Economic potential of essential oil production from New Zealand-grown Eucalyptus bosistoana.

Farm foresters and other growers are establishing a ground-durable hardwood resource, including the emerging plantation species Eucalyptus bosistoana in New Zealand. The foliage of this species contains essential oils in quantity and quality suitable for commercial extraction. Essential oil production could improve the economic viability of E. bosistoana plantations, diversifying the grower's income and providing an early revenue stream. This study assessed the economic potential for essential oil production from New Zealand grown E. bosistoana plantations. A sensitivity analysis indicated that uncertainty of leaf biomass availability, genetic as well as seasonal changes in oil content, and fluctuations in essential oil price are equally important on the viability of an essential oil operation. Small-scale essential oil production could be sustainably supplied with foliage from thinning and pruning operations sourced from the envisaged regional planting programmes and commence in 3-5 years. A large-scale operation could be supplied when trees will be harvested. Lastly, based on the operational costs of a domestic small-scale essential oil producer, oil value from E. bosistoana would exceed the cost of production.

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