.
Plant types, uses, desirability as well as wholesale and retail products and prices were
researched. A short list was developed based on professional veterinary knowledge, internet
searches and interviews with US distributors.
We researched the available technologies for the extraction of essential oil using online resources
to gain a basic understanding of the ways essential oil is produced today. We then used a
weighted evaluative matrix to compare the technologies to each other. First we established the
following criteria as relevant for this stage: ease of introduction and use, health and hazards,
energy use, possibility of home scale, and amount of money necessary for an initial setup. We
weighted these criteria based on how prohibitive it might be to start an extraction operation with
that technology in Yangshila. For example, the introduction and use of a new technology may be
contingent on education and training, and so this criterion was given half the weight of greater
impositions such as prohibitive initial costs. Each technology was rated relative to the others.
We conducted a stakeholder analysis based on available information from our primary contact,
Rajeev Goyal of BELT.
Our client was unavailable due to an extensive travel schedule in remote areas and we did not
receive the community input on the plant choices. In the interest of time, we began to contact
essential oil businesses in the United States to get specific information that we could not get from
the internet. These communications began in the form of emails and progressed to lengthy
informal telephone interviews. (Transcripts of interviews are in the Appendix)
Results
We generated a broad problem tree identifying core problem, causes and effects. (See Appendix,
Problem Tree) The stakeholder analysis generated three tables: summary, interests and assets.
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Our report has four main deliverables. First, we define a product prototype to develop short list
of desirable plants; second, we outline the marketing channels; and third, we identify potential
competitors and alliances. Lastly, common oil extraction technologies are explained and
compared.
1. Product Prototype used for Plant List: Mixed Essential Oil Medicinal Remedies for
Animals
A viable prototype is the mixture of essential oils into a system or ailment targeted remedy. The
rationales for the feasibility of this veterinary prototype are:
a. The veterinary niche market is compatible with micro-enterprise
-retail product is often a mixture of oils
-distributors can use smaller quantities
-quality can be maintained on a small scale
b. Plant types used are compatible with Yangshila community choices
- include forest collected and cultivated plant types
-represent different plant types, including citrus
-represent different geographic zones
-include different technology options
c. Use of essential oils for animals is expanding
d. This prototype is compatible with larger packaging options such as kits and guides
e. Holistic veterinarians/distributors are easy folks to work with
f. Avoids dealing with cosmetic/industrial buyers who require consistent large quantities
A tangible output of our product prototype considerations is a spreadsheet of 12 plants which
lists each plant, plant form to be extracted, use, extraction technique, body system targeted,
typical uses, blending options, and relative wholesale price. Geographic location is recorded
when known. Nine of the plants are found in Yangshila and three have the potential to be
cultivated. As requested by client, we were able to highlight different plant types, including
citrus, from different geographic zones. This array of plant types also requires a variety of
extraction methods including cold press and steam distillation. The chosen plants are bergamot,
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grapefruit, lavender, lemon, patchouli, peppermint, rosemary, sandalwood, tea tree, palmarosa,
yarrow and ylang ylang. (See Appendix, Medicinal Taxa Spreadsheet)
2. Outline Marketing Channels and Quality Standards
This deliverable is a generalized pathway of the market channel for an essential oil product from
harvesting to consumer. The production process starts in the village with collection of forest
plants or cultivation/harvesting of plants. The oils are extracted appropriately based on plant type
and technical considerations (see technical team report). Then a buyer, who prefers a 40 - 60 liter
minimum, purchases the oils. The buyer may be part of a Nepalese domestic trade alliance, or
the buyer ships the oils internationally. Chemical analysis may be done in Nepal, but there are
few analytical laboratories available to provide this service.
Supply chain regulations and requirements are shown in Box 1 of the Appendix, and include the
Initial Environmental Examination (IEE) and Registration of Cottage Industry documents.
Additional documents are required for different destinations such as India, Europe and the
United States and are shown in Box 2 and 3. Optional certifications, certifying body and contact
information are shown in Box 4 for certifications such as organic and sustainably grown.
Once the oils have left the hands of the in country buyer, they are shipped to wholesaler
(domestic or international) who performs a complete chemical analysis. The wholesaler
generally repackages the oils into lots of 1- 2 liters and sells to retailers. Some wholesalers act as
retailers and sell oils in small volumes directly to consumers. The price of a liter of oil can range
from $70 - 400 and for sandalwood, as high as $1600. The prices for one liter of the oils on our
medicinal list are shown in Box 5. The retailers repackage the oils and may mix oils to create
blends to target body systems or specialty needs. The consumer purchases oils in volumes of
one-half to one ounce and pay from $5 - 50.
While it is clear different oils and volumes bring different prices, a key component of the value
of essential oils is quality. This is why certification of chemical analysis is key and the optional
certifications may bring a premium price. (See appendix for examples of certificates).
3. Identify Potential Competitors and Alliances
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There are several companies with a strong presence in Nepal essential oil industry, which are
potential competitors. One of the largest is Vossen & Co, which is based in Belgium, distributes
organic essential oils from Nepal. They have a coveted authorization to certify oils as organic
from the United States Department of Agriculture National Organic Program. Vossen’s sister
company, Male` International Pvt. Ltd, is located in Kathmandu, Nepal. Since 2005, Male` has
developed its own pilot-plantations in the subtropical Terai region of Nepal, in the same as
Yangshila. A working list of potential competitors is in Box 6.
It should be noted the above competitors might prove to be alliances in essential oil enterprises in
Yangshila. They have the potential to distill raw products, perform chemical analysis and
purchase raw materials or oils for export.
There are potential alliances in the production of Nepalese essential oils. The growing industry
of essential oils in Nepal is supported by a variety of conservation and development minded
organizations. The most prominent and recently active is the German Society for International
Collaborative Work, abbreviated as GIZ. They have produced informative sector studies and
these are available online. Their mission is to provide “customized solutions to complex
challenges” and offer services for “sustainable development.
The United Nations Environment Program has a specific initiative, Capacity Building for
Biotrade (CBBT), to support biotrade of Nepalese raw materials and essential oils.
The International Center for Integrated Mountain Development (ICIMOD) is based in
Kathmandu. This organization aims to “assist mountain people to understand these (climate,
fragile mountain systems) changes, adapt to them, and make the most of new opportunities,
while addressing upstream-downstream issues”.
In our research process, we found two specific ethical United States companies that are
interested in communicating with BELT to discuss ways to support the essential oil enterprise.
The first is Kemin Industries, which uses plant “molecules” for health concerns of people and
animals. They have over 50 years experience improving peoples’ lives with sustainable solutions
and have a global food security orientation. They have headquarters around the world. The US
Vice President of specialty crops, Dr John Greaves, responded via email and telephone to our
request for an interview, but was headed off for a two-week vacation so we were unable to
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conduct an interview. However, he is looking forward to a conversation at the beginning of April
should BELT be interested. Contact information is included in the Appendix.
4. Essential Oil Extraction Methods and Weighted Evaluative Matrix for Decision Making
There are a variety of ways to extract essential oil from plants. Some of these are fairly
accessible for anyone to experiment with at a small scale while others require large capital
investments and heavy machinery. The following is a brief review of the technologies available,
and distinctions have been made between technologies that are likely candidates for a small-scale
operation and sophisticated ways that may be possible to scale up later. Methods that should be
avoided to reduce risk for the residents of Yangshila due to environmental and health concerns
are also identified. The potential partnership with Young Living Essential Oils may yield the
opportunity to use their pilot scale hydrodistillation technology (Young Living, 2014).
Steam Distillation
Steam distillation consists of generating steam and running it through vegetable matter that has
been chopped up. The essential oil dissolves into the steam and is then separated from the water
vapor by the difference in condensation temperatures (Masango, 2005). This technology lends
itself to small-scale arrangements for pilot trials (Craviero, 1976).
Hydro-distillation
This is the most common way to extract essential oil. It consists of boiling plant matter, and the
steam released contains the volatilized oil, which is then separated.
Steam distillation and hydrodistillation are the simplest methods of extracting essential oil and
home-scale distillers can be built around a pressure cooker (Boutekedjiret et al, 2003).
Solvent Extraction
The use of solvents is not considered for environmental and health concerns. The use of
petrochemical solvents is common and can result in residues remnants in the oil that make it of
less than therapeutic grade (Young Living, 2014).
Solvent-free Microwave Extraction
This is a relatively new way of extracting essential oils, which is gathering some momentum.
Using a microwave to create steam from the water contained in plant matter seems to be a highly
efficient way to extract essential oils which may be appropriate to consider later for scaling up
(Luccesi et al, 2004).
