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Manitoba Agriculture, Food and Rural Initiatives

December 2005

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Herb & Spice Industry Overview
-- Nutraceuticals - Functional Foods /
Opportunities for Manitoba Producers in the Herb and Spice Industry --

Nutraceuticals - Functional Foods / Opportunities for Manitoba Producers

Nutraceuticals - Functional Foods

"Let food be your medicine and medicine be your food"
Hippocrates 400 B.C.

The heightened interest in nutraceuticals is a result of a growing concern by the public which is increasingly willing to take responsibility for their own health. The move away from conventional medical practices into those that are less well documented is not confined to herbal remedies. It is part of a larger interest by the public, in a variety of types of compounds which may confer health benefits when consumed and which are present in plants of many kinds, including common fruits, vegetable, grains and spices.

According to the Canadian Dietetic Association, nutraceuticals are defined as "any substance that may be considered a food or part of a food and provides medical or health benefits, including the prevention and treatment of disease". Nutraceuticals or functional foods can be isolated nutrients, dietary supplements, genetically modified foods, herbal products and processed foods.

The market for nutraceuticals is growing. It is estimated that $250 million, or 50% of the U.S. food market of $503 million may be attributable to nutraceutical products if taken at its broadest definition.

Japan is a world leader in the area of legislative health claims on food. Nutraceuticals constitute a $4 billion market in Japan. The Japanese government formally recognizes nutraceuticals as an alternative to drug therapy and established a regulatory category Foods for Specific Health Use (FOSU). Consequently, the international market is seen as more favourable than the domestic scene, due primarily to supportive legislation.

Despite minimal information on the nutraceutical industry in Canada, this sector has the potential to grow and capitalize on tremendous global marketing opportunities. It is essential to characterize the existing Canadian nutraceutical industry, and identify what is needed to help it take advantage of the expanding market for nutraceuticals, both as final products and as food ingredients around the world.

The term, functional food originated in Japan. Faced with increasing health care costs and an aging population, the government launched a program to promote the development of foods with health and medicinal properties. Examples of functional foods currently on the Japanese market include: milk with Vitamin D, orange juice with calcium, high fiber waffles, and Schwepps has introduced a Vitamin C enhanced cola.

Experts believe that the identification and extraction of biologically available ingredients of either animal or vegetable origin appear to be the key to the development of the nutraceutical concept in Canada. Proving their value will be critical to ensuring not only the protection of the consumers health, but also the strength of the market by boosting consumer confidence. The food ingredient sector is leading in this area.

The Canadian Food and Drug Act and Regulations which prevent health claims on food or in advertising is seen as the dominant barrier to growth in the Canadian nutraceutical market. Presently, no company markets only in Canada which has limited consumer awareness, a smaller market and tighter legislations. It is essential to bring regulatory agencies (food and drug) together to discuss the issues and options, and to determine scientific information about nutraceutical products. These steps are required to bring about positive, realistic regulatory changes that would facilitate appropriate promotion and marketing of nutraceuticals based on their risk-management or disease-preventative attributes.

The nutraceutical industry is targeting chronic disease risk management so as to minimize rising health care costs. In response, the opportunity exists to tie reductions in health care costs to the development of value added agricultural products.

Herbs and spices offer more than flavour with their characteristic antioxidant and antimicrobial activity. The U.S. National Cancer Institute is investigating several plant ingredients with anticarcinogenic activity including diallyl sulfite in garlic, quercetin in onion, and glutathione in parsley. However, the functional dose is high, often ten times the usual condiment level. Genetic engineering which can be used to increase the natural content of the active ingredient may provide efficiencies in this area. Often, the high dosage creates side effects such as an unpleasant taste. This can be addressed by encapsulating the active components or reducing the natural flavour.

The nutraceutical industry is part of value-added processing of Canadian agri-food commodities. The goal of the Canadian Nutraceutical Innovation Centre and Network is to stimulate the competiveness of Canada's agri-food nutraceutical sector which will contribute towards increased production, processing and associated employment.

Opportunities For Manitoba Producers In The Herb And Spice Industry

New crop diversification, economic growth through the identification of new or expanded markets, and increased utilization of Manitoba commodities, are some of the opportunities available to Manitoba producers of herb and spices.

Import substitution offers Manitoba herb and spice producers opportunities to capture a larger portion of the domestic market. The ability to substitute imports with local production is founded on the basis that in many cases imports originate from countries where environmental pollution continues to be a problem, products lack proper identification, ingredients quality standards and potency are uncertain, and freedom from unregulated chemical use cannot be guaranteed.

In marketing a product the fact that the herb or spice is produced in the Canadian environment which is recognized as clean and wholesome, can provide a competitive advantage. Canadian harvesting, processing and storage technologies also contribute to a consistently higher quality product which further strengthens marketing advantages.

Prairie provinces are very suitable for growing many medicinal plants, for example, echinacea, astragalus, mints, valerian, feverfew, oil-producing plants, possibly goldenseal, uva ursi and a multitude of wild plants. Cool temperatures, appropriate heat units, large growing areas and harsh winters all are factors that support the development of a hearty herb and spice plant that can result in higher quality products with minimal disease problems.

Cool climates in particular can be a critical factor in encouraging higher concentrations of active ingredients. Root crops need little irrigation. Abundant sunshine and dryland farming conditions both are factors that give a province like Manitoba a distinct advantage.

Manitoba is also home to a diverse collection of wild plant species. Buyers of medicinal herbs pay a premium for wild products because the chemical constituents of plants are more concentrated. The natural sourcing achieved through utilization of wild plants further supports a premium prices.

The virtually limitless production base and the strong resource skills of producers currently in the market places Manitoba in an excellent position to both produce a quality product and abundant supply to meet domestic market opportunities that are concentrated in the ethnic and niche sectors.

 

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