Hawthorn Market Report Available

Practitioner Sales Channel Assessment / Value Chain Opportunity Identification for Hawthorn

A new report from the Naturally Grown Herb & Spice Producers Cooperative (HerbPro) prepared by Raman Maangat with funding from the BC Agroforestry Industry Development Initiative

The purpose of this market study was to assess opportunities for BC and Canadian farmers of herbs and botanicals such as the native Crataegus species (i.e., hawthorn).

Historically farmers in the Canadian Herb/Botanical agricultural sector have been struggling to survive because of:

• Lack of small scale market demand
• Low profile of Canadian/BC grown herbs and botanicals.
• Competition with low cost commodity herbs/botanicals (China, Eastern Europe, South America)
• Little collaboration amongst BC and Canadian Growers

The Naturally Grown Herb and Spice Producers Cooperative commissioned Ms. Raman Maangat to conduct this study to determine whether there are opportunities to work directly with practitioners, apothecaries, and dispensaries to supply Canadian grown herbs and botanicals grown using safe and responsible farming practices.

The decline of the BC botanical and herb industry has been known for some time. However, it is thought there are some unique opportunities which may reinvigorate the industry. One such opportunity was thought to exist with respect to the naturopathic practitioners; this industry grew over 150% between 2001 and 2009 in Canada. To understand market opportunities it is important to complete a thorough assessment of the market in question.

After a complete market analysis of naturopathic practitioners in Western Canada, it is understood that although there is significant growth in this sector, it would be premature to consider this sales channel due to the following:

• Practitioner sales channel is very disparate. In order to understand the possible opportunities that may exist in the untapped practitioner sales channel market it is important to understand the scope of Canadian complementary and alternative medicine (CAM) channel in Canada and how the different areas of the discipline are defined. There does not seem to be ‘a common thread’ partially due to the number of different scope or treatment areas the practitioner chooses to practice or emphasize.
• Global competition has led to commodity based pricing. Currently botanical and herb producers in BC have not been able to differentiate their products and practices from that around the world.

1. The cost of production is generally higher in BC relative to many producing regions around the world.
2. Regulatory compliance has resulted in grower programs such as good agricultural and collective practices (GACPs), which add costs to production. Increased market awareness on GACPs and traceability should be initiated in order to differentiate the BC and Canadian industry/products from global competitors.

• Lack of published research and clinical trials associated with the indigenous Crataegus species found in Canada. Until there is science based evidence and proof that the indigenous species is better than the European Crataegus species practitioners will not accept hawthorn products that do not have science based evidence associated with the products. However, should there be future clinical trials; practitioners indicated willingness to participate in the trials.

Hawthorn growers in BC are urged to consider value chains in order to better understand the market opportunities. Some areas to look into with respect to value chain development include developing partnerships/relationships with existing companies that currently have direct sales to practitioners.
The market analysis has highlighted some key focus areas for hawthorn growers including the need for:

• More published research and clinical evidence.
• Generating market awareness on programs such as GACPs, traceability certified organic practices, etc.
• Considering other hawthorn based products.

Download a copy of this report

Delta Farmers and UBC Farm Cultivating Sustainable Agroforestry

With increased consumer demand for ethically and sustainably sourced products, and new markets with the emergence of carbon offsets, BC’s agricultural sector has an exciting opportunity to contribute to sustainable land use and generate new income streams.  While many agroforestry stakeholders and community members are already practicing sustainability, there are opportunities for new products and services and new financing mechanisms that are not well known in the farming community.  The lack of inter-community and public awareness, market access, communication, and exchange of ideas in this area leaves significant gaps in the overall strength, vitality and innovation of the agroforestry sector.

The Delta Farmers' Institute (DFI) in partnership with the University of British Columbia Farm (UBC Farm), and with funding from the British Columbia Agroforestry Industry Development Initiative, will be hosting a workshop to start to address these gaps.  The workshop will facilitate discussion, networking, hands-on learning, demonstration, and an exchange of ideas across sectors, cultures and generations.  It will bring together a broad cross-section of farmers, land managers, policy makers, small businesses and others in BC’s lower-mainland, Vancouver Island and the Gulf Islands to help put sustainable agroforestry into practice on their lands.

The workshop, to be hosted at the UBC Farm in Vancouver, will be a forum to discuss small-scale production and marketing of timber and non-timber products and services, riparian and terrestrial buffers, emerging opportunities and technologies, removing barriers to market access, niche marketing strategies, and the role of regulation.  It will also include hands-on demonstration sessions covering forest farming, windbreak/hedgerow establishment, and managing a trial Mediterranean truffière.  Information presented at the workshop will be incorporated into a Future Directions package, a quick-reference guide that summarizes sustainable agroforestry trends, emerging opportunities, practices, marketing considerations, and challenges.

UBC Farm will host an agroforestry workshop

DFI is leading this project due to increasing awareness of, and interest in, the benefits of alternative sustainable opportunities such as agroforestry, among the regional farming community.  Agroforestry requires a long-term vision and commitment and DFI believes that building links between current and future generations of farmers is critical to our futures as successful land stewards.  Partnership with UBC Farm will enhance its organizational capacity, provide a working demonstration site with event hosting services, build on established partnerships with practitioners, researchers and policy-makers, and improve connections with students interested in careers in agroforestry and land stewardship.  The UBC Farm currently offers a wide range of interdisciplinary learning, research and community programs on site, while operating as a working food/fuel/fibre-production farm.