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Pervaporation
Pervaporation employs membranes that only allow essential oils through its pores. It is a very
new technology with great potential. Membranes are still not cost effective, and it is not
widespread yet (Figoli et al, 2006).
Supercritical CO2
This is a very expensive technology using carbon dioxide under pressure in liquid form. As the
pressure is released the CO2 becomes gas once again and leaves behind the essential oil and other
waxes from the plants. The machinery for this method is expensive and only cost-effective at a
massive scale (Reverchon, 1997).
Subcritical water extraction
Water is heated and kept in liquid form through high pressure. The methods that involve
pressurized systems have the disadvantage of requiring high-energy inputs, which may be
prohibitive for communities like Yangshila (Ozel et al, 2003).
The highest scores found in the evaluative matrix were steam and hydro-distillation. They are
quite similar and both can be used on a small scale in the beginning. (See Appendix, Evaluative
Matrix)
In our opinion, one of the most exciting outcomes of this feasibility study is the contact made
with two chemical analysts of Young Living Essential Oils (Dr. Cole Woolley and Dr. Richard
Carlson). This health-focused company is based in Utah and is a well-established buyer of global
oils and supporter of establishing sustainable locally owned partner farms around the world.
They provide start-up capital and technical consulting, including supplying basic distillery
equipment and analytical testing. There is no binding contract. The company’s motivation to
assist is having the opportunity to purchase high quality specialty oils for their sales. Dr. Cole
Woolley of Young Living, Utah will be in Bhutan this summer and would welcome the
opportunity to speak with BELT in Nepal. For a fuller explanation of the company partner farm
model, see Section II, Chapter 5. The transcribed interview notes can be found in the Appendix.
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Challenges
General challenges to sustainable essential oil production are mainly out of the control of the
community, BELT and D-Lab. They include but are not limited to:
Unregulated forest harvesting
Inadequate infrastructure (utilities, transportation, credit)
Opaque market channels from collector to end-user
Outdated technology
Lack of analytical testing labs and quality control measures
Limited national agricultural policy in place/lack of enforcement of regulations
Information gaps
Limited in country research
Remaining Questions
For essential oil production enterprise to be realized in Yangshila, at least twelve remaining
questions need to be answered. We have divided them into the categories of the 4-Lenses.
1. Environmental Lens
•
Can the forests be responsibly harvested?
•
Is cultivation environmentally sounds?
•
Is the distillation enterprise eco-friendly?
2. Social Lens
•
Are the locals willing to share knowledge?
•
Do the locals see value in the essential oil project?
•
Are the locals motivated to take risks?
3. Financial Lens
•
Is this a financially viable enterprise?
•
Will buyers want medicinal oils?
•
Can alliances and partners be developed?
4. Technical
•
Can plants be cultivated?
•
Will locals learn new skills?
•
Will biotrade policy support essential oil marketing?
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Recommendations
Our marketing analysis team has a list of final recommendations, but the most important next
step is to hear from the community. The locals need to be involved in the choice of plants to
focus on for extraction. They need to weigh the immediate revenue of the forest collection versus
a longer-term investment of developing cultivation plots. Once the Yangshila community
narrows the plant list, the technical team can pursue distillation methods. It would be desirable to
establish an agreement with a buyer and test the market for the niche medicinal products. It may
be possible to make a connection with BELT’s in country contact, Wild Earth Nepal as a local
test market for medicinal remedies. It is also feasible to consider test markets beyond the
medicinal product line. One example of this is the “one-time exotic oil” offering.
Given Young Living Company has a proven track record of getting essential oil enterprises up
and running – in a respectful, ethical approach – we strongly recommend BELT consider
contacting them for more information about collaboration and the partner farm model.
This will provide information, access to analysis, and a steady buyer.
We recommend continued communication between BELT and UC Davis D-Lab. For a more
vital collaboration it is advisable that D-Lab have access to a resident field partner in Yangshila.
D-Lab can act as a liaison between the Yangshila community, UC Davis essential oil experts,
and the Young Living Company. The veterinarians who worked on this team are also extremely
interested in collaborating further with the community in learning about the traditional veterinary
medicinal uses of the plants and oils as well as sharing our knowledge of veterinary science.
(For more details of recommendations, please see Section II Chapter 5 Conclusions, on page 21.)
Conclusions
Essential oil production is a feasible enterprise for the residents of Yangshila. Medicinal essential
oils are a viable and desirable market to enter. We believe establishing alliances and
collaborations will provide an ethical, efficient and successful entry into the essential oil market
for the community of Yangshila. The choice of with whom and how to establish these
connections will need to be done with great consideration and continued research.
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SECTION II BACKGROUND INFORMATION
CHAPTER 1. SETTING: Demographics in Nepal and in the Yangshila Community
Nepal Population Size and Growth
According to the 2013 national census, total population of Nepal is about 30.4 million people
with a growth rate of 1.27%. 43% of the Nepal population is in the middle hills, 50% are located
in the flat and only 4% live in the highlands above 4,000 meters. Nepal’s capital, Kathmandu,
has more than 2.5 million inhabitants. Life expectancy has risen from 40 years in the 1970’s to
60 years in 2001. Forty percent of the population is between 16 and 40. Approximately 38% of
the 16-40 year old population is unemployed. (Goyal 2014)
Nepalese Ethnic Groups, Religion and Languages
There are 102 ethnic groups in Nepal. The three main ethnicities in Nepal are Khas (29%),
Magar (7.1 %) and Tharu (6.1%). Each group has their own indigenous culture and traditional
rituals. Another way to subgroup Nepal is by religion. As of the 2011 census, 81.3% of the
Nepalese population is Hindu, 9.0% is Buddhist, 4.4% is Muslim, 3.0% is Kirant/Humanist,
1.42% is Christian, and 0.9% follows other religions or no religion. Since both Hinduism and
Buddhism are Dharmic religions, they usually accept each other's practices and many people
practice a combination of both. (Goyal 2014)
There are 92 major languages spoken in Nepal (IUCN Nepal Programme Framework 20132016). The official language of the country is Nepali but those in government and business use
English as an official language. English is the language of technical, medical and scientific
community as well as the elite bankers, traders and entrepreneurs. There has been a surge in the
number and percentage of people who understand English. A majority of the urban and a
significant number of the rural schools are English-medium schools. Higher education in
technical, medical, scientific and engineering fields are entirely in English. (Goyal 2014)
Nepalese Education System
Overall literacy in Nepal is around 57.4% (male 71.1% and female 46.7%). (indexmundi.com,
2013) The literacy rates (over 16 years old) changed from 5% in 1954 to 56% in 2004.
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(UNESCO Country Programming Document for Nepal, 2011-2013) Literacy rates have
improved drastically since the 1950’s and the number of schools is currently 49,000. In addition,
there are higher education schools such as 415 colleges, five universities and two academies.
Tribhuwan University (TU), the main university was established in 1958. Prior to this,
government agencies housed facilities for research and education. TU is a means for research
and education for the masses. (Goyal 2014)
Nepalese Labor and Migration
The urban population has increased nearly five times over 30 years, going from 1 million in 1981
to 4.52 million in 2011 (IUCN 2013-2016). This phenomenon is explained by an increase in offfarm activities, and rapid outmigration from rural areas to urban centers. Nepal has seen
diminished agricultural productivity but has experienced an increase urban services and
manufacturing. Road infrastructure improvements during the late 90’s may also help explain this
migration to urban areas. (Goyal 2014)
Nepal’s economy relies mostly on agriculture and foreign remittances. Over two million
Nepalese men and women work abroad other than India, with the help of recruitment agencies,
brokers and in some cases on their own capacity to work as domestic workers, construction
workers, or in other low-skill labor jobs. The remittances sent to Nepal by the migrant workers
contribute 21 % of GDP of Nepal and has been a backbone to support the national economy.
The increase in labor migration, however, has been accompanied by various problems, including
human trafficking. Many Nepalese migrant workers pay high amount of fees to the recruitment
agencies, which they take on loan from families and friends which place them in a state of
indebtedness, which in turn compels them to perform work in abusive, exploitative and unsafe
working environments. Many of them face severely exploitative conditions that sometimes
amount to forced labor such as withholding of passports, restriction on movements and nonpayment of wages. In some communities, the majority of adult males are absent, working in
foreign countries in low-paying jobs (The Guardian, 2012).
Demographics in the Yangshila community
Located in South Eastern Nepal, Yangshila is a village development committee (VDC) and it
shares its borders with 6 different VDCs. Yangshilla belongs to the Morang district. The closest
big city is 11 kilometers away from Yangshila. It’s more than two-thirds covered with dense
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forest and the altitude varies from 180 masl to 1950 masl. The village is accessible via road.
