By K. C. Soares, ContributorI HAVE been on many occasions asked the question - what business is best to go into at this time? My answer is usually largely determined by the person asking the question.
I usually take a few moments to sum up the individual as to his or her background and his or her capacity to invest. No use recommending to a roadside shoemaker that he should start distilling rum as there is a great market for this item.
One type of business that can be profitable at different levels of investment is the production of essential oils and this is highly recommended. Essential oils have been used for thousand of years in perfumes, pharmaceuticals and food flavouring and more recently in what is termed bio-pesticides. Bio-pesticides are naturally produced substances that has the same effect as the regular pesticides but are not persistent and are therefore more environmentally friendly. When pesticides are persistent they remain active in the environment for a long time and can create problems such as poisoning of water thus killing fish and other living things.
Another well known use of essential oils is in the treatment known as aromatherapy. This treatment can have subtle effects on the mind and emotions.
Essential oils are found in the cells of various plants organs, ranging from the roots, bark and leaves to the seeds, fruits and flowers. Here in Jamaica some of the well known plants producing sought after essential oils are pimento, pepper, geraniums, camphor, lemon grass, cinnamon, ginger, vanilla, cloves, rosemary, wild ginger (turmeric) and a host of other plants. Even the oil from citrus seeds is being sought after for use in the production of beverages. Essential oils are all around us. Some of the everyday uses of these oils include the use of clove oil in toothpaste and against toothache, while the rosemary oil is used as a sedative. The pimento plant is indigenous to Jamaica and by virtue of this we should have had a monopoly on the production and trade of allspice.
One of the good things about the essential oil industry is that raw materials are all produced here in Jamaica. A significant amount of the raw materials necessary to produce these oils are indeed grown in the wild. One just have to travel in the country parts of the island and there to be seen are large quantities of wild ginger, lemon grass, pimento trees etc. It would therefore be relatively easy to establish nurseries of a particular plant with the intention of extracting the required oil for commercial purposes. As an agro-industry, the essential oil sector can be an important contributor to the nation's economy.
To start this business a whole range of machinery can be used. I had a client once who made his own machinery to extract the oil from the leaves of the pimento plant. He then used this oil to make scented candles, which were then sold to the pharmaceutical industry. The machinery used was somewhat crude and did not produce consistent levels of quality to keep him in the business. To get the high levels of quality now demanded by customers, especially those on the export market, the use of modern machines is necessary. These machines have varying levels of output hence the flexibility in the size of operation. If you are interested in a relatively small operation then you can get a small machine. On the other hand, if you are interested in a large operation then you buy a machine with a large output capacity per unit time. The production process tends to be capital-intensive meaning that not much labour is required. Since labour is at times difficult to come by in the rural areas, this type of industry is ideal for such areas. It might be worthwhile for the Government to have a close look at this sub-sector as it has the potential to contribute significantly to the economy and balance of trade.
`For the export of these oils, the exporter will have to conform with international systems and procedures. These are standards set by the International Standards Organisation (ISO). One of the requirements is there should be special packaging materials and essential oils must not be stored in plastic bottles.
The market for essential oils is attractive but one has to be sure that there is consistency in the quality produced. Any contamination of the products will turn-off the purchasers, especially importers, of these oils.
K. C. Soares is a former banker and is now a business consultant with Soledad Financial Services Limited. E-mail: soledad@netcomm-jm.com.
