PCTI/20141021/CoB/CSIR/77 ‘Adding value to South Africa’s ... · • CSIR entered into a...
Transcript of PCTI/20141021/CoB/CSIR/77 ‘Adding value to South Africa’s ... · • CSIR entered into a...
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‘Adding value to South Africa’s Indigenous Knowledge and Plant
Biodiversity through Scientific Innovation’
Marthinus HorakCSIR Enterprise Creation for Development
PCTI/20141021/CoB/CSIR/77
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Contents
• Background
o South Africa’s knowledge and biodiversity resources
• Rural agro-processing enterprises: lessons from the trenches
o Essential oils and medicinal plant demonstration projects funded by Department Science and Technology
• Conclusions
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Background information
• The CSIR:o Is a leading technology development institutiono Contributes to socio-economic development of the country through
knowledge creation and knowledge application activitieso Contributes to national imperatives of job creation, rural development,
human capital development and meeting of basic needs.
• Enterprise Creation for Development (ECD):o Utilizes science and technology solutions to address poverty and
underdevelopmento Sources technology from CSIR units, universities, research councils
and other participants in the National System of Innovation‒ Currently implementing a portfolio of DST-funded essential oil and
medicinal plant (EO&MP) projects aimed at demonstrating agro-processing businesses in favour of socio-economically excluded, rural communities.
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South Africa’s plant biodiversity
• 24 500 plant species occur in South Africa
o Approximately 10% of plant species known to mano South Africa represents only 2% of land surface area of the
worldo Approximately 11 700 endemic specieso Nine unique vegetation types
• Plants occur in highly diverse ecosystemso Adapted to extreme climatic conditionso Many species evolved and survived for millenniao Developed sophisticated chemical defence mechanisms
‒ Potential source of biologically active metabolites
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South Africa’s indigenous knowledge systems
• Local Traditional Healer practices:
o A long history of traditional use of indigenous plants to treat human ailments
o More than 200 000 Traditional Healers are active throughout the country
o Approximately 70% of South Africans regularly consult a Healer
• Knowledge of medicinal value of indigenous plants
o not yet leveraged for the benefit of sustainable development in South Africa
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National System of Innovation
• Indigenous plant species have been researched by botanists, taxonomists, plant ecologists, etc. at many universities and research institutes during the past 60 years
• Natural product chemists, pharmacologists, etc. have contributed significantly to mankind’s understanding of biologically active substances from plants since the second world war
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South Africa’s competitive advantage
Unique Plant Biodiversity
Indigenous Knowledge System
National System of Innovation
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Harnessing South Africa’s competitive advantage
Biodiversity
ScientificInnovation
Indigenous Knowledge Systems
Research findings, publications, technology packages, patents
New enterprises that cultivate and process indigenous plants with fragrant, cosmetic, medicinal and/or nutritional value
‘Innovation chasm’
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Why focus on Essential Oils and Medicinal Plants ?
• Lucrative global markets
• South Africa does not yet participate significantly in these markets, despite our access to resources:
o Heritage of indigenous knowledge on the medicinal use of plantso History of scientific research at local research institutes and universitieso The diverse climatic regions supports EO&MP species
• EO&MP productso shelf-stable o high-valueo low volume
• EO&MP - opportunity for on-farm value-addition through processing of harvested crops
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EO&MP sector objectives
• Develop the EO&MP sector:
o Identify suitable EO&MP products o Identify technical production hurdles, source and implement technology
solutionso Create market linkages for locally produced EO&MP productso Develop sector protocols
− land and water use− environmental issues − biodiversity access and benefit sharing
• Enterprise creation projects to facilitate participation of developing rural farmers
• Commercialize novel, locally invented EO&MP products
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Conceptual Framework for developing the sector
Slide 11
Sector development initiatives
Donor Agencies and Private Sector
Government Departments
KnowledgeGenerationInstitutions
Beneficiaries:• Communities• Enterprises• Individuals
Stakeholders (NGOs, Agencies, Service Providers etc.)