There is a daily bus service to an urban area 11 km away. The north-south road that goes through
Yangshilla is not usable during the monsoon season due to flooding. (Goyal 2014)
Yangshila History
First settlement attempts in the Yangshilla area started in 1930. Unfortunately, none of them
succeeded due to the anopheles mosquito (the major transmission vector of malaria). It’s only in
1970 after the introduction of DDT in Nepal and partially clearing the dense forest in the hills
that the settlement in Yangshila was successfully accomplished. Then as more forest was
cleared, more and more settlers descended down from the hills to Yangshila. (Goyal 2014)
Yangshila Population Growth
Yangshilla is seeing a population growth over the last 40 years changing from 3 families in the
1970’s to 1431 homes in 2014. The total population of Yangshila in 2010 was over 7500 with
nearly equal split between males and females. Another important demographic characteristic of
Yangshila’s population is the high number of youth with 61.6% of the population under the age
of 30. There are 16 different caste groups represented. The three largest communities are the Rai
(2,074), Magar (1,661), Limbu (1,454), which represent two-thirds of the entire population. The
other groups are much smaller and represent indigenous communities with their own culture,
religion and languages. (Goyal 2014)
Yangshila Labor and Migration
Since jobs are not locally available, a high number of people from Yangshila tend to migrate to
other countries in order to look for work. As of a few years ago, 702 men and 78 women from
Yangshila were working as migrant laborers in other countries. Selected migrant workers report
a salary between $120 and $300 per month for a very laborious job and hard living conditions.
When questioned, the migrant workers tend to agree that they would far prefer to work in
Yangshila close to their families. Workers from Yangshila migrate to different areas of the world
such as Saudi Arabia, Malaysia, India, Germany, and the United Kingdom. (Goyal 2014)
Yangshila Literacy
The overall literacy rate in Yangshila is 81.92% for men is and for 77.81% women. However,
less than 10% of the population possesses the equivalent of a high school diploma. Of the total
population of over 7500 people, 52 possess a Master’s degree and 22 people have studied above
the Masters level. (Goyal 2014)
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CHAPTER 2. AGRICULTURE: Policy
Agriculture in Nepal: A snapshot
Agriculture is the primary livelihood activity in Nepal but the agriculture sector is considered
under-developed. Nepal has begun achieving Millennium Development Goals in some critical
human development areas but its economic growth has remained at a relatively low level of a
GDP of 3%. While over 75% of Nepal’s work force is in the agriculture sector, this agrarian
sector accounts for only approximately 40% of the GDP. (Pyakuryal et al 2010)
Agriculture in Nepal is dominated by the cultivation of rice, maize, wheat, millet and potatoes.
Agriculture is also reflected in livestock rearing and fishing. Additionally, there is production of
alternative fruit and vegetable crops such as watermelons, bananas, lemons, and mangos.
Gathering products from the forests represents an additional source of livelihood for rural
residents. (Yates 2012) Local information about Nepal’s Yangshila area reveals agriculture is the
predominant occupation and activity (particularly for women and includes youth). (Goyal 2014)
Government structure: Hierarchical complications for forest and field
In 1999, the Local Self-Governance Act was implemented which is the basis for the
decentralized government of Nepal. There is a complexity of institutional arrangements, which
ultimately affect agriculture. Nepal is divided into 75 districts called District Development
Committees (DDC) which co-ordinate administrative activities; each DDC is further divided into
Village Development Committees (VDC) which carry out the activities. The VDC is the scale of
government responsible for development activities. (Yates 2012) Goyal (personal
communication 2014) explains the VDC is the seat for local administrative governance, political
representation, policy implementation, and government services. In addition, the VDC
coordinates activities of institutions, non-government organizations and agencies. (Yangshila is
one of over 3900 VDCs.) Each VDC is then further divided into wards, which include
neighborhoods of varying sizes and demographics. According to Yates, the VDC is often left out
of the flow of information from the non-government organizations to the local ward governance.
The supposed local autonomy of VDC has to function under the constraints of the DDC and a
political structure founded on a feudal system. These disconnections, mixed demographics and
20
skewed land ownership create complexity for development of agriculture policies and the
enforcement of associated regulations. (Yates 2012)
Political landscape: Biodiversity and the policy players
A literature search on agriculture in Nepal brings up articles reflecting this developing country’s
wealth of natural biodiversity. Current papers highlight the efforts of agriculture stakeholders to
improve the food security and livelihoods of its residents in a conservation minded sustainable
way. These stakeholders include rural residents, community leaders, government officials,
private entities and non-government organizations. An overview reveals policy changes and
infrastructure improvement efforts have been occurring as well as international agriculture trade
agreements. The domestic infrastructure needed to ensure the desired sustainable green economy
and food security is still unclear. Liberalized trade agreements from the 80’s and 90’s have
resulted in uneven outcomes for Nepalese residents. Pyakuryal et al propose the reason for the
uneven gains is lack of policies that create physical and marketing infrastructure. They make a
case for creating infrastructure that connects food surplus regions with remote regions and
encourages international agriculture trade.
In his 2012 paper, Yates explores scalar politics in Nepal and the network of actors who are
intervening in the future of rural Nepal. He outlines the interactions of agriculture stakeholders.
He proposes the uneven flow of knowledge, power and influence creates inequality in
development decision-making. This results in a complicated web of vertical and horizontal, topdown and bottom-up institutions that clouds the policy and regulatory realm of agriculture
development. For example, in his discussion of the VDC, he states:
“…traditional VDC channels are often ineffective, and adaptive responses flow through a
network of international and domestic NGOs, which work with multiple scales of government
and a proliferating body of local institutions. These networks, however, do not necessarily
produce equal or fair results, meaning that the institutional response is not always good,
sustainable, or even legal.”
This scalar politics framework contains networks of strong affiliations. This can be advantageous
when considering the benefits of pooling technical and financial resources desired by rural
residents. Nongovernment institutions such as Community Forest User Groups (CFUGs), Water
21
User Associations, Agrivets and farmer co-operatives can ensure local needs are met and
interests are promoted. While these groups can drive policy, they do not make the regulations. So
it must be recognized this web of affiliations can also bring the disadvantage of power conflicts
and innocent non-compliance with regulations as well as intentional corruption (paying police
along the transportation route to markets). This multi-scale structure challenges traditional
hierarchical political scales that enforce the regulations governing biotrade.
CHAPTER 3. BIOTRADE: MAPs Policies and Market Channels
Nepal is located in Himalaya region, which is famous for abundant natural resources, including
medical and aromatic plants (MAPs). However, as one of the “least developed countries” rated
by the World Trade Organization, Nepal relies heavily on the international market. Two
booming developing countries, China and India, share borders with Nepal. They also share the
regional natural resources and have developed a prosperous MAPs industry. Compared to the
other two countries, Nepal lacks an organized market channel through which domestic products
can be delivered to the international market.
Nepal is recognized for its indigenous knowledge and extensive use of MAPs for humans and
animals. There is a global demand for these products for a multitude of uses (pharmaceutical,
nutritional, cosmetics, alcohol/tobacco flavoring) and in a variety of forms (raw, dehydrated,
oils, edibles). The focus of agricultural policy appears to be on Community Forest User Groups
(CFUGs) and the use of natural resources. There is sparse information on agriculture policy
relating to the smallholder cultivation of MAPs. Shrestha et al provide a template analysis of the
MAPs in the Dolakha district (central district adjacent to Yangshila’s eastern district). They
conclude with pointing out development of a promising MAPs market requires an intensive
management plan, which should include a plan for equitable dispersal of the economic benefits,
but little is said about agriculture policy except a mention of CFUGs control of operational plans.
According to a report by United Nations Environment Program Capacity Building for Biotrade,
only 120 million tons of the 205 million tons of total crop harvest will be processed by local
enterprises, and the rest will be transported to distilleries in urban areas or exported to foreign
22
countries (mostly India) as raw material. Many small villages lack the capacity to value-added
production. As a result, they can only generate minimal profit in the harvest stage.
Therefore, although the market price of essential oil has been significantly increasing in the
recent years, the local communities are excluded from the flourishing market.
In Nepal more and more producers are aware of the natural resources and are entering the
essential oil industry, and the competition for market share has been intensified. The
commercialization trend of indigenous essential oil started from Kathmandu in 1960 when the
UK government funded Royal Drugs Research Laboratory (RDL) and donated distillation pilot
facilities. In 1990, RDL established the Herbs Production & Processing (HPP) Co Ltd for the
forest resource in Saganarth, which shifted the essential oil industry from government-operated
to private sectors. Essential oil production could be duplicated easily in any region because the
biodiversity resources are distributed across the country. There have been ten main production
sites with distillery facilities. As the earliest established sector, HPP has the broadest range of
essential oil products in total 13 types.
