Eucalyptus industry fights back against fake oil, cheap imports

The eucalyptus industry in Australia is combating the threat of inferior, cheap imports that are often substituted with camphor oil. This problem has prompted two major producers to invest heavily in upgrading their oil production capabilities. These companies, together with other Australian producers, aim to ensure that the majority of their eucalyptus oil is produced locally to support a sustainable industry and maintain competitive pricing.

The main ingredient, blue mallee eucalyptus (Eucalyptus polybractea), is harvested for its high-quality oil, which is used in a variety of products ranging from pharmaceuticals to confectionery. However, imported eucalyptus oil, primarily from China, is often of lower quality and cheaper, leading to a decrease in demand for Australian products. To address this issue, Australian producers have invested millions of dollars in new, more efficient distilleries and harvesting equipment.

The new facilities have led to a significant increase in production and efficiency for the Davis and Abbott families, who together own over 7,000 hectares of eucalyptus plantations. By carefully selecting and breeding elite trees, they have managed to increase the oil content in their trees from less than one percent to close to seven percent. The Abbott family's plantations are the result of decades of careful genetic selection and propagation, while the Davis family has recently opened a new, ultra-efficient distillery.

The COVID-19 pandemic has also contributed to increased demand for eucalyptus oil due to heightened awareness of hygiene and a preference for natural products. With the infrastructure in place, Australian producers are well-positioned to meet this growing demand and maintain their competitive edge in the global market.