Variation in oil concentration and economic return from tea-tree (Melaleuca alternifolia Cheel) oil

Abstract

The oil concentration in tea-tree (Melaleuca alternifolia Cheel) twigs was measured over 8 consecutive days during November 1987, and over 10 out of 12 consecutive days in January 1989. The oil concentration, measured in units of volume of oil per unit dry weight of twigs (v/DW), varied markedly between successive days, from 2.9-1.8% v/DW (a 38% decrease) to 1.8-3.4% v/DW (a 89% increase). The reason for such variation is unknown but it had a pronounced effect on the profitability of growing the crop. The profit, which was expressed as a return on the total set-up cost of $A17 2591ha, was estimated for each of the measured oil concentrations and fixed values of biomass yield, the price of oil and average production costs. The extreme daily variations in oil concentration mentioned above caused the return on investment to decline by 11 percentage points and increase by 16 points, respectively. When measured at the same site, the mean oil concentration increased from 3.1% vPW in November 1987 to 5.8% v/DW in January 1989. As a consequence, the respective mean returns on investment increased from 0 to 26%.