For small villages to see better profits, some recommended solutions include expanding the
scope of local sector by horizontally integrating more intermediary service. Right now, there are
many intermediaries, including urban wholesaler, airport trader and urban exporters, before the
products reach the final consumption market. Communities should be empowered to process
their own crude harvest and have direct contact with the end users. On the demand side, the
consumers are also constrained by the rare expensive export products and lack of information
about the effect of MAP products. A direct market channel may enable an efficient supply of
cheaper local production, and traceability that strengthens consumers’ awareness and trust of the
product.
There have been several institutions, in place of intermediaries,
to promote the market channel of essential oil.
Capacity Building for Biotrade project (CBBT) aims at
branding Nepalese essential oil in international market. It
23
harmonizes the quality of products by international standards and organized a collective
committee of representatives from remote villages. A label distinguishes the members of the
committee, which is a certification for “organically crafted” and “made in Nepal”. The labeling
marketing strategy constructs a prominent identity of Nepalese essential oil among consumers.
Nepal Herbs and Herbal Product Association (NEHHPA) serves as an information center for
technical and legitimate consultation and matching up the member manufactures with
international customers by interests. Currently there are more than 20 domestic manufacturers
registered. Local small-scale producers can form a large-scale cooperative to negotiate for their
rights and profits against other manufactures in the association.
Jaributi Association of Nepal (JABAN) is a producers’ association with a focal point in export to
India. India has been a prosperous market both for crude MAPs material and essential oil product
consumption. Thus, in the international market, India is a competitor as well as a customer to
Nepal. Based in Nepalganj, JABAN has developed 1400 registered members, which has
promoted long-term trading relationship between Nepal and India.
In addition to the market channels, the Department of Plant Resources of the Ministry of Forest
and Soil Conservation also supports the regulation of Nepalese MAPs sector. It conducts surveys
in conservation districts national wide and has identified 100 species of MAPs. As a government
institution, the department can provide official introduction of Nepalese MAPs resource to the
rest of the world.
CHAPTER 4. ESSENTIAL OILS TRADE: Demand, Quality and Quantity
The Nepal Trade Integration Strategy has identified essential oils as one of the trade sectors with
high potential. (ICIMOD 2012) There has been a general increase in international market trends
for essential oils and global consumers are exhibiting a growing preference for natural products,
particularly organic quality. This movement can be advantageous to the small producers in rural
Nepal.
24
In the Deutsche Gesellschaft für Internationale Zusammenarbeit (German Society for
International Collaborative Work) (GIZ) marketing strategy report from 2011, Gurung notes
European buyers expressed a desire to have “direct access to producers and exporters of essential
oils from Nepal”. In this same report, the author also notes Sri Lanka as having a high demand
for organic products. For these two markets, other countries are already supplying products but
opportunities for market entry do exist for specialty oils, including organic products. While there
is no requirement of organic certification for trade, it does provide assurance that standards have
been met and creates a valuable niche. It is possible the cost of maintaining the organic
certification outweighs the higher price point for this specialty.
However, there is an increasing need for safety documentation and assurance of quality.
Company information and documentation of products is critical for competitive international
trade. While buyers may see the benefit in promoting the idealistic backstory of local production,
conservation and improvement of rural livelihoods, they also need to know the source of the
products is credible. The international market expects a quality product from a reliable business.
This means traceability of the designations such as natural, organic, Forest Stewardship Council
(FSC), Fair trade certified and wildlife-friendly. Requirements are likely to include Material
Safety Data Sheets and Technical Data Sheets, which are needed for European and United States
markets. For export to India, these documents are not needed due to special trade agreements.
However, additional papers regarding production are needed. (Pyakuryal et al 2010) For a
working list of certificate and export requirements, see Box 1, 2 and 3.
Establishing solid business partnerships also means these buyers need to know quantity will be
available. For small producers, producing enough volume may be a barrier to market entry
because buyers prefer to deal with the least number of suppliers possible.
The presentation of a professional package will likely prove significant in the success of rural
entrepreneurial endeavors. Decisions regarding pricing, packaging, and sampling will be
necessary. Communication tools, such as business web sites and online purchasing are key for
adequate customer service. Potential buyers will need to be sought after by personal contact,
direct mail campaigns or participation in trade fairs.
25
CHAPTER 5. CONCLUSIONS: Potential Alliances to ease the way into a new market
In order to facilitate the entering a new market, it may be in the best interest of the Yangshila
VDC to establish alliances with conservation minded entities such as GIZ, Capacity Building for
Biotrade (CBBT) and International Centre for Integrated Mountain Development. They have
been complying with domestic and international regulations. These organizations have
performed market analysis and have established labs, distillation units and buyer contacts.
Collaboration may be able to offer regional resources of laboratory testing, certification and
group marketing strategies to ensure consistent sales and secure sustainable essential oil
enterprises.
It is also advisable BELT make contact with a US buyer such as Young Living This company
has a track record of ethically establishing and supporting ‘partner farms’ worldwide. The locals
retain full ownership/profits and there are no legally binding contracts, but there is an agreement
that Young Living will be a preferred buyer for the essential oils produced. They provide
consulting, technical and financial support. Young Living partner farm model essentially pays
and trains the locals to create prototypes, supports production chains and facilitates certifications
and shipments. In return, they have access to ethically produced quality oils from around the
world.
They begin with identifying existing plant production or available collections. Distillation kits
(can be as small as 5 liter) so the locals can produce samples of oils from many different plants.
The samples are sent to Young Living for analysis for chemical composition and quality. In one
country, Young Living received over 150 different oils to help the locals decide which plants to
focus on. They help the communities decide which plants to distill, taking into consideration
factors such as biodiversity and traditional knowledge of medicinal uses. They also work with
timber industries to collect the discarded smaller branches of trees that can be distilled. The
company also provides technical assistance in the distillation equipment and has set up entire
distillery systems in some countries. In remote areas where there is limited access to analytical
labs, they can also provide equipment/training to do preliminary testing on site before shipment.
Once plants are selected to focus on, the volume purchased by Young Living can vary. If only
smaller lots are purchased, they are sold as one-time offerings. They will purchase as little as 5
26
liters. Ideally, they would like to purchase 40-60 kilos (approximately 40-60 liters).
On a final note about Young Living, they will be traveling to Bhutan this summer and would
welcome the opportunity to meet with BELT in person. (For detailed information on Young
Living and a transcript of the interview, see Appendix).
We believe establishing alliances and collaborations will provide an ethical, efficient and
successful entry into the essential oil market for the community of Yangshila. The choice of with
whom and how to establish these connections will need to be done with great consideration and
continued research.
27
REFERENCES
Boutekedjiret C, Bentahar F, Belabbes R, Bessiere JM. Extraction of rosemary essential oil by
steam distillation and hydrodistillation. Flavour and Fragrance Journal (2003) 18(6):481-484.
Craviero A. A simple and inexpensive steam generator for essential oils extraction. Journal of
Chemical Education (1976) 53(10):652.
Figoli A, Donato L, Carnevale R, Tundis R, Statti GA, Menichini F, Drioli E. Bergamot essential
oil extraction by pervaporation. Desalination (2006) 193(1):160-165.
Goyal R. Personal (telephone interview) communication 2014. KTK-BELT
Group Marketing Strategy for Essential Oils from Nepal. Report submitted to GTZ INCLUDE,
September 2010. http://www.includenepal.org/pdf/GroupMarketingStrategyforEssentialOils.pdf
The Guardian 2012. Poverty matters. http://www.theguardian.com/global-development/povertymatters/2012/jul/05/money-not-only-motivation-nepalese-migrants.
Gurung K. Essential Oils Sector Study in Nepal: A Detailed Study of Anthopogon, Juniper and
Wintergreen Essential Oils. Report submitted to GTZ INCLUDE, September 2010. Retrieved
from:
http://www.includenepal.org/pdf/SectorStudyofEssentialOilsinNepal,GTZKG2010.pdf
ICIMOD. Harnessing the Potential of Biotrade for Transitioning to a Green Economy: The Case
of Medicinal and Aromatic Plants in Nepal. (May 2012). International Centre for Integrated
Mountain Development. Retrieved from:
http://www.unep-unctad.org/cbtf/publications/NepalBiotradefinal
IUCN Nepal Program Framework 2013-2016. Enhancing ecosystems and livelihoods delivering
nature-based solutions to development challenges.
Lucchesi ME, Chemat F, Smadja J. An original solvent free microwave extraction of essential
oils from spices. Flavour and Fragrance Journal (2004) 19(2):134-138.
