Madagascar Aromatic and Medicinal Plants Value - Microlinks

Table 7: Estimated Numbers of Fixed and Mobile Collectors in Three Study Areas
Type of
Business
Tsirangiana
Nairorvana
Tsaraivany
Commune
Beforna
Ambatovala
Ambouhibary
Anosibe-Anala
Total of Six
Communes
Collector/fixed 46 10 4 60
Collector/mobile herbalists 8 4 3 15
Collectors/opportunists 5 2 4 11
Total 59 16 11 86
Source: Interviews with Rural Commune officials (2006)
3. PROCESSORS
Processing (distilling/extracting/drying) plants:
There are approximately 37 large processing firms that
convert vegetative material into bulk or consumer grade
products; 26 of these are exporters. These firms are
located in the capital city, Toamasina and other large
towns. Additionally there are numerous small to midsize
distilleries located in small towns or near collection
points closer to the plant source.
The smaller units can be divided into two types. The first
are the “formal” 18 affiliated distilleries associated with
larger exporting businesses (Label CBD, Phael Flor,
HOMEOPHARMA and Talamanga). They are
constructed of high quality material (welded stainless
steel), use low pressure steam boilers to control heat,
have access to testing equipment, possess up-to-date
technical knowledge, and produce a quality product.
These formal distilleries are either affiliates of exporting
operations or are tied to exporters through production
contracts. They are recent additions to the AMP value
chain and their numbers are comparatively small. During
TEXT BOX 5: PHAEL FLOR
Phael Flor is a Malagassy firm established in 1985
by a perfume chemist who produces extracts from
aromatic products. Its principal clients are in
France, although it ships certified organic products
to the U.S. The firm began by sourcing plant
material from wildcrafters and processing them in
Antananarivo. It now sources from its own
plantations, from cultivators and from some
wildcrafters. To move closer to suppliers, it
decentralized its facilities by installing small
modern distilleries and plant drying facilities in
rural areas close to the plant source. Phael Flor
initially places a head office employee to operate
the decentralized mini-plants, then leases these
rural businesses assuring a market through
production contracts. In 2005, it sold 120 kg of
cinnamon essential oil. One year later, its export
has increased to 250 kg (at € 210/kg). It also
exports raventsara, ginger, lemon grass and vetiver
extracts.
the survey, the team identified four in the Fianarantsoa area, three in Moramanga and one in Tsivangiana-Mahanoro.
The other type of distillery is “informal.” These are generally constructed of lower quality material (steel drums instead
of stainless steel, direct heat to the plant material in place of low pressure steam), with insufficient measuring and
product testing equipment. They are inefficient and produce low-grade output. According to interviews with rural
commune officials (Table 8), these small and medium-sized enterprises represent a “large” share of the processing
sector, though as often the case with informal sectors that are highly mobile, accurate data is not available.
18 Tax-paying, registered companies that advertise and have a fixed office.
MADAGASCAR AROMATIC AND MEDICINAL PLANT VALUE CHAIN ANALYSIS 32