National, Provincial & LocalPolicies, Strategies, Programmes & Instruments
Needs
Solutions
Programmes, projects and funding
Funding
Technology and knowledge
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Level of involvement
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Continually decreasing mentorinvolvement, control and responsibility
Continually increasing local/community involvement, control and responsibility
Initiate project
Mentorbusiness
Establish Infrastructure
Establish production and create market linkages
Train staff andembed Good Farming and ManufacturingPractices
Establishbusiness
5 years
100% 100%
10%
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IKS and scientific research collaboration: a case study
• A consortium of Traditional Healers approached CSIR during early nineties to establish collaboration
• The aim was to scientifically validate the knowledge of Healers on the beneficial uses of various plant species
• The result was the invention of a novel insect repellent product by CSIR
• CSIR patented the use of the essential oil of Lippia javanica as an insect repellent
• CSIR entered into a benefit-sharing agreement with the consortium of Healers whereby royalties on sales are paid
• Three community-based essential oil agro-processing farms currently produce the insect repellent oil
• CSIR licensed a local entrepreneur to manufacture and distribute the mosquito repellent product
• The invention provided an opportunity to demonstrate the value of beneficiation of local natural resources and indigenous knowledge
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CSIR innovation leads to community-based cultivation of an indigenous plant species….
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Distillation of crop to give the essential oil….
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Formulation of essential oil in candles….
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Patented mosquito and fly repellent product on the shelves of more than 200 local stores
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Current EO&MP projects
Slide 18
Geographic dispersion of projects increases implementation costs but facilitates inclusive development
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Rose geranium cultivated by Pella community, Northern Cape
Slide 19
Distillation factory
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Rose geranium essential oil production at KwaNobuhle
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Scientifically validated results allow replication of successful cultivation and processing sites
Slide 21
Telemetric weather stations and soil moisture meters are installed on project sites
The quality of EO&MP products areconfirmed through chemical analysisprior to shipment to buyers
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Pilot production of Rosa damascena essential oil at Ficksburg
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• Rosa damascena oil of Bulgarian origin certified as organic is worth R105 000 per kilogramo The species is suitable for very cold climates
• Project requires horticultural and engineering innovations:o Stem grafting of imported genetic material to establish a local
propagation systemo Hydro-distillation basedon recycled engine oil as fuel source to generate steam
Rosa damascena at Ficksburg – November 2013
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Regional collaboration: development of the Essential Oil sector in Uganda
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• Uganda Industrial Research Institute contracted ECD to assist with development of the Essential oil sector in Ugandao Aim is to benefit from ECD’s experience gained while developing the
sector in SA• Phase 3: Pilot Operation is currently underway• UIRI staff were trained in SA and ECD staff members undertakes
project site visits in Uganda
Rose geranium crop ready for harvesting Essential oil distillation unit being installed
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Requirements for establishing an essential oil production site
o At least 30 Ha of arable lando Access to irrigation watero Access to Eskom electricityo Approximately 15 workers and one supervisor on 30 Hao Construction of a distillation factory on the farmo On a well-managed farm, the financial returns from sale of oil is sufficient to
cover costs of area under cultivation and yield a profito Requires commitment from workers and management
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Requirements for establishing an essential oil production site (continued)
• The project and resultant enterprise must conform to a highly involved legislative framework:• National Environmental Management Act (Act No. 107 of 1998) (NEMA), as amended
in 2008• National Environmental Management: Biodiversity Act (Act No. 10 of 2004) (NEMBA)• National Environmental Management: Biodiversity: Amendment Act (2008) –
Integrated Export & Bioprospecting Permits, Material Transfer & Benefit-Sharing Agreements (BABS Regulations)
• National Environmental Management: Air Quality Act (39 of 2004) (NEMAQA)• National Environmental Management: Waste Act (Act No. 59 of 2008) (NEMWA);• National Heritage Resources Act (Act No. 25 of 1999) (NHRA)• National Water Act (Act No. 36 of 1998) (NWA) – application for a Water Use License• Conservation of Agricultural Resources Act (Act No. 43 of 1983) (CARA)• Occupational Health and Safety Act (Act No. 85 of 1993) (OHSA),
as amended in 2008
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Conclusions
• Agro-processing of high-value essential oils and medicinal plants under irrigation:
o A viable opportunity for rural farmerso Requires access to 5 -30 Ha – not a cottage industryo Technology transfer and market access models are proveno Wealth creation leads to job creation
But:• Business models for enterprises on communal land not yet proven
o Management of working capital, cash flow and ongoing mentoring remains a challenge
o Business partners may be required
• Legislative framework is stifling growth of the sector
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Thank You!