Masango P. Cleaner production of essential oils by steam distillation. Journal of Cleaner
Production (2005) 13(8):833-839.
Ozel MZ, Gogus F, Lewis AC. Subcritical water extraction of essential oils from Thymbra
spicata. Food Chemistry (2003) 82(3):381-386.
Pyakuryal B, Roy D, Thapa YB. Trade liberalization and food security in Nepal. Food Policy
28
(2010) 35:20–31.
Reverchon E. Supercritical fluid extraction and fractionation of essential oils and related
products. The Journal of Supercritical Fluids (1997) 10(1):1-37.
Sharma P, Shrestha N. Promoting exports of medical and aromatic plants and essential oil from
Nepal. SAWTEE. (2011) Retrieved from:
http://www.sawtee.org/Research_Reports/R2011-04.pdf
Shrestha PM, Dhillion SS. Medicinal plant diversity and use in the highlands of Dolakha district,
Nepal. Journal of Ethnopharmacology (2003) 86:81–96.
Shukala R. The essential oils industry of Nepal, Jadibuti Association of Nepal (JABAN). (2005)
Retrieved from: http://www.ifeat.org/wp-content/uploads/2012/10/Nepal-R-Shukla.pdf
UNESCO Country Programming Document for Nepal 2011-2013.
http://unesdoc.unesco.org/images
Yates JS. Uneven interventions and the scalar politics of governing livelihood adaptation in rural
Nepal. Global Environmental Change (2012) 22:537–546.
Young Living (2014). Essential Oils Guide. Retrieved from:
http://www.youngliving.com/en_US/discover/guide
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APPENDICES
Informal Interview: FrogWorks, Essential Oil retailer
Contacts: Frances Fitzgerald Cleveland, Owner
Method: Frances agreed to a phone call after initial email correspondence. Tricia Andrade
called from her home to FrogWorks office in Colorado via 303-973-8848. We spoke for 45
minutes.
Date: March 3, 2014
Frances Fitzgerald Cleveland
FrogWorks, Inc.
Natural Healing with Plants & Essential Oils for You & Your Animals
6810 N Roxborough Park Road
Littleton, Colorado 80125
The FrogWorks Company http://www.frogworks.us
(From the Website): FrogWorks has conducted extensive research in finding quality oil
suppliers. As a result, Frances has discovered people who travel the globe to obtain the
highest quality oils. She has established relationships with these people and formed her
own network of highly reputable suppliers from all over the world. FrogWorks' oils are
pure, organic, ecologically grown and carefully wild crafted. These are the only oils her
company uses because they are of the highest quality and energy.
Introductions: Tricia introduced herself/context: (vet career, MPVM candidacy, IAD
electives), D-Lab course, Nepal NGO client/project.
Frances has used oils extensively for herself and her animals for over 25 years. She holds a
certification from the Institute of Dynamic Aromatherapy and the International School of
Animal Aromatics. She has studied with herbal masters and completed apprenticeship
programs. She has BA in Journalism and Environmental Science from the University of
Connecticut.
The Industry
This industry can be a challenge but it is worth it to be able to use these oils for healing. She
is a practitioner, retail distributor and educator. She has a steady clientele, which is
growing and they order products from all over. Her goal is to be able to offer high quality,
ethically crafted oils and be able to provide solid guidelines for use.
There is misinformation that clients need to be careful of. Some companies and
practitioners make crazy claims and some of the directions can be harmful to animals.
Some oils need to be diluted so they don’t burn the skin. Some companies are into selling
just for the money.
Using essential oils is an art and a science – chemistry and art.
Quantities
As a retailer, she needs to know where the oils are coming from so she has put energy into
30
establishing regular suppliers. As far as she knows, no one is getting oils from Nepal. She
orders volumes of 1-2 liters for most oils. And these quantities might last for 6 months to a
year. It can really depend on climate conditions. For example, this year it has been really
hard to get lemon oil. Florida and Argentina are having growing problems. Citrus essential
oils lose their quality after 6 months. But lemon oil is such an important oil for her business
that she ordered a larger quantity than usual to make sure she has enough for the year. For
oil like yarrow, she orders 8 ounces a year.
She will share emails of her two most trusted suppliers and they can probably answer more
of the import and marketing questions.
Quality
Quality is key. The supplier provides her with a ‘certificate of authenticity’. This is the
chemistry of the oil. It can change due to environmental conditions (dry vs. wet growing
season). So for example, you know an oil has a certain composition of acids – these ratios
can change and that can make a huge difference in the recommendations of use and how
she mixes her remedies. Just because they are plant sourced doesn’t mean you can forget
about safety. Like violets essential oils are useful for arthritis because of the salicylic acid –
which is aspirin. So you can imagine if the concentration were to change, it would make a
difference in the treatment protocols.
She also gets certificates of organic, sustainably grown and ethically wild-crafted. For a
distributor like her, this is really important. She has not yet gone so far as to inquire about
the energy used to produce the oils or the working conditions of the people. She trusts her
suppliers to care about that aspect of the industry.
The FDA has not bothered her. She has not had any complaints filed against her.
She doesn’t buy oils from China because she can’t trust the suppliers. They tend to use their
oils for the bigger industries like perfumes and Coco Cola.
Types/Sourcing Of Oils
There are so many plants with so many applications. There are oils she’d like to see more of
like yarrow and ylang ylang.
She could imagine buying small quantities directly from Nepal and has bought directly from
overseas but there are shipping fees. There would also have to be quality control done at
the producers end – she would want the analysis (authenticity and chemical) done before it
was shipped to be sure she knows what she’s getting and its not contaminated. A while
back they had a problem in Morocco where gasoline kept showing up in the analysis. The
buyer had to travel to the site to see what was going on to contaminate the oils. It turned
out the producers were using old oil cans and hadn’t been able to clean them out well
enough.
Follow-up email
> Dear Tricia,
> It was great speaking with you today.
> Below is the information I promised to send:
> Chris: mailto:chris@wlaromas.com, website: http://www.whitelotusaromatics.com/
> Rachael: mailto:rachael.shapiro@bontoux.com
> And, I have attached the two C of A to this email for you to review. see below...
I hope you find this information helpful. I wish you tons of success with your project.
31
Green blessings, Frances
Email from Chris at White Lotus Aromatics
Chris replied to Tricia’s email:
Dear TriciaKind greetings!
Thank you for your email.
I am delighted to know that you are a veterinarian and studying at the University of
California at Davis.
Actually I grew up in Davis and have fond memories of my life there.
Regarding your joint project with NGO for essential oil production in Nepal - that might be
assisted by communicating with small companies in Nepal that are actually doing that work
currently.
One of the finest companies I know of is Essencenepal
http://www.essencenepal.com/
Kailash Dixit is the owner of the company and has done a remarkable job at the grass roots
level in the very area you are talking about.
Right now Suzanne and I are heading into the final years of our small enterprise as we are
in our mid 60's hence getting personally involved in a long term project is beyond our
scope. Our consumption of oils from Nepal and any region is modest.
But I feel there is a very bright future in the world of natural aromatics and can be of great
help to communities in countries like Nepal.
Christopher
PS you can also find a lot of useful data on the Vossen Essential Oil website.
They are Belgium based but one of the main countries they work in is Nepal
from which they offer a number of certified organic oils.
http://www.vossenbio.com/web/index.php?id=5
32
33
YOUNG LIVING ESSENTIAL OIL (based in United States) SUPPLIER
Summary of Company / Interview Notes from phone conversation with analytical chemists.
http://www.youngliving.com
MISSION:
We honor our stewardship to champion nature's living energy, essential oils, by fostering a
community of healing and discovery while inspiring individuals to wellness, purpose, and
abundance.
Today, Young Living has grown to become the world leader in essential oils and wellness solutions.
Headquartered in Lehi, Utah, with offices in Australia, Europe, Canada, Japan and Singapore, as well as
farms around the world, Young Living stays true to Gary Young’s original vision. And with our steadfast
commitment to essential oil purity, we’ve inspired millions of people everywhere to experience nature's
gifts of wellness and harmony, to create abundance as Young Living distributors, and to discover new
opportunities for lifelong transformation.
QUALITY ASSURANCE: Seed to Seal
When it comes to our essential oils, Young Living sets the standard for purity and authenticity.
We carefully monitor every step of the production of our oils from beginning to end through our
unique Seed to Seal® process, ensuring the purity of each essential oil and protecting nature’s
living energy in every bottle. This unsurpassed commitment to quality means that you can be
confident that the Young Living essential oils and oil-infused products you use in your home are
safe and effective.
