CREATING ADDED VALUE FROM MELALEUCA THROUGH A CIRCULAR ECONOMY

A public-private partnership is helping a company unlock greater value from Melaleuca by developing standardized raw-material areas and embracing a circular-economy model.

Against a backdrop of unstable and sharply declining prices for Melaleuca grown for timber, a public-private partnership between the Forestry Science Institute of South Viet Nam and Pure Global Joint Stock Company to develop a Melaleuca essential-oil raw-material area at the Thanh Hoa Forestry Experimental Station (Thanh Hoa Commune, Tay Ninh) is delivering more stable and significantly higher economic returns than growing Melaleuca for timber.

At the same time, the partnership has enabled Pure Global to develop and bring to market a range of high-quality consumer products, particularly essential-oil products made from Melaleuca quinquenervia, which are gaining consumer acceptance.

The Melaleuca variety being cultivated for essential-oil production at the Thanh Hoa Forestry Experimental Station is Melaleuca quinquenervia. This species, native to Australia, was introduced, trialed, and selectively developed by the Forestry Science Institute of South Viet Nam before being cultivated in various ecological regions across Viet Nam.

Dr. Kieu Tuan Dat, Director of the Forestry Science Institute of South Viet Nam (under the Viet Nam Academy of Forest Sciences), said Melaleuca quinquenervia is well suited for producing essential-oil raw materials, as it delivers a high oil recovery rate through distillation and contains naturally high levels of Cineole.

Building on these advantages, the Forestry Science Institute of South Viet Nam has developed Melaleuca quinquenervia plantations and partnered with essential-oil producers to establish a stable market for the raw material.

In developing the raw-material area, the Institute has focused on establishing a standardized and traceable supply chain, covering from planting materials and cultivation practices to sustainable forest management and planting-area registration. The approach is aimed at ensuring a reliable supply of quality, standardized Melaleuca raw materials for businesses to research, develop and bring new products to market.

Nguyen Thanh Mai, CEO of Pure Global Joint Stock Company, said the company previously worked with a number of farming households to source Melaleuca raw materials for essential-oil production. The farmers supplied Pure Global with Melaleuca branches and leaves, but the raw materials often varied from batch to batch, with some containing an excessive amount of leaves and others too many branches. This inconsistency resulted in fluctuations in both the content and quality of the essential oil.

Since partnering with the Forestry Science Institute of South Viet Nam to develop a 22-hectare Melaleuca quinquenervia plantation for essential-oil production at the Thanh Hoa Forestry Experimental Station (Hoang Gia hamlet, Thanh Hoa commune, Tay Ninh), Pure Global has secured a stable supply of raw materials with consistent quality and output.

With a reliable supply of high-quality Melaleuca raw materials, Pure Global has stepped up production and market distribution of premium Melaleuca essential-oil products at its FDA-compliant facility in Tan Long commune, Tay Ninh.

In particular, Pure Global is embracing a circular-economy approach based on the principle of leaving nothing from Melaleuca quinquenervia to waste. The company makes use of by-products from the essential-oil production process to research and develop a range of other value-added products. For example, the residue left after distilling Melaleuca leaves is processed into Melaleuca extract, which is then used to produce herbal bath products for children. The hydrosol from distilled Melaleuca leaves is also blended with Melaleuca, orange and lemongrass essential oils to produce a bio-based floor cleaner. Other products include altar-cleaning liquid, herbal warming oil, etc.

Many of Pure Global’s Melaleuca quinquenervia products are now available through major retail chains. Beyond the domestic market, the company is also looking to expand into global markets in the coming period.

Nguyen Thanh Mai said demand for natural healthcare products is continuing to grow. In response, Pure Global plans to further strengthen its partnership with the Forestry Science Institute of South Viet Nam to develop Melaleuca quinquenervia essential-oil raw-material areas. The company also hopes to work with the Institute to develop other essential-oil-producing plants, including eucalyptus, Calophyllum, betel leaf, etc.

Dr. Kieu Tuan Dat said the partnership between the Forestry Science Institute of South Viet Nam and Pure Global to develop a Melaleuca quinquenervia essential-oil raw-material area represents a new approach that can accelerate the transfer of technical advances and research findings into commercial production.

Growing Melaleuca quinquenervia for essential-oil production at the Thanh Hoa Forestry Experimental Station is delivering significantly higher economic returns than growing Melaleuca for timber. According to Dr. Kieu Tuan Dat, timber-grown Melaleuca is harvested after six years, generating an average profit of VND 10-15 million per hectare per year over the entire production cycle. Once the timber is harvested, the entire area must be replanted, requiring additional investment in seedlings.

By contrast, Melaleuca grown for essential-oil production can be harvested for its leaves after just two years, followed by the harvesting of its branches. The trees can be harvested two to three times a year, generating an annual profit of VND 30-40 million per hectare after costs, around three times the return from growing Melaleuca for timber. As only the branches and leaves are harvested, the trees need to be planted only once and can continue to provide raw materials for essential-oil production over the long term.

$ 1 = VND 26,255 - Sources: Vietcombank.

Authors: Thanh Son - Minh Sang

Translated by Phuong Linh

link dẫn: Creating more value from Melaleuca by leaving nothing to waste