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A successful switch from grain to tea tree oil
Farmer's Weekly
|January 07 - 14, 2022
On a quest to diversify away from the crops traditionally cultivated in Mkhondo, Mpumalanga, André de Waal shifted to the production of essential oils. By growing, distilling and marketing these products, he has gained greater control over the value chain, ensuring his business is both viable and sustainable.
FAST FACTS
A successful essential oils business requires access to distillation facilities and a secure market.
The production of essential oils is climate-specific and labour-intensive.
Shareholding in Ayanda African Oils provides André de Waal, owner of Delft Agri, with a sizeable and steady market for his essential oils.
The stagnating profitability of the forestry and grain divisions of André de Waal’s farming business, Delft Agri, saw him seeking to invest in a high-value crop. Considering the climate of the area (he farms near Mkhondo in Mpumalanga), both macadamias and essential oils were viable options, but after crunching the numbers, the latter came out tops.
“I specifically looked at tea tree, lemon-scented tea tree, Eucalyptus and rosemary. Since they’re in production far more quickly than macadamias, they can generate an income sooner.
“The first block of tea tree was planted in 2018, and we haven’t looked back,” says De Waal.
The farm currently has 70ha under essential oil crops, and another 60ha is in the process of being planted.
A FLOURISHING MARKET FOR ORGANIC OILS
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