Seed
Powerful, effective essential oils come from seeds and plants that are verified for their essential
oil potential by Young Living experts, partnering with university experts.
Cultivate
Young Living farms, located around the globe, are dedicated to perfecting the best growing and
harvesting methods. Our experts also travel the world visiting our co-op farms to verify that their
growing and cultivating processes match our high standards. These operations provide an
ongoing source for essential oils that meet Young Living’s demanding quality standards.
Distill
Combining ancient and modern techniques, Young Living is recognized as an innovator in
essential oil distillation. We use a gentle, proprietary technique for steam extracting the most
effective essential oils, as well as using cold pressing and resin tapping methods for select oils.
Test
Young Living never accepts diluted, cut, or adulterated oils. To guarantee consistent quality, our
oils are tested in Young Living’s own internal labs, as well as in third-party facilities, to ensure
that they meet stringent specifications, exceed international standards, and contain the optimal
levels of natural bioactive compounds.
Seal
Young Living completes the Seed to Seal process in its 107,000-square-foot facility in Spanish
Fork, Utah. Using state-of-the-art equipment, each essential oil is carefully bottled into
protective amber glass bottles—ready to be shipped to members worldwide.
34
Informal Interview: Young Living Essential Oil wholesaler
Contacts: Cole Woolley PhD, Analytical Chemist, Vice President of Global Science
Richard Carlson PhD, Analytical Chemist
Email: cWoolley@youngliving.com
Date: March 5, 2014
Method: Dr. Woolley agreed to a phone call after initial email correspondence. Tricia Andrade
called him from her home to his office in Utah via 801-418-8900 (asked for Dr Woolley) and he
requested Dr. Carlson be included in conversation via speakerphone. We spoke for 45 minutes.
INTRODUCTIONS:
Tricia introduced herself/context: (vet career, MPVM candidacy, IAD electives), D-Lab course,
Nepal NGO client/project.
(From the website): Dr. Woolley is an expert instructor on essential oils and nutritional and
personal-care products. He obtained his PhD in chemistry from Brigham Young University and
has worked with and consulted for Fortune 500 companies in the analysis of foods, flavors, and
beverages for the past 20 years. An expert on gas chromatography, Dr. Woolley has helped
invent numerous devices that determine the purity of essential oils and other substances with a
high degree of accuracy. Dr. Woolley has also developed more than 100 nutritional, personal
care, and essential oil products and given more than 300 natural health-care presentations
throughout the world.
(From telephone conversation): Dr. Woolley has been with Young Living for 4 years and has
focused on essential oils for the past 10 years. He has strong interest in health and recognizes the
different uses of essential oils for humans and animals (where the oils often need to be properly
diluted for safe use). He has been travelling the globe either by request of country or by Young
Living.
(From telephone conversation): Dr. Carlson also has a PhD in Chemistry and has specialized in
Analytical Chemistry including chromography and mass spectrometry including instrumentation
for 18 years. He is familiar with many types of samples including liquids, solids, and fuels. He
has been with Young Living for 14 months.
PARTNER FARMS: In general, Young Living is focused on essential oils used for health care,
nutritional and personal care products. The company owns farms in the United States and
globally as well as having a growing number of “partner farms” around the world.
Dr. Woolley described partner farms. Typically, Young Living science advisory group initially
supports these farms technologically and financially, but the farms are owned by the local entity.
Profits remain locally. The local entity also generally takes care of ongoing costs, legal and
environmental concerns. Young Living purchases the oils from the locals based on mutual
exclusive agreement with intent of a lasting relationship (although usually not legally binding).
Efforts are made to begin with what the region has if possible, or to assess possibilities based on
a variety of factors.
Many of these partner farms/owners are self-educated.
Three examples:
1. Oman - Four years ago Dr. Woolley was asked to go to Oman to start a partner
farm/distillery. A medical doctor who heads up the organization privately owns this enterprise.
35
Young Living helped set up a system from nothing. They focused on Frankincense (resin) and
the first year they shipped 30 kilos of essential oils per month. Now they ship 80 kilos of oil per
month. Jobs have been provided to the locals and the enterprise is supporting indigenous peoples
who have been collecting resin for 5000 years. In this particular enterprise, the doctor is using
most of his profits to conduct medical (cancer) research.
2. Taiwan - This partner farm is run by an agronomist PhD who had retired from a government
position. There is a history of land ownership problems and most farms are 1-5 acres per person.
Taiwan has agriculture regulations which have good standard operating procedures, but very
consistent. There was not much room for innovation. Young Living was able to provide start up
money. Growing herbal plants can be a slow start of 1-2 years, so it can be 3-5 years before there
is enough to launch a product. In Taiwan, they were able to find currently available plants to
work with. Historically there had been 50,000 acres of lemongrass planted during Japanese
occupation. Dr. Woolley located the last remaining viable 50 acres that were owned by
indigenous people. And they had a still on the grounds. So this was an opportunity to use an
available crop. And they are producing about 60 kilos of oil/month. This enterprise is helping a
tribe of 300-400 people.
3. Israel - Same as above, Young Living supported a local organization and helped set up a
private enterprise for essential oil production where the locals keep the profits. This is a small
production unit of 8 kilos of oil per month.
4. Bhutan - Here Young Living is just starting a partner farm. So far they are collecting samples
and running chemical analysis of about 25 plants. Bhutan is using a small still.
In some of these places they started with a list of 150 plants and it took two years to narrow the
list to 11 feasible plants. Some places (Canada) agreements are made with the timber industry to
collect the discarded lower branches for oil extraction.
The point is all that is needed really is one business minded person – can be a local or a NGO –
the person can be a doctor or scientist or business owner – just need someone who can
communicate. Young Living can get the distillation technology (on a variety of scales) to
anybody.
The Young Living Company has been steadily growing at a slow healthy pace for the past 20
years. More recently, they are starting somewhat of a network marketing system but it is not a
get rich quick scheme. Several factors have contributed to a 40-60% increase in growth – one of
which is the changes in our US health care system and a stalled economy. People are really
excited about the essential oils as a healthy lifestyle choice so there is a strong market for the
medicinals (human and animal) and personal care products.
The volume produced can vary and that’s ok. Very recently, Young Living marketed a “one
time” package of exotic oils. They used about 40-60 liters of oils knowing they would not likely
get the same oils in quantity again soon. Oils that they know they can get consistent
quantities/keep the supply chain up are kept on their regular offerings for sale. Some partner
farms in the US produce 23,000 liters and the farms range from 300 to 1000 acres. For a
developing country, they need at least 5 liter and ideally 40-60 liters.
It is important to have the crops and a buyer. You can’t run a business with a ‘distill as you sell’
model.
Every June, there is a company convention in Salt Lake City, Utah. The presentations are packed
with people. And the most popular presentations were the talks about oils for animal. Young
Living is putting together animal care kits and guidebooks.
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So, to summarize, Young Living start up partner farm model is:
1) Identify a knowledgeable person to communicate with
2) Identify available plants or plants recommended by ethnobotanical traditional healers
3) Give the locals a 5-liter distillation unit so they can produce 1-2 ml of essential oil
Young Living pays them to create prototypes, and the partner farm sends samples to the Young
Living analytical lab to assess the chemical composition and quality. Then they advise on next
steps. Help locals develop the enterprise knowing that Young Living will have a source of
quality essential oils. Part of this marketing and sales success is the stories behind the oils – the
indigenous people, plants, and product. Young Living provides technical and financial support
for research and scaling up. So the local enterprise can go from 5 liter to 500-liter distillery.
Then, the next steps are:
5) The partner farm develops their own distillery based on plant types chosen and volume
expected.
6) Or alternatively, transport raw material if there is an existing regional distillery
Young Living in essence can be a silent partner. The local enterprise knows they have a steady
buyer but it’s their choice who they share the information with. The point is the locals are
contributing to getting a product to alternative health seekers – which for Young Living
Company is over 300,000 worldwide customers.
Regarding quality control – it is very important and that’s why Young Living tries to get the
partner farms off to a good start because the quality starts with the plants and the environment.
The control of the supply chain is important from raw materials to collection to distilling. The
specifications are built around all of those steps. The analysis of oils will vary with climate, soil
types, and rainfall. Sometimes they have to take drought conditions into consideration. Some
essential oils have specific iso-standards but other oils get specifications developed.
However, the analysis can be done in stages. The partner farms can be set up with simple
analysis system that a local can be taught to do. It is optical rotation (polarimity) (the system
costs about $500) – it shows how compounds affect the light shining through them. This tells
you something about the quality and authenticity of the plant material that the oil has come from.
Then Young Living can do a more thorough analysis at one of their state of the art testing
laboratories.
