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Herbs

General

Culinary and medicinal herbs are used in the food, pharmaceutical, cosmetic and beverage industries.

At present there are 10 - 20 centres growing culinary herbs and about five medicinal herb growers in Scotland. Many species of herbs can be successfully cultivated in the Northern European climate, with several exceptions, including plants grown for seed production or plants with specific growth requirements.

Producers may grow under contract to a large food manufacturer or supply their local retail market.

Please remember that special consideration must be given to the VAT aspects of diversification as the new activity may not be treated the same as the existing farm business from a VAT standpoint.

Market

At present, some 1,000 ha of herbs are grown in the UK, but the potential market is large and supplied mainly by imported material from Mediterranean countries. Herbs for the culinary market have an annual value of approximately £30 million and the consumption is increasing by 10% per year.

The primary market for herbs is the food manufacturing sector which processes 50 - 60% of the products (fresh, frozen, dried and volatile oils); the secondary market is the retail and catering sector. A small amount of herbs is required for medicinal purposes.

Physical Requirements

  • Land: High quality land is required, preferably with a light soil. However, only a small acreage is needed in the early stages.
  • Buildings: A small area may be needed for processing and packaging of the herbs.
  • Special Equipment: Irrigation or protective equipment may be required in some areas, depending upon the type of herb being grown, the locality and microclimate. Harvesting, drying and/or storage equipment will be required for large-scale production.

Costs

The following costing information is general and current prices should be sought for budgeting purposes.

Capital Costs

Capital costs will depend on the scale of operations. They are likely to be low, unless harvesting equipment is required. Polythene tunnel housing.

Running Costs

Stock - plants and seeds - variable, say £500/acre. Fertilisers and sprays - minimal, particularly for fresh market. Labelling, packaging materials, etc are a high part of cost for retailing.

Returns

To ensure profitability, it is essential to keep a track on market prices which are relatively volatile. Returns vary considerably depending on herb type and market supplied.

Prices vary enormously. Retail price for fresh herbs, c.50p/packet. Price eg. Fresh sage £170/tonne (7-8t/acre) Fresh Parsley £60/tonne (12-15t/acre)

Constraints

  • Large price fluctuations.
  • Quality standards for microbiological contamination and chemical composition.
  • Legal restrictions apply to certain medicinal herbs.
  • Some problems with pests and diseases, which cannot be met through pesticide use, etc.

Training

None specific. Universities and Agricultural Colleges provide horticultural courses. British Herb Trade Association and Essential Oil Trade Association run training courses aimed at specific aspects of herb production.

Grants

Through the Scottish Rural Development Programme (SRDP) 2007-2013 funding is now available for rural businesses throughout Scotland for diversification and renewable energy projects. Specifically, support is delivered through Rural Development Contracts – Rural Priorities which was launched in April 2008. For further information about what support is available see the Section on Rural Development Contracts – Rural Priorities.

Further Information

Publications

Culinary and Medicinal Herbs as Field Crops in Scotland. R.K.M. Hay, K.P. Svoboda and S.G. Deans. SAC (Auchincruive) Annual Report Review Article.

Growing Herbs. Rosemary Titterington, The Crowood Press (1987).

Contact

Mr Steven Thomson
SAC (Scottish Agricultural College) Work SAC, King's Buildings, West Mains Road,
Edinburgh
EH9 3JG

TelWork 0131 535 4192

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