SUSTAINABLE AGRICULTURE AND FOOD PRODUCTION
Aromatic plant oil extracts for perfumes, cosmetics and food
Market
| Final Products | Oil extracts |
| Required Inputs | Aromatic plants |
| Competing Products |
Low competition |
| Potential for Export | High |
Process
| Complexity – Type of Process | Simple – thermal process |
| Technology | Mixing, evaporation and distillation |
| Equipment and Material | Oil extraction unit |
| Human Resources | Manual labor, chemists and quality engineers |
Business Linkage
| Forward Linkage | Food and cosmetics industry |
| Local/Regional/Nationwide | Local market- Upper Egypt region |
| Backward Linkage | Farmers |
| Supporting Entities | Equipment suppliers, testing facilities, packaging material suppliers |
| Competitive Edge |
Provide high-quality oils at competitive cost due to high availability of supply and low transportation cost |
Economic Features
| Revenue Stream | Sales of extracted oils |
| CAPEX | Consists of the cost of machinery with an average of 10.8M EGP Note: This CAPEX represents the indicative investment size, however, this investment opportunity can grow in implementation to a larger-sized investment. |
| Investment Size | Medium (between 5-50M EGP) |
Considerations
| Key Challenge | Mass production, marketing and sales services, access to high-quality suppliers, meeting product specification and standardization |
| Advantages | High profit margin and value-addition |
| Potential Pathways to Growth | Production of higher value-added feedstock as natural alternatives to synthetic antioxidants and preservatives, production of packaged and branded consumer products |
General Impact
| Environmental | Reduces waste of herbal and aromatic plants, processing material close to the field reduces emissions in transportation |
| Social | Increases returns on agricultural produce, high innovation opportunity, creates job opportunities |
Impact on Sub-market(s), Cluster(s) and Value Chain(s)
| Relevant sub-market | Intermediary to industries (food, pharmaceutical, wood and paper) |
| Lies within the following value chain/cluster(s) |
Medical/aromatic plants and herbs, food processing and packaging |
| Impact | Promotes value-addition to medical/aromatic plant and herb production |
Studies
| Serial | File name | Download |
| 1 | UNIDO IGGE_VC Cluster Competitiveness & BOM |