The Delta Farmers’ Institute was established in 1898 and is a non-government and non-profit farm producers’ organization.  DFI’s mandate includes supporting farmers working to increase conservation, greenbelt projects and production of alternative sustainable crops.  Most notably, DFI has been instrumental in supporting Delta Farmland and Wildlife Trust’s establishment of roughly 18,000 m² of hedgerows, and riparian and terrestrial buffers throughout Delta.

Agroforestry Session at the 2012 Hort Growers Short Course

The Lower Mainland Horticulture Improvement Association (LMHIA), with funding from the British Columbia Agroforestry Industry Development Initiative, is pleased to sponsor an agroforestry educational session at the 2012 Horticulture Growers Short Course.

The Horticulture Growers Short Course will be held in partnership with Pacific Agriculture Show, January 26-28, 2012 at the Tradex Exhibition Center (Abbotsford Airport) in Abbotsford, BC.

The Agroforestry Session will take place on Saturday, January 28 from 9 am to 12 pm in the Lobby Room at Tradex. It will be chaired by Dave Trotter, Agroforestry Specialist with the Ministry of Agriculture. The session agenda is as follows:

09:00 - 09:30
Agroforestry Initiative - Current Projects and Funding Opportunities
George Powell, BC Agroforestry Industry Development Initiative 
The Agroforestry Initiative has cost-share funding for projects which benefit industry development including demonstrations, workshops etc; Outlines of current and pending projects will be provided.

09:30 - 10:00
Ideas, Opportunities & Resources – An Agroforestry Retrospective
Harold Macy, Headquarters Creek Woodlot, Merville, BC
Harold will provide an overview of the synergies and considerations from his many years of experience managing a woodlot using a forest farming agroforestry systems approach.

10:00 – 10:30
Break
Harold Macy will highlight his new book: “The Four Storey Forest: As Grow the Trees, So too the Heart”.

10:30 – 11:00
Silvopasture and Range Considerations in BC - Pilot Initiatives for a Production Approach
Lisa Zabek, Ministry of Agriculture, Kamloops, BC
Learn about the new steps that are being developed to support silvopasture as a land use option in BC.

11:00 - 11:30
Huckleberries: Management Strategies for Agroforesters
Ali Kennedy, Keefer Ecological Services Ltd., Cranbrook, BC
Ali will look at the variety of berry species along with the biological and management considerations needed to develop an agroforestry system approach to huckleberries.

11:30 – 12:00
Exploring the Possibilities of Integrated Riparian Management in BC
Dave Trotter, Ministry of Agriculture, Abbotsford, BC
Dave will discuss management considerations for the development of an integrated riparian management systems approach to specialty crops on agricultural lands.

For registration information, or to register online, please visit www.agricultureshow.net or phone 604-556-3001 or 604-857-0318.

Registration fees for the entire Horticulture Growers Short Course (including the Agroforestry Session) are $67.00 (by January 9) or $90.00 (after January 9). Registration fees include membership to the LMHIA, attendance at any or all educational sessions, admittance to the Pacific Agriculture Show, admittance to welcome reception and free parking.

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Funding for this work has been provided through the BC Agroforestry Industry Development Initiative (AGF1104)

Hawthorn Producers Working to Develop New Markets

The Naturally Grown Herb & Spice Producers Cooperative (HerbPro), with funding from the British Columbia Agroforestry Industry Development Initiative, is working to enhance the sales of raw hawthorn ingredients and value-added products through natural health products (NHP) practitioners (those using natural health materials as complementary or alternative medicines).  This work will support value chain development for agroforestry industry advancement in BC.

There is a significant market challenge for BC agroforestry enterprises involved in the production of herbs and botanicals originating from low-cost, commodity-driven imports from Asia, Eastern Europe and South America.  Most Canadian producers of herbs and botanicals have focused on broker/distributor and direct sales, primarily targeted at export markets (Europe and Asia) or small direct-to-consumer sales (via farm gate and e-commerce).  However, despite a growing domestic retail market for NHPs, the sector has experienced decreased grower participation over the past 15 years.  This is primarily attributed to the lack of perceived market opportunities and low returns on raw material sales, particularly in the commodity marketplace through brokers and distributors where producers may receive 10% or less of the wholesale prices.

However, unique opportunities exist in the largely untapped, NHP practitioner market, particularly for high quality fresh or frozen raw ingredients such as hawthorn. Through a detailed analyses of this sales channel, development work led by HerbPro will provide much needed Canadian data on a new market opportunity for all BC hawthorn producers.  In addition, it will explore the potential of value-chain development with NHP practitioners. NHP manufacturers and practitioners are increasingly looking towards local supplies for raw herb materials where they can be assured that suppliers have supply chain control systems in place and can provide a safe supply of accurately identified herbs and botanicals. Together with leveraging the 'buy local' and food security movements, and a forward-thinking approach linking environmental sustainability with health, BC agroforestry producers are well positioned to add value in the practitioner sales channel supply chain and expand their sales opportunities and profitability. 

Incorporated in 2004, HerbPro grew out of a rural community economic development initiative in the BC Rockies.  The purpose of HerbPro is to develop herbal opportunities that balance economic, social and environmental concerns for HerbPro cooperative membership.  In 2005, HerbPro established the Hawthorn Agroforestry Demonstration Farm Trial to determine best practices for hawthorn production management based on the agroforestry land management principles of alley cropping.  This system promotes conservation and sustainable management practices and encourages biodiversity in the ecosystem, while providing a means to diversify farm revenues through intercrop production, and generation of revenue streams from short- and long-term harvested crops.

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Funding for this work has been provided through the BC Agroforestry Industry Development Initiative (AGF1101)