The main technical part of the supply chain is the distillation where there needs to be a way of
separating the oil from the water and there should be a filter.
NEXT STEPS: In June or July, Dr. Woolley will be in Bhutan and would be interested in
visiting BELT NGO in Nepal to discuss the company, share expertise and explore the possibility
of a Nepal partner farm.
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BOX 1. SUPPLY CHAIN REGULATIONS AND REQUIREMENTS
Harvesting, Preliminary Cleaning, Distillation Unit
1. For forest collection - Initial Environmental Examination (IEE). Environmental Impact
Assessment for over 50 tons.
2. Registration of cottage industry with Office of the Cottage and Small Scale Industries (need
IEE, letter from VDC, public hearing, etc.)
3. Community Forest or Leasehold Forest ok to collect if approved by operational plan but need
a consensus letter of District Forest Office (DFO). Need a license from DFO to collect from
government-managed forest.
4. Processing of plants for essential oil can only occur after approval of IEE on basis of capital
invested, quantity of plants and nature of pollution they will create.
5. Generally, the CFUG has an agreement to sell raw material to a nearby distillation unit. The
manager of distillation unit is responsible for the agreement with company/exporters and
arranges delivery to them.
(Gurung 2010)
BOX 2. DOCUMENTS FOR EXPORT (Gurung 2010)
Overseas (Europe and US)
1. Certificate of industry registration/export firm
2. Tax: Permanent Account Number or VAT registration certificate
3. Commercial invoice
4. Payment certificate or advance payment certificate
5. Certificate of origin
6. Generalized system of preference form
7. Typed copy of formatted application, stating name and address of importer/exporter
8. Packing list
9. Means of transportation and route
10. Bio-safety statement/MSDS
India
1. Certificate of industry registration/export firm
2. Tax: Permanent Account Number or VAT registration certificate
3. Commercial invoice
4. Payment certificate or advance payment certificate
5. Packing list
6. Means of transportation and route
Additional documents needed for India:
7. Annual production capacity
8. Production flow chart and description of articles
9. Item number (HS tariff code)
10. Cost Sheet
11. Royalty payment of herbs
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BOX 3. MANDATORY DOCUMENTS (Gurung 2010)
Certificates/Documents
Release permit
Certificate of advance payment
Firm registration
Generalized system preference
Certificate of origin
PAN/VAT registration
Non-hazardous/Non-explosive
Recommendation letter to Customs
Authorized Issuing Institution
District Forest Office
Commercial Banks
Department of Commerce
Department of Cottage and Small Industry Board
Office of Company Registrar
Department of Inland Revenue
Trade Promotion Center
Federation of Nepalese Chamber of
Commerce/Industries
Confederation of Nepalese Industries
Exporting companies/firms
Department of Plant Resources
BOX 4. OPTIONAL CERTIFICATIONS
Certification
Certifying Body
Contact Info
NAHA member
National Association for Holistic
Aromatherapy
FLO-CERT (international)
www.naha.org
SCS Global Services2 (for nontimber forest products)
www.scsglobalservices.com
Sustainably Grown
SCS Global Services
www.scsglobalservices.com
USDA Organic1
US Department of Agriculture
www.ams.usda.gov/AMSv1.0/nop
VegeCert
The Kosher Council COR
www.vegecert.com/
Fair Trade
FSC Responsible
Forestry
www.fairtrade.net/certifying-fairtrade.html
1. Organic essential oils are steam distilled from plants that have been grown under the USDA National Organic
Program (NOP) standard of organic farming. This certifies the process (from ground to the distillation) occurs
without the use of toxic pesticides, synthetic nitrogen fertilizers, or GMOs.
2. SCS has a variety of certifications available to producers.
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BOX 5. WHOLESALE PRICES OF DESIREABLE MEDICINAL TAXA
Plant
Wholesale Price
Harvest Type
US dollars per Kilo1
Bergamot
95
Grapefruit
70
Lavender
90 - 220
Lemon
75
Palmarosa
150
Patchouli
220
Peppermint
95
Rosemary
75
Sandalwood
1300 - 1600
Tea Tree
110
Yarrow
365
cultivated
Ylang ylang
150 - 375
cultivated
1
cultivated
One kilo is approximately one liter. Price averaged from researching a variety of websites.
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BOX 6. POTENTIAL COMPETITORS
Name of Company (Alliance)
Contact Information
Himalayan Bio Trade Pvt. Ltd., Kathmandu
(GIZ)
Natural Resources Industries (GIZ)
www.himalayanbiotrade.com
Shambhala Herbals & Aromatic Industry Pvt.
Ltd, Kathmandu (GIZ)
www.shambhala.com.np
Khaptar Aroma Pvt. Ltd, Kathmandu (GIZ)
khaptar@wlink.com.np
Chaudhary Biosys Pvt. Ltd, Lalitpur (GIZ)
www.biosysnepal.com
Gorkha Exim Pvt. Ltd, Kathmandu (GIZ)
www.gorkhaexim.com
Aarya Aroma, Kathmandu (recommended by
US retailer, Chris at White Lotus Aromatics)
info@essencenepal.com, www.essencenepal.com
www.msinp.com
Contact: Kailash Dixit, owner
Herbs Production and Processing Co. Ltd,
Kathmandu (exporter)
hppcl@wlink.com.np
Male’ International Pvt. Ltd, Lalitpur
(exporter)
www.male.com.np
Natural Products Industries, Kapilbastu
(exporter)
Not found
Unique Himalayan Herbs International Pvt.
Ltd, Kathmandu (exporter)
www.herbsonweb.com
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Problem Tree:
42
Stakeholder Analysis Summary:
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Stakeholder Interests:
44
Summary of Stakeholder Assets:
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Evaluative Matrix for Extraction Technologies:
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CHEMICAL ANALYSIS CERTIFICATION EXAMPLE
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OPTIONAL CERTIFICATION EXAMPLE – USDA Organic
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OPTIONAL CERTIFICATION EXAMPLE – Sustainably Grown
50
POTENTIAL ALLIANCE
United Nations Environment Programme
environment for development
Advisory Services
Capacity Building for Biotrade in Nepal
Biotrade and Green Economy Week
30 May -3 June 2011
Katmandu, Nepal
Organised by UNEP
In cooperation with UNCTAD and GIZ
As part of the Nepal Capacity Building for Biotrade project
(CBBT), UNEP organised a biotrade and green economy week in
Kathmandu. The CBBT project is part of a bigger initiative that is
also being implemented in Namibia and Peru with the support of
GIZ and in cooperation with UNCTAD. CBBT seeks to analyse
and advertise the potential of biodiversity bases businesses in
transitioning to a green economy, and achieving economic
development, conserving biodiversity and ecosystems, and
reducing poverty. Based on the analysis, it aims to build national
capacities to benefit from the opportunities offered by biotrade.
Nepal is endowed with abundant biodiversity and natural resources but it ranks among the world's poorest countries,
with a per capita income of around $427 in 2009. A major share of national economy and well-being of its people
heavily depend on sustainability and use of these resources. Agriculture remains Nepal's principal economic activity,
employing over 73% of the population and providing 34% of GDP. About 33% of the total land is under forests,
which are the depositories of biodiversity and genetic resources. Agriculture and forest provide livelihoods, food
security and climatic stability in addition to exportable products.
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Policymakers, development partners and businesses are increasingly
recognizing the vital role that sustainable production and trade of
biodiversity based products can play in stimulating and sustaining
economic development and exports, creating employment
opportunities and reducing poverty. Similar opportunities are offered
by investing in greening other sectors of economy such as agriculture,
tourism, energy, and manufacturing.
The Biotrade and Green Economy Week brought together participants
from the private and public sectors as well as representatives from a
variety of development cooperation agencies to discuss the potential for
biotrade and green economy in Nepal and options to support the country
in realising this potential.
Agenda for the week
1. A national workshop on “Biotrade: A business opportunity with export, poverty reduction and conservation
benefits”.
2. A panel discussion on “Biotrade: A Business Perspective”.
3. A symposium on “Aid for Biotrade and Green Economy: discussion with Bilateral and Multilateral Development
Partners”.
4. A consultation with high-level decision-makers from public and private sector on “Role of Biodiversity in
Investments, Exports and Poverty Reduction:
5. A Public Forum on the Role of the Media in Promoting Biotrade and Green Economy
Find the workshop materials here
For further information, please contact Asad Naqvi (asad.naqvi@unep.org) or Carolina Caeiro
(carolina.caeiro@unep.org).
