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Managing the Miombo Woodlands of Southern Africa - PROFOR

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BOX 2.2. NEW PRODUCTS AND NEW MARKETS: THE CASE OF MARULA<br />

Fruit from <strong>the</strong> Marula tree (Sclerocarya birrea), which is widely distributed in <strong>the</strong> miombo region, has<br />

formed <strong>the</strong> basis for a new global industry for <strong>the</strong> alcoholic cream liqueur Amarula. Marula ripens between<br />

January and mid-March, and, when allowed to ferment, can create a potent traditional beer. Its high sugar<br />

content and mild flavor made it a good candidate for fur<strong>the</strong>r commercialization and market development.<br />

Starting in 1989, <strong>the</strong> South <strong>Africa</strong>n company Distell began commercial production <strong>of</strong> Amarula cream in<br />

South <strong>Africa</strong>. Fruit is harvested from <strong>the</strong> wild by communities, sorted, purchased by <strong>the</strong> company, and<br />

<strong>the</strong>n pulped. About 2,200 tons <strong>of</strong> fruit are purchased annually for pulping. The pulp is fermented, <strong>the</strong>n<br />

distilled and blended into <strong>the</strong> final product, which is now sold globally in around 150 countries. Amarula is<br />

currently <strong>the</strong> second-best selling cream liqueur globally (after Bailey’s Irish Crème).<br />

Despite <strong>the</strong> quite rapid rise in Amarula’s popularity and <strong>the</strong> vast expansion <strong>of</strong> its markets, <strong>the</strong> relative<br />

value <strong>of</strong> <strong>the</strong> market for fruit is quite small. In 2002, <strong>the</strong> total value <strong>of</strong> <strong>the</strong> commercial marula trade<br />

was estimated to be around R 1.1 million a year in South <strong>Africa</strong> (around US$125,000 at <strong>the</strong> time). This<br />

is relatively small in comparison with o<strong>the</strong>r traded natural plant products. For example, <strong>the</strong> trade in<br />

medicinal plants in <strong>the</strong> Mpumpalanga region <strong>of</strong> South <strong>Africa</strong> alone is valued at between R 62 million to<br />

R 92 million per annum (currently between US$8.7 and US$13 million).<br />

Even so, <strong>the</strong> trade and processing <strong>of</strong> marula fruits and by-products (i.e., nuts and oil) produce signifi cant<br />

financial benefi ts to a relatively small number <strong>of</strong> households through <strong>the</strong> generation <strong>of</strong> cash incomes in<br />

an area <strong>of</strong> South <strong>Africa</strong> where poverty and unemployment levels are high. A number <strong>of</strong> constraints limit<br />

fur<strong>the</strong>r market development.<br />

• There are signifi cant ineffi ciencies in <strong>the</strong> marula trade, with <strong>the</strong> greatest losses incurred as a result <strong>of</strong><br />

poor coordination <strong>of</strong> transport with <strong>the</strong> fruit buying companies.<br />

• Volumes traded are relatively small given <strong>the</strong> numbers <strong>of</strong> people involved in <strong>the</strong> trade. This limits <strong>the</strong><br />

signifi cance <strong>of</strong> cash benefi ts.<br />

• At an industry level, <strong>the</strong> supply <strong>of</strong> marula fruit exceeds demand with <strong>the</strong> result that <strong>the</strong> suppliers <strong>of</strong> fruit<br />

and kernels are price takers and have no ability to increase prices.<br />

• There are few barriers to selling marula fruit and kernels to <strong>the</strong> processing firms; access to global<br />

markets is a greater constraint.<br />

• There is no signifi cant current consumer demand for o<strong>the</strong>r domestically traded marula products, such<br />

as jams and juices. The market has to be developed despite widespread knowledge about <strong>the</strong> fruit and<br />

its qualities.<br />

Source: Institute <strong>of</strong> Natural Resources (2002).<br />

Expanding domestic markets<br />

Growing urban populations have greatly increased <strong>the</strong> demand for charcoal, medicinal plants,<br />

wild meat, and construction wood, among o<strong>the</strong>r products (Lowore 2006; Shackleton et al. 2008).<br />

30 MANAGING THE MIOMBO WOODLANDS OF SOUTHERN AFRICA

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