What is known about the medicinal plants 1. Current domestic & international markets are large:
80% of worlds population uses medicinal plants
25% of prescribed drugs contain plant ingredients
Global trade > USD 500 bln in 2000
2. Demand for medicinal plants to produce 3 kinds of
Allopathic medicines
Herbal remedies
Crude traditional medicines
Allopathic medicines
• Formally produced & recognised products, often a result of • Phytomedicines, cosmeceuticals, nutraceuticals etc • Traded on the formal market through established commercial • Source raw materials from farms / the wild (harvesters) Herbal remedies
• Traded in formal & informal markets through large & small • Raw materials sourced from the wild & small farms o Benefit sharing / returns to entrepreneurs Crude traditional medicines
• Prepared & sold by traditional healers • Raw plant materials, basic mixes & semi-processed products • Raw materials sourced from the wild or home gardens Trade & Commercialisation Opportunities International Markets
Europe imports 132,000 T – 20% from Africa
Asia: 700,000 T used in China (China & India ss)
US imports 200,000 T - (China & India ss)
Significant intra-Africa trade
Southern African plants being exported:
Aloe ferox, Prunus africana, Cassia spp., Harpagophytum
Trade & Commercialisation OpportunitiesCrude Traditional Medicines Market in southern Africa is increasing -
HIV/AIDS & increasing urbanisation
455,000 Traditional Healers in southern Africa
Estimated 50,000T / a consumed
Informal trade – seem to be opportunities for increasing
trade & returns

Options may be limited because of certain constraints
Consumer preferences - little is known

An overwhelming majority of consumers would prefer more
modern & hygienic packaging & that traditional medicines
should be certified

Trade & Commercialisation OpportunitiesHerbal RemediesMarket is growing globally Opportunities for product development, domestic trade & export Few commercial companies have penetrated traditional healthcare market Market for African herbal preparations small, potential unknown Demand for individual products known - broader market? Market for African herbal products in Europe, local companies already trading raw / processed products into these countries Quality & production standards for products exported to Europe are high Trade & Commercialisation OpportunitiesAllopathic Medicines Bioprospecting e.g. Hoodia & Hypoxis; significant investment required for drug development Large commercial companies likely to pursue business opportunities Access & benefit sharing will become important means of securing economic & social benefits International market for southern African plants underpinned bioprospecting & plant research Market specific about products - processed form & chemical constituents of raw materials Critical that the producer fully understands the specifications of the buyer before investing in the production system Market Opportunities for Plant Cultivation Much of the potential for market growth in the medicinal plants sector is limited by supply constraints These would be eliminated if the medicinal plants were successfully cultivated. Increased supply of rare plants that are in high demand would almost certainly bring about market growth BUT increases in raw material supply can affect pricing and havea negative affect on the market as a result An increased and more consistent supply of good quality plant material would allow more advanced processing to take place Other Opportunities for TradeFair TradeAims to secure a better deal for producers by setting stable product prices that cover costs plus a premium Promotes access to markets for producers marginalised by conventional trading structures Many African producers & production systems face a range of logistical difficulties that can alienate them from sophisticated / high-volume markets Limits opportunities for rural producers to engage markets in developed countries - products are priced incorrectly, product is not of adequate quality, or sufficient quantity cannot be produced Fair Trade presents a real opportunity for linking rural production enterprises to sophisticated markets through trade and pricing agreements BUT no standards for medicinal plant products Other Opportunities for the TradeCertification Sustainable production / sourcing certification Some of these require development of standards specific to medicinal plants industry & establishment of certification organisations BUT production systems / certification procedures may be sophisticated – limited portion of the trade could engage Presents a clear advantage for future trade into developed markets SO need to start thinking about which certification systems would work, where & how Need to IMPLEMENT sustainable supply systems – for
supporting commercialisation – Otherwise no development

Need to commercialise within the industry (create value
adding) – for better economic returns and incentives for
implementing sustainable supply systems (cultivation,
sustainable harvesting) – BASIC NEEDS PRINCIPLE

Need to look to new certification, branding and trade
systems to maximise the opportunities for producers –
improved livelihood impacts

Need to tap into existing markets (e.g. US, EU) and
promote intra-Africa trade, as well as overseas trade

Need to think laterally about how conservation areas can
contribute to sustainable supply of medicinal plants


CURRICULUM VITAE TRAVIS W. HEIN, Ph.D. CONTACT INFORMATION TAMUSCOM Medical Research Building, Room 106E EDUCATION Postdoctoral Texas A&M University System Health Science Center. Field of Study: Training Cardiovascular Physiology, Microcirculatory Control. Mentors: Drs. Lih Kuo andMariappan Muthuchamy (September 1997-August 1999). Medical Sciences, Texas A&M University Sys

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