Australian lavender growers are facing significant challenges due to competition from imported products, which are often cheaper and of lower quality, according to industry associations.
Local Growers Grapple with Market Pressures
Phe and Ken Viljoen, who have been cultivating Grosso lavender in Milthorpe, Central West NSW, for 24 years, operate a small enterprise. With 6,000 plants, they yield approximately 10 litres of oil annually. They manually harvest and distil their lavender, selling directly to customers.
The Viljoens, like many Australian growers, struggle to compete with the low prices of imported lavender oil.
A report by AgriFutures Australia indicates that the country imports over five times the amount of lavender it produces.
The Australian Lavender Growers Association (TALGA) expresses concern over the influx of 'lower quality' imported lavender oil, which they suggest may be diluted.
The Viljoens confirm their distillation process produces 100 per cent unadulterated lavender oil, without water dilution, distinguishing it from some imported products.
Global Market Dominance and Niche Production
Global competition is a major factor, with countries like Bulgaria dominating a significant portion of the international market. Since joining the EU in 2007, Bulgaria has expanded production to represent 50 per cent of the global lavender market, impacting Australian exports.
Australia has just over 100 lavender growers, making it a niche commodity.
Regulatory Framework for Imports
Imported lavender oil is subject to regulatory requirements from the Therapeutic Goods Administration (TGA) for therapeutic use, and the Australian Industrial Chemicals Introduction Scheme (AICIS) for cosmetic or fragrance use. These are in addition to biosecurity standards.
Unadulterated Guarantee and Price Divide
Fiona Glover, a TALGA public officer, states that Australian-made products guarantee unadulterated oil. She notes that imported oils often appear clear, in contrast to the yellowish hue of pure lavender oil, suggesting dilution.
The price disparity is significant: a 10ml bottle of imported '100 per cent pure' lavender oil can start at $3 on Australian shelves, while a comparable Australian product begins at $20.
This difference is attributed to higher labor and material costs in Australia.