- A-Z of UNEP
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POTENTIAL ALLIANCE
About ICIMOD
http://www.icimod.org
The International Centre for Integrated Mountain Development (ICIMOD) is a regional intergovernmental learning
and knowledge sharing centre serving the eight regional member countries of the Hindu Kush Himalayas –
Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan – and based in Kathmandu, Nepal.
Globalization and climate change have an increasing influence on the stability of fragile mountain ecosystems and
the livelihoods of mountain people. ICIMOD aims to assist mountain people to understand these changes, adapt to
them, and make the most of new opportunities, while addressing upstream-downstream issues.
We support regional transboundary programmes through partnership with regional partner institutions, facilitate the
exchange of experience, and serve as a regional knowledge hub. We strengthen networking among regional and
global centres of excellence. Overall, we are working to develop an economically and environmentally sound
mountain ecosystem to improve the living standards of mountain populations and to sustain vital ecosystem services
for the billions of people living downstream now, and for the future.



Strategic Framework
Vision and Mission
Organizational Chart
Downloads

Strategic Framework (PDF, 1.95MB)
© 2008 - 2014COUNTRIES
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POTENTIAL ALLIANCE/COMPETITOR/BUYER (no contact made)
http://www.vossenbio.com
Vossen & Co, a private company established in 1987 and located in Brussels, Belgium, distributes organic essential
oils from Nepal, Vietnam, Ethiopia, Bhutan, India, Bulgaria and Albania.
These products are used worldwide in aromatherapy, and for the production of fragrances, cosmetics, flavourings
and pharmaceuticals.
In its cooperation with the production countries, Vossen & Co is determined to behave in a socially responsible way,
endeavoring to create maximum local employment in correct conditions, without race or gender bias, paying fair
prices, and respecting nature and sustainability. In line with this philosophy, it insists on applying the rules of
organic agriculture and organic wild harvest.
Nepal
In Nepal the making and use of essential oils goes back to millenary traditions (Ayurveda and Tibetan medicine).
Obtained by slow steam distillation with pure Himalayan water, these oils are the essence of herbs, leaves, roots,
fruits and flowers that are either organically grown or wild-collected in the valleys and mountains of the country.
Vossen & Co has its own sister company in Kathmandu: Malé International Pvt. Ltd. This office effectively controls
the plantations and the distillation, packing, transport and warehousing of the oils and herbs. It is also responsible
for the internal control on the implementation of the very strict rules of organic production.
Since 2005, Malé developed its own pilot-plantations in the subtropical Terai region of Nepal, thus creating ever
more employment and facilitating test-runs of new products. You can check out the web-site of Malé International at
www.male.com.np
In 2002 Vossen & Co obtained the organic certification (EU and USDA/NOP) for 18 Nepalese essential oils. Since
then, this certification has been yearly renewed. Our certifiers are Aditi Organic Certifications, Certisys and CERES.
The increased market access created by this certification means a better income for rural communities and families
living isolated in the mountains. It is also reviving the activities of small distillers in the countryside, and helps to
preserve their traditional know how.
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POTENTIAL BUYER/ALLIANCE IN NEPAL (no contact made)
Malé believes in the value of organic products, grown without chemical fertilizers or pesticides,
processed with pure himalayan water, and offered totally pure and unadulterated. The raw
materials collected in the wild are usually organic since these products are found in remote areas
not easily accessible, for which collectors have to be specially mobilized. There also has been an
increasing awareness about organic cultivation in Nepal, and since most of the farmers are too
poor anyway to afford chemical fertilizers in their fields, they happily stick to the traditional
organic way of farming.
After research and market tests, it was found that the Nepalese essential oils were relatively
unknown in the international market and it would be difficult to compete unless a product
differentiation approach was adopted.
Therefore, Vossen & Co. (www.vossenbio.com) in cooperation with Malé, decided to apply for
organic certification of essential oils from Nepal and to supply its products in niche markets. In
september 2002, the first organic certification was obtained for 45 tons of 18 different essential
oils. Since then, the certification has been renewed each year.
Malé International carries out the internal control to ensure the organic status of its products,
strictly following the norms and procedures of organic cultivation, handling, processing and
storage as specified by the EEC and USDA/NOP regulations.
Certified organic Essential oils
Common Name
Botanical Name
Anthopogon Oil
Rhododendron anthopogon
Basil Oil
Osimum basilicum
Chamomile Oil
Chamomilla recitita
Citronella Oil
Cymbopogon winterianus
Eucalyptus Oil
Eucalyptus spp
Jatamansi Oil / Spikenard
Nardostachys jatamansi
Juniper Twigs and Berry Oil
Juniperus recurva
Lemongrass Oil
Cymbopogon flexuosus
Palmarosa Oil
Cymbopogon martinii
Wintergreen Oil
Gaultheria fragrantissima
Zanthoxylum Oil
Zanthoxylum armatum
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Malé International Pvt. Ltd. has been active in Nepalese trade and industry since 1999,
particularly in the sector of medicinal and aromatic plants (MAPs). These are found in
abundance due to the country's unique geo-climatic variations. In order to capitalize on
these natural resources Malé International embarked on cultivation, processing, and
marketing of medicinal and aromatic plants from organic and sustainable sources. Within a
short span, Malé International made a difference to the livelihood of the poor by creating
employment opportunities, promoting cultivation of MAPs in community forestland and
marginal/wasteland, transferring its technical know how, and guaranteeing a market for
the collected or cultivated MAPs.
Malé International supports cultivation activities on organic private and/or community
owned land, mainly in the Terai or southern part of the country, where it also operates its
own processing unit. The collection of raw material in the wild is mainly concentrated in
the mid hills and alpine regions of Nepal .
Malé International exports organic essential oil extracted by slow steam distillation from
leaves, berries, flowers or rhizomes of trees, plants and herbs.. Some oils are
AIMS:





To cultivate, process and market organic medicinal and aromatic plants of Nepal.
To provide rural employment and fair prices to farmers, collectors and processors
of medicinal and aromatic plants.
To cultivate and process organic medicinal and aromatic plants of Nepal and to
market their essential oils
To develop a competitive advantage by marketing products unique to Nepal such as
Jatamansi (Spikenard),Anthopogon, Zanthoxylum etc.
To contribute towards environmental protection and bio-diversity by purchasing
products from sustainable sources.
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POTENTIAL BUYER/ALLIANCE IN US
Kemin Industries, Inc.
Contact: Dr. John Greaves, Vice President, Specialty Crops
2100 Maury Street Des Moines, Iowa USA 50317
Phone: 1-515-559-5100, cell 515-864-6890
Email: John.Greaves@kemin.com
Tricia contacted company via email and message was given to Dr. Greaves. He is very interested to talk but
was headed on vacation until the end of March. He wanted to know what kind of plants might be available.
This information was not shared with him.
www.kemin.com
US base in Iowa but has headquarters in Singapore, Tokyo, China, Belgium, Portugal, India and
Brazil. Kemin combines sound molecular science with the human qualities of creativity,
curiosity and collaboration to improve the lives of humans and animals around the world. Using
superior science, Kemin manufactures more than 500 specialty ingredients that deliver important
nutrition and health benefits through products consumed by people and animals.
Our vision is to improve the quality of life by touching half the people of the world every day
with our products and services.
Audacious? Yes. Impossible? A lot of people once thought voices over telephone wires, light
without fire, microbes that cure diseases and robots roving Mars were “impossible,” yet they’re
all old news today. An audacity of imagination combined with the power of science makes the
“impossible” possible every day.
Since our founding in 1961, Kemin has combined the uniquely human with the powerfully
scientific to do amazing things. And as commendable as our first 50 years were, we think our
best days are yet to come.
With a shared vision of responsibility and service, Kemin is committed to improving lives in our
communities and around the world through charitable involvement, valued partnerships and
sustainable operations.
Valued Partnerships
The World Food Prize®
Kemin has been an active supporter and participant in The World Food Prize, started by Nobel
Peace Prize winner Norman Borlaug, ever The World Food Prize headquarters returned to Des
Moines in 1990. The World Food Prize honors outstanding individuals who have made vital
contributions to improving the quality, quantity or availability of food throughout the world. The
World Food Prize also draws attention and resources to the challenges still facing food security
worldwide.
World Food Programme®
Organized the very same year Kemin began operations (1961), the World Food Programme
(WFP) pursues a vision of the world in which every man, woman and child has access at all
times to the food needed for an active and healthy life. Kemin has been working with the World
Food Programme for several years, sharing its understanding of how to prevent the degradation
of food. As the number of food emergencies continues to rise, Kemin scientists and quality
assurance staff are working harder than ever to help the World Food Programme deliver food
that provides the maximum nutritional value despite less than desirable storage and
transportation conditions.
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